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Biblical Money--Part 2

Dec 15, 2008

If we were to go back to the gold standard today, we would have to revalue gold at $40,750/oz to accommodate the amount of currency in circulation. At least, this is according to official figures.

The government tells us that the national debt is now $10,656,119,227,403 ($10.6 Trillion). It is backed, they say, by 261,498,899 oz. of gold.

So the price of gold should be set at $40,750/oz in order to back all our money with gold. We can bewail the fact that the more money is created, the less it is worth, but there is another obvious problem. Even if we were to establish the gold standard today, it would not do what it is supposed to do--namely, to put a damper on government creation of money.

If we passed an iron-clad law today that says we have to back all money with gold, it would only serve to raise the price of gold daily as more money was created. Secondly, it is questionable that the U.S. government even owns the gold it says it has. It is quite possible that they are only storing it for others who have bought it at the cheap price with Federal Reserve notes that they have created out of nothing. In that case, the gold standard would only enrich the wealthy and make them fabulously wealthy, while the rest of us who have little or no gold would still be stuck with worthless Fed notes.

The only way to reduce the price of gold to reasonable levels would be to mine more gold. But the fabulously wealthy ones would quickly buy up the gold mines (if they don't already own them), and any gold that is produced would simply make them more wealthy.

To establish a gold standard per se is not the answer. My question is this: Why should we base our entire money supply upon a single form of wealth, when in practice the money is based upon the entire production, goods and services of the American people? Can we not convert money into goods from the store? As long as groceries can be exchanged for money, the money is backed by those groceries.

To pick any single item and make it the "standard" is to enrich the people (or countries) that own or produce that particular item. It has been said that we are actually today on an OIL standard. This has some truth to it, because oil is the basis of nearly every other industry and thousands of products like plastic. Every industry has to heat or cool its buildings, and most employees use oil in their cars to go to work. As a result, the oil-producing countries have been enriched, and the importers have to run hard to keep up.

The fact is, money is only a medium of exchange. A certain amount of it is needed for the economy to run smoothly, even as oil is needed to run a car engine smoothly. Too much or too little creates a problem. To link the amount of money in circulation to an arbitrary commodity--whatever it may be--could never insure a proper amount of money in circulation. The price of that "standard" (gold, oil, or whatever) would always have to fluctuate in order to accommodate the amount of money needed.

If the "standard" price fluctuates, the result is that the money it represents also fluctuates, resulting either in inflation or deflation.

No, the answer cannot be divorced from the simple honesty of the people responsible for the amount of money in circulation. Without basic honesty, we will always have this problem.

But under the present Federal Reserve System, it is not possible to maintain just the right supply of money in circulation, because the entire amount is a DEBT that must be repaid AND MORE. The interest on the national debt is taken off the top of the new government budget every year. It amounts to hundreds of billions of dollars removed from circulation. Every payment removes that much money from the economy where it is needed--and the economic engine is suddenly a quart low on oil. If it is not fixed by borrowing more money into circulation, we end up in recession for lack of money.

It is the Ponzi of Ponzis. Eventually, it has to crash, because it carries within the system the seeds of its own destruction. It only stands to reason that if you borrow $100 and have to repay $105, this is impossible unless someone else takes out a loan, spends it, and you are able to acquire some extra cash from his loan in order to have enough to repay your own.

You see, the root problem lies in the question of WHO has the power to create money? Is it the government, or the private bankers of the Federal Reserve, from whom the government borrows Fed Notes? The power to create money is the real issue, not a gold standard. The government should never have given away its power to create money in 1913-1914.

The Fed has argued that such power cannot be entrusted to the government. Really? And bankers are more trustworthy? Besides, how has this transfer of power to the Fed stopped the government from putting too much money into circulation? Has it stopped the creation of two trillion dollars in the past 3 months? Of course not. The only difference is that the new money is more DEBT, rather than actual positive money.

This is the Babylonian economic system that rules the world today. This is what we have come against in spiritual warfare since 1993. This is what is now collapsing. It must be replaced by the Kingdom of God and biblical money that does not represent debt. This is the basis of biblical economics. It is honest money and must be maintained by honest people.

The gold standard itself is rooted in Babylon, the "head of gold." Howard Rand wrote years ago,

"God has supplied in abundance the needs of life but man has adopted an economic system that caters to greed and selfishness and restricts the distribution of God's abundance. The acquiring of gold or its equivalent in the medium of exchange has become the objective of man's endeavors as a result of Nebuchadnezzar, King of Babylon, having called a great economic conference of nations to meet at Babylon.

"Daniel describes that meeting: The King built a column sixty cubits high and placed on top the Winged Disc or, as Daniel puts it, the Image of Gold. Here we have an account of the birth of the GOLD STANDARD, when by solemn decree it was made a controlled medium of exchange, the possession of which became essential to those who would buy and sell in the world markets." (Study in Revelation, p. 191)

This is recorded in Daniel 3, where all the economic and political officials were required to "worship" this "image of gold." Daniel 3:2 says,

"Then Nebuchadnezzar the king sent word to assemble the satraps, the prefects and the governors, the counselors, the treasurers, the judges, the magistrates and all the rulers of the provinces to come to the dedication of the image that Nebuchadnezzar the king had set up."

Here is a worship service without any religious leaders! Why were the priests not invited? Because it was not a new form of worshiping gods in the temple; it was an economic and political system being established.

Babylon is said to fall "in one hour" (Rev. 18:10). In prophecy, a day for a year means that a "day" is 360 days (i.e., one year). In long-term prophecy, a day is 360 years. An hour, then, is 1/24 of 360, or 15 years. From the passage of the Federal Reserve Act in 1914 to the great crash of 1929 is 15 years, or "in one hour."

That ultimately resulted in the Great Depression and the end of the gold standard. Today we are seeing the next step, as we enter Great Depression II. From 1993-2008 is again 15 years. We are again entering a time of crisis, as in 1929.

When we emerge from this crisis in the years ahead, the world will be a very different place. In my view, Babylon will be replaced (at least in some nations) by the Kingdom of God and its righteous laws.


This is the second part of a series titled "Biblical Money." To view all parts, click the link below.

Biblical Money


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Dr. Stephen Jones


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