The Goldsmith's Secret: How Banks Conjure Money from Thin Air

Introduction: The Most Important Secret in Economics

If someone asked you, “Who creates the money in our economy?” what would you say? If you're like most people, you'd point to the government or the central bank. A recent survey confirmed this, finding that a staggering 84% of people hold this common-sense—but completely wrong—belief.

This article's purpose is to reveal one of the most important, yet deliberately obscured, secrets in economics: the vast majority of money in circulation is created not by governments, but by ordinary commercial banks. We will demystify this "taboo" concept by traveling back in time to uncover its fraudulent origins and then breaking down the simple, legalized accounting trick that makes it possible today.

1. A Tale of Gold and Deception: