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Posts Tagged ‘Money and Banking’

Obama

Obama to propose $10-per-barrell fee on oil,” blared the CNBC headline. Surprise, surprise. Obama wants a new tax. The Obama administration claims the funds generated by this proposed energy tax will be used to fund clean transportation research, high-speed railways, autonomous cars and other such like. (Sigh)… Can Obama just leave office already? The economy is teetering on the brink of a recession, and possibly something much worse, and all the president can think to do is gin up more government spending. I guess Nixon was right, we really are all Keynesians now.

It’s fascinating how statists such as Obama try to portray themselves as of the people, by the people, and for the people, but in reality they are anything but. In truth, he is more like of the statists, by the statists and for the statists. There is nothing that he does that is not all about growing government. And that’s what gives the lie to this and to his other proposals. But government is the problem, not the solution. Growing the state does not make us better off. It’s a drain on our wealth. More power in Washington means less freedom for Americans. And yet, almost like a cuckoo clock, out pops Obama to to announce yet another government spending initiative.

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statue of liberty

Statue of Liberty scene from Planet of the Apes.

Civilizational collapse. The very words make the reader sit up and take notice. When I hear them, I tend to think of the barbarian hordes – some of whom, for all I know, may have been my ancestors – sacking Rome. But civilizational collapse is not just about ancient history. For it has been the contention of this blog that we in the West in the early 21st century are living through a civilizational collapse in real time. The West, the civilization born out of the 16th century Protestant Reformation, is in real danger of disappearing altogether. Given birth by the widespread preaching of, and belief in, the Gospel of justification by belief alone in the 16th century, the West has undergone steep decline over the past one hundred plus years.

 

In our own time, there are very few individuals left who hold fast to the two principle doctrines of the Reformation, sola scriptura (the Bible alone is the sole authority for Christian doctrine and practice), and sola fide (salvation is by belief alone). Since Western Civilization was the by-product of the Gospel of Jesus Christ, it would stand to reason that when the people of the West reject that Gospel, that the civilization built upon it would fall. And this is exactly what we see happening all around us. Public morals, respect for individual liberty and private property, not to mention the finances of entire nations all are in steep decline.

How does the Christian face an environment such as this? In the US, at any rate, there are many active preppers, individuals who believe in taking steps to protect themselves in the event the current economic and political order should suffer a significant breakdown. I happen to be one of those people.

As a rule, preppers are considered to be a bit of a fringe group and are often dismissed as paranoid wearers of tin-foil hats . But that in itself does not prove them wrong. Just looking at the finances of the Western nations should be enough to put anyone in prepper mode. As I detailed in last week’s post, the financial system and economy of the US are in a very precarious position and may well be poised for an imminent collapse. Take the recent comments of noted investor Jim Rogers, who said that in 2016, “everything is going to get smashed,” as a result of the relentless counterproductive policies pursued by the governments and central banks of the world. “A prudent man foresees evil and hides himself, But the simple pass on and are punished,” says Proverbs. And what are preppers but those who foresee trouble coming and seek to take measures to protect themselves? Given the current state of affairs, far from being paranoid, it seems as though the preppers on the ones showing good sense, while those who deny the gathering storm facing the West and pretend everything is awesome are simpletons whistling past the graveyard.

financial-crisis

Prepping started to get big in the US in the wake of the 2008 financial crisis. Over the ensuring years, many helpful books have been written on the subject of prepping, and many excellent resources available on the internet that address this issue. It is not the aim of this post to repeat what others already have said, and said better than this author could. No, the aim of this post is to look at what the Bible has to say about prepping. Not so much from the standpoint of “buy this” or “make sure you have enough of that,” but rather from the standpoint of how God works in history, the grace he shows to his people even in the worst of times, and reflect on general principles that we can take from individual cases in Scripture where people were faced with the destruction of their civilization. In particular, I would like to focus on the example of Noah, a man who can fairly be described as history’s preeminent prepper.

God is Not Mocked

Back in the late 90s, the minister of my church said to me in private conversation that if the then new, state-level laws legalizing homosexual marriage were allowed to stand, then God would owe an apology to Sodom and Gomorrah. Strong words, those. Little did we know at the time that, not only would the existing laws in support of gay marriage be allowed to stand, but that gay marriage would one day be declared the law of the land, as occurred in June 2015 with the Supreme Court ruling in the case of Obergefell v. Hodges.

