When you control the money, you control almost everything. But the question is: What is money and what happened before we had paper money? Most of us would answer that it’s what we have our purses and in the bank, but the dictionary defines money as follows:
Money (1) standard pieces of gold, silver, copper, nickel, etc., stamped by government authority and used as a medium of exchange and measure of value. Coin or coins, also called hard money; (2) any paper note issued by government or an authorized bank and used in the same way: banknotes, bills, also called paper money (Webster’s New World Dictionary, Third Edition).
Economist Ludwig von Mises says that “as a rule nobody denies that the older forms of money were commodity money. It is further generally admitted that in earlier times coins were circulated by weight and not by tale. Nevertheless, it is asserted, money changed its nature long ago….Money came into existence because in earlier times, it was valued for other commodities and gold was probably one of the earliest forms of money.”
We also had a barter trade system in which goods were exchanged for goods. This was possible only in a simple economy. An example of this would be I am wheat farmer. Fred is a dairy farmer, and George doesn’t farm, but he has a tractor. I get tired of consuming bread that comes from my wheat all the time, and I would like to have some meat and milk.
Fred also gets tired of eating meat and drinking milk, and George who has the tractor, would like to have something to eat. What do we do? I send wheat to Fred and George, in return for meat, milk and the services of my tractor. In that process, all of us in our little community either produced goods, as Fred and I did, or provided a service, as George did with his tractor. But as we became a more mobile society it became harder and harder to pick up wheat and carry it everywhere. It was also difficult for Fred to carry his cows, and it was difficult for George to drive his tractor around the country.
This inconvenience of barter trade resulted in the origin of money. Money had to be something that everyone could accept in trade for various goods and services and could later be exchanged with someone else for goods and services that they needed. Throughout the history of early civilization, the increasing trade in commerce caused people to gravitate to gold and silver as a medium of exchange.
The first recorded use of paper currency first developed in the 7th century in China. However, the practice did not become widespread in Europe for nearly a thousand years. Private bank notes and deposits, redeemable in gold coins, had begun in Western Europe in Venice in the fourteenth century. Banking, in the sense of lending out the savings of others, began in England with the “scriveners” or scribes of the early seventeenth century. Scriveners were the people who could read and write, and they kept business, judicial, and historical records for kings, temples, and cities.
These scriveners later developed into clerks, accountants, petition writers, and lawyers who could write contracts and bonds and were therefore in a position to learn of business transactions and engage in money lending and borrowing. Before the rise of the scriveners, however, most English money lending was conducted by wealthy merchants in the clothing and woolen industries as outlets for their surplus capital.
There were no banks of deposit in England until the Civil War in the in mid-seventeenth century. The known banking activity was by goldsmiths who, after the termination of English monasteries by King Henry VIII, began to accumulate significant stocks of gold. The goldsmiths stored their gold in the king’s mint for safekeeping. But when Charles I needed money in 1638, shortly before the Civil War, he reportedly confiscated £200,000 of gold, calling it a “loan” from the owners.
Eventually, the merchants got their gold back, but the mint was no longer considered to be a safe place to keep it. The merchants decided to deposit their gold in the coffers of private goldsmiths. These “keepers of running cash,” as they came to be known, accepted gold in exchange for receipts as well accepting contract arrangements to pay it back. By the end of the Civil War, around 1651, the goldsmiths were tempted to print these receipts that were not covered by gold and lend them out. This became the forerunner to the modern bank note and then the fractional reserve banking system came to England. Today it’s the current form of banking practiced in all countries worldwide.
With this system, central banks are able to create an economy boom, a recession, or a depression, thanks to the fractional reserve requirements of the banking system. Money can easily be created out of thin air. Let’s imagine you borrow £20,000 at 10 percent interest, the banker wants you to pay back the £20,000, and the £2,000 for the interest during the end of that financial year. But the £2,000 for the interest is not there. The banker only created £20,000 out of thin air, but he wants back more than the loan he gave you.
