1 Timothy 6:10, "For the [love] of [money] is the root of all [evil]: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows."

Matthew 6:19-21, "Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: {20} But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: {21} For where your treasure is, there will your heart be also."

Introduction:

A. Disclaimer --- I do Not make any claims of being a monetary or economic Expert:

1. Besides, X is an Unknown Quality or a Has-Been --- and Spurt is a Drip Under Pressure.

2. I will not attempt any dissertation on the fiscal policies of central banks, savings & loans, socialist governments, international cartels, or the policies of the European Community --- We do not have time for that.

3. However, I will point out a Few Basic Facts about money that any high school senior should be able to see and understand --- and comprehend why we are in the Economical Situation that we are today.

B. To illustrate the Ignorance of The American People concerning finances, let me share with you one example:

1. The last of November (1992), just Two Weeks after the election, a very good economic report was released by our government. Everyone begin to feel good and think the future looked very bright. We had turned the corner economically. The whole Attitude of the American people had changed since the election and this Had Turned The Economy Around. Bill Clinton was getting all the credit. However, there are A Few Facts the American people do not understand:

2. No economy can turned around that quickly.

3. There had been --- Quarters of Positive Gain in the economy Before The Election. George Bush kept telling the American people this but they would not listen. Then after the election, Bill Clinton got credit for what had been going on for Several Quarters Before He Was Even Elected.

(When Asked About This --- He Claimed That It Was In Anticipation of His Election.)

4. The economic report that make everyone think Bill Clinton was a great miracle worker, was for the third quarter of 1992 which ended the last of September, 2.5 months before the election.

5. Honesty Is A Great Character Trait --- But, Where Art Thou?

6. It is also interesting to note that on Oct. 28, 1997 Bill Clinton made an exciting announcement that the U.S. Debt Was The Lowest It Has Been In 20 Years.

a. Later that Same Day, the Dow Jones Fell 554 Points, the greatest point lost in history.

(This was only a 7% drop --- the Oct. 1987 drop was 22%)

b. The next day it not only greatly rebounded, but President Clinton paved the way to Sell U.S. Nuclear Technology to Communist China, Without Any Concessions From Them on Human Rights.

C. Now, before we finish this message, you may get the idea that God Is Destroying The gods of America --- as He did the gods of Egypt.

 

Fact #1 --- Barter Was The Original Method of Buying What You Needed or Wanted.

A. One of the Earliest and most Widely Used forms of money consisted of Cattle.

B. As a medium of exchange cows offered the Advantage that their Meat and their Milk were almost Universally Desired.

C. Cattle became a Satisfactory Medium of Exchange because of their Own Intrinsic Value.

Intrinsic --- Belonging to the Real nature of a thing; Not Dependent on external circumstances --- Inborn, Genuine.

D. In the Diversity of Employment --- barter means that every man exchanged the Products of His Trade for various Products of Other People that he Needed or Desired.

 

Fact #2 --- It Ws Inevitable That At Some Point In Time, Metals Would Come To Be Used As A Medium of Exchange.

A. Money first came into use as an Intermediate Convenience in the transactions of Barter --- it was a medium of exchange.

B. The most precious metals, such as Gold and Silver would displace Iron and Copper and Lead for this purpose.

C. Lumps of Silver, Un-Coined And Unstamped, which therefore Had To Be Weighed For Every Transaction, were the standard currency of the Babylonians --- this was 2,000 years before the Romans even began to employ Copper as their medium of exchange.

D. In time, these metals would be minted into Uniform Pieces, --- or Coins.

 

Fact #3 --- Gold, Being Superior To All Other Metals, Became The Most Universally Accepted Medium of Exchange.

A. The Value of Other Goods And Services were increasingly expressed in ounces or units of gold.

B. Money came to consist of Gold --- and coins of Other Metals which could be exchanged for gold according to Evaluations that were increasingly Standardized.

C. A certain quantity of Gold could be Traded, almost anywhere in the civilized world, for a certain quantity of Almost Any Other Possession of man.

D. Gold achieved this Supreme Form of Money entirely because of Its Own Intrinsic Value.

Intrinsic --- Belonging to the Real nature of a thing; Not Dependent on external circumstances --- Inborn, Genuine.

 

Fact #4 --- When A Man Sold Property or Otherwise Accumulated A Considerable Amount of Gold, He Needed Some Place To Put It For Safe Keeping --- Thus Evolved Banks --- Paper Money --- & Checks.

A. So, a few men established Storage Vaults to serve that need, and issued Warehouse Receipts.

B. It then became customary for such warehouse receipts, issued in Standard Denominations, to be used in most transactions instead of the gold itself --- "Bearer" Receipts --- thus evolved Money Paper.

C. It gradually became the practice of someone who needed some of his gold simply to Write An Order To The Warehouse for a certain amount of his gold to be delivered to a designated person --- thus the writing of Checks.

