Money Myth Exploded

Money Myth Exploded – based on an article by Louis Even (1885-1974)

Five men are marooned on an island and build up a successful society, with each working his trade. Between them they provide crops, meat, carpentry, stone and metals and barter with each other to share their efforts and produce.

They miss the convenience of paper money to help them trade with each other, but that need is met with the arrival of a banker who survived from another shipwreck.

The banker has with him a printing press and a barrel of gold to back his currency.  Thus the men are delighted at the prospect of having money in their hands.  They each do their best to please the banker who holds the tantalising power of money.  Meanwhile the banker buries his barrel of gold where none of the men will find it.

The banker prints 1,000 notes with a face value of $1 and the banker then provides each man with $200.  But first he has them sign an agreement that they will pay the money back with 8% interest at the end of the year.  This is to pay him for providing the money that is backed by his barrel of gold.  They each happily accept the terms, since they delight in the privilege of having money in their pockets.

Trading accelerates and productivity is high.  All are happy with the new situation.

However, as the year comes to a close they realise that it is impossible to pay back the $200 capital and the $16 interest that each person owes.  The banker only produced $1,000 in notes and yet he requires $1,080 in payments.

When the men challenge the banker about this impossible situation the banker agrees to accept only the interest payment, which they certainly can pay.

The banker encourages them to organise a national system where each man is levied a tax to ensure the money is available to pay the interest.  Those who have more will be taxed more.

As the men follow the banker’s advice he exults in the control he is now wielding over the whole community.  He effectively owns all their assets and controls their lives.

The new system of taxes causes the men to compensate by putting up their prices and reducing their purchases to preserve money.  They also begin to resent their situation, taking less interest in their work, arguing for more pay and trying to squeeze money out of each other.  Ill-will develops between the “haves” and the “have nots”.

The banker’s interest-only solution turns sour when the men realise that in time they will have paid all their money to the banker and still owe him the initial capital.

When the men challenge the banker yet again about their desperate situation he offers to extend more credit to them, so they can have money to make the next payments.  The men realise that such an arrangement leads to spiralling debt.  But there seems to be no solution.

To protect his place of control over the community, the banker promotes political division, printing two newspapers.  One paper tells the conservatives that the radicals cause the problems, while the other paper informs the radicals that the conservatives are the problem.  By maintaining division the banker is protected against a unified rejection of his controlling influence.

The men are saved by the discovery of a book about Social Credit.  It explains that wealth is created by productivity, not by debt.  When the society increases its productivity and creates more goods, then new wealth is created.

Rather than borrowing money from someone who guarantees it with gold, the society can give each person a share of the social wealth, as a Social Credit in an account.

As the men trade among themselves accounting records can be kept to track their personal account.  As the society’s wealth is built up, such as by improved infrastructure and increased goods, each person can receive a dividend payout, by new credit put into their account.

If someone needs funds to develop a new project the society can give him an advance of Credit which is paid back from the proceeds of the new development.

As the men come to understand this simple, alternative way of providing for trade among each other they now see the dangers of the banker’s debt based money.

They decide to confront the banker and to banish him from the island.  They refuse to give him interest on the money he printed, since he did not actually create new value and does not deserve anything more than what he created.

As the men help the banker dig up his barrel of gold they discover that the barrel contains nothing more than rocks.  There was no gold backing the paper money.  The men had been duped by their fascination for gold and for money itself.

The men are eventually rescued from the island and they take with them a firm commitment to extend the idea of Social Credit as the truly viable alternative to the debt based banking system.

Scottish engineer Clifford Hugh Douglas (1879-1952) developed the concept of Social Credit following his experiences in India in 1908 where major development projects were restricted by limited money.  Other similar experiences following and by 1918 he began propounding the idea of Social Credit as a way of getting projects funded.

