Yes, when loans are created in our current monetary system money is created. That is NOT a characteristic of the lending process, per se, and isn’t even a characteristic of the 70 bottle cap society you introduced.
gold is dilluted on a one to one redemption with a dollar.
What does this mean?
If you have savings…put it in an IBOND
Translation: if you want to store value, lend it, instead, to the government in the hopes that they will have the integrity to maintain some semblance of rationality to the currency. IOW, hope you don’t become Brazil, Argentina, Russia, Malaysia, Indonesia, Thailand, etc., etc. Somewhere in the back of your mind, however, I am sure a voice of reason is reminding you of what Santyana counseled: he who does not learn from history is doomed to repeat it.
I don’t know whether your love for the IBOND or hatred of GOLD is the more irrational and misguided. I can’t imagine, however, that anyone (except you) pays attention to your vapid, shrill ravings on these issues.