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The Soon Coming Judgment Of God Upon America and How To Escape It 295
dwindle, students began to pool their money and so the prices for the prizes kept going up. The
last prize, a hair dryer, went for over a million dollars as I remember.
Believe it or not this is a good example of how the Federal Reserve works. As we shall
see, essentially the Federal Reserve issues money similar to the play money I used at the Casino
night; it really isn’t worth anything. They inflate the money supply much faster than America is
able to increase its production of goods and services, which creates inflation. The loaf of bread
that was a nickel when I was kid is now over $2. Just like our million dollar hair dryer above.
Anyone who saves his or her money will find that eventually their savings have become
worthless because of inflation. In 1973 the Shah of Iran recognized this, he stated: “Why would
we (Iran) hoard non-gold based paper money in banks if inflation makes them worthless.”
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“Inflation encourages us to borrow because future dollars are worth less and therefore, it
is difficult for people's saving to keep up with inflation. As a result, a debt bubble has been
produced that will most likely lead to the eventual collapse of the American financial system. As
of August 2002, American consumer debt in the United States was 1.713 trillion dollars and
growing at a monthly rate of 5 to 8 billion dollars (consumer debt does not include home
mortgages). The American government has a debt load of over $6 trillion, which will never be
paid off. Total debt of all sources in the U.S. is over $34 trillion.”
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When one considers the overwhelming amount of Public, Private and Corporate debt in
the US it is not surprising that we have led, persuaded and enticed the poor nations of the world
to become indebted and to follow our path towards eventual economic collapse. There are
several scenarios that could cause a collapse of the United States debt bubble and a collapse of
the US monetary system; we’ll examine these later. Right now lets look at what a monetary or
financial system is.
A Monetary System
A monetary system is the creation, issuance and control of money. “Money was
originally designed to be a standardized store of value that was used as a medium of exchange to
transfer wealth”
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and or labor. There are two kinds of wealth, those created by man and those
created by God. God created the land (real estate) and natural resources, which includes gold and
silver. Man can create wealth by applying his labor to those natural resources created by God.
For most of history money has consisted of standard pieces of gold, silver, copper, nickel, etc.,
stamped by government authority and used as a medium of exchange and a store of value. The
founding fathers of the United States in Article 1, section 10 of the US Constitution mandated
that only gold and silver coin would be acceptable in payment of debts. Gold and silver are
scarce resources; they are in limited supply. Therefore, they create stability in a monetary system
and they retain their value.
Gold has retained its value since the days of the Roman Empire and most likely far
beyond that time. From the time of the Roman Empire until today an ounce of gold has been
roughly equivalent to the price of a nice set of clothes (a nice suit). In 1793 the price of Gold was
$19.39 per oz., by 1913 it had risen to only $20.67 an oz.
During this period the only significant fluxuations in price occurred during the Civil War.
The increase in the price of gold during the Civil War can be attributed to “greenbacks”, a fiat
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