The bank plays a ledger magic trick to give you the loan, and essentially invents money that didn't exist. They create money out of thin air by your promise to pay them back in the future.

You nailed the point my friend. Banks are looting common men while they are doing everything to increase profit of big corporate.
For example in India corporate sector has not paid more than 150 billion USD to banks which they borrowed from banks. This has become Non Preforming Assets for banks.
Many industrialists have left the country while declaring their company bankrupt. They even not paid salary to their employees. Legally they are not liable to repay the loans, their company is liable but companies' total capital is not more than one to ten percent of the total value of money which they have borrowed. Banks are becoming bankrupt while rich are flourishing. Hard earned money of common men is becoming a tool to make rich richer.
This is a vicious cycle. I have a lot to say but a comment has its limitation. I'll write on it in my post someday.