Louis Even (1885-1974) wrote Money Myth Exploded to help explain the Social Credit concept in a short booklet form.  The full version, with cartoon images, can be read at JeremyLee.com.au. http://www.jeremylee.com.au

The Crash of 2008 part four

The financial crash of 2008 is the product of greed, boom and bust cycles and the manipulations by power players. But it is also the product of man’s sin, man’s mammon worship and God’s judgements.

Prophetic insights tell us that God wants to humble people and the nations and to have them rely only on Him, not on their money or their survival plans.

What Should You Do?

What are the things you should do to weather the storms we are facing and will face in the future? I suggest that you consider the following list of things that I have taught others to do in this situation.

Humble Yourself

If it is true that God is at work in this situation, seeking to humble the nations and bring them back to Himself, then the best thing you can do is be quick to humble yourself. It is time to repent of your materialism and to stop looking to money to be your saviour. Money is proving unstable and even toxic to some.

You also need to consider whether you have been worshipping Mammon. God wants you to worship only Him.

Cry Out To God

Call on the name of the Lord, cry out to God and trust Him to deliver you in this situation. God is ready to rescue those who trust in Him. So call upon Him. Put your trust in His ability to protect and save you.

God promises in His Word that we can be kept safe even when we go through the flood and the fire.

“When you pass through the waters, I will be with you; and through the rivers, they will not overflow you: when you walk through the fire, you will not be burned; neither will the flame kindle upon you.” Isaiah 43:2

Expect God’s Blessing

We are able to expect God’s blessing, even in a time of famine or trouble. God’s ability to bless us is not limited by physical circumstances.

Thousands of years ago Isaac, son of Abraham, experienced a 100 fold return during a time of famine.

“And there was a famine in the land, beside the first famine that was in the days of Abraham. And Isaac went to Abimelech king of the Philistines unto Gerar ……. Then Isaac sowed in that land, and received in the same year one hundredfold: and the LORD blessed him.” Genesis 26:1,12

Whatever is happening in the global markets, God is able to protect you and to bless you. He is even able to bring you amazing provision when everyone else of struggling, just as Isaac had a one hundredfold return during a time of famine.

Avoid Slavery to Debt

Debt is not sin, but debt does make people servants or slaves to others. Those who are in debt are vulnerable to having their situation overturned by the lender.

“The rich rules over the poor and the borrower is servant to the lender.” Proverbs 22:7

I reiterate that it is not sin to have debt, but it is dangerous. In a season of financial upheaval it is possible to be penalised by the one who has lent you the money. If you have the opportunity to get out of debt, that would be to your advantage and an excellent strategy.

Let God Purify Your Heart

When our faith is tested then so too is our heart. God holds our faith to be of great value. He tests us to see how we cope under various pressures and to see what comes out of our heart.

“I the LORD search the heart, I try the reins, even to give every man according to his ways, and according to the fruit of his doings.” Jeremiah 17:10

As your financial and material security is put at risk your heart will be exposed. You will either trust God or be angry with Him. You will either rest in God’s provision or you will strive more and more in your own strength and cunning.

I have personally been through protracted times of hardship and those seasons tested and purified my heart. In such seasons I have been able to sort out my attitudes toward material goods, worldly values and God’s call on my life.

So, let God purify your heart even in the challenging financial times you may be going through.

Stand On God’s Word

People of faith know how to stand secure on the Word of God. God makes many promises about His blessings and His protection in our lives. Rather than looking to the newspaper headlines, you are much better to look into God’s Word and stand firm on what He is saying.

God says the He will supply all your needs (Philippians 4:19) and that His blessing meets your needs without bringing you sorrow (Proverbs 10:22).

Look To God

People seek to protect what they have and to build up a greater store of assets. This is the desire for gain and fear of loss which drive so much of our markets.

The Bible reveals that God is our greatest source of security and blessing. In fact, unless God supports your plans for protection and profit you are wasting your time.

Unless the LORD builds the house, the builders waste their time: unless the LORD protects the city, the watchman wakes in vain.” Psalm 127:1

Look to God, not your own cunning or resources. Your financial advancement and your security are found in him, not the markets or your clever ideas.

