Gold and Silver are debt! What???
publication date: Dec 11, 2009
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author/source: Brad Hamill
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Today I would like to encourage all of my readers to
stretch their economic minds. Why do I say this? It’s because there
are numerous economic hypotheses floating around that are being
presented by honest, Christian people. My particular economic
hypothesis tends to run counter to some of the more “established”
ideas. J Please note, that I have very dear friends that will vastly
disagree with what I’m about to write – but it needs to be written.
One way of seeing this difference is to listen to two ½ hour radio interviews that aired yesterday and today. They’re both centered around the concept of “How should Christians prepare for an economic worst-case scenario?”
Yesterday’s radio interview can be found here, and was given by yours truly: Worst Case Scenario
Today’s radio interview is found here, and was given by Doug Tjaden – a man that I highly admire and read, but have certain economic differences of opinion with: Worst Case Scenario Part 2
Before I go further, I believe that differences of opinion are great. This is especially true when both sides of the debate are seeking to apply Christian principles and have spent a lot of time in developing their ideas. With that said, let me delineate the major differences of opinion as I see them.
Doug’s economic ministry seeks to return our economy back to biblical “proper economics”. It is his position that this means getting our money supply back to being based on gold and/or silver. I truly hope that I’m conveying this accurately, so just in case here is Doug’s web site: Traditions of Men
One of the chief facets of this economic theory is that the “fiat” currency we use today is just paper – and is backed by nothing. Oftentimes, people holding the gold and silver theory refer to our currency as “worthless”. This definition is not only wrong, but I believe it masks the areas of economics that Christians really need to understand in order to best work towards a biblically-based economy!
This is where Doug and I have a very different opinion. I believe that there is absolutely no need to re-base our money supply on gold and silver. My hypothesis holds that “gold” and “silver” mean nothing – in and of themselves – when it comes to having a biblically based economy.
Instead, I contend that the “root” of an economy is based around the concept of honest labor – and the bible completely supports that. Yes, silver was used a lot in biblical times as a monetary means that represented “completed labor”. You knew that those paying with silver were paying with something where there was no “future labor” that was still owed on the money. Gold was primarily used as a storage mechanism, with one gold coin equaling twenty-five silver coins.
It’s interesting to note that actual monetary “coins” that were struck by the Jews did not appear until around 143 B.C. – and Jewish coins did not become widespread in their use until around 66 A.D.
The Romans also produced coins, but did not standardize their use until 24 B.C. We read about Jesus referring to a “Denarius”, which was a common Roman silver coin during Jesus’ day. We read in Matthew 20:1-2 that the workers in the vineyard were paid a “denarius” for their full day of labor. To put this into perspective – a denarius was worth around 16 cents. Also, note that the workers did not receive their wages until they had completed their agreed upon labor.
There were also Greek coins circulating around with the Roman and Jewish coins. This made commerce somewhat “interesting”.
Prior to the time of coinage, we sometimes read about specific “weights” of gold and silver being used in trade. The Hebrew word for “money” in the Old Testament was often literally translated as “silver”.
The physical form that we call “money” really doesn’t matter, as long as it operates efficiently as a source of money. What matters is that it should ALWAYS represent “completed labor”. This is what makes any monetary economy “biblical”. So what’s the problem with the American economy? Isn’t the money that we receive in our paychecks based on completed labor?
The ENTIRE economy of the United States is based on debt. “Money” can’t even come into existence unless the Federal government first creates new debt! Now, hopefully you’re asking the question: “What is the Federal government using as a “backing” for all of the new debt it’s creating?” The answer is: YOU! …… and your family, and your neighbors, and the rest of the taxpayers in our nation. The Federal government is promising the “FUTURE LABOR” of its citizens to pay back the debt.
OK…so who exactly is the Federal government making this promise of our FUTURE LABOR to? Who do they need to pay back? Aren’t they the government? Shouldn’t the existence of our monetary system begin with them?
