The Monetary Matrix

Society today is composed of a series of institutions. From political institutions, legal institutions, religious institutions, to institutions of social class, familial values, and occupational specialization, it is obvious the profound influence these traditionalized structures have in shaping our understandings and perspectives.

Yet, of all the social institutions we are born into, directed by, and conditioned upon, there seems to be no system that’s taken for granted and misunderstood as the monetary system. Taking on nearly religious proportions, the established monetary institution exists as one of the most unquestioned forms of faith there is. How money is created, the policies by which it is governed, and how it truly affects society are unregistered interests of the great majority of the population.

Why is this??

In a world where 1% of the population owns approximately 40% of the planet’s wealth. In a world where somewhere between 10,000 - 20,000 children under the age of 5 die every single day from poverty and preventable diseases. And where 25% of the world’s population lives on only a few bucks per day. One thing is clear. Something is very wrong. And whether we are aware of it or not, the lifeblood of all of our established institutions and thus society itself is money.

Therefore, understanding this institution of monetary policy is critical to understanding why our lives are the way they are.

Unfortunately, economics is most often viewed with confusion and boredom. I was guilty of this most of my adult life. Never took much interest in it and looking back, I sure wish I had. Endless streams of financial jargon coupled with intimidating mathematics quickly deters people from attempts at understanding it. However, the fact is the complexity associated with the financial system is a mere mask. Designed to conceal one of the most socially paralyzing structures humanity has ever endured.

A number of years ago, the Central Bank of the United States, the Federal Reserve (a PRIVATE corporation, mind you), produced a document entitled, Modern Money Mechanics. This publication detailed the institutionalized practice of money creation as utilized by the Federal Reserve and the web of global commercial banks it supports. On the opening page, the document states its objective. ”The purpose of this booklet is to describe the basic process of money creation in a fractional reserve banking system.” It then proceeds to describe this fractional reserve process through various banking terminology. A translation of which goes something like this:

The United States government decides it needs some money so it calls up the Federal Reserve and requests, say, 10 billion dollars. The Fed replies saying, sure, we’ll buy 10 billion in government bonds from you. So the government takes some pieces of paper, paints some official looking designs on them and calls them treasury bonds.

Then, it puts a value on these bonds to the sum of $10 billion and sends them over to the Fed. In turn, the people at the Fed draw up a bunch of impressive pieces of paper themselves, only this time calling them Federal Reserve Notes, also designating a value of $10 billion to the set. The Fed then takes these notes and trades them for the bonds. Once this exchange is complete, the government then takes the $10 billion in Federal Reserve Notes and deposits it into a bank account and upon this deposit, the paper notes officially become legal tender money adding 10 billion to the US money supply.

And there it is. 10 billion in new money has been created.

Of course, this example is a generalization for, in reality, this transaction would occur electronically with no paper used at all. In fact, only 3% of the US money supply exists in physical currency.

The other 97% essentially exists in computers alone. Now, government bonds are, by design, instruments of debt. And when the Fed purchases these bonds, with money it essentially created out of thin air, the government is actually promising to pay back that money to the Fed. In other words, the money was created out of debt. This mind-numbing paradox of how money or value can be created out of debt or a liability will become more clear as we further this exercise.

So, the exchange has been made and now $10 billion sits in a commercial bank account. Here’s where it gets really interesting. For as based on the fractional reserve practice that $10 billion deposit instantly becomes part of the bank’s reserves just as all deposits do. And regarding reserve requirements as stated in modern money mechanics, a bank must maintain legally required reserves equal to a prescribed percentage of its deposits. It then quantifies this by stating, under current regulations, the reserve requirement against most transaction accounts is 10%. This means that with a $10 billion deposit, 10% or 1 billion is held as the required reserve while the other 9 billion is considered an excessive reserve and can be used as the basis for new loans.

Now, it is logical to assume that this 9 billion is literally coming out of the existing 10 billion dollar deposit. However, this is actually not the case. What really happens is that the 9 billion is simply created out of thin air on top of the existing 10 billion dollar deposit. This is how the money supply is expanded. As stated in modern money mechanics, of course they, the banks, do not really pay out loans from the money they receive as deposits.

If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes, loan contracts, in exchange for credits, money, to the borrower’s transaction accounts.

In other words, the 9 billion can be created out of nothing simply because there is a demand for such a loan and that there is a 10 billion dollar deposit to satisfy the reserve requirements.

Let’s assume that somebody walks into this bank and borrows the newly available $9 billion. They will then most likely take that money and deposit it into their own bank account. The process then repeats. For that deposit becomes part of the bank’s reserves. 10% is isolated and in turn 90% of the 9 billion or 8.1 billion is now available as newly created money for more loans. And of course, that 8.1 can be loaned out and redeposited creating an additional 7.2 billion to 6.5 billion to 5.9 billion, etc. This deposit money creation loan cycle can technically go on to infinity.

