SEVEN MYTHS ABOUT MONEY

“Banks do not lend their customers' deposits.”

Most money today is just a digital entry created by private banks. They don't lend out existing savings. They create new money every time they issue a loan.

“The government spends money into existence.”

Governments don't actually need our tax money before they can spend. They create the currency first. Taxes just help control how much money stays in the system.

“Inflation is a decrease in the value of money.”

Inflation isn't always about greedy companies raising prices. It usually happens because the total supply of money grew too fast. Your pounds or dollars simply become less rare.

The gold standard feels like ancient history but it only ended in 1971. Since then money has no physical anchor. It only has value because we all agree it does.