Hello elohiym! In the show, I roughly followed the outline of the OP, and so it might be easy for you to find the section in which I gave a simple overview of how fractional banking works. I expanded on this statement, that in the, "fractional banking system... lenders bring money into existence when making loans, and expunge the principal as it is repaid." Please feel free to tell me if you can identify anything I said about how fractional banking "actually works" that might be incorrect. I'd correct any error if I can be shown and convinced of it.
The part in bold is proved false by the fact that banks cannot increase an transaction account balance without first depositing money.
Think about what you are saying Bob. You've basically just repeated the banker's vague claim that they can create money out of thin air (tax free principle) that they get to loan out at interest. If if they could legally do that (they can't really), it would be completely immoral. Calling that rapacious usury would be a gross understatement.