The average mathematical result is that about 90 billion dollars can be created on top of the original 10 billion. In other words, for every deposit that ever occurs in the banking system about nine times that amount can be created out of thin air!

So, now that we understand how money is created by this fractional reserve banking system, a logical yet elusive question might come to mind. What is actually giving this newly created money value? The answer?

The money that already exists.

The new money essentially steals value from the existing money supply. For the total pool of money, is being increased, irrespective to demand for goods and services. And as supply and demand finds equilibrium, prices rise, diminishing the purchasing power of each individual dollar. This is generally referred to as inflation, and inflation is essentially a hidden tax on the public.

What is the BS excuse that we are generally fed (pun intended)? And that is, that we must inflate the currency. They don’t say they need to debase the currency, they don’t say devalue the currency, they don’t say cheat the people who have saved. They say things like, “we must lower the interest rates”.

The real deception is when we distort the value of money. When we create money out of thin air—when we have no savings!

So my question boils down to this.

How in the world can we expect to solve the problems of inflation, that is the increase in the supply of money, with more inflation???

Of course, we can’t.

The fractional reserve system of monetary expansion is inherently inflationary, for the act of expanding the money supply without there being a proportional expansion of goods and services in the economy, we will always debase a currency. In fact, a quick glance at the historical values of the US dollar versus the money supply reflects this point definitively for the inverse relationship is obvious.

$1 in 1913 required $21.60 in 2007 to match value. Today, it requires approximately $33.64! That is an insane level of devaluation since the Federal Reserve came into existence. WE ARE BEING ROBBED!

Now, if this reality of inherent and perpetual inflation seems absurd and economically self-defeating, hold that thought—for absurdity is an understatement in regard to how our financial system really operates.

For in our financial system, money is debt. And debt is money.

Here is a chart of the U.S. money supply from 1950 to 2006. Next to it is a chart of the U.S. national debt for the same period.

What do we see here? How interesting it is that the trends are virtually the same. For the more money there is, the more debt there is. The more debt there is, the more money there is.

To put it a different way, every single dollar in your wallet is owed to somebody by somebody.

For remember, the only way the money can come into existence is from loans.

Therefore, if everyone in the country were able to pay off all debts, including the government, there would not be one dollar in circulation. It’s crazy when you wrap your head around the fact that this is how it all works.

In fact, the last time in American history the national debt was completely paid off was in 1835 after President Andrew Jackson shut down the central bank that preceded the Federal Reserve. In fact, Jackson’s entire political platform essentially revolved around his commitment to shut down the central bank, stating at one point something like—”the bold efforts the present bank has made to control the government are but premonitions of the fate that awaits the American people…”.

Unfortunately, his message was short-lived and the international bankers succeeded to install another central bank in 1913—the Federal Reserve. And as long as this institution exists, perpetual debt is guaranteed. The rich elite get richer and more powerful and we, the people, continue to be their debt slaves.

Now, so far we have discussed the reality that money is created out of debt through loans. These loans are based on a bank’s reserves and reserves are derived from deposits. And through this fractional reserve system, any one deposit can create nine times its original value, in turn debasing the existing money supply, raising prices in society. And since all this money is created out of debt and circulated randomly through commerce, people become detached from their original debt and a disequilibrium exists where people are forced to compete for labor in order to pull enough money out of the money supply to cover their costs of living, as dysfunctional and backwards as all of this might seem. There is still one thing we have omitted from this equation however. And it is this element of the structure which reveals the truly fraudulent nature of the system itself.

The application of interest.

When the government borrows money from the Fed or when a person borrows money from a bank, it almost always has to be paid back with accrued interest. In other words, almost every single dollar that exists must be eventually returned to a bank with interest paid as well. But, if all money is borrowed from the central bank and is expanded by commercial banks through loans, only what would be referred to as the principal is being created in the money supply.

So then, where is the money to cover all of the interest that is charged? Nowhere. It doesn’t exist. The ramifications of this are staggering for the amount of money owed back to the banks will always exceed the amount of money that is available in circulation. This is why inflation is a constant in the economy for new money is always needed to help cover the perpetual deficit built in to the system caused by the need to pay the interest. What this also means is that mathematically, defaults and bankruptcy are literally built into the system and there will always be poor pockets of society that get the short end of the stick. An analogy would be a game of musical chairs, for once the music stops, somebody is left out to dry. And that’s the point. It invariably transfers true wealth from the individual to the banks.

For if you are unable to pay for your mortgage, they will take your property.

This is particularly enraging when you realize that not only is such a default inevitable due to the fractional reserve practice, but also because of the fact that the money that the bank loaned to you didn’t even legally exist in the first place.

