The creation of money in the United States happene in the National Reserve Banking System. In brief words the money is created when the US government ask for money to the Reserve and in exchange they give some government bonds. Then with the money the government recieve, is send to differetn banks in order to create more money. By lending money to people and then they have to pay back with some interest. The total moeny they have just 3% is on paper and the other 97% is virtual. Almost every transaction made, is virtual.
The money that is lend by the bank is always going to be multiplied, because of the interest. But this money doesn't really exist. Because if debt doest not exist, neither the money and if money doesn't exist, debt wouldn't exist.
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