And what shall we say about a nation that so openly mocks the law of God. It is common for Americans to say “God bless America.” But really, why should he? After the Supreme Court ruling on gay marriage, the minister of my current church commented, quite correctly, that America has now placed itself further outside the [preceptive] will of God than at any other time in its history. It seems to me that, considering just the gay marriage issue alone, God would have much more reason to visit destruction on America rather than bless it.

Some may suppose that because hellfire and brimstone did not immediately descend from the heavens and consume the Supreme Court building along with those justices who voted in favor of gay marriage, arrogantly supposing as they did, that they can set aside the eternal law of God, that nothing bad will follow as a result of Obergefell v. Hodges. But I wouldn’t be so sure of that. As the Apostle Paul makes clear, God is not mocked. While it is true that we must all stand before the judgment seat of Christ, it is also true that judgment can come in this life. And Sodom and Gomorrah stand as stark witnesses to the proposition that God will not forever put up with a civilization that so flagrantly mocks his law.

But the sudden and dramatic overthrow of Sodom and Gomorrah is not the only Biblical example of God visiting destruction on a civilization due to its gross sinfulness. The destruction of the Canaanites was a consequence of their sinfulness. “But in the fourth generation they [Abraham’s descendents] shall return here, for the iniquity of the Amorites is not yet complete” (Genesis 15:16), were God’s words to Abraham. God destroyed the Tower of Babel and scattered the people, confusing their language, due to their disobedience.

The experience of Israel in the promised land ended in a similar fashion. Even before Israel entered Canaan, God laid out for the stipulations of his covenant. If the people obeyed, they would receive blessing. If they did not, curses and destruction would follow. As Scripture tells us, Israel was eventually given over to conquerors due to the unfaithfulness of the people. The writer of Chronicles puts it this way,

And the LORD God of their fathers sent warnings to them by His messengers, rising up early and sending them, because He had compassion on His people and on His dwelling place. But they mocked the messengers of God, despised His words, and scoffed at His prophets, until the wrath of the LORD arose against His people, till there was no remedy (2 Chronicles 36:23).

The Old Testament also reports the destruction of the destroyers of Israel and Judah. Both Assyria and Babylon were judged for their iniquities and overthrown.

Civilization-wide judgment is not limited to the Old Testament either. It is also found in the New. In the Olivet discourse, Jesus predicted the judgment that God would visit on Jerusalem in A.D. 70. In Revelation we are shown the coming destruction of Mystery Babylon the Great, the Antichrist system of the papacy, for its many sins.

The deluge

The Deluge by John Martin, 1834.

 

The End of the World As He Knew It

Relative to the subject of this study, I would like to end this brief review of God’s civilizational judgments by discussing his destruction of the world at the time of Noah. Back in the 80s, R.E.M. had a hit song titled It’s the End of the World as We Know It (And I Feel Fine). Despite the rather depressive sounding name, it’s actually a pretty catchy tune. And the title really does capture the experience of Noah. After all, here was a man who had never so much as seen rain, being told by God that the world would be destroyed in a flood. Everything would be wiped away.

And why is it that God decided to end all human life save eight people? He doesn’t leave it to our imagination, but rather expressly tells us it was due to the exceeding wickedness of man.

Then the LORD saw that the wickedness of man was great in the earth, and that every intent of the thoughts of his heart was only evil continually. And the LORD was sorry that He had made man on the earth, and He was grieved in His heart. So the LORD said, “I will destroy man whom I have created from the face of the earth, both man and beast, creeping thing and birds of the air, for I am sorry that I have made them” (Genesis 6:5-7).

I would like to draw the reader’s attention to two aspects of this passage. First, note well that the destruction of the antediluvian [pre-flood] world was brought about by God. Sometimes people speak of God permitting this or that disaster to occur. But as Gordon Clark argues in God & Evil: The Problem Solved, permission makes no sense in a universe created by, and completely under the control of, God. God himself says, “I will destroy man whom I have created from the face of the earth,” so it is hardly slander to state that God brought about the destruction. But what is more, the wickedness of man that prompted God to destroy the earth was not some unplanned or unforeseen eventuality, but God caused men to act as they did. God was not the author of their sin, for the wicked men themselves thought and performed evil themselves. But God was the ultimate cause of their doing so.

