In the simplest terms, bank has money and loans you $100 if you promise to pay back $105. Repeat this on a nationwide out global scale and they make money without producing anything.
Where do they get their money? Bank says if you give them your $100 to hold for you they’ll return $101 in a year. They loan this money and get back 105, give you back 101 and get $4 in the process.
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