The Federal government is promising to pay the debt back to international bankers, who own and control our Federal Reserve – and the entire economic policy of our nation. They are pledging our FUTURE LABOR as debt collateral.
So what’s it called when somebody else OWNS your future labor? My understanding is that it is called Slavery…..or Servitude, if you want a more politically correct answer.
You see, economies are not built around gold and silver. They are built around the concept of labor! “Money” based on completed labor is a good thing. It’s known as “capital” – or “profit”. “Money” based on owning someone’s FUTURE LABOR is a bad thing for the person who’s labor is owned. It’s known as “debt” – or “servitude”. It causes us to labor in order to serve our debt master. Shouldn’t we be laboring to serve Christ’s Kingdom instead?
Next time you get your paycheck I would encourage you to think about it this way…..Yes, you completed your labor for the billing period – but the “money” you just received does not represent your “completed labor”. Instead, the “money” represents a “transfer of claim on future labor” between your employer and you. In other words, you now have claims on somebody else’s future labor. You are being paid by making you the master over future labor not yet completed.
If you go to the grocery store and spend $100 then you are transferring $100 of your claims on somebody’s future labor to the store owner in exchange for food. You are not transferring “money” based on ANYBODY’S completed labor!
This should bring an entirely new perspective on just how sinful our current economy truly is. There is absolutely no concept of true “capital” or “profit”. EVERYTHING is based on debt – the debt of somebody’s future labor.
Guess what that means? It means that gold and silver are backed by debt! Now I now that last sentence will be considered sacrilege by some, but let’s investigate the facts in our entirely debt-based economy….and the debt-based economies of the industrialized world.
Gold and silver are mined in mines that were bought with debt money. The workers are paid with debt money. The tools they use were purchased with debt money. Investors use debt money to purchase gold and silver. People sell gold and silver to receive debt money in return. EVERYTHING is based on debt! Gold and silver are simply commodities in a debt-based society. They have no special meaning other than that.
Establishing a “new economy” that has gold and silver backing its currency will accomplish exactly nothing – IF….. the money is still being backed by future labor. It’s ONLY when claims on future labor are eliminated, and we go back to money representing completed labor, that we will have a truly God-honoring economy. And it has nothing to do with gold or silver.
________________________________________________________
Watch for these indexes to drop:
Chinese Shanghai Composite Index: 3,247.32 (change of 0.60% from July 20, 2009 base value of 3,266.92)
Shenzhen Stock Exchange Component Stock Index (SSE): 13,875.87 (change of 3.70% from July 20, 2009 base value of 13,381.22)
________________________________________________________
Here are today’s numbers for the economic indicator:
1) Gold = $1,115.10
2) Dollar Index = 76.53
3) Oil = $69.69
4) S&P 500 Index = 1,106.41
5) 3-month Treasury Bill yield = 0.02
6) 3-month OIS = 0.16
__________________________________________________________
Here are the numbers for the day:
Dollar Index adjusted indexes:
Dow = (10,471.50) x (0.7653) = 8,013.84
S&P 500 = (1,106.41) x (0. 7653) = 846.74
Nasdaq = (2,190.31) x (0. 7653) = 1,676.24
3-month Treasury: 0.02
2-year Treasury: 0.81
10-year Treasury: 3.55
30-year Treasury: 4.50
2-yr vs. 10-yr Spread (Target > 273): 274 basis points (Danger Zone)
2-yr vs. 30-yr Spread (Target > 369): 369 basis points (Danger Zone)
3-month LIBOR: 0.25
3-month EURIBOR: 0.71
3-month OIS: 0.16
TED Spread: 23 basis points
LIBOR/OIS Spread: 9 basis points
Dollar Index: 76.53
Volatility Index: 21.59
JPY-EUR Exchange Rate (Target < 115): 130.2392
JPY-GBP Exchange Rate (Target < 145): 144.7375 (Danger Zone)
JPY-USD Exchange Rate (Target < 90): 89.061 (Danger Zone)
USD-EUR Exchange Rate (Target < 1.25): 1.4624
USD-CNY Exchange Rate (Target > 7.0): 6.8276
Warmly,
Brad
Comments or questions? brhamill@hamill.com
One way of seeing this difference is to listen to two ½ hour radio interviews that aired yesterday and today. They’re both centered around the concept of “How should Christians prepare for an economic worst-case scenario?”
