> That billion dollars had to come from somewhere When you create a valuable thing, you can use it as collateral for a loan. The bank literally creates the mon

> That billion dollars had to come from somewhere When you create a valuable thing, you can use it as collateral for a loan. The bank literally creates the money to loan out out of nothing. When the loan is repaid, the money is destroyed. Think of a dollar bill as an "IOU $1" (which it pedantically is), and it'll make sense.