Ben, they are only commenting on these articles from the Bank of England. I realize the Bank of England is not the Federal Reserve Bank system, but I would doubt the two central banks would find banking that different. The BOE may have just decided to be more "transparent" in explaining their operations than the Fed.

Money creation in the modern economy    Bank of England   It is the second article of the two. Click on it to download. Or does the BOE not know how money is created? We are in a world of hurt if even one of the main central banks of the world does not understand it.

While I always try to respect experience and tenure, the world was thought to be flat till proven otherwise. Probably a lot of people still thought it was flat for the next hundred years even after it was proven to not be so. Old "proofs" die hard. The more I learn about monetary operations, the more I find a lot of people that should know about such things really do not at all.

I believe you are also ignoring that when the deposit money leaves the account, it goes into another account in another bank. The amount does not go away when it leaves the bank that creates the deposit. It only goes away when the debt is extinguished.  Read the BOE article.

John