I am trying to wrap my head around the current US banking system and it is very difficult. I have read books by Ron Paul, What has government done to our money by Rothbard, Economics in One Lesson by Hazlitt, and various other articles and books. But I cannot seem to find much literature specifically dealing with the current US banking system and how it works. I get the general facts and the effects of fractional reserve and central banking, but I don’t understand all the details.
Specifically, how does fractional reserve banking create money? Some say you deposit money, and then 90% of that is loaned. Others have said the loan is created first. I don’t know who to believe. I would greatly appreciate any links to videos, articles, or books that can explain what is going on, or your own thoughts if you can. Thanks!