Replying to Avatar a source familiar with the matter

When the central bank buys assets from commercial banks (QE1) this improves the reserve and capital ratios of the commercial banks, allowing them to create more credit under existing regulations, which does go to borrowers

There's a concept in home and auto lending of an originator, who makes the loan but immediately sells it off, permitting them to go make another loan. When the central bank buys commercial bank assets, this frees up their capital (which bears a regulatory relationship to their ability to make further loans) and this lets the commercial bank act as an originator rather than a traditional lender (who would hold the loan through its life).
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a source familiar with the matter 5mo ago

I've only watched part of this but I agree so far

https://mises.org/podcasts/human-action-podcast/responding-richard-werner-banking

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a source familiar with the matter 5mo ago

The credit can't all be paid back because the real resources don't exist to successfully carry out all the business activities for which it was borrowed.

Moreover, even if it could we see historically that central bank bailouts do happen (because banks lent to businesses which could not carry out their business activities profitably).

Finally, I should point out that inflation followed by deflation is destructive (although less destructive than just unending inflation as we've had since 1971).