A false balance is an abomination to the LORD,
but a just weight is his delight.(Proverbs 11:1 ESV)
In ancient times, exchange was done through precious metals. You’d have a standard weight against which you would measure these metals for trade purposes. Using a heavier than standard weight when purchasing or a lighter weight when selling would allow you to dishonestly cheat a man out of his wealth, making yourself an extra profit.
These days, we will occasionally discuss usury (student loan debt slavery is a common topic in our sphere), but honest weights and measures are talked of less. What’s there to talk about? We no longer use precious metals for exchange,* so what measures are there to be dishonest about?
Unlike our ancestors, where dishonest weights were the domain of dishonest merchants and criminals, our dishonest weights are a fundamental part of our economic system. We have far surpassed the sin of previous generations in this regards and have made it an ideological mission to rob honest men of wealth through dishonest weights, yet almost no one in the Church speaks against this sinful robbery, this abomination to the Lord.
You shall not have in your bag two kinds of weights, a large and a small. You shall not have in your house two kinds of measures, a large and a small. A full and fair weight you shall have, a full and fair measure you shall have, that your days may be long in the land that the LORD your God is giving you. For all who do such things, all who act dishonestly, are an abomination to the LORD your God.(Deuteronomy 25:13-16 ESV)
To explain how our system uses dishonest weights and measures, I must first explain the banking system, as the system is designed to make this theft as hard to detect as possible.
Since the end of the Bretton Woods system, the US and most other nations have had a floating exchange rate** where the value of money is determined by foreign exchange markets (forex). Supply and demand on forex can be complex, but, for our purposes, what we need to know is that, generally, as the supply of a particular currency increases (relative to the goods and services the economy it backs produces) the value of the currency decreases. This causes the nominal prices of goods to rise and is called inflation. Likewise, as the supply of a particular currency decreases (relative to the goods and services the economy it backs produces), the value of the currency increases. This causes the nominal prices of goods to fall and is called deflation.
Most countries have a central bank which controls the money supply. In the US, this central bank is called the Federal Reserve. It is supposedly not “owned”, but the private banks which are members of the reserve system each own stock in the Federal Reserve and the Fed is required them to pay a 6% return annually, despite it being “non-profit”.
This is not relevant to my current point, but I I want To make sure you didn’t miss this, so I’ll highlight it again: the Federal Reserve, the quasi-public institution responible for the US’ money-supply, is “not-owned” by private banks and is required, by law, to pay these private banks a 6% (“non-profit”) return each year.
Continuing on, in fractional reserve banking systems, used by every country on earth, the banks get money in two ways: the first by borrowing from the central bank or from deposits. The banks make profit by loaning this money out to others and charging interest greater than the interest they pay the central bank or depositers.
Your normal individual or business deposits money into a bank, at which point the money become the bank’s property, while the depositer receives a deposit account. (Yes, this means you do not actually own the money you have deposited with the bank; the money is actually considered a loan to the bank; a loan which you pay fees to the bank to give them). The bank is only required to keep a fraction of the deposit (loan) in reserve; the majority of the deposit (loan) the bank lends to others at a higher interest rate than the depositer charges the bank.
Despite the deposit being more akin to a loan than a trust, the deposit is still considered money. So the bank’s loan to a customer becomes new money created out of nothing. So, this new loan adds new money to the money supply.
Also, the bank can borrow from the central bank. When it does so, the central bank simply creates new money to lend to the banks, increasing the money supply. The case of the US is unique, in that while the Fed makes the loans, the Treasury actually creates new currency. The bank then lends the money it borrowed from the central bank for a low interest rate to others for a higher interest rate (typically 3% points higher).
Just so you don’t miss this part, I’ll highlight it again: the banks borrow off the Fed and the Treasury (ie. off of you) and then charges you 3% extra interest to loan it back to you. Do you realize yet why banks have such ridiculously high profits? And we aren’t even to the outright thievery yet.
These two ways are how a fractional banking system creates new money.
Unequal weights and unequal measures
are both alike an abomination to the LORD. (Proverbs 20:10 ESV)
I need to point out one more fact: money that has been inflated is worth less than money that hasn’t. That is tautological, so I won’t go into it further, but it is essential to understanding.
