Monetary policy and major religions

Gold, Religion, and Government

Tuesday, 09 December 2008

Written by Trace Mayer Monetary policy has many nexuses with most major religions. This article briefly discusses the monetary and banking teachings from Islam, Judiaism, Christianity and Mormonism. The Koran declares that 'Allah does not bless usury' (Koran 2:276). Moses commanded the Israelites 'Thou shalt not lend upon usury to thy brother' (Deuteronomy 23:19-20). Ezekiel spoke on the moral and ethical decay associated with debt by declaring that those 'given forth upon usury, and hath taken increase: shall he live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him' (Ezekiel 18:13) The Proverbs suggest reasoning behind avoiding debt with 'The rich ruleth over the poor, and the borrower is servant to the lender' (Proverbs 22:7). The Apostle Paul commanded the Christians to 'owe no man anything' (Romans 13:8). The Muslims appear to be commanded not to exact interest from others. There are additional monetary and banking prohibitions in Sharia law. The Jews and Christians appear commanded not to exact interest from fellow believers but may exact usury from others. They are counseled about the status of lenders being masters to borrowers. The Christians alone appear commanded to not be financially indebted. These major religions appear to have an aversion towards or rejection of debt in the monetary system. The Mormons appear to be equally as vehement as Ezekiel with extremely strong religious teachings in this regard. Joseph Smith founded The Church of Jesus Christ of Latter-day Saints on April 6, 1830. He ran for President of the United States of America in 1844 and was assassinated on June 27, 1844. He proclaimed himself to be 'the greatest advocate of the Constitution of the United States there is on earth.'(1) Interestingly, Joseph Smith had extremely strong convictions regarding the central bank and fiat currency. He declared, "I consider that it is not only prudential, but absolutely necessary to protect the inhabitants of this city from being imposed upon by a spurious currency. ... I think it much safer to go upon the hard money system altogether. I have examined the Constitution upon this subject and find my doubts removed." (2) Current Church leaders advocate some wise counsel of 'avoiding debt to the extent you can.'(3) There are even two accounts of a prophecy by Joseph Smith about the American currency collapse or as the great Austrian economist Ludwig von Mises wrote "It results in the 'flight to real values,' in the crack-up boom and the complete breakdown of the monetary system." "My brother, Noah Packard, says that he heard the Prophet Joseph say that the next great (U.S. civil) war after the war of the rebellion (the Civil War of the 1860's between the North and the South) would commence in a little town now called Chicago but at that time it would have grown to be a very large city. And another brother told me that the Prophet said that the cause of the next great trouble of the United States would be the depreciation of the currency of the United States. I believe I have given you all the facts in as short and concise manner as possible."(4) In an interview by Dr. Poulson of the Deseret News with David Whitmer: "Question: When will the temple be built in Independence? Answer: Right after the great tribulation is over. Question: What do you mean by that? Answer: A civil war more bloody and cruel than the rebellion. It will be the smashing up of this nation, about which time the second great work has to be done, a work like Joseph did, and the translation of the sealed plates and peace all over."(5) Indeed, the teachings of these major religions are consistent with Ludwig von Mises's statement that "It is impossible to grasp the meaning of the idea of sound money if one does not realize that it was devised as an instrument for the protection of civil liberties against despotic inroads on the part of governments. Ideologically it belongs in the same class with political constitutions and bills of rights." The Founding Fathers who fled a tyrannical church and government environment understood the proper role of money, currency, religion and government. In the 54th Federalist Paper it reads 'Government is instituted no less for protection of the property, than of the persons, of individuals.' From the 44th Federalist Paper James Madison, the Father of the Constitution, wrote, 'Very properly, therefore, have the convention added this constitutional bulwark in favor of personal security and private rights'. I discussed these effects on the Korelin Economics Report. GoldMoney is an alternative monetary system that is consistent with the moral and ethical teachings of these major religions. The United States could not have the current foreign policy if constrained by sound money. The abandonment of the gold standard is the main reason, if not the only reason, the world has become such a very dangerous place with wars and rumors of wars. Sound money is the greatest bulwark to protect against these despotic inroads by government. Sound money is the most important protection of the individual, families and religious freedom. Sources: Joseph Smith, Jr., Scriptural Teachings of the Prophet Joseph Smith, 368 (Richard C. Galbraith ed., Deseret Book 1993) (1843). Joseph Smith, Jr., Scriptural Teachings of the Prophet Joseph Smith, 314 (Richard C. Galbraith ed., Deseret Book 1993) (1843). True To The Faith, 49, The Church of Jesus Christ of Latter-day Saints (2004). A. Milton Musser papers, LDS Church Archives, letter from Nephi Packard to A. Milton Musser, July 24, 1896. Interview by Dr. Poulson with David Whitmer, Deseret News, Friday, August 16, 1878. Originally published at RunToGold.com on Dec 2, 2008. Trace Mayer, J.D., holds a degree in Accounting from Brigham Young University, a law degree from California Western School of Law and studies the Austrian school of economics. He works as an entrepreneur, investor, journalist and monetary scientist. He runs the website RunToGold which is dedicated to correct monetary science on the monetary role of gold and silver.