The money in your bank account isn't yours: the silent scam

The money in your bank account isn't yours: the silent scam

Have you ever wondered whether the money you have in the bank is real? Probably not, because you see it in your online banking apps and assume it's there, available. But the reality is murkier. Banks operate on a fractional reserve system: they only keep a small portion of your deposits as cash; the rest is lent out, creating money out of thin air. That money you see in your account is nothing more than an accounting entry, a promise to pay that the bank couldn't honor if all its customers decided to withdraw their money at once. This is what some call 'fake money', as opposed to cash and gold, which some analysts consider 'real money'.

The difference between real and fake money

The debate centers on what we consider real money. On one hand, there is cash (banknotes and coins) issued by the central bank, which is legal tender but has had no gold backing since the gold standard was abandoned. On the other, bank money: the demand deposits we use every day. While cash is a promise from the central bank, deposits are a promise from a private bank. In the event of a bank failure, the Deposit Guarantee Fund only covers up to 100,000 euros per depositor and institution. Some argue that all money, including cash, is debt and therefore a 'lie'. Gold, by contrast, does have intrinsic value, but it is not used as legal tender.

The scam that goes unnoticed

While the media keeps us entertained with YouTubers moving to Andorra, freelancers working off the books, or alleged abuse of welfare benefits, the real mechanism of financial control remains intact. By mixing your real money (the cash you deposit) with the fake money created by banks, they turn your savings into a mere number. The system rests on trust, but if that trust breaks, the house of cards collapses. The uncomfortable question is: how long can this fiction hold?

An ironic conclusion

So there you have it: when you deposit your paycheck, your money stops being yours and becomes an electronic entry the bank uses to lend to others. Meanwhile, they distract us with pointless controversies. The thief isn't in the government or among YouTubers: he's sitting at the door of your bank branch, smiling.