I borrow you 10 money i use to buy my chair-making tools. I make the chair, sell it 20 money, then pay you 12 money back for the service rendered. Basically money is supposed to be a tool that help us creating capital by exchanging goods.

But aren't you confusing the means of exchange with the creation of value.

The creation of value is me taking energy from the sun and converting that into a chair.

You lending me money is you extracting value from artificially being a middleman.

It would have been more efficient to write an IOU to the tool maker, make the chair and pay back the tool maker directly.

Now sure that IOU isn't that fungible - however that highlights one of the absurdities ( if I understand it correctly ) of the current banking system where private banks are able to in effect issue IOU's on their own basis but put mine and your name on it as a guarantor - resulting in the public having to bail out banks when they over extend.