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Question:
What is money?
Answer:
"Money" is any article, substance or even an entry
in a record-keeping system, that is used as a
medium of exchange, means of payment, or measure
of value. Money allows profits, assets, purchases,
and virtually every single facet of a civilization
to be transferred, and stored for future use.
Barter allows for simple transactions, but money
is necessary for more complicated transactions,
and modern commerce is impossible without it.
Human beings have used various things as money
- animal skins, beads, tree bark, stones, seashells,
paper and other things. The best kind of money
is something that is scarce, valuable, widely
acceptable, enduring, divisible into various sizes
and compact. Since gold and silver have met
these requirements better than anything else,
for most of history, and for most of the civilized
world, "money" was silver and gold. In fact,
the Hebrew word for money is "kesef" - which means
"silver." If we go back early in man's history,
to the time of Abraham, we discover that when
Sarah died, Abraham wanted to buy the cave of
Machpelah in order to bury her. He bought the
property in which the cave was situated for four
hundred shekels of silver, which is around two
hundred ounces.
During
most of American history, gold and silver, or
paper money that was backed by gold and silver,
was our money. But more recently, the United States
and most other modern governments have stopped
backing their paper money with gold and silver.
In 1933 our government confiscated our citizens'
gold bullion. In 1966 our silver coins were eliminated,
and in 1971 we went off the gold standard altogether.
The problem with paper money which is not backed
by silver or gold is that governments that won't
live within their means will simply print more
paper money, which dilutes the value of the money
already in circulation. More money available
to purchase the same amount of goods and services
causes inflation, which is detrimental to a currency.
Most paper monies have become worthless over time.
The devaluation of the German Mark in the early
1920's, and the problem that the Argentine Peso
is having right now, illustrate this. Argentina
is undergoing destruction - not by war or plagues,
but by mismanagement of the economy - having taken
on too much debt, having printed too much paper
money without something of real value to back
it.
Could
currency destruction happen here? I believe it
could, and that's one reason why I advocate a
return to the gold standard. Since gold is rare,
and can't be printed, it makes it impossible for
greedy governments who can't live within their
means to create it out of nothing.
There
is nothing wrong with having some money, but don't
set your heart on getting rich, since human economic
systems are inherently unstable. Do not
weary yourself to gain wealth, cease from your
consideration of it. When you set your eyes on
it, it is gone. For wealth certainly makes itself
wings like an eagle that flies toward the heavens
(Proverbs 23:4-5). In this fallen, unstable
world, wealth is insubstantial and can disappear
very quickly. You set your eyes on wealth and
it is gone. It makes itself wings and flies away
like an eagle - fast, high, and for a long time!
This is true for individuals, corporations and
nations. Most US corporations are less than 50
years old, because businesses frequently go out
of business. One astute man observed that most
democratic governments last less than 200 years,
until the majority figure out that they can vote
themselves the money from the treasury. Eventually
the nation goes bankrupt, and ends in financial
and political chaos, from which a tyrant emerges.
Fractional
Reserve Banking, by its very nature, is inherently
unstable: Banks take your money, and lend it out
to others, but they are able to loan out more
than they take in. They only keep a small percentage
in reserve, so if there is a crisis, or people
lose confidence in the system, and everyone wants
their money back at the same time, it's not possible.
When that happens the banks become "bankrupt"
- ruptured, so they can't function. That's what
happened during the bank runs of the 1930's in
the United States, and is now happening in Argentina.
Keep you eyes on the big Japanese banks. Japan's
major banks are "technically insolvent," according
to the Asia director of the Standard & Poor's
rating agency. If the problems worsen in that
island nation, a financial tsunami could be created
which will impact the whole world.
Taking
on too much debt creates instability: A little
debt may be OK, but too much debt brings financial
ruin. In our economy, taking out a mortgage on
a house may be the only way a family may ever
be able to live in a house. Houses have traditionally
been an investment - they usually, although not
always, go up in value. Buying a home with a reasonable
mortgage is generally better than renting. However,
when it comes to most other things, you would
be prudent to pay cash. If you can't pay cash,
then you probably shouldn't buy it. You can use
a credit card, if it is paid off at the end of
each month. If it is not paid off right away,
credit card debt can be a financial destroyer.
In the United States, individual, corporate and
governmental debt levels are very high, and bankruptcies
are at record levels. Within twenty years we have
gone from the biggest creditor to the biggest
debtor nation. Many other nations are likewise
deep in debt. In general, the best policy is to
avoid debt - neither to borrow nor to lend, as
Rabbi Paul taught the Messianic Believers in Rome:
owe nothing to anyone except to love one another
(Romans 13:8). The lender worries if he will be
repaid, and the one who is in debt takes on additional
financial pressure and other stresses that result.