Therefore, when you deposit funds into the bank, this money doesn’t belong to you in a conventional or legal sense; it belongs to the bank. The money becomes the property of the bank and you as a customer receive an asset called a deposit, checking or savings account. That’s why a significant number of economists have considered the fractional reserve banking system a fraud because it creates money out of thin air.
“As a former bank CEO,” writes Economist Larry Bates, “I have created millions of dollars out of thin air with the stroke of my pen, thanks to the fractional reserve banking system. I then charged interest on that which I created.” Here is how it works:
One day I made a loan to a customer in the amount of $100,000, thereby increasing my assets in loans by $100,000. This customer was a good customer, and I deposited the $100,000 loan proceeds to my customer’s checking account, thereby increasing my liabilities on the liabilities side of my bank ledger by $100,000. At the end of the day when I totaled my statement of condition, by the stroke of my pen I had increased the size of my bank by $100,000. All I have to do legally is to keep 10 percent of the $100,000 I deposited to my customer’s checking account, or $10,000, in reserve. I subtract this $10,000 from the $100,000 deposit, and I now loan my next customer $90,000 of their money and repeat the process. The total amount that I can ultimately create is called a “multiplier.” It is determined by a formula which is regulated by the reserve requirement set by the Federal Reserve.
Other financial analysts have dubbed this whole system a Ponzi scheme or the biggest scam in the history of mankind as described by Mike Maloney his Video below:
Today the Federal Reserve System, according to one expert, is the heart of power in any country. It decides how much new money and credit should be created or destroyed to achieve certain aims of the political and economic elite. It was conceived at a secret meeting on Jekyll Island in Georgia and later birthed for the purposes of protecting its members from competition and to devise a strategy of how to convince congress and the public that this agency was an agency of the United States government The Federal Reserve cannot print honest money, however, such as silver and gold. Therefore, fiat money would be the option used for the total economic enslavement of any country.
What Does the Bible Teach about Gold and Silver?
The Bible doesn’t tell us that people are required to use gold or silver as money. It states that people in Biblical times came to use gold and silver as money. How did they come to use this medium of exchange? Economist Gary North answers:
Historically, people voluntarily selected gold and silver as the common medium of exchange. There is no government that legislated this; people simply came to use these two metals in their economic transactions. It is the free market which determined what was acceptable to people for their economic activities…. The point is people voluntarily selected what was the best for them to be used as money.
The reason why people preferred precious metals was; they were valuable, they took labor to mine it, and it took labor to refine it. Gold and silver is money because God designed it that way in the beginning. These two precious metals were given to man for good use and God’s purposes. In all recorded history, including the Holy Bible, the currency and the money of the Bible is gold and silver, as recorded in (Genesis 1:28; Genesis 2:12.) Gold, silver, seed, and flour, were all used as money. (Lev 27:16, 2 Kings 7:1; 1 Kings 10:2)
The vast majority of the time that gold and silver are mentioned in the Bible, is in reference to the wealth of the kings of Israel or to the wealth of the temple of the Lord. Gold and silver were used in the workings and furnishings of the Ark of the Covenant, and the vessels in the Temple.
Therefore, gold was approved by God for men to use as money and as a store of wealth. The Bible says that each year Solomon received gold that weighed 666 talents which is around 25 tons of gold may be that is valued at 2 billion dollars. But in today’s economy because of inflation-the purchasing power would be far less but still a great deal of wealth. Now the weight of gold that came to Solomon in one year was 666 talents (2 Chronicles 9:13).
History tells us gold certificates like the ones shown below were used from 1863 to 1933 in the United States as a form of paper currency. In fact during the 1920’s most currencies were still backed by gold, this means you could easily go to the bank and exchange your pounds or dollars notes for the equivalent gold amount stated on those currencies. The value of your currency was fixed and the price of goods remained stable. To the share investors, inflation could lead to more profits stated by businesses, which could be seen as beneficial in a short term- this was also supported by governments.