Second, although God is the ultimate cause of the sinfulness of the antediluvian world, he is not responsible for the sin, those who commit the sin are. God is not responsible for the simple reason that whatever God does is right and good. There is no one to whom he must give account. Put another way, God is Ex Lex, above the law. As sovereign of the universe, it is his prerogative both to will men to be reprobate and to punish them for it.

Conclusion

In his address to the Athenians on Mars Hill, Paul stated the end to which God established nations. Said Paul,

And He has made from one blood every nation of men to dwell on all the face of the earth, and has determined their preappointed times and the boundaries of their dwellings, so that they should seek the Lord, in the hope that they might grope for Him and find Him, though He is not far from each one of us (Acts 17:26, 27).

The intended result of his establishing nations, is that the people seek for him. But when nations fail to do this, and when they, in fact, do quite the opposite, wearying themselves to do evil, it should come as no surprise that God would bring them to an end. And this he has done many times in history, as the Bible makes clear.

It is my contention that Western Civilization has just about run its course. Beginning in earnest in the 19th century, the people of the West first rejected the Gospel of Jesus Christ, and the chickens are now coming home to roost. It appears that tough times lay ahead.

I do not write these things as a pessimist. Rather, I believe Christians have every reason to be optimistic about the future. We have the right Man on our side, the Man of God’s own choosing. That said, this does not mean we will not suffer along with everyone else should it turn out that I am right about what the future holds.

As Christians, we are not called to look upon the world with rose colored glasses. We are called to see it in light of the Word of God and to heed its warnings.

Seige of Jerusalem

Detail from the Arch of Titus in Rome showing a scene from the triumphal parade celebrating the Roman general Titus’ sack of Jerusalem in A.D. 70. 

 

In the Olivet Discourse, Jesus warned his hearers to flee to the mountains when they saw Jerusalem surrounded by armies. It would be interesting to know how many took him at his word and got out of town before general Vespasian showed up outside the city walls with his legions.

As Christians, let us be as the prudent man of Proverbs and prepare ourselves for the evil that appears to be coming our way. In so doing, not only will we preserve our lives and the lives of our loved ones, but also position ourselves to speak the truth of the Gospel to a world in desperate need of hearing it.

To be continued


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Obama_2016 SOTU

President Barak Obama delivers his State of the Union address to Congress, January 12, 2016.

“Anyone claiming that America’s economy is in decline is peddling fiction,” or at least that’s what President Obama would have Americans believe based on his remarks in his State of the Union address last week. Yes, according to the president, everything is awesome. And anyone who thinks otherwise is simply, to quote a Vice President from a few decades back, a nattering nabob of negativism.

 

But is everything as rosy as Obama would have us believe? The following points would suggest otherwise:

  • The New York Stock Exchange (NYSE) just experienced the worst opening week in its history. During the first two weeks of trading in 2016, the market has declined by 4%.
  • The Labor Force Participation Rate – this the total number of people who are either employed or actively looking for work divided by the total working age population – is at lows not seen in nearly 40 years, going back to a time when women were just entering the workforce in large numbers.
  • The Baltic Dry Index – a shipping and trade index measuring the changes in the cost to transport raw materials by – is at record low levels and continuing to sink rapidly. These low and rapidly declining readings – the index has dropped 19% just since the first of the year – indicate a sharp drop in international shipping, implying a significant drop in international trade and a global economic slow-down. According to this article, the index has hit new record lows for the past nine days straight.
  • According to FactCheck.org, the number of Food Stamp recipients grew by 45% for the period from 1/9/2009 – 1/9/2015.
  • Breitbart reports that, “American’s middle class has shrunk by almost 20% since the 1970s and is now a minority of the population in the United States.”
  • In connection with a shrinking middle class, income distribution has become significantly skewed toward the top of society. This video give a good breakdown of just how unequal incomes have become in the US. Among its findings: 40% of the wealth of the country is held by 1% of the population, those in the top 1% own 50% of value of the stock and bonds markets. Taken together with a shrinking middle class, it appears that the US is coming to resemble more a feudal society than the healthy middle class nation most of us grew up in.
  • US federal government debt has exploded in recent years. When Obama entered office in January 2009, the debt stood at a frightening $10.6 trillion. According to estimates by the Congressional Budget Office, the debt was $18.1 trillion in January 2015 and is projected to grow to $19.1 trillion a year from now when Obama leaves office. To put it another way, it took the US 236 years to amass $10.6 trillion of debt, but by the time he leaves office next year, Obama will have presided over a near doubling of this amount. According to Boston University economist Laurence Kotlikoff, “Our country is broke. It’s not broke in 75 years of 50 years or 25 years or 10 years. It’s broke today.”