Financial
shenanigans create instability: Differing weights
are an abomination to the Lord, and a false scale
is not good (Proverbs 20:23). There are lots
of ways to cheat people out of their money. In
times past, those who wanted to cheat you would
have differing weights. They would have a weight
that weighed less for what they paid or a weight
that weighed more for what they received; this
was done to cheat, but it was done deceptively,
disguised as proper business practice. Cheating
in business happens all the time, and there are
many modern equivalents. Consider Enron: corporations
like Enron found it easy to "cook the books" with
deceptive earnings reports, "off balance sheet"
corporations and "Pro Forma" accounting standards
- which can be misleading and hide the true state
of the corporation which would be revealed by
the more traditional accounting standards. Frankly,
I'm concerned that the United States economy is
another Enron...
For many,
investing in our markets is more like gambling
in a giant, legal casino: People may be making
money with a flurry of buying and selling, options,
puts, calls, leveraging and derivatives, but that
doesn't mean that true wealth is being generated.
If a chain letter is sent around, some people
may make money, but no true wealth is created.
This gambling mentality can add financial instability
to the system.
Injustice
creates instability: Abundant food is in the
fallow ground of the poor, but it is swept away
by injustice (Proverbs 13:23). There
is no need for poverty in this world - there are
enough resources and food in the world around
us, and plenty of opportunities. God has designed
the Earth to yield enough if justice and decency
prevail. It is injustice that takes away what
labor produces and unfortunately, there is much
injustice in the world. We need to pursue justice
through our prayers, our votes and our actions.
We are
now living in a one-world economic system, and
that can create instability: Not too long ago
nations' economies were more independent of one
another, so that if one nation was having problems,
another nation might be doing better, and its
stronger economy might be able to help the weaker
economy. But we are now living in a high-tech
one-world economy so that financial crises in
one country can very quickly wreak havoc across
the world. Currency crises in other nations, governments
defaulting on debt, weakness in other nations'
banks, can rapidly spread here. Years ago when
news traveled more slowly, there was time for
the economic and political decision makers to
work at solving the problems, but the time allotted
them today is much shorter. This technologically
interconnected, one-world economy can add financial
instability.
Investors
are human beings and tend to move in herds (All
we like sheep have gone astray). This herd
mentality can add instability: Every so often
market economies will go into a mania, a period
of excessive excitement or "irrational exuberance,"
where people lose common sense and invest in companies
or goods, driving them up to stratospheric levels.
When the financial bubble bursts, the excessive
valuations come back down to the starting level
or below. One of the classic manias was the 17th
century Dutch Tulip Bulb Mania. "Tulips were first
imported into Europe from Turkey in the mid 1500's.
The flowers soon gained in popularity, and a demand
sprang up for different varieties of the bulbs.
The supply (and increasing popularity) of rare
varieties of tulip bulbs couldn't keep up with
the demand, and prices soon began to rise sharply.
Prices rose to such heights that by 1610 one rare
bulb was considered an acceptable dowry for a
bride! As prices soared, ordinary citizens soon
began to view tulip bulb speculation as a sure
fire way to get rich. Holland, the largest producer
of the bulbs, became the epicenter of the mania.
People mortgaged their homes and businesses to
buy the bulbs. The prices for many rare bulb types
reached several hundred dollars each. One bulb
of a very rare variety even changed hands at over
$20,000! By 1637 people began to see that prices
had reached an outlandish level. The smart money
began selling and a crash soon followed. Many
Dutch families lost the homes and businesses they
had mortgaged to take part in this 'sure thing'
investment" (From "A Brief History of the 17th
Century Dutch Tulip Bulb Mania" which can be found
at www.tulipsandbears.com/tulip.htm). Some economists
think that in the past several years, the valuations
of many of US stocks, especially some of the highflying
NASDAQ stocks, with their astronomical P/E (Price-To-Earning)
ratios, and parts of our housing market, have
been in a mania. If so, the end of the mania will
add financial instability.
Living
in a fallen, sinful world, a cosmos that is under
a curse, means that unexpected, unpleasant events
will happen which can create financial instability:
Unusual floods will strike, hurricanes will hit
major population centers, earthquakes will devastate
cities. Horrible man-made events like wars, massacres,
unexpected terrorists attacks, (including the
possible use of biological, chemical or nuclear
weapons), may take place. These "out-of-left-field"
events can easily trigger financial instability.
I think
that God might even want to remove the wealth
of our nation, since Proverbs 19:10 informs us
"Luxury is not fitting for a fool."
Luxury is not proper for a fool - someone
who ignores God and does not live according to
His wise principles. The wealth and prosperity
of a fool only deepens the delusions that will
eventually destroy him. People frequently mistake
wealth for success, supposing that all is well
with them, and they don't need to bow their knee
before the King of kings. They fool themselves
into thinking that they have succeeded in life,
when in reality, they are headed toward destruction.
It's more fitting for fools to mourn and weep,
not to laugh and live in luxury. And what is
true of the foolish man is also true of a foolish
nation. The nation that forgets God, and ceases
to live according to God's wise laws, may discover
that since luxury is not fitting for a fool,
God will remove that luxury.
Question:
Is it wrong for a Christian to accumulate wealth,
or must I give it all away? I really could use
a little more.
