In today’s financial system, what many people take for granted as foundational truths are actually deeply flawed assumptions or outright deceptions.
Previously, I uncovered 15 of the most dangerous myths in modern finance. This week, I’ll expose five more that most people still believe.
Below is a breakdown of commonly misunderstood financial concepts—reframed to reflect a more accurate interpretation of how the system really works.
Myth #16: The Hidden Truth About Mortgages
Consider a $500,000, 30-year mortgage at 6.8%.
When the bank approves the mortgage, it does not take $500,000 from a vault—or transfer someone else’s savings directly to you. It creates a new loan on one side of its balance sheet and a corresponding deposit on the other.
In other words, it creates that $500,000 out of thin air… and then charges you interest on top of it.
At 6.8%, the monthly principal-and-interest payment is about $3,260. Keep the mortgage for the full 30 years, and you will repay approximately $1.17 million.
- $500,000 in principal
- About $673,000 in interest
The bank creates the mortgage by pressing a few keys on a keyboard.
You must repay it—with interest that exceeds the original principal—using money earned through decades of work.
Even the word “mortgage” is revealing. It comes from Old French and roughly translates to “death pledge”—from mort, meaning death, and gage, meaning pledge.
That is an even more fitting description—especially with the arrival of 50-year mortgages.
Myth #17: Your House Is a Financial Asset
In the post-1971 era of fiat currency, many people treat real estate like a piggy bank.
But a house functions poorly as a savings account.
Real estate is illiquid. The structure itself deteriorates over time. It comes with substantial carrying costs, including property taxes, insurance, maintenance, and repairs. It is also vulnerable to natural disasters and is often purchased with large amounts of debt.
Real estate prices can also be influenced by interest rates, credit conditions, taxes, zoning laws, demographics, local employment, and countless other complex economic factors beyond the owner’s control.
That said, owning a debt-free home and having a secure place to live without depending on a landlord is an important financial goal. It can make you more resilient, eliminate rent payments, and reduce your long-term living expenses.
Owning property in a foreign country where you enjoy spending time can also provide useful international diversification and a potential escape hatch.
But from a financial-planning perspective, it is important to recognize a house for what it really is: a long-lived consumer good. For most people, it’s more practical to view real estate as something akin to a car or a washing machine.
There is nothing wrong with using real estate for its intended purpose: providing shelter. Just as there is nothing wrong with using a car for transportation.
The problem arises when consumer goods are treated as savings accounts or investments.
Myth #18: A 2% Inflation Rate Is Optimal
Central bankers, the mainstream media, most economists, and academia will tell you that 2% is the optimal inflation rate.
But why is 2% optimal—not 3%, 1%, or 0%?
That is never explained because most people never question these authority figures. They thoughtlessly accept this nonsensical concept as gospel.
Saying that money needs inflation to work is like saying a bucket needs a hole in it to work.
Inflation is poisonous at any level.
Think of it as a bucket that continuously leaks 2% of the water it carries—or a person who loses 2% of his blood every year.
That is the kind of outcome the clowns at the Federal Reserve are trying to engineer for the money you are compelled to use.
But the real rate of currency debasement is much higher than the crooked and manipulated official government inflation statistics suggest.
The long-term average annual increase in the money supply is around 6.8%. At that rate, you would lose roughly half your purchasing power in just over 10 years.
But remember, that is only the long-term average.
In some years, currency debasement can be much worse—like during the COVID mass psychosis, when the money supply increased by more than 40% in a matter of months.
Here is the bottom line.
Despite the gaslighting and the arbitrary 2% target, inflation is poisonous and destructive at any level.
Myth #19: Financial Jargon Is a Smokescreen
Central bankers and economists hide simple actions behind deliberately confusing language.
They talk about quantitative easing, reserve management, yield curve control, large-scale asset purchases, open market operations, balance-sheet expansion, liquidity injections, emergency lending facilities, repo operations, and countless other pieces of financial jargon.
The terminology makes their actions sound sophisticated, technical, and far too complicated for the average person to understand.
That is the point.
The jargon is a smokescreen. It disguises what is really happening and prevents ordinary people from recognizing how the financial system is quietly stealing their purchasing power.
Strip away the euphemisms and the result is almost always the same:
The central bank creates more currency and pumps it into the financial system.
They call it “providing liquidity.”
They call it “supporting market functioning.”
They call it “maintaining financial stability.”
But what they are really describing is currency debasement.
The more complicated the language sounds, the more likely it is being used to conceal something simple—and destructive.
Myth #20: Deflation is Bad
While the gatekeepers of the rotten fiat currency system often howl about the dangers of deflation, it is worth taking a moment to consider whether it is really such a bad thing.
First, it is important to define our terms.
The correct and true meaning of inflation is an increase in the money supply. So the correct and true meaning of deflation is a decrease in the money supply. But that is not what most people mean when they refer to deflation, because the money supply rarely contracts in a fiat monetary system. When most people say deflation, they mean a general fall in prices.
One of the biggest popular misconceptions in economics is that deflation is a “bad thing.”
It is an enormous misnomer. Falling prices caused by increases in productivity are actually a good thing. Who does not want to see their money go farther?
Technology is naturally deflationary. It drives down costs, increases efficiency, and makes goods and services cheaper over time.
In an honest monetary system, that would mean falling prices and rising purchasing power. In other words, your money would buy more as technology advances.
But that is not how the current fiat system is designed to work. In fact, it does the opposite. It is like running on a treadmill that keeps accelerating.
Conclusion
The myths I’ve exposed here—just like those in the other parts of this series—aren’t harmless mistakes. They are carefully crafted illusions designed to keep the public passive while the system quietly siphons away their wealth.
Each myth serves the same purpose: conceal the truth and protect the power of the insiders running the show.
Once you recognize that pattern, you begin to see the financial system for what it really is: not a neutral or benevolent structure, but a rigged game. The sooner you break free from these illusions, the sooner you can start positioning yourself on the right side of history.
Because while most people will continue sleepwalking into the next crisis, those who understand what’s happening—and act accordingly—can protect their wealth, their freedom, and perhaps even profit from the chaos that’s coming.
That’s why I’ve just released a critical new report revealing the top three strategies for what’s coming next.