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I can't get this out of mind. You might feel richer. Your home’s value has doubled. Your 401(k) is up. The market looks good—at least on paper.

But here’s the uncomfortable truth: what you’re seeing is not wealth—it’s inflation. And worse, you’re being taxed on the illusion, drained by a system designed to reward those who control money, not those who earn it.

I'll break this down.

Currency Devaluation Is the Hidden Engine

The dollar—or whatever fiat currency you use—is losing value. Quietly. Constantly.

As the currency devalues, prices rise—not because the things you’re buying are worth more, but because your money is worth less.

That’s why your home “increased” in value. It didn’t get bigger or better. The dollar got weaker.

But the Government Doesn’t Care Why It Went Up—Only That It Did

When your home value rises:

Your property taxes go up—even if your income doesn’t.

If you sell, you pay capital gains tax on that “profit”—even if it’s just inflation.

The city treats you like you’ve struck gold, when all you did was survive another decade in a broken system.

You're being taxed not on real wealth creation, but on monetary distortion.

It’s theft via tax code—legal, quiet, and relentless.

Banks Aren’t Safe Either: You're Not a Customer, You’re a Creditor

Storing your money in a bank? That used to feel like safety.

But here’s how the game actually works:

When you deposit money in a bank, it no longer belongs to you.

You become an unsecured creditor—basically, last in line if the bank fails.

If the system seizes up, you don’t get your money back—you get whatever’s left, if anything.

Meanwhile, inflation continues to erode the value of every dollar you store.

So not only is your cash melting in purchasing power, it’s also at risk of disappearing in a crisis.

Neo-Feudalism by Policy

This is not capitalism. It’s not socialism. It’s something worse—a form of neo-feudalism, where:

You rent your labor to your employer.

You rent your land from the city via property taxes—even if you own your home outright.

You store your money in banks that don’t guarantee your access to it.

And you’re taxed at every point along the way, while asset inflation disguises the decline.

You don’t own. You don’t save. You float in a system designed to keep you running, never resting.

Is there a way out?

There are no silver bullets. But clarity is power. A few steps:

Understand that nominal gains are not real gains if inflation is higher.

Recognize that ownership doesn't protect you from tax if the system wants your liquidity.

Be cautious with how and where you store value. Cash is not safe. Banks are not neutral.

Consider hard assets, local community ties, and financial literacy as shields in this storm.

One more person seeing clearly is one less person sleepwalking into financial servitude.

I can't get this out of mind. You might feel richer. Your home’s value has doubled. Your 401(k) is up. The market looks good—at least on paper. But here’s the uncomfortable truth: what you’re seeing is not wealth—it’s inflation. And worse, you’re being taxed on the illusion, drained by a system designed to reward those who control money, not those who earn it. I'll break this down. ### Currency Devaluation Is the Hidden Engine The dollar—or whatever fiat currency you use—is losing value. Quietly. Constantly. As the currency devalues, prices rise—not because the things you’re buying are worth more, but because your money is worth less. That’s why your home “increased” in value. It didn’t get bigger or better. The dollar got weaker. ### But the Government Doesn’t Care Why It Went Up—Only That It Did When your home value rises: Your property taxes go up—even if your income doesn’t. If you sell, you pay capital gains tax on that “profit”—even if it’s just inflation. The city treats you like you’ve struck gold, when all you did was survive another decade in a broken system. You're being taxed not on real wealth creation, but on monetary distortion. It’s theft via tax code—legal, quiet, and relentless. ### Banks Aren’t Safe Either: You're Not a Customer, You’re a Creditor Storing your money in a bank? That used to feel like safety. But here’s how the game actually works: When you deposit money in a bank, it no longer belongs to you. You become an unsecured creditor—basically, last in line if the bank fails. If the system seizes up, you don’t get your money back—you get whatever’s left, if anything. Meanwhile, inflation continues to erode the value of every dollar you store. So not only is your cash melting in purchasing power, it’s also at risk of disappearing in a crisis. ### Neo-Feudalism by Policy This is not capitalism. It’s not socialism. It’s something worse—a form of neo-feudalism, where: You rent your labor to your employer. You rent your land from the city via property taxes—even if you own your home outright. You store your money in banks that don’t guarantee your access to it. And you’re taxed at every point along the way, while asset inflation disguises the decline. You don’t own. You don’t save. You float in a system designed to keep you running, never resting. ### Is there a way out? There are no silver bullets. But clarity is power. A few steps: Understand that nominal gains are not real gains if inflation is higher. Recognize that ownership doesn't protect you from tax if the system wants your liquidity. Be cautious with how and where you store value. Cash is not safe. Banks are not neutral. Consider hard assets, local community ties, and financial literacy as shields in this storm. One more person seeing clearly is one less person sleepwalking into financial servitude.

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[–] • 1 pt

I don't think that's necessarily accurate. When I take a loan for $100, they hand me the $100 and then I go buy something with that. Then I spend the designated number of months paying back the loan with interest.

[–] • 1 pt (edited )

What did I miss? Interest specifically? Maybe I misunderstood something. I asked AI about this and I got a pretty good response:

AI slop

Bank Loans and the Creation of Money: A Closer Look

A common point of confusion in finance is the origin of money distributed in a loan. The assertion that banks create this money "from nothing" is, in fact, a largely accurate description of how the modern banking system functions. When a commercial bank approves a loan, it credits the borrower's account with the loan amount, effectively creating new money that did not previously exist.

This newly created money is not physical cash but rather electronic bank deposits. The Bank of England has stated that the majority of money in the modern economy is created by commercial banks in this manner. This process is possible due to the fractional reserve banking system, where banks are only required to hold a fraction of their deposits in reserve. However, it's important to note that since March 2020, the reserve requirement in the United States has been set to zero.

When a loan is issued, the bank's assets and liabilities both increase. The loan becomes an asset for the bank (a promise of future repayment), and the newly created deposit in the borrower's account is a liability for the bank (money it owes to the customer).

What Happens When the Loan is Repaid?

The process of repaying a loan essentially reverses the money creation process. When the borrower makes payments, the principal portion of the loan is "destroyed" or removed from the money supply. This means that the electronic money that was created when the loan was issued ceases to exist as the debt is paid down.

Therefore, the money created through a loan only exists for the duration of that loan. The overall money supply in an economy expands when new loans are issued at a faster rate than old loans are repaid, and it contracts when repayments outpace new lending.

The Bank's Profit: The Role of Interest

The interest paid on a loan is separate from the principal and represents the bank's income for providing the lending service. This interest is not "destroyed" upon repayment. Instead, it is used to cover the bank's operating costs, such as salaries and rent, and a portion of it becomes the bank's profit. This profit can then be distributed to the bank's shareholders or reinvested in the business.

In essence, the principal is the temporary money created and destroyed for the purpose of the loan, while the interest is the real revenue the bank earns for facilitating the transaction.

[–] • 0 pt

>The process of repaying a loan essentially reverses the money creation process. When the borrower makes payments, the principal portion of the loan is "destroyed" or removed from the money supply.

So temporary money creation I guess.

>the money created through a loan only exists for the duration of that loan.