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[–] Rellik88 0 points 1 point (+1|-0) ago 

Currency loaned for interest immediately debases the borrowed currency due to the interest being magically created into the same system.

The interest has to be paid in real money. That loan they gave is what's fake. They created the principle out of thin air, which real money has to be paid for interest.

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[–] prairie ago 

Banks crate currency. But an individual loaning actual money they hold and charging interest is different.