There is way too much info about banking to understand the bad side by looking at it. So, I'll make it simple. Almost all new money comes into existence through bank loans. And the point is the final loan paperwork, the promissory note. Does this note have value if it is not signed by the borrower? No, because you can't trade an unsigned note for any money. The bank won't do it. After the note is signed, it has value that allows it to be traded for money. Since the value of the note is traded for the money, the note actually prepays the loan. The loan is paid off before it is received. It is essentially a creation of new money that you and the bank have done together. All that's left is how to fight the bankers if they come after you for more money (loan payments), AND to use simple processes to clean up your bad credit that results. Search on "Tom Schauf, bank freedom" - https://duckduckgo.com/?q=Tom+Schauf%2C+bank+freedom&ia=web.