Considering only the bullet points above, it would appear that precarious is about the kindest word one could use to describe the economic condition of the US. To say we’re headed off an economic cliff likely would be closer to the mark.

So how did we get here? How did a nation founded by the Puritans and committed to the principles of civil and economic liberty end up a bloated, socialist over extended empire suffocating under the largest debt edifice in the history of mankind? Although a full answer to that question is beyond the scope of a single blog post, the short answer is that the American people have, to borrow what Isaiah said about the people of Judah, turned away backwards from God and from his law. We have rejected the truth and embraced the lie, and now the chickens are coming how to roost.

In this post, I would like to look specifically at three economic lies that are held by nearly all academic economists, politicians and their enablers in the media: central banking, fiat currency and Keynesian economics. Any one of these by itself is dangerous to the health of a nation. Taken together, they are a sort of perfect storm, guaranteed to bring economic destruction to any nation whose leaders embrace them.

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2015 year in reviewAnother year of blogging has come and gone. And since New Year’s Day represents a convenient opportunity to reflect on the year past as well as look forward to the one ahead, it seemed good to me to summarize 2015’s postings as well as consider where this blog may be headed in 2016.

But before I get to that, thanks are in order. In the first place, I would like to thank the Lord my God. I have written Lux Lucet since 2009, but it has only been since November 2014 that I committed to a regular weekly writing schedule. Writing takes work. And in truth, I wasn’t sure that I would be able to maintain the frequency and quality of writing that I had in mind. But God has been gracious. He has provided me an abundance of interesting and relevant topics to discuss, the necessary time to research and write, and the stamina to make it happen. If there be anything about this blog at all praiseworthy, truly I must say with the reformers, Soli Deo Gloria.

Second, I would like to that the late Dr. John W. Robbins of the Trinity Foundation. It was eight years ago this month that John proposed to me a writing project that would eventually turn into a book titled Imagining A Vain Thing: The Decline and Fall of Knox Seminary. Up until that time, the biggest writing projects I had undertaken were high school and college term papers. But thanks to John’s help as well as the help of current Trinity Foundation president Tom Juodaitis, I was able to see the project through to its completion. This blog is an outgrowth of my experience working with John. You might even say it’s an extended thank you to him, the man whose work has done so much to inspire me.

Third, I would be remiss if I did not extend a sincere thank you to my readers for their support. Were you to ask me why I blog, habitual joker that I am, I’d probably tell you I’m in it for the money. It has always been my prayer that this blog would be used by God to edify his church. But the nature of blogging is such that it can be quite lonely. You sit at your computer and write and publish, but the question remains, What good is any of this doing? In light of that, it is tremendously encouraging to see that my posts are read. Please know that your clicks, comments and likes are greatly appreciated.

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Yellen_2

Federal Reserve Chairman Janet Yellen

Reading the comments of Janet Yellen and other Federal Reserve officials this past week brought to mind the words Jesus used to rebuke his disciples when they argued about who was t he greatest, The kings of the Gentiles exercise lordship over them, and those who exercise authority over them are called ‘benefactors” (Luke 22:25). “Benefactors” translates the Greek word “euergetes,” a title adopted by many kings in the ancient Greek speaking world. To be known as a Euergetes was a way for the king to boast, letting all the world know what a charitable fellow he truly was.

 

But Christ did not leave it at that. In addition to telling his disciples what not to do, he also provided positive instruction about how those in positions of authority ought to behave, telling them, “he who is greatest among you, let him be as the younger, and he who governs as he who serves” (Luke 22:26). It is this passage that serves as the basis for the idea of government as a servant of the people.

