The one piece that I was missing is that I thought that banks need to be able to have initial reserve created from people deposits that they then 6x rehypothecate, but what I found is that even that's not the case. They can purely lend new money into existence and when they use offshore branches, then no rules apply.

This also goes against the narrative that Fed is printing money. It seems that the largest printer are the banks lending money into existence. But I would really like to get volume numbers here. (If by any chance @lynaldencontact can correct me, or give some insight)