What is Money?
This is the show from Monday December 27th, 2010.
SUMMARY:
Definition of Money: In the 1990s here at Bob Enyart Live, I wrongly believed that justice required a return to the gold standard, whereby currency was formerly backed by reserves of precious metals. So years ago, you could bring a $10 gold certificate into a bank and receive a certain amount of gold. After studying and thinking about money for years, reading economic texts and reflecting on the Bible, asking questions of internationally renowned economists, I now know that money is not gold or silver. [Update: For clarification, the definition of money is not gold or silver (although they can be used as money). But rather...] money is more like a transferable IOU. Most accurately, money is the accounting of a transferable incomplete transaction. That is what money actually is.
Kansan economics is socialist. It is the median that funds the socialist agenda in America. According to scripture the borrower is servant to the lender. Next time I put my offering in the plate I will put my personal IOU in there and keep what money I have to my self. If I am ask about it I will just say I am good for it. Don't worry. If payment is demanded then maybe I will take some of your money and if you object I will send some goons after you to show you it is better for you to just give me your money voluntarily so I can pay my debt that I incurred. Church is a good cause and you should not complain that I took your money. If that doesn't work I will give you another IOU. You will never collect because I will never give you anything of value. You can save my IOU's and when you have enough then you can give them to Government Motors Corporation for that new Hy-Bred Chevy you wont. After all my IOU is money according to you.
Metal, Paper, Web: Back when technology did not exist to support a more effective and lower-cost accounting system, Bible cultures reasonably implemented metal-based money. Since no one can create gold, no one could "counterfeit" gold coins, and silver coins. Later, the printing press enabled the convenience of paper currency, and initially, gold was used to back the paper bills that people used to transact business. Eventually, we kept the paper, but dropped the gold backing. Today, many people live without spending much paper currency at all, and they use digital bank accounts and on line transactions over the Internet that provide tremendous convenience which helps to grow the economy. The extraordinary benefit to the lives of millions of people from these conveniences outweigh the risks of counterfeits and deception. And finally, there's the phenomenon of cyber cash on the web which is used similarly but not backed by the federal reserve or any national bank, and it's value changes daily based on real-world market pressures expressed in cyberspace.
Same as above but this time I will go high teck and use a computer. I can print my worthless IOUs faster that way. I will be a trillionare in no time. Bigger market.
Here's What Makes the Economy Function: God commands men to "serve one another" (Galatians 5:13). Men shipwrecked onto a deserted island would gradually build an economy as they served one another. And that economy would grow most quickly if these men were free, for the Bible says that, "liberty" provides the "opportunity... [to] serve one another." If they started to keep to themselves, and did not trade goods and services, their economy would sputter and die. So an economy thrives when men serve one another.
The economy would survive only if there were something of value to be exchanged. I would not trade my coconut for your sea shell. And not if you promised to go fishing and not yet gone fishing. I wont the fish and not the sea shell.
Money Is Properly Created By Fiat: If these shipwrecked men washed ashore on a deserted island that had no gold, still, they actually would create money, "by fiat," as they entered into agreements that created something like transferable IOUs. Thus in any nation, every time someone buys a car or a home, etc., on credit, they thereby commit themselves to years of hard work (or at least, to the obligation to pay off the loan), which commitment actually brings more money into existence.
There is no due date on a Federal Reserve Note. It is not even a legal IOU. It does not even offer any thing of value. It creates nothing of value. It obligates the Federal Reserve to nothing. It is not even the dollar it purports to be. It is a total fraud
Fractional Banking Is Justifiable: Understanding how money actually functions justifies the modern world's fractional banking system, whereby lenders bring money into existence when making loans, and expunge the principal as it is repaid. God regulated Israel's system of debt, showing that debt is not inherently immoral, but can be good or bad, like fire. As to the particulars of America's Federal Reserve System, the Fed should be audited (it never is), and other methods of implementing money may surpass the benefit of America's current system. The proper way to judge a monetary standard is to evaluate it's effectiveness (accountability) and efficiency (low cost).
The Federal Reserve Note is not a dollar in Federal statute and congress has never stated that it is in any federal law.
Gold is Not the Gold Standard in Money: Requiring a gold standard inflates the value of gold by fiat. As a result there is an unnecessary redistribution of wealth by which various governments transfer wealth to other countries that happen to find gold on their land. This is how America ciphered manufactured goods from Europe in return for inflated gold, and then we demineralized our money, devaluing England's vaults.
It does not inflate the value of Gold but offers a value in relationship to another good or service. The Higher value of gold in relationship to the Federal Federal Reserve Note shows the worthlessness of the Federal Reserve Note.
To Days gold -------1403 Federal Reserve Notes per oz. According to law a 1 oz. $50 double eagle bullion coin if used as currency is worth $50 Dollars. If used as a collectible is worth more like 1500 Federal Reserve notes. So a Dollar according to Federal law is 1/50 0f an oz of gold or about 30 Federal Reserve notes.
To days Silver ------- 30 Federal Reserve Notes per oz According to law 1 standing liberty 1 dollar billion coin if used as currency is $1 and if used as a collectible is worth more like 35 Federal Reserve Notes.
The Federal Reserve Notes are becoming less and less stable and more and more valueless as time goes by. It is not that what you buy is becoming more and more expensive as time goes by but what you buy with is becoming worth less and less. So you have it backward Bob. The amount of Gold and silver has not changed but what is used to by it with because of the fiat money of the Federal Reserve and the socialist agenda of our federal government. It is not China that is killing this nation. It is us and the progressive socialist monetary system of the corrupt federal System. The lawful dollar is becoming more and more valuable and that which fraudulently stands in its place, the fiat money, is driving us to rune.
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