Help Us Turn Australia (and the Nations) back to God

God is challenging the pride and rebellion of the nations that try to survive without Him. Christians have the role of bringing the nations back to God. Rather than being eaten up in your own concerns, ask God how you can help to bring your nation to repentance and humility before God.

The Supreme God

The God identified in the Bible as Almighty God stands as the supreme being of all existence. To illustrate the profound significance of his being allow me to show His supremacy in the core areas of human existence.

Human Existence

Human existence and human life experience are governed by a range of structures, systems and realities. For the purpose of this article let me identify a set of those core areas of human existence.

Individuality is a core issue in human experience. We are all individuals, unique from every other person and creature.

Family is also a core issue, since we are all brought into the world as a result of the actions of others. Those parents and the family from which they come are a reality we cannot ignore.

Society is also a basic issue of human existence. We all live in some form of society with at least some form of social inter-action with others. The society may be a village or a city, and it may be a small group of associates we meet face to face or a global set of friends linked by a virtual social network.

Religion is yet another core issue of human existence. Even those who ignore religion must recognise that much of society and human history is deeply influenced by religious thought and process.

Politics is also included in this list, as societies manage their processes through leaders, elected officials or others who take charge over them, for better or for worse.

Law is another basic issue, whether in the form of human conscience or highly developed legal processes. Law stands apart from politics because political entities are not exempt from, nor lords over, legal processes.

Commerce should also be included in a list of structures and systems which impact our human existence.

Education and Communication are also components of our life experience, whether they are in definable systems or not, so let’s throw them into the mix for good measure.

God’s Supremacy

Let me now review this list of systems and processes and point out where God stands in relation to each of them. You will see that God is ‘supreme’ in every sphere.

Individuality: Our personal individuality cannot stand independent of God. God is supreme over our personal independence and individual uniqueness. God, as our creator, is the master of our whole existence, being the very author of our individuality and existence. So God rules supreme over every individual, no matter how defiant he or she may be in asserting a right to unique existence. They are the pot which the potter has made (Jeremiah 18:1-11) and their individuality has no existence outside of God, who rules supreme.

Family: We are each the product of a ‘father’ and ‘mother’, no matter how casual the relationship may have been which caused us to be conceived. We also come under the influence of those who are not our biological parents but who function in the capacity of father and mother in our lives, by nurture, mentoring or the like. Yet God is the supreme parent. He is our Father in heaven, as Jesus revealed (Matthew 6:9). He is our ultimate ancestor, as the lineage of Christ reveals in Luke 3:38. Christ’s family line is traced back to Adam, as is true for all of us, and we are told that Adam is the “son of God”. So, in terms of ‘family’ God is supreme. He is the most wonderful father ever imaginable, but He is also our ultimate ancestor. We are all His children by virtue of our natural birth as descendents of Adam.

Society: God is the ultimate source of social reality. While it is people who collectively create social entities it is God who has the most profound power over social interaction. When two or more people (society) gather in His name He joins their group (Matthew 18:20). But God is able to do more than just participate. It is He who is able to change the social experience for that group of people or their relationship with other groups of people. Ephesians 2:14 speaks of the ministry of Jesus Christ as the one who makes disparate groups compatible and who removes the social barriers which separate them. God is supreme over social experience.

Religion: God is clearly supreme in this dimension because He is the God above all gods (Exodus 15:11). Jesus Christ is the Great High Priest (Hebrews 4:14). All the religion of earth pales into insignificance against the heavenly temple and religious practice which is described for us in Hebrews 9:11 and 12,24. God is supreme over all religious reality, because He operates out of the heavenly temple with spiritual processes which have eternal impact, not temporary significance.

Politics: Here again God is the clearly supreme being. Christ is described as the “King of Kings and Lord of Lords” (Revelation 19:16). And the kingdoms of this world are taken under the supremacy of God (Revelation 11:15). Politics is clearly an area where God rules supreme – even though most politicians probably react to that notion. They may not mind whatever claims God makes theoretically, but many would not like God to exercise His lordship over them in practice.

