Banks create money by typing two ledger entries. A loan asset and a deposit liability appear at the same instant. Nothing was transferred from a saver. The Bank of England admitted this in 2014. Roughly four fifths of dollars in circulation were spoken into existence this way. It spends like money. By the older test it is not money. Real money is a bearer asset with no counterparty. A deposit is a claim on a thing the bank has already lent out many times over. Mises called it fiduciary media. The plain word is fraud.

It is immoral because it violates honest weights. Every dollar created without prior production dilutes the dollars already held by people who did the work. Inflation is theft on a long timeline. The new money routes to those nearest the spigot. Banks, asset holders, federal contractors. Wage earners and savers pay the bill. It funds wars no household would fund by honest tax. It rewards the leveraged and punishes the patient, which inverts every virtue a free people depend on. It breaks inheritance, because a father cannot store thirty years of labor for his children in a unit that is being diluted in real time.

Most people miss it because the mechanism offends intuition, the vocabulary hides the substance, the textbooks still teach a model the central banks abandoned, and every institution that could expose it is funded by it. The damage is diffuse, so people blame the grocer, the landlord, the boss. The real cause sits upstream of every symptom. Bitcoin is the first credible exit in a hundred years.​​​​​​​​​​​​​​​​