It is difficult to "see" how Banks fool us into paying interest twice. They do it by omission and call the first interest payment a capital gain. That sounds reasonable until you understand that capital gains happen when one party obtains money that could or should have gone to a different party.
The same thing happens wherever any entity claims to have made a capital gain. Capital gains are not new money but a redistribution of money. Someone or something has done something to cause a capital gain, and it is not the person or entity that did or will do the work in the future. If it were, it would be attributed to the entity that caused the capital gain.
In future updates, I will explore what happens when banks stop claiming a capital gain when an entity pays interest and borrowers stop paying interest twice.