For every time you borrow money from a bank, whether it is a mortgage loan or a credit card charge, the money given to you is not only counterfeit, it is an illegitimate form of consideration and hence voids the contract or repay, for the bank never had the money as property to begin with. Unfortunately, such legal realizations are suppressed and ignored and the game of perpetual wealth transfer and perpetual debt continues.

And this brings us to the ultimate question. Why???

During the American Civil War, President Lincoln bypassed the high interest loans offered by the European banks and decided to do what the founding fathers advocated which was to create an independent and inherently debt-free currency. It was called the Greenback.

Shortly after this measure was taken, an internal document circulated between private British and American banking interests stated, slavery is but the owning of labor and carries with it the care of laborers. While the European plan is that capital shall control labor by controlling wages. This can be done by controlling the money. It will not do to allow the greenback as we cannot control that.

The fractional reserve policy perpetrated by the Federal Reserve, which has spread in practice to the great majority of banks in the world, is, in fact, a system of modern slavery.

Think about it. Money is created out of debt. And what do people do when they are in debt? They submit to employment to pay it off. But if money can only be created out of loans, how can society ever be debt-free?

It can’t. And that’s the point.

And it is the fear of losing assets coupled with the struggle to keep up with the perpetual debt and inflation inherent in the system, compounded by the inescapable scarcity within the money supply itself, created by the interest that can never be repaid, that keeps the wage slave in line. Running on the hamster wheel with millions of others, in effect, powering an empire that truly benefits only the elite at the top of the pyramid. For, at the end of the day, who are you really working for?

The banks.

The money is created in a bank and invariably ends up in a bank. They are the true masters along with the corporations and governments they support. Physical slavery requires people to be housed and fed. Economic slavery requires people to feed and house themselves. It is one of the most ingenious scams for social manipulation ever created and at its core it is an invisible war against the population.

Debt is the weapon used to conquer and enslave societies and interest is its prime ammunition.

And as the majority walks around oblivious to this reality, while the banks—in collusion with governments and corporations—continue to perfect and expand their tactics of economic warfare. Prime examples of this was the spawning of the World Bank and International Monetary Fund, to push this disgusting system into a global empire of control.

The most alarming part of all this is that you have no constitutional right to be protected from it. The Federal Reserve is not held to the same standard as other arms of government. If its policies destroy your retirement savings or double the cost of your groceries, you have no legal recourse. You can’t vote them out. You can’t sue them for damages. You can’t demand transparency.

That kind of unchecked power should concern every single American—regardless of political affiliation. We live in a system where the most powerful economic decisions are made without public input or legal accountability. We act like this is normal. It’s NOT. This system is not only undemocratic—it’s proven that it’s absolutely dangerous to life, liberty and the pursuit of happiness. These banksters have grown so rich and powerful through their ongoing Ponzi scheme, such that they now largely control the entire world.

The Federal Reserve (a PRIVATE corporation!) was supposedly created to bring stability. What a load of BS that was. It should be abundantly clear to all of us by now that it operates as a debt-driven machine, benefiting the ultra wealthy “ruling elites” and their well-connected (compromised) cronies, while leaving the rest of us to carry the burden. This awful system creates money from nothing, fuels inflation, rewards speculation over savings, and does so outside the reach of the Constitution.

In the end, a system that steals from us and our future generations, hides behind legal loopholes, and operates in the shadows can no longer be tolerated. The question is not if this will continue to hurt us—but will we allow them to use the accelerating end of this currency and empire cycle, to “reset” us into a dystopian digital system that will be near impossible to escape?

I sure hope not but we had better wake up and wake up fast.

If slavery is not your gig, there are solutions (see the supplementary articles below).

We had better get started on them—we’ve run out of time.

DO NOT COMPLY!

The New World Order Agenda

June 17, 2025

Most still have no idea what the “New World Order” really means. Most don’t know how long this now very publically marketed plan has been in place. Most don’t know who is actually behind it. Oddly enough, most don’t seem to want to know — apathy, largely by design. Some

THE GREAT TAKING IS COMING

·

April 18, 2025

Unless you’ve been living under a rock, you all know this literally insane claim as part of the dystopian “Great Reset” world, being sold to us by the WEF. Have any of you ever truly wondered how or why this crazy claim is being made? Do any of you know that they have been setting up the legal mechanisms to make this a reality, over many decades, with…

Disclaimer:

Let it be clearly stated that this author does not feel nor hold any hatred or contempt against any particular race or ethnicity. This author is anti-war and does not condone any violence, nor wish any race, color, creed or religion any harm. This author does not support any persons, groups, or organizations who contribute to any form of hatred, theft or violence—particularly those aimed towards innocent civilians with children being the most vulnerable. Care and consideration has been utilized to present information, including some that can be considered sensitive and controversial, in a thoughtful manner that presents it based on facts and data available. As a Commentary, this article may contain opinions by its author so as to offer a personalized perspective on the events and issues at hand.