Re: I just created 100 pennies.. and loaned them out, you owe me 101 pennies…..

I just created 100 pennies and I loaned them out to you + interest How is it possible for you to pay me the 101 pennies you now legally owe me if only 100 pennies are in circulation?

Nice argument against non-inflationary currencies, which Bitcoin is hoping to become.
Let's try your problem, starting with this "sound money":
You have all of the gold in the world, and lend it to me @ .1% yearly interest.
"How is it possible for ~~you~~ me to pay me you etc., etc.?"

You have constructed scenarios in which it is impossible to pay the interest. My point is that those scenarios don't represent anything real. They do not exist in the real world. Your scenarios are moot.

I have offered a single, hypothetical scenario. Just like OP.
You don't think OP has really issued 100 pennies, lent them to me at interest, and I was brokeass enough to take him up on it? Or do you?