If I recall correctly- when I deposit the $1000 the bank technically creates a new loan in their ledger in the amount I deposited, and credits my account the $1000.
After reading nostr:npub1a2cww4kn9wqte4ry70vyfwqyqvpswksna27rtxd8vty6c74era8sdcw83a 's Book I had the following surprising insight:
**If you have money on a bank account, you owe it to yourself, it is not your wealth!**
How that? Let's look on the assets and liabilties in a fiat system where Central Bank assets are mainly treasuries:
If you have $1000 deposit on a bank account, this is your asset and your bank's liability.
The bank has these $1000 as a reserve asset at the Central Bank account, where it is a liabilty for the Central Bank.
This liabiltity is covered by a bond issued by the government.
This bond is a liability for the government. And now: What is the asset to cover the liability of the government?
**It's YOU, the taxpayer!** You have to pay to the government the $1000 you have in your bank account. Full circle YOU -> Government -> Central bank -> Bank -> You.
O.k. It's heavily simplified. In reality:
* There is a time lapse between bond issuance and tax payments.
* Government nominal debt never diminishes over time, so the liability is covered by more debt.
* Tax burden is not evenly distributed among taxpayers.
* Central bank has also other assets (Deutsche Bundesbank mainly 80% bonds from other countries and liabilities from other national central banks in the Euro System). So taxpayers of other countries owe me most of the $1000.
* and probably many more other details.
But nonetheless a nice thought experiment for gettings suspicious of money in a bank account.
Discussion
Not, a loan. A liability. They owe you the money in your account. But in the same moment they create an asset at their central bank account. A.s.o.
When you take a loan, it's your liabilityto the bank. Then they create an asset. No central bank involved and no goverment bonds.
I thought their loan asset had to be backed by a corresponding bank reserve on fed balance sheet?
They need some reserves but the requirement is almost zero nowadays.
There’s a distinction between commercial bank reserves and central bank reserves I thought.
Central bank bank reserves are inter-bank central bank currency, the stuff of QE. Those don’t go out to commercial circuit, the consumer economy.
And then widespread growth of commercial bank reserves are a post-2008 phenomenon lol 
Banks sold their Treasuries to the FED, so the asset treasury was exchanged against FED reserves. On a large scale.
Long but excellent: https://lynalden.com/money-printing/