Law: Once again this is not an area where there is any doubt. God is supreme over all legal process, because He is the judge of us all. The flood of Noah’s day and the destruction of the great cities of Sodom and Gomorrah are historical testimony of God’s legal supremacy. His Great White Throne judgement (Revelation 20:11,12) will call everyone to legal account, including all the kings, high court judges, magistrates and potentates who have exercised any level of legal authority over another.

Commerce: Commercial practice is regulated by God and overturned by Him. God demands just weights and balances, so commerce is honest and equitable. God limits the capacities for the charging of interest on borrowed monies. And God calls people to find provision in Him, completely independently of commercial process – “come buy without money” Isaiah 55:1. God is also supreme over those processes by which people seek to make commercial gain. God controls the crops, the completion of the building project and whether the money goes through holes in your bag. Commerce is not independent of God, but subject to God’s blessing or frustration. God is supreme over commerce.

Education & Communication: The revelation of God, through the Bible, is the most supreme education and communication in all of human history. No announcement or instruction has ever matched God’s Word in personal, social and national impact, throughout the entirety of human history. All of the news channels, universities, schools of philosophy and so on are lame when compared with the power of God’s word in the mouth of a child or God’s communications in the heart of a frail old man. God is supreme over all these processes and he will hold us accountable for every word which we speak, so teachers, media and entertainers are subject to God’s supremacy in their roles.

God is Supreme

This summary document should alert you to the truth that God is supreme. All those who beat their chests and seek to impress you with their pre-eminence should be recognised as humble and insignificant when compared to God’s presence in your life and circumstances.

I call you out of the tyranny and beguilement of those who wish you to come under their influence. I call you back to the simplicity and power of working with the one who is supreme and not getting entangled with those who wish to displace Him in your world.

Ruled by God or Mammon

What I address here might be a revolutionary eye-opener to you. I trust it opens the Bible to you in a fresh way. Many Bible truths take on a completely new complexion when considered in a fresh context. My post about the Bible being a Book of Books hinted at some of the possibilities that open to us when we see the Bible in a fresh context and with sharper application. To help me get where I want to go, allow me to present a few basic premises from which to work.

You Are Ruled

Whether you like the idea or not your whole life is being ruled by someone other than yourself. Obviously you have a high level of personal autonomy within the bounds set by your sovereign, but you are ruled none-the-less.

You are either ruled by truth or deception; confidence or fear; love or hate; and so on. But for the purposes of this discussion you are either ruled by God or Mammon.

God or Mammon

The Bible affirms that you are ruled and identifies the two masters who you can choose between. They are God and Mammon.

“No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. You cannot serve God and mammon.” Jesus Christ, Matthew 6:24

In the original language the meaning could be taken to be, “No person has the power to serve two lords…. You do not have the power to serve God and the power of wealth.”

Note that the Old Testament prophets warned Israel about worshiping such gods as Baal and Ashtaroth. When Jesus came He did not speak of these gods, but embodied all other competitors to Almighty God under the title of Mammon.

You Are Ruled by the One you Serve

Another way of understanding what Jesus taught is that you are “ruled” by the one you serve. The Apostle Paul said that we are enslaved to the thing we serve.

“Don’t you know that to whom you yield yourselves servants to obey, his servants you are to whom you obey; whether of sin unto death, or of obedience unto righteousness?” Romans 6:16

So you are ruled either by God or by Mammon.

What is Mammon?

Since there is a 50:50 chance you are ruled by Mammon it might be good to know what it is. Mammon is a Chaldean word. It is a word that came from the heathen people around the nation of Israel. It apparently refers to a deity and the root meaning of the word is: “confidence”; “wealth personified”; and “avarice” (which is greed).

What Mammon refers to, when opposed to the person of God, is the power of wealth.

Time to Reflect

Take a moment to ponder the following question. If everyone in the world is either ruled by God or Wealth, what would be the indicators to identify each one?