I bring up Janet Yellen and the Federal Reserve, because by their comments this week in opposition to a bill (H. R. 3189) before Congress, they once again they showed they think of themselves as “Benefactors” and lords rather than servants of the people. Established in 1913, the Federal Reserve is the central bank of the United States, and as the issuer of the US dollar, world’s reserve currency, it is among the most powerful institutions in the world. But despite the fact that its decisions affect the lives of every single American citizen, not to mention pretty much every person on the planet, the Federal Reserve conducts its business behind a veil of secrecy. H. R. 3189 would pull back the curtain on the Fed, allowing Congress and the American people better information on how the Fed goes about its business. Naturally, Yellen and others are appalled at the thought.

When asked to comment on the bill, Richmond Fed President Jeffrey Lacker huffed that its provision to audit the Fed amounted a, “mechanism for high-frequency harassment.” In a letter to House Speaker Paul Ryan and Democratic Leader Nancy Peolsi, Federal Reserve Chairman Janet Yellen complained that the legislation requiring greater transparency from the Fed, “would severely damage the U.S. economy were it to become law.” In what amounts to something like comic relief, Yellen continued in the same letter by commenting that, had the bill’s provisions been law in 2008 during the financial crisis, “inflation would be even further below the FOMC’s [Federal Open Market Committee, the body of Federal Reserve governors tasked with setting interest rates] 2 percent objective. Indeed, a recent study by Federal Reserve economists suggests that…inflation would now be running somewhat below zero, if the FOMC had not taken the actins it did.” In other words, Yellen is complaining that had the Fed been held accountable by the provisions in H. R. 3189, she and her colleagues would be unable to destroy the value of your hard earned dollars as fast as what they are now doing. In fact, were this bill to become law, your money may well gain in value, as this is what Yellen means when she says, “inflation would now be running somewhat below zero.” Horrors! H. R. 3189 would stop the crony capitalists at the Fed from ripping off the rubes in fly over country. At all costs such madness must be stopped!

The Eccles Building, main office of the Federal Reserve located in Washington D.C.

 

In evaluating these comments it is worth noting what the Fed actually is, a private cartel of the bankers, by the bankers and for the bankers. The Fed does not have and never has had the best interests of the American people in mind. It’s overriding purpose is and always has been doing what is right by the private member banks that own it. The fact that it was given its charter in 1913 by an act of Congress means that it represents the merger of state and corporate powers, which is the very definition of fascism. Simply put, the Fed, far from being and exemplar of constitutional capitalism, represents instead monetary fascism. In light of this, it is not surprising that then Fed Chairman Ben Bernanke moved heaven and earth to bail out the banks-too-big-to-fail [n.b. in capitalism there is no such thing as too-big-to-fail; individuals and institutions reap what they sow] during the 2008 financial crisis.

The behavior of the Federal Reserve over the past 100 years – its secrecy, favoritism and cronyism – is a perfect example of the sort of unaccountable power and arrogance that is characteristic of the “rulers of the Gentiles” Christ spoke about. The Fed has lorded it over the people of the United States for over one hundred years and impoverished all of us in the process. It’s high time to audit the Fed. Then end it.


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"You shall not crucify mankind upon a cross of gold." - William Jennings Bryan, 1896

“You shall not crucify mankind upon a cross of gold.”
– William Jennings Bryan, 1896

Talk of the US returning to a gold standard, at least according to the anointed wise men of our time, is the province of weirdoes, wackadoos and wingnuts and ought never to be mentioned in polite company by any serious presidential candidate. At least that’s the sense one gets when reading Matt O’Brien’s Washington Post article “Dear Jeb: Gold won’t make America great again.” O’Brien is upset that, when given the opportunity to squash any notion that he might support a gold standard, Jeb Bush waffled in his comments, implying that he may in fact be prepared to crucify mankind upon that dreadful cross of gold.  The horrors.  According to O’Brien, “The right answer would have been that the gold standard was a “barbarous relic” even 80 years ago, and might be the world’s worst idea today.”

O’Brien goes on to chide both Ben Carson and Bush, the former for his positive support of the gold standard, the latter for his failure to live up to his duty as “the candidate of serious policy,” which in O’Brien’s mind means taking a stance of uncompromising devotion to the central bank driven, fiat money status quo. The reason O’Brien gives for this is simple, “We tried it [the gold standard], and it failed.”