Yesterday’s radio interview can be found here, and was given by yours truly: Worst Case Scenario
Today’s radio interview is found here, and was given by Doug Tjaden – a man that I highly admire and read, but have certain economic differences of opinion with: Worst Case Scenario Part 2
Before I go further, I believe that differences of opinion are great. This is especially true when both sides of the debate are seeking to apply Christian principles and have spent a lot of time in developing their ideas. With that said, let me delineate the major differences of opinion as I see them.
Doug’s economic ministry seeks to return our economy back to biblical “proper economics”. It is his position that this means getting our money supply back to being based on gold and/or silver. I truly hope that I’m conveying this accurately, so just in case here is Doug’s web site: Traditions of Men
One of the chief facets of this economic theory is that the “fiat” currency we use today is just paper – and is backed by nothing. Oftentimes, people holding the gold and silver theory refer to our currency as “worthless”. This definition is not only wrong, but I believe it masks the areas of economics that Christians really need to understand in order to best work towards a biblically-based economy!
This is where Doug and I have a very different opinion. I believe that there is absolutely no need to re-base our money supply on gold and silver. My hypothesis holds that “gold” and “silver” mean nothing – in and of themselves – when it comes to having a biblically based economy.
Instead, I contend that the “root” of an economy is based around the concept of honest labor – and the bible completely supports that. Yes, silver was used a lot in biblical times as a monetary means that represented “completed labor”. You knew that those paying with silver were paying with something where there was no “future labor” that was still owed on the money. Gold was primarily used as a storage mechanism, with one gold coin equaling twenty-five silver coins.
It’s interesting to note that actual monetary “coins” that were struck by the Jews did not appear until around 143 B.C. – and Jewish coins did not become widespread in their use until around 66 A.D.
The Romans also produced coins, but did not standardize their use until 24 B.C. We read about Jesus referring to a “Denarius”, which was a common Roman silver coin during Jesus’ day. We read in Matthew 20:1-2 that the workers in the vineyard were paid a “denarius” for their full day of labor. To put this into perspective – a denarius was worth around 16 cents. Also, note that the workers did not receive their wages until they had completed their agreed upon labor.
There were also Greek coins circulating around with the Roman and Jewish coins. This made commerce somewhat “interesting”.
Prior to the time of coinage, we sometimes read about specific “weights” of gold and silver being used in trade. The Hebrew word for “money” in the Old Testament was often literally translated as “silver”.
The physical form that we call “money” really doesn’t matter, as long as it operates efficiently as a source of money. What matters is that it should ALWAYS represent “completed labor”. This is what makes any monetary economy “biblical”. So what’s the problem with the American economy? Isn’t the money that we receive in our paychecks based on completed labor?
The ENTIRE economy of the United States is based on debt. “Money” can’t even come into existence unless the Federal government first creates new debt! Now, hopefully you’re asking the question: “What is the Federal government using as a “backing” for all of the new debt it’s creating?” The answer is: YOU! …… and your family, and your neighbors, and the rest of the taxpayers in our nation. The Federal government is promising the “FUTURE LABOR” of its citizens to pay back the debt.
OK…so who exactly is the Federal government making this promise of our FUTURE LABOR to? Who do they need to pay back? Aren’t they the government? Shouldn’t the existence of our monetary system begin with them?
The Federal government is promising to pay the debt back to international bankers, who own and control our Federal Reserve – and the entire economic policy of our nation. They are pledging our FUTURE LABOR as debt collateral.
So what’s it called when somebody else OWNS your future labor? My understanding is that it is called Slavery…..or Servitude, if you want a more politically correct answer.