The banks rob normal people through dishonest weights and measures in two ways, both lending and borrowing.
When the Treasury creates money and the Feds loan it out, the banks get it first. Individuals and businesses don’t borrow from the Fed, only banks and the government do. When the banks create money using fractional reserve banking, they obviously get the money first.
What this means is that the banks get the (less valuable) inflated currency to loan out into an economy with nominal prices based on (more valuable) non-inflated money. They are loaning out less valuable currency as if it were more valuable. They are loaning you a shaved gold coin as if it were a non-shaved coin.
Because the banks and the government always get the inflated money first and loan it as if it were non-inflated money, they always reap the value difference between inflation and non-inflation as pure profit.
When the bank borrows money from depositers, (ie. when you make a bank deposit), the depositers are lending them non-inflated money. When the depositers withdraw their loan to the bank (ie. you use your debit card or an ATM), they are spending inflated money. The bank gets the difference between the non-inflated and inflated money as pure profit. They are taking gold coins from you and returning them to you shaved.
Given that the interest rates on even “high interest” savings accounts are usually less than inflation rates (0.87% < 2%) most depositers are literally paying the banks to hold their money (and that’s not even including account fees).
Every investment anybody makes is losing money this way. Investors invest in non-inflated money and receive returns in inflated money, and all the excess value siphoned off through inflation is pure, staight profit for the banks and the government.
You could accurately replace ‘inflation’ with ‘money the government and banks steal from me and everybody else’. A 2.5% inflation rate means the government and banks collectively and literally stole 2.5% of all the wealth in the country.
These dishonest weights and measures, this theft, this abomination is not only built into our economy, it is the very basis of our economic system.
You shall do no wrong in judgment, in measures of length or weight or quantity. You shall have just balances, just weights, a just ephah, and a just hin: I am the LORD your God, who brought you out of the land of Egypt. (Leviticus 19:35-36 ESV)
In mainstream economics, slow, “stable” inflation (usually in the 1-4% range) is considered desirable, a necessary evil. Keynesians such as Krugman place particular emphasis on maintaining “moderate” levels of inflation (because 1% just isn’t enough).
Here Krugman argues that the average person saving money because it is profitable to do so is wrong, it is a “liquidity trap”. He purposefully and knowningly advocates increasing inflation so more of your wealth is stolen so you will go spend it instead of being robbed.
To the keynesian, this theft is is good, it is praiseworthy. Keynesians are decidedly and purposefully ideologically evil; they know these weights and measures are dishonest and are used to rob you and the average man so that the banks can make a greater profit. They know this, yet they advocate this dishonesty and even mild dishonesty is not enough, they want more.
Is it any wonder keynesians became dominant when their ideology just happens to enrich the banks and government at the expense of the common man.
If he fathers a son who is violent, a shedder of blood, who does any of these things (though he himself did none of these things), who even eats upon the mountains, defiles his neighbor’s wife, oppresses the poor and needy, commits robbery, does not restore the pledge, lifts up his eyes to the idols, commits abomination, lends at interest, and takes profit; shall he then live? He shall not live. He has done all these abominations; he shall surely die; his blood shall be upon himself. (Ezekiel 18:10-13 ESV)
Know this, the socialist fractional reserve, central bank economic system we have is evil. It is detestable, an abomination. It robs the poor to enrich the bankers and the government.
Those lackeys of the banks and government know this and yet they rob you anyway.
Every Christian, every man of any morality, should be fighting the banks, the Fed, the government, and the keynesians. They are evil, they are thieves, and they purposefully robbing and oppressing the average man.
Eventually, hopefully, there inequities will come to light and justice can be enacted.
* I am not going to get into the problems of fiat currency here, it is related, but not what I am going to focus on.
** While I leans towards the gold standard, a floating exchange rate on a free market is not, in itself, a dishonest measure. I would support a free, open-market of currency, where any individual or organization could adopt or offer their own competitive form of exchange. Also, even though I would be against it, I do not think a reserve currency monopoly where currency levels are kept stable and new currency released at a set, predefined rate would be dishonest.