Highlands Blog

The Goodness of Gold (Currency)

By on
Posted in Highlands Blog under Economics, Government

The Goodness of Gold (Currency)God Created Gold

When it comes to money our national conviction is that the central government is god (or God, I am not sure which). It is difficult to know which to rail against more vigorously, the government that tries to play that role or the citizens who nod their heads in assent.

When the real God wants to create something He speaks it into being and it appears, the sun, planets, oceans, forests, and people walking around. He also created gold. I am noting this because the Scriptures note it in particular in Genesis 2. It is an interesting sort of side note in a larger story. But it is more than a side note. The second chapter of Genesis is a re-telling of the creation account with increased detail. We have all noticed that the first chapter of Genesis tells us a few times that what God created was “good,” meaning that it was exactly what God desired, and it wanted for nothing for His creative purposes. It was ultimately and morally good according to God’s standards, which are the only ones that matter. The second chapter tells us, vs. 10-12

And out of Eden went a river to water the garden, and from thence it was divided, and became into four heads. The name of one is Pishon: the same compasseth the whole land of Havilah, where there is gold. And the gold of that land is good . . .

God Says Gold is Good

It seems worth noting that in the entire second chapter with all its details there is only one time when God tells us that something was good. Five times in chapter 1 God pronounces His creation good. He uses this word only once in chapter 2, and that to describe gold; not Adam and Eve, not the four rivers flowing through the garden, just the gold. Also the descriptions of the other rivers is limited to their geographic locations, that is all. With Pishon only do we have any additional information, that being about the land of Havilah and its gold. This is all important because God has put an emphasis on gold early in His revelation. It is His signature that there is something important here. This is not random information for Bible trivia games. God wants us to know that gold is good, not just so we can figure out how to be rich but so that we can understand His ways and obey Him in all things. Having established that gold is good we can bring that conviction to bear in our present crises.

Men Speaking (printing) Money into Existence

The present central government thinks that it is god or perhaps God. When the real God creates, He speaks and things, real things, appear. His foundation for money is gold, it is good. The government’s foundation for money is also to speak it into existence — not good. In fact it is evil. When the present central government speaks money into existence they do it by printing more Federal Reserve notes. They call it Quantitative Easing. Supposedly, if they print huge quantities of cash it will ease the credit crunch. The cash, either electronic or paper, is then pushed out into the banking system and loaned out almost thirty times over in what we call the fractional reserve banking system. Now, they have made everything very complex. It is so complex that even the people that run the system cannot ever understand it. It is incomprehensible.

Money isn’t Wealth

However, we do not need to understand all the details. What we need to understand is that when the central government speaks cash into existence it creates no wealth. No goods are produced, no services are rendered. Store shelves are not filled and no flat tires are changed. They just print more paper and shove it out there and expect us to value that paper just as we did the week before. But the more they print the less value each note has. This is what causes inflation and the devaluation of the currency. There is a lot of money created but no actual goods or value produced. It is a hollow shell game, a pyramid scheme that lasts only as long as people trust in those fiat (spoken into existence) dollars. So, God speaks and creates useful things, gold in particular, but our government speaks and creates nothing of value.

The Ten Commandments Do Apply

I have been thinking about this in terms of the Ten Commandments. For instance, “you shall have no other gods before Me” comes to mind. Is the government god of printing and money the one in whom we trust? Or how about “you shall not steal”? Is not the government god of fiat money stealing from all of us by devaluing the dollar and making our retirement accounts worth less? Perhaps “you shall not covet” is apropos. As that central government grasps for more and more power over us and our finances we should notice that it is in competition with the God of the Bible. Our God has already given us His order for financial things and for all of life. This competing god of out-of-control civil government is continually leading us down dark paths. We cannot allow it to replace the God of Abraham in our estimation.

Agreeing With God

We are entering a time of great financial trouble in this country. That first principle about gold being good is an important principle to think about. The godless financial advisors in our day talk only about things like reviving confidence in the dollar, and getting people to borrow again so the money starts flowing. They work at stimulating the economy with checks to everybody, and then get upset when the scared public just banks those checks. Yet very few of them will seriously discuss bringing back gold as the basis for our currency. They really do not agree that gold is good. This is peculiar since you can bet that if you appeared on the doorstep of your local Keynesian economics professor with a sack of gold coins as a gift, he would drool as you gave it to him. These guys know that gold is good but they are liars at heart just like their father the Devil.

This article was originally published in Every Thought Captive magazine, 2009.

————

Featured Resource

Biblical Economics curriculum w/ Dr. R.C. Sproul Jr.The Biblical Economics Complete Curriculum by Dr. R.C. Sproul Jr. explores stewardship, prosperity, money, inflation, poverty, debt, and the implications of statist intervention in the economy.

Each lesson in the included study guide directly corresponds with the 12-part audio series and features a course syllabus, a brief overview of each lecture, study questions, and Scriptures to memorize. The guide also includes a glossary of economic terms to master, and a helpful bibliography of other books on economics for students who want to learn more.

This course builds a solid foundation for thinking biblically about money and economics and is well-suited for use with teens or adults.

Hosted by Elixir 12532