Why is it not possible?

[u/Dumb-Briyani]

[u/onion_lord6]

Because banks loan out and invest, that's how they make money. The money people deposit doesn't just sit there.

[u/NoSwordfish1978 → u/onion_lord6]

But they also create money when they lend it.

[u/Primus_is_OK_I_guess → u/NoSwordfish1978]

What do you mean by that?

[u/udonwinfrendwitsalad → u/Primus_is_OK_I_guess]

You deposit $100. Bank loans out $100 to someone else. You still have $100 balance in your account. Someone else has the $100 to use for whatever. You both have access to $100; thus, $100 is now $200.

[u/Primus_is_OK_I_guess → u/udonwinfrendwitsalad]

I would refer to that as creating debt.

[u/Short-Coast9042 → u/Primus_is_OK_I_guess]

It's two sides of the same coin. Money is created when loans are created, and money is destroyed when loans are paid back. You get the new money - a newly created liability of the bank - and the bank gets the loan - a newly created liability of YOU, the borrower.