> banks have to either loan out their own money or take their own credit from the government at the key rate to loan it out to customers, so they should want to get credit card debt repaid anyway and not give credit cards to those who declared bankruptcy 1. if i lend you my vacuum cleaner for 2 weeks, i can't actually use it until i receive it back from you, now can i? but if i deposit physical cash and coins in a bank in a checking account, i can still spend that money even though the bank supposedly lends 3rd parties from it. how can the same money, at the same time, both be lent out to someone else to spend and also be available for me to spend as well? obviously, what's actually happening is that new money is created when the bank pretends to "lend" the money i deposited in the bank. 2. and this is if you still believe in the fractional reserve model. which is fake, because: a) other stuff than physical cash and coins may constitute bank reserves. even though they shouldn't. b) the reserve requirement may be complied with retroactively and only needs to be complied with once a month or something like that. c) in the jewnited states of goyim, the official reserve requirement is 0% since early 2020. d) there are places in the world where "infinite rehypothecation" of the same collateral over and over again, as if it were different, separate, additional collateral, is legal. thereby enabling banks the world over to fake the assets they declare as required reserves. even though those assets can be other thing than physical cash and coins in the first place, already. the fact that banks and the system in general will punish you if you don't service your debt or default doesn't mean that banking isn't legalised fraud or that banks lend cash instead of creating fictional cash and coins by pretending to lend it or that the money supply isn't almost entirely fictional. but yes, paying down debt principal destroys fictional cash. and issuing "loans" creates it.
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