why do banks charge interest on newly created loans

Economics Economics Questions
1

if all money is loaned into existence, say a bank loans $10 000 , and since it is a debt-based economy

this is all the money in circulation, whether they charge interest or not does not change the fact that $10 000 i

all they can possibly get back, since no other money exists, so why do they bother charging interest?

can somebody please clear this up for me?

and also, in the story of the goldsmith, when he issued out fake receipts did he use these receipts to

purchase goods and services for himslef or did he loan the receipts out to people?

2

The first question is based on an incorrect assumption - that the money can only be spent once. This is obviously not the case. As for your second question, I’m not sure which “goldsmith” story you are referencing.

3

Because loaning money implies a risk. Charging interest is what incentivises them to take this risk.

4

let me guess, you watched “Money as Debt”?

don’t do that