How's that? I don't get it. When all the money is created by lending and every borrower must pay back more money than initially created then where does the difference come from? Only from new bigger lending, right?

I don't know if I'm wrong, but I think the main reason for the deflationary collapse is the process of money creation. Money is created through the process of lending by banks. But only the principle is the new money. Where does the money for the interest come from? Over the term of the loan, the borrower must always repay more money than the principle. The banks suck up the money via interest rates until it becomes scarce across the board because there is simply not enough to service both principle and interest. The music stops, a new bailout (bigger loans) for the well-behaved, inflation an bankruptcy for the public. A perpetual cycle until you change how money is created.

Well said. So many arguments are full of logical fallacies. But I get it. I was the same way until I really tried to disprove the other side. When you stay humble and truthful you will discover so many inconsistencies that you know the ball must be a lie