I continue my investigation into money in Switzerland. This time, I am interested in the financial literacy of the average Swiss. If the country has so many world-famous banks, should the average Swiss know more about money than the average person in the world?
I made a street survey and asked random passers-by a simple question: Where does the money come from?
The results of the survey surprised me because it does indeed seem that the average Swiss has at least wondered where the money comes from and knows something about its origin.
For example, among the answers, there were references to the creation of money by banks through the opening of credit, the absence of a gold standard and the foundation of money, the monopoly of money production by financial structures like the Federal Reserve, the Central Bank, etc.
Among the versions about the origin of the money were the followings:
National Bank
Central Bank
Trust Funds, Treasury
Generated by the market
“We have some money which is covered in gold, like “Gold standard” which Russians used to use. Americans used to use it, but they don’t anymore. It’s a fictional thing of our imagination”.
“It doesn’t come from anywhere, it’s printed by some people, it’s not based on Gold anymore, nowadays it’s just speculation. It’s created out of nothing; some people print it”.
“By banks, by just creating loans. And by creating loans they create money”.
Have you ever wondered about the nature of the origin of money? Do you know more than the average Swiss and do you argue? Write in the comments!
For more information, check out my previous posts below:
Why has Switzerland become an island of financial paradise?
