The Mandrake Formula is a Rothschild Family Banking formula for turning debt into money. This is how the Federal Reserve and Congress work together to create money based on debt…
- Government Bonds are IOU’s printed on fancy paper and issued by Congress on behalf of the people. They represent a promise that the people are obliged to pay the agreed to amount at a future date in taxes.
- The Federal Reserve purchases these US bonds with a check for funds that were ‘made-up’ at that moment, for that purpose – also called fiat money (created by decree – “make it so”).
- The Feds take these IOU’s, call them “reserves” then use them as a base to create 9 additional dollars for every one created from the original bonds.
- The government spends the money created by the Feds.
- The bonds become the source of all the bank loans made to the nation’s businesses and individuals.
- Congress and the banking cartel have entered into a partnership where the cartel collects interest on money created out of nothing and Congress has access to unlimited funding.
- Congress does not tell the people that this creates the hidden tax of inflation.
- An instrument of government debt is considered an asset because it is assumed that government will keep its promise to pay based on its ability to obtain whatever money it needs through taxation.
- The strength of this asset is the power to take back that which it gives.
- The bonds are assets used to offset liabilities.
Federal Reserve Check
- When the Feds write a check, there are no funds in any account to cover the check, its just another piece of printed paper that warrants the printing of more colored paper. (Anyone else doing this would go to prison.)
- The whole process is a mutual exchange between Congress and the Feds, mysteriously wrapped in a banking system.
- In banking terms, the books are said to be ‘balanced’ because the liability of the money is offset by the “asset” of the IOU.
- The end result is make-believe money created out of nothing and backed by nothing but a promise that the people will work and pay taxes for generations to come.
- Once the Federal Reserve check has been deposited into the government’s account, it is used to pay expenses including…
- Government checks are the means by which the first wave of fiat currency floods into the economy.
- Recipients deposit them into their own bank accounts and then they become…
Commercial Bank Deposits
- Commercial bank deposits take on a split personality at this point.
- On one hand they are liabilities to the bank because they are owed back to the depositors.
- On the other hand, as long as they remain in the bank, they also are considered assets, because they are ‘on-hand’.
- Once again, banking logic says the books are balanced because assets offset liabilities.
- Then, through the magic of fractional-reserve banking, on-hand deposits now become reclassified as…
Commercial Bank Reserves
- Reserves for what? Paying off the depositor’s withdrawals? No, that’s the function they served when they were assets.
- Fractional reserve banking rules say that the bank only needs to hold 10% of the deposits as ‘reserves’
- So from One Million dollars of fiat money deposits, the bank only needs to hold $100,000, making the other $900,000 “excess reserves”.
- The excess reserves are then converted into bank loans.
- But wait, how can the depositors and the loan recipients use the same money? They don’t.
- The depositors keep the original money and the loan recipients receive brand new money created for just that purpose.
- The nations money supply simply increases by 90% of the bank’s deposits.
- The banks must pay interest on the deposited funds, but collects interest on the new money loans. (Not bad considering it didn’t cost them anything to make the money.)
- When the second wave of fiat funds from the bank loans are spent, they returns to the bank in the form of…
More Commercial Deposits
- What was a ‘loan’ on Friday comes back into the bank as a ‘deposit’ on Monday.
- That deposit is then reclassified as a ‘reserve’, and 90% of it becomes an ‘excess reserve’ which is once again available for a new loan.
- Thus the $1 Million from the first wave fiat money gives birth to $900,000 in the second wave, and that gives birth to $810,000 in the third wave ($900,000 less 10% reserve).
- It takes about 28 times through the revolving door of deposits becoming loans becoming deposits becoming loans until the process pays itself out to the maximum effect…
Bank Fiat Money = Up To 9 Times National Debt
- The amount of fiat money created by the Federal Reserve banking cartel is approximately nine times the amount of the original government debt, which made the entire process possible to start with.
- When the original debt itself is added to that figure, we finally have…
Total Fiat Money = Up To 10 Times National Debt
- The total amount of fiat money created by the Federal Reserve and the commercial banks together is approximately ten times the amount of the underlying government debt.
- To the degree that this newly crated money floods into the economy in excess of goods and services, it causes the purchasing power of all money, both old and new, to decline.
- Prices go up because the relative value of the money has gone down. The result is the same as if that purchasing power had been taken from us in taxes.
Hidden Tax = Up To 10 Times National Debt
- Without realizing it, Americans have paid over the years, in addition to their federal income taxes and excise taxes, a completely hidden tax equal to many times the National Debt.
- Since the money supply is purely an arbitrary entity with nothing behind it except debt, its quantity can go down as well.
- When people take out loans and go into debt, the nation’s money supply expands and prices go up.
- When people pay off their debits and refuse to renew, the money supply contracts and prices tumble.
- This alternation between periods of expansion and contraction of the money supply is the underlying cause of…
Booms, Busts, and Depressions
- Who benefits from all this? Certainly not the average American citizen.
- The only beneficiaries are the political scientists in Congress who enjoy the effect of unlimited revenue to perpetuate their power, and the monetary scientists within the banking cartel called the Federal Reserve System who have been able to harness the American people, without their knowing it, to the yoke of modern feudalism.