 

Fact #5 --- The Warehouse Operators (Bankers) Discovered That Under Normal Conditions Only A Small Fraction of Their Clients Ever Wanted To Withdraw Their Gold, --- or Any Sizable Part of It At Any One Time.

A. Therefore the original Warehouse Receipts were superseded (replaced) by "Promises To Pay," in the form of Paper Money In Various Denominations.

Gold & Silver Certificates --- Gold & Silver Coins, etc.

B. They could then issue $30 - $40 Million worth of such "promises to pay," or paper money, (Loans) against only $10 Million worth of gold in its vaults.

C. There was Nothing Morally or Commercially Wrong with this practice --- as long as it was in the hands of Honest and Prudent people.

D. This was purely a Contractual arrangement of the same kind as when a manufacturer commits himself to deliver, on some future date, quantities of some product which he has not yet made or for which he has not yet even purchased the raw materials.

E. Now, Instead of Charging for warehousing their gold, the bankers could pay the Depositors Interest on their deposits --- This Interest, of course, was less than what the bank charger the Borrower --- thus they made a Profit.

1. These bankers did Not Give Away this extra money that they put in circulation.

2. They received for it (Collateral) that they believed to be of sound value --- worth the equivalent in gold.

3. Therefore every piece of paper currency still represented gold --- and was backed by assets which could be converted into gold if necessary.

F. However, this was so successful that the bankers came up with the idea --- "Why Don't We Just Issue More Receipts (Promises To Pay) Without Any of Them Being Backed By Gold?"

1. Now you may be thinking: "That would be Fraud, Swindle, Deception, Dishonesty, Illegal, Criminal, or just Plain Dumb.

2. And you would be Right, Except For Two Thing:

The American Government Legalized it --- You, the American People Accepted it.

G. Question: --- "How Much INTRINSIC VALUE Do You Suppose That These "Receipts For Nothing" Would Have?

It may Not now be Illegal --- but it is still Dumb.

H. This is why it is so Important to watch the Money Supply as an Indicator of where the economy is going.

However, on July 22, 1993, Federal Reserve chairman Alan Greenspan, at a hearing of the Senate Banking Committee stated that the main yardstick the Fed has used in guiding the economy's growth for more than 15 years has become so unreliable it will largely abandon it. The Federal Reserve Will Stop Relying On The Money Supply Figures

 

Fact #6 --- If These Warehouses (Banks) Began To Merely Issue Receipts Without Gold To Back Them Up, The Receipts Would Lose A Great Deal of Their Value.

(( Example --- Germany ))

A. Aug. 1922 --- Money Supply Totalled 252 Billion Marks.

B. Jan. 1923 --- Money Supply Totalled 2 Trillion Marks.

C. Sep. 1923 --- Money Supply Totalled 28 Quadrillion.

D. Nov. 1923 --- It Reached 497 Quintillion Marks.

(497 followed by 18 zeros!)

E. By mid-1923 Germans were paying A Billion Marks For A Single Loaf of Bread.

F. Now, keep in mind that in Aug. 1922, the total money supply in Germany was 252 Billion Marks --- which would only buy 252 Loafs of Bread by mid-1923.

G. But, of course, this Could Never Happen In American --- we have too many Controls & Safe-Guards In Place --- Well, Let's See:

 

Fact #7 --- Inflation Is Always Caused, And Can Only Be Caused, By One Development --- The Increase of The Supply of Money Whose Purchasing Power Does Not Depend On It's Own Intrinsic Value.

A. 1913 --- The Federal Reserve Act was passed.

1. Our government does not issue money --- the Federal Reserve does.

2. The Federal Reserve is no more a part of the Federal Government than Federal Express is.

3. The Federal Reserve System is made up of 12 privately owned banks. --- 32 Branch Banks.

(Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Saint Louis, Minneapolis, Kansas City, Dallas, and San Francisco)

B. 1914 --- Until 1914, the United States & Great Britain were on the Full Gold Standard.

1. Banks notes were Fully Redeemable In Gold, and the gold was freely exported and imported to settle accounts.

2. This --- the God Standard --- made it Impossible for "Monetary Managers" to inflate or deflate the money supply.

C. 1922 --- The "Gold Exchange Standard" was adopted --- to "Economize On The Monetary Uses of Gold" --- the Pound and the Dollar were Officially declared "As Good As Gold".

D. 1929 --- In 1929 there were Eight Paper Dollars in circulation for every real dollar in the treasury.

1. In 1972 there were 25 Paper Dollars in circulation for every real dollar in the treasury --- each dollar was Backed By Four Cents worth of real money.

2. Today, paper money is Created Out of Nothing --- Backed By Nothing --- and is Worth .....

E. 1933 - 37 --- Roosevelt, made it more difficult for the American Citizens to convert their money into gold.

1. Gold Was Nationalized --- The Domestic Redeemability of U.S. and other national currencies in gold was officially revoked.