You see, economies are not built around gold and silver. They are built around the concept of labor! “Money” based on completed labor is a good thing. It’s known as “capital” – or “profit”. “Money” based on owning someone’s FUTURE LABOR is a bad thing for the person who’s labor is owned. It’s known as “debt” – or “servitude”. It causes us to labor in order to serve our debt master. Shouldn’t we be laboring to serve Christ’s Kingdom instead?
Next time you get your paycheck I would encourage you to think about it this way…..Yes, you completed your labor for the billing period – but the “money” you just received does not represent your “completed labor”. Instead, the “money” represents a “transfer of claim on future labor” between your employer and you. In other words, you now have claims on somebody else’s future labor. You are being paid by making you the master over future labor not yet completed.
If you go to the grocery store and spend $100 then you are transferring $100 of your claims on somebody’s future labor to the store owner in exchange for food. You are not transferring “money” based on ANYBODY’S completed labor!
This should bring an entirely new perspective on just how sinful our current economy truly is. There is absolutely no concept of true “capital” or “profit”. EVERYTHING is based on debt – the debt of somebody’s future labor.
Guess what that means? It means that gold and silver are backed by debt! Now I now that last sentence will be considered sacrilege by some, but let’s investigate the facts in our entirely debt-based economy….and the debt-based economies of the industrialized world.
Gold and silver are mined in mines that were bought with debt money. The workers are paid with debt money. The tools they use were purchased with debt money. Investors use debt money to purchase gold and silver. People sell gold and silver to receive debt money in return. EVERYTHING is based on debt! Gold and silver are simply commodities in a debt-based society. They have no special meaning other than that.
Establishing a “new economy” that has gold and silver backing its currency will accomplish exactly nothing – IF….. the money is still being backed by future labor. It’s ONLY when claims on future labor are eliminated, and we go back to money representing completed labor, that we will have a truly God-honoring economy. And it has nothing to do with gold or silver.
________________________________________________________
Watch for these indexes to drop:
Chinese Shanghai Composite Index: 3,247.32 (change of 0.60% from July 20, 2009 base value of 3,266.92)
Shenzhen Stock Exchange Component Stock Index (SSE): 13,875.87 (change of 3.70% from July 20, 2009 base value of 13,381.22)
________________________________________________________
Here are today’s numbers for the economic indicator:
1) Gold = $1,115.10
2) Dollar Index = 76.53
3) Oil = $69.69
4) S&P 500 Index = 1,106.41
5) 3-month Treasury Bill yield = 0.02
6) 3-month OIS = 0.16
__________________________________________________________
Here are the numbers for the day:
Dollar Index adjusted indexes:
Dow = (10,471.50) x (0.7653) = 8,013.84
S&P 500 = (1,106.41) x (0. 7653) = 846.74
Nasdaq = (2,190.31) x (0. 7653) = 1,676.24
3-month Treasury: 0.02
2-year Treasury: 0.81
10-year Treasury: 3.55
30-year Treasury: 4.50
2-yr vs. 10-yr Spread (Target > 273): 274 basis points (Danger Zone)
2-yr vs. 30-yr Spread (Target > 369): 369 basis points (Danger Zone)
3-month LIBOR: 0.25
3-month EURIBOR: 0.71
3-month OIS: 0.16
TED Spread: 23 basis points
LIBOR/OIS Spread: 9 basis points
Dollar Index: 76.53
Volatility Index: 21.59
JPY-EUR Exchange Rate (Target < 115): 130.2392
JPY-GBP Exchange Rate (Target < 145): 144.7375 (Danger Zone)
JPY-USD Exchange Rate (Target < 90): 89.061 (Danger Zone)
USD-EUR Exchange Rate (Target < 1.25): 1.4624
USD-CNY Exchange Rate (Target > 7.0): 6.8276
Warmly,
Brad
Comments or questions? brhamill@hamill.com
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