The Fed Can’t Create Money Ex Nihilo
By Jeff West
An edited version of the following article appeared in the January 30, 2008 issue of The Times Examiner
According to the Bible, God spoke the Earth into existence by creating it out of nothing, or ex nihilo. Satan always tries to counterfeit God’s works, and he has done an excellent job brainwashing Americans, particularly children in government schools, into believing the lie that they evolved over millions of years out of a primordial ooze.
We see a similar illusion as the Federal Reserve pretends to create “money” ex nihilo by printing an endless supply of worthless paper backed by nothing. The Christian should know from the Bible that only God can create something out of nothing, and that therefore Federal Reserve Notes are a worthless falsehood. The Fed prints this “money” and then puts it into circulation by buying U.S. debt. Since “money” can only be created through debt, e.g. houses, cars, etc. most of the money exists only on paper and only 5% is in actual cash in circulation.
History has proven that the best medium of exchange is precious metals, particularly gold and silver. Besides the fact that this is real money made of materials with intrinsic value, again, the atoms of these elements were created by God when he spoke them into existence at the Creation. So we see that only God can create atomic particles of mass ex nihilo, and only God can create money ex nihilo. Consequently, Federal Reserve Notes are another one of Satan’s poor counterfeits of God’s works. Since we as Christians should believe in the inerrancy of the Bible we should see the simple truth of the above, but unfortunately since the establishment of the Fed in 1913 the majority of Christians have been deceived. Just as Eve was seduced in Eden, they were seduced by the prospect of easy “money.” Although from the Fed’s inception they probably printed more paper money than was backed by physical gold since they were never audited, the situation took a drastic change for the worse when President Richard Nixon took us completely off the gold standard in 1971.
Our economy has for some time seen a fight between inflationary and deflationary forces, and this writer has wondered how it would end. The rapid inflation of the money supply created a false boom in housing and a consequent deflationary oversupply, while the increase in printed paper money has stimulated inflation. Recently we have seen the convergence of several factors which seems to give an idea of the conclusion.
But first let’s try a thought experiment: imagine that you have a gold coin in one hand, and a dollar bill in the other. Try as you might, you cannot make the gold coin physically disappear. You cannot burn it away or otherwise destroy it. Even if you throw it away, the atoms of gold will always exist. But the paper bill can easily be burned and will disappear in seconds, being converted back into its basic elements.
Similarly, we see this happening today. Since vast quantities of worthless money can be instantly created through the magic of the Fed, fractional reserve banking and debt, it can just as easily be instantly destroyed, especially since most of the “money” doesn’t even exist as cash in hand. As we see housing prices plummet, the paper wealth of homeowners is being wiped out almost overnight in some cases, just as one would burn a dollar bill. This could never have happened if our money was based on gold and silver as the Founding Fathers stipulated in the Constitution.
So the money supply is contracting quickly from asset deflation such as housing, which rapidly erases personal wealth, yet the money supply continues to expand. Economists say the recession of 1981-82 was the worst since the Depression, yet the main difference between then and now is that high interest rates could be cut then for economic stimulation, whereas now our low interest rates cannot be cut much more. This is called a "liquidity trap" which also preceded the Depression, wherein it becomes difficult to inject more money into the financial system to revive the economy. The U.S. economy is now like a car out of gas in the desert, which is the inevitable bursting of the financial bubble which actually began when Nixon ended the gold standard.
Since only new debt can create new money, when only a few can still borrow Fed Director “Helicopter Ben” Bernanke said he will drop hundred dollar bills from a helicopter to get money into the system if necessary. Meanwhile, lower interest rates and other factors are causing foreign countries to devalue our dollar and decrease our purchasing power. The result is the worst of all scenarios, wherein personal asset wealth is rapidly decreased while imports such as gasoline and oil rapidly inflate, which is altogether more significant with our decimated manufacturing base. The only real solution is a new currency and financial system, and the elite obviously prefer the Amero to unite Canada, Mexico and America and thus destroy U.S. sovereignty.
Unfortunately, some Christians have been deceived by failing to understand the concept of money, and by some televangelists preaching prosperity doctrine that all Christians should be rich. Some of these “preachers” are now under federal investigation. They perhaps believed, and certainly caused their followers to believe, Satan’s illusion as they saw our artificial economic prosperity produced by a rapid increase in printed dollars. They were deceived by Satan’s counterfeit “miracle” made possible by worthless money and erroneously attributed this impossible economic expansion to God. Americans have been lured into record debt by easy money, only to have the rug pulled out from underneath them, just as in 1929.