Eventually, nations like Germany in 1923, Britain in 1931, and of course the U.S in 1933 and others realized that their currency is being devalued and endeavored to get rid of it as quick as possible by buying whatever they thought would retain their currencies value. This made it worse, because the currency became more undesirable and worthless. The people gravitated towards other forms of currency like precious metals of gold and silver as money.
You might remember that in 1933 the practice of redeeming paper notes for gold coins was ended by the U.S. government and until 1964 it was actually illegal to possess these notes. That same year in 1933 President Franklin D. Roosevelt ordered banks to be closed and pushed through Congress the Emergency Banking Relief Act. The banks were closed for four days and the government raided safe deposit accounts looking for gold, which had been declared illegal to own.
Gold and silver are the only monetary assets that are not someone else’s liability. You can easily hide them, they are portable, and most widely accepted form of money in the world. Some of the Jews bought their way to freedom from the Nazis using gold. If at all the Lord has instructed you, you might consider moving some of your assets to gold and silver coins, as gold is the most liquid financial asset in the world, and the rest is credit and fiat money which is basically money that has value only because of government regulations or laws. But you cannot trust in your gold or silver.
Yes gold and silver are the only real money but please don’t trust in your gold and silver to save you. Seek the Lord Jesus for wisdom how to handle your money in these changing times. The Bible says:
Your gold and silver are corroded, and their corrosion will be a witness against you and will eat your flesh like fire. You have heaped up treasure in the last days. Indeed the wages of the laborers who mowed your fields, which you kept back by fraud, cry out; and the cries of the reapers have reached the ears of the Lord of Sabbath. (James 5:3-4 NKJV)
The Bible is not against owning gold and silver but it is relevant to what we see today in the marketing of precious metals, and the injustice done to defenseless people who can’t pay their debts and are forced to sell all their possessions and some commit suicide. This is a warning to the rich who have stolen gold and silver from the people through fraudulently issuing and printing more paper money that is never backed by anything.
James proclaims that it is the love money that causes others to oppress others so that they can accumulate more money. These treasures on earth like gold and silver will only rot away and be eaten by moths. It is better to have an eternal bank account in heaven, because unless you use your wealth for the Kingdom of God, from an eternal standpoint, your financial portfolio is worthless! The monetary systems of the world are doing the same thing that Prophet Amos warned about, we are making the ephah or whatever we are buying smaller and the shekel (the pound or dollar) larger by inflating it so that it buys less goods, and we also cheat with dishonest scales.
You can’t wait for the Sabbath day to be over and the religious festivals to end so you can get back to cheating the helpless. You measure out grain with dishonest measures and cheat the buyer with dishonest scales. (Amos 8:5 NLT)
These are fraudulent weights and measures which are an abomination to the Lord. Furthermore the Prophet Ezekiel also describes how gold and silver seem to be less than worthless, because it won’t save you on that day of the Lord’s anger.
They shall cast their silver into the streets, and their gold shall be [discarded] like an unclean thing or rubbish; their silver and their gold shall not be able to deliver them in the day of the wrath of the Lord; they shall not satisfy their animal cravings nor fill their stomachs with them, for [wealth] has been the stumbling block of their iniquity. (Ezekiel 7:19 AMP)
In these times of financial distress, which might even get worse unless the Lord grants us His grace and mercy; we have to trust Jesus Christ not in our money or gold or any precious metals. We must humble ourselves and admit that we are helpless without the Lord. We don’t know what we should do or how we will react if we are faced with starvation for our families, but the Lord reminds us to:
Let your character or moral disposition be free from love of money [including greed, avarice, lust, and craving for earthly possessions] and be satisfied with your present [circumstances and with what you have]; for He [God] Himself has said, I will not in any way fail you nor give you up nor leave you without support. [I will] not, [I will] not, [I will] not in any degree leave you helpless nor forsake nor let [you] down (relax My hold on you)! [Assuredly not! So we take comfort and are encouraged and confidently and boldly say, The Lord is my Helper; I will not be seized with alarm [I will not fear or dread or be terrified]. What can man do to me? (Hebrews 13:5-6 AMP)