Originally Posted by
UWDude
It is too being spent. It is being spent by the borrower, and then being deposited by the seller back into the seller's bank.
And do you not understand that the money is not created for one bank, but for the banking system as a whole? Seems like you are talking about it as if this is only a one-bank system.
Either way, there is a drain that makes this little racket fraudulent: interest. Book or no book, You deposit $100, eventually the banking system will loan out $900, and charge interest on it.
Furthermore, at the highest level, there are no more reserve tables anymore. Banks can loan out as much as they want, regardless of the reserves. This was changed first to 1/30th, than anything in 2008.