The Mandrake Mechanism - Creation of Money
Tony Toto
Education & Training with Freelance Writer & Photographer - Travel
June 04, 2009 11:29 AM
The Mandrake Mechanism is the process that starts the creation of money and runs our economy.
•Government Debt - Gov't adds ink to paper and calls it a bond or Treasury note.
•Securities Asset - Gov't debt considered an asset with a promise to pay
•Federal Reserve Check - The Federal Reserve adds ink to paper calling it money with no backing
•Government Deposit - Used to pay Gov't expenses
•Government Checks - First wave of fiat money into the economy. Recipients deposit into banks and become...
•Commercial Bank Deposits - Here deposits become BOTH liabilities and assets to the bank. Fractional Reserve Banking starts here and deposits are reclassified as...
•Bank Reserves - Fiat money grows here. Banks need only 10% of deposits in "reserve."
•Excess Reserves - Available for lending
•Bank Loans - This is where new money is created out of thin air for lending purposes to the consumer. The Nation's money supply increases 90% of the banks deposits.
•More Commercial Bank Deposits - Process repeats with slightly smaller numbers. A loan on Friday becomes a deposit on Monday. deposit turns into a "reserve". 90% becomes excess reserve and available for new "loans." Expansion continues.
•Bank Fiat Money = Up to 9 Times National Debt - Fiat money created by the banking cartel is 9 times the amount of the original Gov't debt.
•Total Fiat Money = Up to 10 Times Nation Debt - Fiat money becomes 10 times the amount of underlying Gov't debt. Money floods the economy in excess of goods and services. Purchasing power declines on both old and new money. Prices go up because the relative value of money goes down. This process equals...
•Hidden Tax = Up to 10 Times the National Debt - Along with federal income tax and excise taxes, Americans have paid over the years a hidden tax equal to many times the national debt. As the people go deeper into debt, the nation's money supply expands causing prices to go up resulting in...
•Booms, Busts, and Depressions - Citizens do not benefit from this. The beneficiaries are the political scientists in Congress and the banking cartel known as The Federal Reserve. Modern feudalism.
This system of banking wreaks havoc on people throughout the world and they don't even know it!
