[Garth Tater]

They actually do borrow it. The US dollar is a debt-based currency and comes into existence due to a loan made by one of the Federal Reserve member banks.

When the Federal govt sells bonds to the Fed to finance their deficit the Federal Reserve creates the fake-money they use to purchase the bonds out of thin air. Same deal with all the other loans they make. When you take a loan out on your house you are actually being given cash that was created out of thin air.

It's good to be King owner of the magic-money machine!

[Toddsterpatriot]

When you take a loan out on your house you are actually being given cash that was created out of thin air.

You are mistaken. Every loan is fully funded.

The bank you borrow from had to borrow the money they lent to you. Either from depositors or other banks, mostly.