But did the gold standard fail as O’Brien thinks it did? O’Brien’s chief beef with the gold standard is that the price of gold is controlled by the Federal Reserve’s [the central bank of the United States] interest rate policy.

[T]he gold standard says that the dollar will always be worth a certain amount of gold. But that alone isn’t enough to make it true. The Federal Reserve has to do that. So, for example, think about what would happen when the price of gold “wanted” to go up. That is, when supply and demand would make its price go up if it were allowed to do so – which it wouldn’t be under the gold standard. In that case, the Fed would have to make the dollar go up instead to keep the relationship between the two the same. And making the dollar go up is just another way of saying that it makes interest rates go higher, since more people will want to hold a currency that pays more interest.

There are at least two fallacies with this argument. First, the gold standard does not require that the Federal Reserve (the Fed) do anything. In fact, the gold standard does not even require the existence of the Fed, as can be seen from the fact that the US was on the gold standard long before the it came into being in 1913. In truth, it was the Fed’s activism that caused both the stock market and real estate boom during the 1920’s and the subsequent 1929 bust that contributed to the depression of the 1930’s. It is the Fed, not gold, that failed during the depression. But as a good statist, O’Brien puts the blame exactly where it does not belong, on gold, while exonerating the Fed which did so much to create the mess. This is an example of calling good evil and evil good.

“Centralization of credit in the hands of the state, by means of a national bank with State capital and an exclusive monopoly” – Karl Marx and Frederich Engels – The Communist Manifesto

Karl Marx

Karl Marx

Worth noting too, is that central banking of the sort practiced by the Fed, and so admired by O’Brien and his counterparts in the media, academia and government, was actually advanced by Marx and Engles as one of the planks in their Communist Manifesto. It is unsurprising that the communists, favoring as they did government ownership of the means of production, would also insist on government control the monetary system. What is worth noting, however, is that so many in the West seem to be of the opinion that a modern economy cannot function in the absence of a central bank. But far from being a necessity, the central banks of the world are a positive hindrance to economic development. In the 100 years of its existence, the Fed has managed to destroy 96 percent of the dollar’s value, robbed savers with artificially low interest rates to bail out its billionaire banker buddies, and created unprecedented economic distortions, the worst of which have yet to play out. It is the Fed and its unseemly support of Wall Street investment banks that is to blame for the record income inequality in the US. Not, as is commonly assumed, laissez faire capitalism. It is the Fed that helped to bring on the depression of the 1930’s and caused the tech bubble of the 90’s, the real estate bubble of the 00’s and the current stock and bond market bubbles, both of which are set to pop and threaten to send the US and world economies into an economic tailspin such that the Great Depression will seem like a golden age of prosperity by comparison. When it comes to central banks, the best thing to do is to bury them in the same pit as the rubble from the Berlin Wall.

A second problem with O’Brien’s analysis is that he assumes that a gold standard requires the government fix the price of gold at a certain level. According to the Bible, governments have only two legitimate functions: to punish evil doers and praise those who do what is right. Nothing more. Though many people assume that they should, governments have no right to manufacture money. This means that for a gold standard – or any monetary standard – to work properly, it should be the free market, and not the government, that determines what is, and what is not money as well as the market price of money, that is, the free market should set interest rates, not some monetary politburo at the Fed as is currently the case.

Conclusion

Although the Bible does not require a gold standard or a silver standard, it does require that money, in whatever form it takes, be honest. Historically, gold and silver have done the best job in this role. Our current system, in which central banks conjure up capital out of thin air, crediting billions of dollars to the accounts of favored financial institutions with the click of a mouse, is about as far from honest as it can get. In any other context, the normal activities of the Fed would be called counterfeiting. Or to put in another way, lying at the heart of our current financial system is a consistent violation of the Eighth Commandment, Thou shalt not steal.

Contrary to O’Brien, there is nothing serious about advocating the continuance of the current broken, immoral, central bank dominated, debt based, fiat monetary system. But statists look for every excuse under the sun to defend the central banks and their fiat money ponzi schemes, one example of which is O’Brien’s claim that a gold standard cannot be trusted to regulate interest rates. This is simply false. Since the interest rate is simply the price of money, it is regulated in the free market by the laws of supply and demand, just like any other good or service. A gold standard set by the free market is honest money enabling honest commerce conducted apart from the interference of government. It is Biblical. And it works. Seriously.