Answer:
Some people mistakenly believe that Christians
and Messianic Jews must be poor in order to be
spiritual, and to follow in the footstep of Yeshua,
but poverty does not guarantee godliness, nor
does wealth automatically disqualify one from
pleasing God. Proverbs 13:22 tells us, "A
good man leaves an inheritance to his children's
children." A good man, through his good character,
hard work, prudence, generosity, faithfulness
to the Lord in giving, and by not spending all
his wealth on himself, and by teaching his children
to do the same, leaves an inheritance to his children's
children. There is nothing wrong with having enough
money to leave something to your children and
grandchildren, and the book of Proverbs tells
us how:
Work hard:
He who tills his land will have plenty of food,
but he who follows empty pursuits will have poverty
in plenty (Proverbs 28:19). Do you want abundance?
Go to work! Be diligent and work hard, and if
you do, you will generally have more than enough
to meet your needs. Work hard and improve yourself
so that you can do a better job, or get a better
job. Hard, diligent work is the basic way to create
wealth.
Work honestly:
Wealth obtained by fraud dwindles, but the
one who gathers by labor increases it (Proverbs
13:11). How you get your wealth is important.
Wealth acquired by illegal or immoral methods
usually diminishes. Don't go for get-rich-quick
schemes, even if they seem "spiritually" based.
Don't send in "seed money" to questionable ministries
and expect a "hundred fold" return. Don't gamble
or play the lottery. Don't cheat or steal. Wealth
that is not the result of good hard honest work
is seldom permanent. Have a plan: The plans
of the diligent lead surely to advantage, but
everyone who is hasty comes surely to poverty
(Proverbs 21:5). Those who diligently and patiently
work hard, and have a good economic plan - who
think ahead about how to improve their circumstances,
will have an advantage over those who make hasty,
thoughtless financial decisions.
Work ambitiously
and creatively: Where no oxen are the manger
is clean, but much increase comes by the strength
of the ox (Proverbs 14:4). Some inconvenience,
some extra work, is the price of growth and accomplishment.
There is no milk without manure. Only as we work
hard, and invest in better tools and technology,
do we get a larger return. If you don't expand
your business you will save yourself some headaches,
but you won't get as much increase either.
Live within
your means: He who loves pleasure will become
a poor man; he who loves wine and oil will not
become rich (Proverbs 21:17). Wine and oil
represent the finer things of life, so this is
an admonition against pursuing a life of fun,
games, pleasure and luxury. By placing too much
emphasis on pleasures, you may live beyond your
means, and your responsibilities may be neglected,
which may result in poverty. It is the frugal
and the self-denying who, by living carefully
in the present, pave the way to easier circumstances
in the years to come.
Avoid
people who love pleasure: Do not be with heavy
drinkers of wine, or with gluttonous eaters of
meat; for the heavy drinker and the glutton will
come to poverty, and drowsiness will clothe one
with rags (Proverbs 23:20-21).We need to choose
our friends carefully, because we become more
and more like them. If we aren't careful, we will
spend too much time and money on our appetites,
and will wind up like our gluttonous, heavy drinking
friends - living in poverty.
"Mind
your own business": Do not be among
those who give pledges, among those who become
guarantors for debts. If you have nothing with
which to pay, why should he take your bed from
under you? (Proverbs 22:26-27). Beware of
co-signing a loan. It makes no sense to ruin your
own finances on account of those who live beyond
their means, or who mismanage their own affairs,
or waste what they have. Thousands of stories
could be told of those who either loaned money
to a friend or family member, or co-signed a loan
for them, which were not repaid, and wound up
ruining their own finances. In spite of this sage
advice, many US corporations have been guaranteeing
other companies' loans and debt obligations. And
do you know who is the insurer of last resort
for trillions of dollars of obligations? Good
old Uncle Sam! The United States government, which
is really you and me, has taken on responsibility
for the nation's banks, through the FDIC, and
many other insurance programs, amounting to trillions
of dollars of obligations. If things don't work
out right, this may wind up seriously harming
our national economy.
What's
the best way to get wealth? Work hard, improve
yourself, be frugal, save, invest wisely, be patient,
and generally your wealth will increase. It's
OK to live comfortably, and to leave something
for your family, but don't make acquiring wealth
your goal in life. Let your attitude be that
recommend by Rabbi Paul to Timothy: Godliness
is a means of great gain, when accompanied by
contentment. For we have brought nothing into
the world, so we cannot take anything out of it.
And if we have food and covering, with these we
will be content. But those who want to get rich
fall into temptation and a snare and many foolish
and harmful desires, which plunge men into ruin
and destruction. For the love of money (not
money itself, but the love of money) is the
root of all sorts of evil, and some by longing
for it have wandered away from the faith, and
pierced themselves with many a pang (1 Timothy
6:6-10). If you are a child of God, making lots
of money and wanting to get rich is not your priority.
You are here to serve God and to accomplish His
purposes for your life. Make godliness and service
to the Lord your highest priority. