Ezra 6:5 – “And also let the golden and silver vessels of the house of Yahweh”
Silver & Gold Disregarded As Sound Money
Silver and gold are disregarded as real sound money. Money is one of the most misunderstood topics.
Before there was money, there was barter. Imagine that a farmer wants to buy a pair of boots, so he visits the town cobbler and tries to trade a dozen eggs in exchange.
A trade where both parties are happy is now difficult.
Many goods throughout history, with varying degrees of effectiveness, have filled the role of butter, salt, wampum, and tobacco have all been used as money.
Gold and silver emerged as universally accepted monies by the free market because of their durability and transportability.
Gold and silver have other qualities that make them a sound form of money.
Precious metals are relatively scarce, used across a variety of industries, and are aesthetically beautiful.
They are divisible. If you split one ounce of gold into two, the two halves are of equal value that add up to the value of the whole.
Compare this to diamonds. They may have some qualities of a store of wealth over time.
However, not all forms of money have stood the test of time.
Conclusion
Sound money carries no counterparty risk. It retains relatively stable purchasing power over time.
First, sound money protects capital and creates stability. People can accumulate savings and transmit value over time.
The second is that sound money acts as a defense against excess debt accumulation and an ever-growing government.
The current system of fiat money issued by central banks enables unlimited deficit spending by government.
Inflation allows the stealing of everyone’s purchasing power.
The Framers of the United States Constitution understood the importance of sound money, and that’s why they codified it.
Article 1, section 10 states: “No State shall emit bills of credit…[or] make any Thing but gold and silver Coin a Tender in Payment of Debts.
When the Civil War began. The federal government had a policy to only print notes that were backed by an equal amount of gold and silver. Why did they stop using this method?
Even though it was unconstitutional, Lincoln’s government issued unbacked paper money, called Greenbacks.
But how could he get people to accept them in exchange for their goods and services? The answer is the use of government force through what are known as legal tender laws.
Legal tender is a stamp of approval by the federal government that magically turns strips of unbacked paper into money people must accept.
In 1913, Congress created the Federal Reserve System.
Then came an income tax and gold confiscation by executive order.
America is now well down the road to financial insolvency.
History teaches us no government can escape the consequences of removing sound money from its monetary system.
DISCLAIMER: I am not a financial adviser. This site is for educational purposes only. It is imperative that you do your own research. I am sharing my opinion from personal research and experience with no guarantee of gains or losses on investments, finance etc.
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