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[VIDEO] Where does money come from?

Apparently banks pull money out of thin air then lend it to borrowers for home loans. Here is what TVNZ reported.

Whenever you apply for a loan or a mortgage the bank you applied ot creates the money out of nothing. It is not lent to you from the banks' holdings, it is not borrowed from other accounts. It simply is entered into a bank account digitally and from that day forth you are contractually responsible for paying back the created money plus all the interest that accrues.

Here's what Seven Sharp reported. What do you think?