Why Is Money Important? RE: Debt and the American Monetary System

"Debt and inflation are almost synonymous. All inflation is a form of dishonest debt. Basically, inflation is an expansion of the money supply by the state. This expansion is essentially through the following means: First, the coinage is debased, and/or the paper money is increased and is without backing by gold or silver, or has fractional backing. Second, deficit financing uses funds exceeding the income of the state to increase the spending power of the state. Third, bond issues, or debts, likewise increase the money supply.

However, before a state or civil government can embark on an inflationary policy, i.e., on a way of life to which debt is basic, a population addicted to debt is necessary. If there is no excessive nor long-term debt, there is no inflation.

The Bible forbids long-term debt and limits debts to six years, and for serious reasons only. The seventh year must be a Sabbath unto the Lord, from debt, among other things (Dt. 15:1-6). As a general rule, we are to “Owe no man anything, but to love one another” (Rom. 13:8). God declares that debt is a form of slavery, and “the borrower is servant (literally, slave) to the lender” (Pr. 22:7).

In the modern world, however, debt is a way of life, for not only unbelievers but churchmen, and for churches and Christian organizations. Debt as a way of life has deep roots in sin, in pride, envy, “and covetousness, which is idolatry” (Col. 3:5; c.f. Eph 5:5; 1 Tim. 6:17). It is not only absurd but immoral for a debt-ridden people to complain about inflation and the federal debt. It is like hearing one devil complain about another devil’s love of sin.

Because debt is so deeply rooted in sin and idolatry, debt and its consequence, inflation, are especially morally and religiously destructive. An inflationary society is an immoral and degenerate society, and it will see, as its natural concomitant, every other kind of depravity flourish. No more than we can restrict a raging forest fire to bad trees, or to certain areas, can we restrict the scope of inflation and limit its influence to economics. Inflation affects more than economics, because debt has its roots in far more than economics.

Inflation and debt also affect the nature of power in a society. First, in an inflationary economy, it is not the thrifty, hardworking man who flourishes, but the debtor (at least, for the time). The moral foundations of society have been shifted to favor the worst element. In every area, as inflation is stepped up, the scum tends to rise to the top. The sympathies of society favor this degenerate element. Second, production gives way to consumption as the primary concern of the people. Third, there is thus a power shift in society, from godly men to ungodly men, from the thrifty to the thriftless. Spending becomes a personal and a political virtue. Fourth, the power to make or break the social order passes into the hands of debtors. General Lewis W. Walt (USMC, Ret.) has called attention to this most tellingly. When theU. S. Establishment (banks, civil government, etc.) has extended massive loans to states, firms, and organizations at home and abroad whose ability to repay is limited, then in time these borrowers control the Establishment and the United States. They can threaten to default on their loans and create economic disaster for the U.S. The response, then, is to give them even more! Thus, in the 1940s, Aramco sold oil to the Japanese at a lower rate than to the U.S. Navy, and American bankers supported the Panama Canal giveaway, hoping that its revenues might help Panama to repay them.

The conclusion of all this is the destruction of the social order. Even those who see the immorality of long-term debt finally join the crowd, to exploit the opportunity, and destruction becomes their common lot.

It becomes apparent why Scripture takes so strong a position on debt: it is a moral and a religious issue. First, we have seen, debt is basic to inflation, and it is responsible, in all the moral compromise debt involves, for the immorality which marks an inflationary era. Second, we are forbidden as Christians to become slaves, and debt is slavery. “Ye are bought with a price: be not ye the servants (or, slaves) of men” (1 Cor. 7:23). Third, not only are we God’s possession and property, and hence cannot become slaves of men, but our time belongs to Him: we cannot mortgage our future to men by means of debt.

To live debt-free, except for emergency conditions, or a short-term (six-year) debt to pay for our house, farm, or business, means to live providently. It means weighing the moral considerations in every expenditure. It means also to live content with what we have; living in contentment is impossible if the goal of our living is consumption, things we want to possess, rather than in terms of glorifying God and enjoying Him forever.

Those of us who can recall the era prior to World War II can remember that debt was then very limited among most people, although business debts had begun much earlier to expand. Pietism had limited morality to the personal spheres and hence moral men were readily immoral in the political and economic spheres. In the 1920s and 1930s young married couples did not go into debt readily, and their homes were largely unfurnished as a matter of course. The idea of having everything at once was clearly not in favor.

