Another fiat economics term that needs to die is "money flowing into _______." Money does no such thing, it doesn't "flow into" stocks, or bonds, or real estate, or Bitcoin, or anything else.

I know it's a shorthanded way of expressing an idea, but it's misleading and generally misunderstood and needs to be abandoned.

When money "flows into" anything, what happens in reality is the money is exchanged between people, and the wealth is exchanged in the other direction. Money isn't destroyed when you buy something with it, or immobilized inside the purchased object like "flows into" suggests. The only thing that changes is who has the money in their account or their pocket.

The effect is that as more people buy a certain category of product, the increased demand causes the price the holders are willing to accept in payment for that product to rise. Eventually the price will rise high enough that the same amount of money becomes a smaller percentage of the cost of that product, and people are satisfied to hold the money instead of buying more product at the new higher price. That's the mechanism of rising prices during inflation.

"Money flows into ______" is a horrible way to refer to that process, and just perpetuates the misconception that money=wealth.

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