3 Shocking Truths Most People Don’t Know About Money In Bank Accounts…

Authored by Nick Giambruno via InternationalMan.com,

Henry Ford once astutely observed that a revolution would occur overnight if people truly understood the banking and monetary system.

That’s because modern banking is an elaborate illusion—one that lulls people into a false sense of security… until it’s too late.

Large banks can fail within hours, and life savings can vanish overnight.

The US banking system is particularly vulnerable.

So, why do so many people place their confidence—and life savings—into such a fragile system?

It’s because they don’t understand three fundamental truths about modern banking:

#1. The money isn’t yours.

#2. The money isn’t actually there.

#3. The money isn’t really money.

Truth #1: The Money Isn’t Yours

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.

Worse, banks can freeze “your” money at the push of a button, often for vague or arbitrary reasons.

Maybe you bought something the bank didn’t like. Or perhaps you said something “politically incorrect” on social media. Don’t be surprised if your account gets frozen—or worse.

Take PayPal, for example. They once floated the idea of charging users $2,500 for spreading so-called “misinformation.”

Expect to see more of this behavior from banks and financial institutions in the future.

Because if your money can be frozen or seized on a whim… it was never really yours to begin with.

Truth #2: The Money Isn’t Actually There

The money you think is in your bank account… doesn’t actually exist.

Banks don’t keep physical cash in vaults for each depositor. They don’t even hold enough digital funds to cover a small fraction of withdrawals.

In fact, during the COVID mass psychosis, the US government removed reserve requirements—meaning banks no longer need to keep any funds on hand for withdrawals.

So, where does all the money go?

Behind the scenes, banks use “your” money to place risky bets on speculative investments. They’re gambling with your life savings—often recklessly.

And if just a small percentage of depositors showed up to withdraw their money? Most banks would be in serious trouble… because the money simply isn’t there.

This slimy practice is called fractional reserve banking—and yes, it’s completely legal. But that doesn’t make it any less fraudulent in nature.

Imagine if other industries operated this way.

Picture a car dealership or jewelry store running a “fractional reserve” model—offering 10 times more claims on cars or diamonds than they actually have in inventory.

It would be laughably obvious fraud.

Yet that’s exactly how modern banking operates. It closely resembles a Ponzi scheme—one that depends entirely on the illusion that everyone’s money is available… when it’s not.

Truth #3: The Money Isn’t Really Money

Most people use currency every day but rarely stop to ask: What is money, really?

It’s like asking a fish, “What is water?” The fish doesn’t notice… until something goes wrong.

Money is simply a good—like any other in the economy. And understanding what makes something “good money” is actually pretty straightforward.

You don’t need to study complex equations or economic theory—despite what academics and media elites might claim.

At its core, money is just a tool for storing and exchanging value—a way to send value through time and space.

Think of money as a claim on human time. It’s stored energy or stored life.

Yet today, most people blindly accept whatever paper or digital scrips their governments hand them and call it “money.”

But money doesn’t need to come from the government. That’s a myth.

It’s like asking someone in the old Soviet Union, “Where do shoes come from?” They’d say, “The government makes them—who else would?”

That same mindset exists today—but with money.

Government-issued currency is a terrible store of value. It’s easy to produce, its supply is unlimited, and it’s heavily manipulated for political purposes.

Let’s put it another way.

Imagine Al Capone forced his neighborhood to use pieces of paper with his signature as money—and threatened violence against anyone who didn’t comply.

That’s essentially what governments do with fiat currencies.

The reality is: fake money comes from governments. Real money emerges from the market.

Throughout history, people have used everything from seashells and salt to glass beads, cattle, and even cigarettes in prisons as money.

But one form has stood the test of time—gold.

For over 5,000 years, gold has been mankind’s most enduring form of money.

Gold didn’t win the ultimate competition to become the world’s best form of money by accident or because some politicians decreed it. Instead, it became money because countless individuals throughout history and across many different civilizations subjectively came to the same conclusion: gold is money.

It resulted from a market process of people looking for the best way to store and exchange value.

So, why did they go to gold? What makes gold attractive as money?

Here’s why.

Gold has a set of unique characteristics that make it suitable as money.

Gold is durable, divisible, consistent, convenient, scarce, and most importantly, the “hardest” of all physical commodities.

In other words, gold is “hard to produce” relative to existing stockpiles and is the one physical commodity most resistant to inflation of its supply, which helps make it a good store of value—an essential function of money.

That’s what gives gold its superior monetary properties.

Conclusion

The banking system is a fragile illusion—one that could collapse at any moment, wiping out the savings of millions who wrongly trust it.

That trust hinges on people not understanding three simple truths:

#1. The money isn’t yours.

#2. The money isn’t actually there.

#3. The money isn’t really money.

Here’s the bottom line.

The banking system is a mile-high house of cards. And it could come crashing down at any time.

Don’t wait until it’s too late. Take steps now to protect your wealth.

I believe the banking system is headed for serious trouble.

Few people are aware of what is really happening.

And even fewer know how to prepare.

That’s exactly why legendary investor Doug Casey and I just held an urgent video summit.

In it, we reveal the best way to protect your savings from bank failures and other problems in the rotten banking system.

You won’t want to miss it and can watch it for free by clicking here.