Where does the money in your bank account come from? We used to know the answer.

BUT THEN WE LOST THIS KNOWLEDGE, LEAVING A “BLACK HOLE” IN THE SCIENCE OF ECONOMICS

Dear HardmoneyJim readers:

I am asking a favor.

My YouTube Channel is only a few subscribers away from the threshold where YouTube begins recommending it on its own — which is the difference between this reaching the people who already follow my work and those who have no idea how money comes into existence. If you think they should hear it, please go to the video and hit “subscribe.”

A few years ago, when researchers at the University of Zurich asked the Swiss public where money comes from, only 13% got it right. Nearly three-quarters believed the government or the central bank creates it. Around the same time, a British group put the question to Members of Parliament — the very people who oversee the banking system. Only fifteen percent knew the answer.

It goes further than the public or the politicians. The financial press almost always gets this wrong. When Silicon Valley Bank failed, a prominent columnist explained to his readers that banks “take in deposits and invest them.” Dozens of media outlets said the same thing.

Even professional economists get it wrong. I bought three of the most popular economic textbooks and studied their banking chapters. They all contradicted each other, two of them never even mention the correct process, and even that one rejected it!

Here is what makes that strange, and what sent me down the road that eventually became a book.

A hundred years ago, nearly every economist and banker knew where money comes from. It was ordinary, unremarkable knowledge. Then it got “written over” — textbook by textbook, generation by generation — and nobody noticed the change.

The black holes in outer space are hard to understand because the knowledge of them is incomplete. Money creation is hard to understand because the knowledge was lost and must be recovered.

This is not a mere academic curiosity. Your dollar buys at least 20% less than it did four or five years ago. That did not happen by accident or by magic. It happened through a process that Keynes said “not one man in a million is able to diagnose” — a process that quietly siphons away your wealth, and you never see a bill for it.

In my new (attached) video, I don’t tell you how money is created. I show you. Step by step, using an actual mortgage, exactly what happens inside a bank on the day a loan is closed — and how you can verify every bit of it yourself.

It takes twelve minutes. At the end, you’ll be the “one in a million” who is prepared to understand inflation and what to do about it.

Watch it here and please “subscribe” →

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Thanks for reading, thanks for subscribing to my YouTube Channel, be well, and we’ll talk again soon.

HardmoneyJim, August 30, 2026