[T]he roots of our present crisis were present then (early 20th century). The churches had no concern with preaching or teaching the laws of Scripture relative to politics, economics, education, and much else. As a result, the churches helped rear a generation which is now actively destroying all the foundations of Christian civilization.” (R.J. Rushdoony, Larceny in the Heart: The Economics of Satan and the Inflationary State (Vallecito, CA: Ross House Books, 2002, pp. 75-78.)

The issue of professing Christ and then failing to arrange our personal lives (which arranges society) according to the express mind of God, and worse yet, in contradiction to the express mind of God has long bothered me.

It seems even in fundamentalist circles these days, the Old Testament revealing of the mind and will of God is treated with a kind of editorialized distancing: it's not applicable to us because we are not "under the law" anymore.

The real upshot of this opinion, of course, is that we are free to do as we please, as long as we hand out tracts, tithe and go to church. Such a gross charicature of the plan of redemption is truly reprehensible.

Yes, I believe that the Scriptures give us "all things that pertain to life and godliness." This means that God has definite opinions about the way we conduct our affairs and arrange our personal lives which in actuality is what results in "social order." ("Society" is after all, all of us.)

I believe, for instance, that all of man's laws must be measured against Biblical statement or principle. This is the only way of which I am aware of judging whether a law is a good law or a bad law---i.e. is it lawful?

One good example of this schizophrenia rampant among believers these days is a conversation I had with a church deacon one morning. (His gainful employent is the insurance industry.)

We were discussing the appalling condition of the judicial system and more specifically the condition of the people who are in power these days. The deacon's response was:

"Well, Dave, this is the devil's world---there isn't a thing you can do about it."

I was somewhat shocked by his words and wondered if that verse---the earth is the Lord's and the fullness thereof---had been edited from my Bible without my knowledge.

It occurred to me that if his assertion were true, then he made his living, (and quite a good one at that), selling insurance to people to insure the "devil's world." I wanted to ask, but didn't, "Pray tell---who do you REALLY work for?"

The insurance industry, particularly the automobile insurance industry, is a fraud in my opinion. Not to speak of the fact that the insurance industry has co-opted law enforcement to become their insurance adjustors by issuing "tickets" which result in an increase in insurance premiums.

Later, in speaking with a church member (youth group leader) and a police officer (who at one time regularly trolled the beaches in our city wearing spandex shorts so as to lure homosexual advances from others on the beach and arrest them for solicitation---oh, boy!) regarding this same issue stated, "You must obey the law!" with regard to speed limits. (Funny, our present law we must obey but God's law somehow is not applicable...)

I inquired where in the Scripture did it say that it was wrong to drive 65 mph rather than 55 mph. He had no answer, of course. I suggested that the answer to this issue might be resolved in appropriating the Biblical approach----operation of a vehicle is yours to do and no penalty will be assessed unless you damage someone while you operate that vehicle---to the tune of 4 times the damages. In the case of causing someone's death while operating an automobile---well...

If we did this, can you imagine the reduction in the number of accidents? If that kind of penalty were in place can you imagine the care people would take while they drive? (out of pure self interest if nothing else.) Let alone the reduction of the cost of government and the elimination of an industry that proportedly insures people against accidents but actually wants accidents to occur so that premiums rise----job and industry security. (You are aware that the speed limit imposed in all the states is actually a federal law imposed by the state so that the state may obtain funds for highway maintenance? Quid pro Quo)

The monetary issue is just such an issue as well. Proverbs 11: 1 seems to be relegated to antiquity. I am suggesting that the monetary system we have allowed to be created in the last 60 years is an affront to God, a clear violation of his express will, and a core issue which must be addressed because of its rammifications. (The quote from Thomas Jefferson below is hereby inserted as if quoted in full.) This system is a clear violation of the will and mind of God as well as our American Constitution.

The fiat monetary system is the means of maintaining slavery and keeping the money masters in power. The "hampster wheel" doctrine is in full force. "Keep 'em busy paying their bills and taxes, fellas...then we can do as we please with no accountability and no interference. As for the rest---we'll just buy 'em." (And they have!)

I had once suggested to a group of church members who desired to do something about the spiritual condition of our country that one of the most spiritual things they could do would be to committ to spending the next two years using their resources to put an end to the income tax through the passing of HR 25, a bill currently before Congress. (Thought not the ideal and complete answer to the monetary problem, passage of this bill would free up people's time to then become educated on the bigger issue and do something about it.)

Result: Blank stares. How could taxes affect the spiritual condition of people? (Where do I begin?)

Rushdoony was right: We have fostered and raised several generations whose very lives are lived and conducted to the destruction of Christian/Western civilization. Issue after issue is unaddressed by the Church----sorry---they are addressed; by the way we conduct our affairs. It is indoctrination by example.