Part 8/19:
A core analysis Griffin offers is of the "Mandrake Mechanism," an analogy to highlight how the Federal Reserve system manipulates money. Griffin explains that, through a series of legal and procedural steps, Congress can request money that the Federal Reserve simply "creates" out of thin air—using checks and account entries that do not represent actual reserves or backing, only digital illusions.
He illustrates:
When government needs funds, it goes to the Federal Reserve, which writes a check that results in the instant creation of new money—no gold or silver backing required.
The government deposits this fictional money into the economy, leading to inflation—the appearance of rising prices—though, in essence, the value of money diminishes.