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The Sacrifice of Elijah Against the Prophets of Baal.  Luca Giordano ca. 1650 -1660.

The Sacrifice of Elijah Against the Prophets of Baal. Luca Giordano ca. 1650 -1660.

In 1 Kings 18, we read the account of the famous head-to-head between Elijah and the prophets of Baal. Elijah had challenged Baalites to a prophetic version of a pistols-at-noon duel. The supports of Baal would have their opportunity to call upon their god, Elijah would have his opportunity to call upon his. Addressing the people of Israel, Elijah set the terms of the challenge by saying, “I alone am left a prophet of the LORD; but Baal’s prophets are for hundred and fifty men. Therefore let them give us two bulls; and let them choose one bull for themselves, cut it in pieces, and lay it on the wood, but put no fire under it; and I will prepare the other bull, and lay it on the wood, but put no fire under it. Then you call on the name of your gods, and I will call on the name of the LORD; and the God who answers by fire, He is God” (1 Kings 18:22-24).

Could the priests of Baal call fire from the heavens to consume the sacrificial bull? This was a fair challenge, and one the Baalites could hardly refuse. Had they taken a pass, they would have cast doubt on their entire belief system. Elijah had them cornered. Scripture tells us, “So they [the prophets of Baal] took the bull which was given them and they prepared it, and called on the name of Baal from morning even till noon, saying, “O Baal, hear us!” (1 Kings 18:26). But for all their infinite passion, nothing happened.

This had to be enormously embarrassing for both the priests and for their royal patrons, King Ahab and his wife Jezebel. Taking advantage of their obvious failure, Elijah mocked the Baalite prophets, saying, “Cry aloud, for he is a god; either he is meditating , or he is busy, or he is on a journey, or perhaps he is sleeping and must be awakened” (I Kings 18;27). Faced with the prospect of a crushing defeat, Baal’s prophets doubled down on the only trick they had. Unfortunately for them, that trick, which already wasn’t working, was about not to work once again. Scripture tells us that in response to Elijah’s sarcasm, the prophets of Baal, “cried aloud, and cut themselves, as was their custom, with knives and lances, until the blood gushed out on them. And when midday was past, they prophesied until the time of the offering of the evening sacrifice (I Kings 18:28, 29).

What was their reward for all this effort, all this blood-letting? Crickets. The sound of crickets. The Bible tells us, “But there was no voice; no one answered, no one paid attention” (I Kings 18/29).

Those familiar with the account know how it ends. The Lord answered Elijah’s simple prayer and sent fire from heaven that consumed “the burnt sacrifice, and the wood and the stones and the dust, and it licked up the water that was in the trench” (I Kings 18:38). Adding injury to their humiliation, Elijah ordered the execution of the false Baalite prophets.

The problem with the prophets of Baal wasn’t their lack of passion. It wasn’t that they didn’t give it their all. The reason they failed was simple: they had a flawed concept of reality. They had turned their back on the Lord and embraced a lie. Professing to be wise, they had become fools.

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Bail ins.  Bail outs.  Financial repression.  NIRP,  ZIRP, and QE.  These are just a few of the puzzling terms one is confronted with in the course of reading financial journalism.  And all of them, though intellectually defended by prestigious academics and widely practiced by powerful central bankers, are the unbiblical, unchristian, immoral fruit of economic thought divorced from the authority of God’s Word.  Describing the current world monetary system,  Ronald L. Cooper put it this way,

“[T]he monetary system is a Satanic monetary system.  It’s under the kingdom of Satan. There’s no place in the bible for a central bank” (The Failure of Secular Economic Policy, Trinity Foundation Conference on Christianity and Economics, Lecture 5).

Many Christians would recognize that there are problems with our economy.  Some would even own that, yes, central banking as practiced by the US Federal Reserve (hereafter, the Fed) is the source of much misery in this nation.  But to call the current economic and monetary system of the US satanic would very likely shock even most Evangelicals.  Surely that cannot be so.

And yet there is a great deal of evidence that central banking is indeed the satanic monstrosity Cooper made it out to be.  The aim of the following essay is to make manifest the reason why this is so.

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