A sad commentary on the deception of Christians was once made by Christian Rakovsky, apparently an agent of the Illuminati who desire to take over the world, primarily using money as their tool. It is found in perhaps the most revealing unclassified document of the 20th century. It was originally published in Madrid in 1949 and translated into English in 1968 in “The Red Symphony: X-Ray of Revolution.” Stalin jailed Rakovsky, his ambassador to Paris in 1938, thinking he was a traitor. Upon questioning, he revealed instead that he worked for a secret group. The interrogation by a Russian agent Gabriel was secretly recorded by Dr. Jose Landowsky, and his document was later found by the Spanish on his body in Petrograd. The following is a brief but most important excerpt-compare the accuracy of his 60-year old statements to current events:
“Rakovsky: The understanding of how the financial International has gradually, right up to our epoch, become the master of money, this magical talisman, which has become for people that which God and the nation had been formerly, is something which exceeds in scientific interest even the art of revolutionary strategy...I shall explain it to you. Historiographers and the masses, blinded by the shouts and the pomp of the French revolution, the people, intoxicated by the fact that it had succeeded in taking all power from the King and the privileged classes, did not notice how a small group of mysterious, careful and insignificant people had taken possession of the real Royal power, the magical power, almost divine...The masses did not notice that the power had been seized by others and that soon they had subjected them to a slavery more cruel than the King, since the latter, in view of his religious and moral prejudices, was incapable of taking advantage of such a power. So it came about that the supreme Royal power was taken over by persons, whose moral, intellectual and cosmopolitan qualities did allow them to use it. It is clear that this were people who had never been Christians, but cosmopolitans.
“Gabriel: What is that for a mythical power which they had obtained?
“R: They had acquired for themselves the real privilege of coining money...It is clear that in your imagination there immediately appeared pictures of real money of metal and paper. But that is not so. Money is now not that; real circulating coin is a true anachronism. If it still exists and circulates, then it is only thanks to atavism, only because it is convenient to maintain the illusion, a purely imaginary fiction for the present day.
“G: This is a brilliant paradox, risky and even poetical.
“R: If you like, this is perhaps brilliant, but it is not a paradox. I know-that is why you smiled-that States still coin money on pieces of metal or paper with Royal busts or national crests, well, so what? A great part of the money circulating...was being issued by those few people about whom I had hinted. Titles, figures, cheques, promissory notes, endorsements, discount, quotations, figures without end flooded States like a waterfall. What are in comparison to these the metallic and paper moneys?...In addition to the immensely varied different forms of financial moneys, they created credit-money with a view to making its volume close to infinite. And to give it the speed of sound...it is an abstraction, a being of thought, a figure, number, credit, faith...
“Do you understand already?...Fraud; false moneys, given a legal standing...Banks, the stock exchanges and the whole world financial system-is a gigantic machine for the purpose of bringing about unnatural scandals, according to Aristotle’s expression; to force money to produce money-that is something that if it is a crime in economics, then in relations to finances it is a crime against the criminal code, since it is usury...
“Bear in mind that this system...is one of the most innocent among those used for the fabrication of false money. Imagine to yourself...a small number of people, having unlimited power through the possession of real wealth, and you will see that they are the absolute dictators of the stock-exchange...[and] of production and distribution and also of work and consumption. If you have enough imagination then multiply this, by the global factor and you will see its anarchical, moral and social influence, i.e. a revolutionary one...Do you now understand?”
“G: No, not yet.”
“R: Obviously it is very difficult to understand miracles.”
“R: Yes, miracle. Is it not a miracle that a wooden bench has been transformed into a temple? And yet such a miracle has been seen by people a thousand times, and they did not bat an eyelid, during a whole century. Since this was an extraordinary miracle that the benches on which sat the greasy usurers to trade in their moneys, have now been converted into temples, which stand magnificently at every corner of contemporary big towns with their heathen colonnades, and crowds go there with a faith which they are already not given by heavenly gods, in order to bring assiduously their deposits of all their possessions to the god of money, who, they imagine, lives in steel safes of the bankers, and who is preordained, thanks to his divine mission to increase the wealth to a metaphysical infinity.”
"G: This is the new religion of the decayed bourgeoisie?”
"R: “Religion, yes, the religion of power.”
Sadly, the observations of Rakovsky stand to this day. Even an atheist such as he understood that then, as now, the people had more faith in worthless money than they did in God above (though he did not acknowledge Him as such). Note his observation that banks are even constructed to look like temples, into which people bring their worthless scraps of paper. And recall that the only recorded instance of Jesus becoming angry was when He threw the moneychangers out of the temple.
Paper money is backed only by the blind faith of people, which one might expect from non-believers, but not Christians. Jesus said that if we had the faith of a mustard seed, we could uproot a mountain and cast it into the ocean (Mt. 17:20). If Christians placed as much faith in Jesus Christ as in worthless scraps of paper, we could move the world! How ironic that we want "In God We Trust" printed on our money while we trust in money more than God. Truly the Apostle Paul was correct when he stated that the love of money is the root of all evil (1 Tim. 6:10), and James when he said that we lust, kill, fight and war without result instead of simply asking God (James 4:2).
As this is written respected authorities are calling for an economic downturn, backed by statistics, equal to the Great Depression. A Dutch bank has predicted that Ron Paul will win the Presidency amidst a Depression with a 25% economic contraction. The solvency of our financial system has been threatened by rampant fraud, both legal and illegal, and now the Comptroller General of the U.S., David Walker, and Boston University economics professor Laurence Kotlikoff both say that America is bankrupt. As the above quotation by the Communist Rakovsky indicates, the false financial system is ultimately anarchical and revolutionary by design to force societal change. Satan is the prince of chaos, and God is the God of order. A collapse in our economic system could be chaotic or stable depending on our response. Our society must place our faith in God, not money, and ask Him for His forgiveness, mercy and guidance in what appear to be difficult, uncharted economic waters ahead.