In today’s financial system, what many people take for granted as foundational truths are actually deeply flawed assumptions or outright deceptions.
Last week, I uncovered five of the most dangerous myths in modern finance. This week, I’ll expose five more that most people still believe.
Below is a breakdown of commonly misunderstood financial concepts—reframed to reflect a more accurate interpretation of how the system really works.
Myth #6: Fiat Currency Is Real Money
People use money every day, but rarely stop to ask a simple question: What is money?
It’s like asking a fish, “What is water?” The fish doesn’t notice it—until it’s polluted or disappears.
Money is just a good—like any other in the economy. It’s not complicated, despite what academics, media gatekeepers, or government officials would have you believe. You don’t need a PhD or complex formulas to understand it.
At its core, money is simple: a tool for storing and exchanging value—a way to move value through time and space. Think of it as a claim on human time… stored life, stored energy.
Unfortunately, today, most of humanity thoughtlessly accepts whatever worthless paper or digital scrips their governments give them as money.
However, money does not need to come from the government. That’s a total misnomer that the average person has been hoodwinked into believing.
It would be similar to transporting yourself back in time and asking the average person in the Soviet Union, “Where do shoes come from?”
They would say, “Well, the government makes the shoes. Where else could they come from? Who else could make the shoes?”
It’s the same mentality regarding money today—except it’s much more widespread.
Government currencies are terrible vehicles to store and exchange value because they are easy to produce, have a potentially unlimited supply, and carry enormous political risks.
The free market would never choose government confetti as money—which is why governments force its use through legal tender laws.
Here’s another way to look at it:
Imagine if Al Capone issued paper notes with his signature and forced the neighborhood to use them as money—backed by the threat of violence if anyone refused. That’s fiat currency in a nutshell.
The truth is fake money comes from the government. Real money emerges from the market.
Myth #7: Confusing Inflation With Rising Prices
Inflation is one of the most misused—and deliberately distorted—words in the English language.
Originally, inflation meant an increase in the money supply. But over time, the government, media, and academia have subtly redefined it to mean rising prices.
This wasn’t accidental.
For example, from its founding in 1828, Webster’s Dictionary had correctly defined inflation as an increase in the money supply. Then, in 2003, it changed the definition to mean a rise in the general price level.
That shift might seem minor, but it’s anything but. It flips the story and obscures the truth.
By redefining inflation as higher prices, the cause-and-effect relationship is deliberately blurred. The public sees the symptoms—higher prices—but not the disease: the expansion of the money supply.
Reframing inflation as “just” rising prices hides the culprit—those in charge of printing the money. It confuses victims and shields the perpetrators.
It’s like redefining robbery as “a mysterious loss of property,” as if the thief simply vanished from the equation.
Myth #8: Bank Deposits Are Your Money
Many people are shocked to learn they don’t actually own the money in their bank accounts.
Once you deposit money, it’s no longer your personal property—it legally belongs to the bank. And they can do whatever they want with it.
What you do own is simply a promise from the bank—an IOU—to pay you back.
In reality, depositing money is the same as giving the bank an unsecured loan, often with little or no interest to compensate you for the risk.
It’s a fantastic deal for the bank—and a terrible one for you.
That’s why a bank deposit is not the same as cash in hand. Yet most people wrongly treat the two as equivalent.
Myth #9: Deposit Insurance Guarantees Your Money Is Safe
The Federal Deposit Insurance Corporation (FDIC) insures bank deposits in the US.
When a bank fails, the FDIC pays depositors up to $250,000. The FDIC has a reserve of around $137 billion for this purpose.
Now, $137 billion is a lot of money. But, considering there are around $10.6 trillion in insured deposits in the US, $137 billion is just a drop in the bucket, around 1.3%, to be exact.
In other words, the FDIC’s reserve has around one penny for every dollar of deposits it insures.
It wouldn’t take much to wipe out the FDIC’s reserves. One large bank failure and the FDIC itself could go bust.
Myth #10: Bank ‘Holidays’ Aren’t Vacations—They’re Muggings
Bank holidays hit like a street mugging—sudden and unexpected. That surprise is the point. If people saw it coming, it wouldn’t work.
Typically, the government shuts down the banks with little warning—often just hours after assuring the public that “everything is fine.” Then come the capital controls, locking citizens out of their own funds and blocking money from leaving the country.
Cash-sniffing dogs start showing up at airports and border crossings. By then, your money is a lobster in a trap. You can guess what happens next.
Calling the experience a “holiday” is a ridiculous euphemism. It’s as absurd as calling a street mugging a surprise party.
Conclusion
As we’ve seen, the myths surrounding modern finance aren’t harmless misunderstandings—they’re deliberate distortions that benefit those in power while leaving ordinary people vulnerable. From fiat money and inflation to bank deposits and so-called “holidays,” the truth is far more unsettling than the official narrative.
Once you recognize these illusions for what they are, the next step is to prepare. The financial system is more fragile than it appears, and the consequences of believing these myths could be devastating. But if you understand what’s really happening—and act accordingly—you can protect yourself and even come out ahead while others are blindsided.
The cracks in the financial system are widening. We are entering what could be the most dangerous economic crisis in a century, and most people will be caught off guard.
That’s why I’ve prepared a special report titled “The Most Dangerous Economic Crisis in 100 Years… and the Top 3 Strategies You Need Right Now.”
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