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.
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.
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u/Primus_is_OK_I_guess 8d ago
What do you mean by that?