Someone hasn't been doing their homework and it's not this little girl. Although she talks specifically about the Canadian banking system, this is a pretty accurate description of how every banking system in the world is set-up. So here's our homework for today, to listen and learn.
To further research, check out The Money Masters or the Money as Debt three part documentary series. (It appears that these were produced with fairly modest budgets, but the information contained in them is, in my view, crucial and very enlightening to the inner workings of the banking system.) You should be able to find these in a video sharing site near you.