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Well, that's not money created out of nowhere. The balance sheet extension creates money and an equivalent liability. That's the point of the statement, not money supply and its regulation.

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Fair enough, just wanted to point out that banks originate money as part of the lending process. You could maybe call that "money out of asset purchases" whatever that means and yes its a valid balance sheet operation. I guess you would agree that a bank needs no prior savings or deposits in order to make a loan, i.e. it doesn't need to have money that it "lends out"?

Or let me ask you this: What would in your opinion be a valid example of "money out of nowhere"?

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