2. Instead of having Gold Certificates, you now have Federal Reserve Notes.

F. 1933 --- Marshall Plan ... The European Recovery Program.

1. Our government began to Send Hundreds of Billions of Dollars All Over The World.

2. At the same time we made it easy for the recipients of these dollars, in other countries, to Convert Such Money Into Our Gold.

3. Therefore, Our Reserve In Gold for the backing of our currency became Grossly Inadequate.

4. Question: --- "If this is all true, How Can We Afford To Send Federal Aid To Other Countries?"

Answer --- "We can't. We only print more Fiat Money and send that to them. This, of course, Devalues Our Own Money Even More."

G. 1958 --- Following years of gradually increasing inflation, U.S. Dollars Held Abroad Now Exceeded U.S. Gold Reserves.

H. 1959 --- President Lyndon Johnson said: "Some have asked whether silver coins will disappear. The answer is very definitely --- No. Our present coins won't disappear and they won't even become rarities ... If anybody has any idea of hoarding silver coins, let me say this. The treasury has a lot of silver on hand and it can be, and it will be used to keep the price of silver in line with its value in our present silver coin. There will be no profit in holding them out of circulation for the value of their silver content."

I. 1963 --- President Kennedy moved to get more Control Over The Federal Reserve System by having the Federal Government to again begin Issuing Currency.

1. A few weeks later he was Assassinated In Dallas.

2. I do Not Know that there is Any Connection between the two events --- I am only Stating Facts.

J. 1964 --- Lyndon Johnson said: "Silver has become too valuable to be used as money."

K. 1965 --- The U.S. Abandoned Silver.

1. Thirty years of Paper Money Inflation and Price Escalation caused the Face Value of Silver Coins to fall Below the Value of The Silver Metal They Contain.

2. You now, no longer even had Silver Certificates --- they are replaced by Federal Reserve Notes also.

L. 1968 --- Congress Eliminated the requirement that the Federal Reserve hold Gold Certificates equal to at least 25% of The Value of Federal Reserve Notes.

M. 1971, August --- The U.S. (under President Nixon) declared it would No Longer Redeem Dollars For Gold --- Internationally --- they could not redeem their receipts.

What about Collateral? --- There is none --- What backs the dollar today? --- Faith ...

N. 1972 --- We saw how much faith the American people had in the dollar --- Double-Digit Inflation begins in the U.S.

O. Today --- We do not have double-digit inflation today because the Money Supply has been kept low.

1. This is why it is so Hard for Small Businesses to Borrow Money.

2. However, the Low Inflation and Low Interest Rates will not, they cannot continue --- Fiat Money has No Intrinsic Value of its own.

3. AMERICA, today, is the Greatest Debtor Nation in the world --- including the third world countries --- Ronald Ragan .....

 

I. America's Debt Today Is In Excess of $5 Trillion.

A. If America filed for Bankruptcy and begin to pay off the national debt at the rate of $1 million per day --- No Interest --- it would take 13,698 years to pay off the debt.

B. At 6% interest --- if we pay $821 Million PER DAY on this debt, we would be going Deeper Into Debt because the Interest Alone Is More than that.

C. Instead of paying some on this debt, we going Deeper Into Debt by several Billions of dollars each year.

Do You Know the Difference between the Debt and the Deficient?

D. Do you suppose there must be a Stopping Point somewhere --- when we begin to repay our debt?

E. Or, do we go into bankruptcy and begin to Sell Off Government Property And Lands? --- even to other nations.

Do You Suppose That God Is Permitting The Destruction of The Economy In America In Preparation For The One World Monetary System?

 

II. If This Is All True, And The Facts Don't Lie, How Do I Achieve Security In This World?

Matthew 6:19-21, "Lay not up for yourselves treasures upon earth, where moth and rust doth corrupt, and where thieves break through and steal: {20} But lay up for yourselves treasures in heaven, where neither moth nor rust doth corrupt, and where thieves do not break through nor steal: {21} For where your treasure is, there will your heart be also." --- V. 25-33, "Therefore I say unto you, Take no thought for your life, what ye shall eat, or what ye shall drink; nor yet for your body, what ye shall put on. Is not the life more than meat, and the body than raiment?" --- fowls of the air ---lilies of the field --- V. 30-33, "... O ye of little faith? {31} Therefore take no thought, saying, What shall we eat? or, What shall we drink? or, Wherewithal shall we be clothed? {32} (For after all these things do the Gentiles seek:) for your heavenly Father knoweth that ye have need of all these things. {33} But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you."

Philippians 4:19, "But my God shall supply all your need according to his riches in glory by Christ Jesus."

 

You Sure Can't Depend Upon The Government To Supply All Your Needs --- They, Are Already Bankrupt Themselves ...

 

We Need To Keep Our Eyes On Jesus,
Not Man For Our Needs.

 

Turn your eyes upon Jesus,

Look full in his wonderful face,

And the things of earth will grow strangely dim,

In the light of his glory and grace.

If You Are Not Saved, Nothing Else Matters