I read the article. It is a great explanation of how lending creates money. I could have missed it, but I didn't see in it any mention of money being "extinguished."

I do quote your man here: "This credit creation is visible in the permanent expansion in the bank's balance sheet..." Note the word "permanent:" as I understand him, his point is that legal but immoral accounting sleights of hand are used to disguise that state of affairs.

He makes the point that the loan is an asset for the bank because it is a promissory note from the borrower to the lender. It's like back in the day when banks would create 'notes' that they would sell to people at enough of a discount that those persons could resell them for a profit and their purchasers could still redeem them for a profit. Those notes could be used as money: as media of exchange. (Some banks depended on that being permanent for their notes.) These days it is technically borrowers' notes that are being used as money. As a matter of logic, for that money to get "extinguished," wouldn't the borrower have be the one to perform that act?

I'm an economist, not an accountant. For economic purposes, once that borrowed money is transferred to a seller it is part of the money supply.

Money that is not currently being used as a medium of exchange is capital. It can be held as liquid capital, or it can be transmuted into pieces of paper that can be readily liquidated, such as stocks, or it can be loaned, as in buying bonds, or it can be transmuted into 'real' capital such as plant or equipment. So as it circulates in the economy money leaves behind stores of value that are far greater than that amount of money--much as banks 'lend out' more 'money' than they have on hand. (The entire economy as it exists is at bottom a confidence scam.)

Money can also be transmuted into 'final' goods and services, in 'consumption' that 'reimburses' those who have used money to purchase plant and equipment to produce goods and services.

Money does get "extinguished" as services are performed, food is eaten, and things end up being thrown away--but in recycling, reusing, repurposing, and rebuilding some amount of its soulless essence, if you will, lives on and on.