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Belshazzar's quantitative easing

Nov 02, 2010

Fed chairman Ben Bernanke is out of ammunition to keep the Babylonian economy running. Interest rates are zero, and the only weapon left in his arsenal is to create more money out of thin air. According to AOL News today,

"It works like this: Because the primary interest rate is already at zero, the Fed has to resort to other means to lower returns in the greater marketplace. So the Fed creates money out of thin air and buys bonds from the markets."


It was not too many years ago that an admission like this was banned from the public debate. No one was supposed to know how money came into existence. But now a large portion of the population knows it, so there is no point in pretending that it is a secret.

The fact is that virtually all money is created to buy bonds--that is, debt notes. The Fed creates no money at all without putting someone else into "bondage." Money itself is a "note" (i.e., representing a debt). That is, in fact, the core of the financial problem today. If all money is a debt that bears interest, then more money has to be repaid than is in existence. Debts can only be paid back as more and more people go into debt in order to create enough to make the next interest payment.

As soon as a debt note is created at interest, it becomes impossible to ever get out of debt under such a system, because the amount of money needed to pay it off will always be less than the debt-plus-interest that has accumulated. Eventually, the day of reckoning comes, where it becomes impossible to pay even the interest, let alone the debt itself.

This is a structural problem, not merely a problem with monetary supply. The only way that the creation of new money will actually work is for the government to take back its right to create money from the Fed and then create US Notes interest-free. In fact, it has to nationalize the Fed, declare a Jubilee, and replace every Federal Reserve Note with a US Note.

Few political candidates dare to advocate such a solution, even if they are aware of the problem. They have witnessed too many assassinations already, most notably Lincoln and the Kennedys, and they don't want to become another money-martyr.

The American people reached a crisis point in 2007-2008, when their level of debt reached the point where they could no longer borrow more money. They began to pay down debt instead, and this reduced the money supply. That is why the Fed has stepped up to the plate and has been creating money to replace what the economy is losing. You see, whenever a debt is paid down, money ceases to exist, and we experience a shortage of money known as "recession."

The Fed then has to make up the difference in order to keep the economy running smoothly. But the Fed does not create debt-free money. The government trades debt notes (bonds) for Fed notes that the Fed created out of thin air, obligating the taxpayers to repay billions and trillions of dollars on money created out of thin air and loaned to the government at interest.

Such a system is insane and could only have come into being through fraud and secrecy back when the Fed was created a century ago.

But when President Wilson signed the Federal Reserve Act into law in February of 1914, it was precisely 2,520 years since the original Babylonian Empire had come into existence. The year 1914 marked the New Babylon, known in Revelation as "Mystery Babylon," which has put the entire world into bondage (through "bonds").

We are now coming to the end of this Babylonian world financial empire. The Kings of the East are at the gates, and Belshazzar Bernanke is proposing another toast to the gods of gold, silver, bronze, iron, wood, and stone (Dan. 5:4). The drunken orgy of money creation now heralds the final collapse of Babylon to the army of Darius.

The handwriting on the wall is now visible (Dan. 5:5), and the king is scared out of his wits. Scripture tells us that "his loins were loosed" (5:6). That is a euphemistic way of saying that he messed his trousers. I call it the original "quantitative easing." It is usually followed by a royal flush.

According to the article quoted earlier, last year's round of "quantitative easing" already injected enough money into the economic system to make up for the shortfall. The problem is that the money went to the big banks, not to the ordinary people or to small business. And the big banks are using that money to keep the CEO salaries high and, if there is any left over, to pay for their sins in the derivatives and mortgage markets.

So is it necessary to do another round of quantitative easing? Only if we decide to let the Fed continue to rule over us. If we refuse to throw off the yoke of Babylon, then the only "solution" is to print more money out of thin air so that it can continue to be exchanged for more bonds and put us further into debt.

This so-called solution will work until it doesn't. Do we have to hit bottom before we repent and throw off the yoke of Babylon? That remains to be seen, but either way, Babylon's day of reckoning is nearly upon us. When that day comes, anyone holding bonds will lose their investments via bankruptcy and the Jubilee.

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Category: News Commentary

Dr. Stephen Jones

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