Private banks don’t create money. They create promises of money. If too many people want actual money in their hands, the banks have to get that money from the Federal government. As long as people trust banks to hold their money, the promise to give it to you when you need it is good enough (until it isn’t, then the economy freezes up as it did in 2008.) If private banks create money, what was the crash of 2008 all about?