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> But the bank hasn't made any money?! It just wants back "more" than it "gave". Am I missing something?

Let's take the example where the bank loans out $10 and wants back $11. The money created in this example is not $1 (when the loan is eventually paid back and the bank makes $1 profit), it's $10 (when the loan is initially given out).

Let's imagine that the bank does not want to make a profit and only wants back $10. Even in this example the bank is creating $10. If you sum up how much money everybody has, people have $10 more money the moment the loan is given out.

It wants the extra dollar, just like any other company in the economy, its working to earn it.

It also doesn't always get the dollar, or even the principle. Lots of people borrow the $10 and only repay $5.

It is also a feedback loop where many of the steps are used to invest in the economy and create more value. So as long as the investments pay off it is a virtuous feedback loop.

Yes, it's a feedback loop.

If the value created from the loan covers the interest, then the whole thing is a net positive for the economy,

otherwise it's a net negative.

Yes, I think. The feedback loop is the economy.