How would you tell if someone was ruled by God? How would you tell if someone was ruled by money?

And to take the reflection further, does the evidence suggest that you are ruled by God or Money? What about your family, community and culture? Which deity is ruling over them?

Simplifications

I love to simplify things so they are easy to understand, easy to remember and easy to teach. While simplifications involve reductionism which can remove key information from the topic, they do allow an easy grasp and a ready starting point for further investigation. So allow me to make some simple observations.

The simplified point I have already made is that you are either ruled by God or Money. The next observation is that God’s rule demands that we live for others. Consider these instructions from God to love others and to do to others what you want them to do to you.

“You are to love your neighbour as yourself” Leviticus 19:18, Mark 12:31

“A new commandment I give you, That you love one another; as I have loved you, that you also love one another.” John 13:34

“Therefore all things whatsoever you would that men should do to you, do you even so to them: for this is the law and the prophets.” Matthew 7:12

Mammon stands contrary to God’s standards and involves people living for self and personal gain. This causes people to live in pride, directed by their greed and lusts.

“For all that is in the world, the lust of the flesh, and the lust of the eyes, and the pride of life, is not of the Father, but is of the world.” 1John 2:16

Reflecting Again

So do you live for self or for others? Does your family and culture promote selflessness or self-gratification?

If the focus is on self, then Mammon is the master. If the focus is on selflessness, living to be a blessing to others, then God is the master.

It’s time you made sure you are in the right kingdom. Repent of self interest and self serving attitudes and values. Ask God to transform you until you can live for others and not self.

There’s More

I started out intending to discuss the Bible and its value on political topics. Hmmm. I think I’ve made a pretty good fist of this posting, without getting where I want to go. So I’ll make a point in the near future of picking up the theme of the Bible as a Political Text.

JC Penney and the Golden Rule

This is the day that … James Cash Penney was born near Hamilton, Missouri in 1875 in Missouri, USA, son of a Primitive Baptist preacher.

At age 8 he was buying his own clothes and earning his own money for his needs. He was taught scrupulous honesty by his minister father.

At the age of 27 (1902) he had opened his first store, the Golden Rule Store, in Wyoming. And it was so named because he was committed to building his business “on bedrock Christian ethics”.

And build he did. Five years later he owned three stores, then, by 1912, he had 34 stores with sales of over $2 million. In 1913 he changed the store name to J.C. Penney Co.

“From 1917 to 1929 the business exploded, growing to nearly 1400 stores nationwide” (More Than Conquerors, Moody Press, page 342).

In the stock market crash of 1929 he lost $40 million. There followed a time of failed health and convalescence in a sanatorium. Here he experienced a “spiritual renewal” – at the age of 56. He heard someone playing hymns on the organ, so he walked in there, bowed down and said, ‘Lord, I’m giving my life to You’. Once more began his climb up the business ladder. The J.C. Penney Company began to flourish once more.

Penney was a man of strict principal, who refused all drink and tobacco and “For many years anyone who used tobacco and liquor was discharged” (page 342). He became convinced (internally “convicted”) that, even in debt and poverty, he should tithe to God. By 1990 sales topped $18 million.

When he died at the age of 95 the New York Times commented that Penney’s adherence to the Golden Rule had “aroused scepticism in a mercenary age” … but the success of his business “put the lie to the cynics”. He left a 1,660-store empire that he built without compromising the stiff principles he had absorbed from three generations of Baptist preacher ancestors.

“I believe in adherence to the Golden Rule, faith in God and the country,” he often said. “I would rather be known as a Christian than a merchant.”

This post is based on the work of my late friend Donald Prout whose love for books and Christian history led him to collate a daily Christian calendar. I continue to work with Don’s wife, Barbara, to share his life work with the world. I have updated some of these historical posts and will hopefully draw from Don’s huge files of clippings to continue this series beyond Don’s original work. More of Don’s work can be found at www.donaldprout.com.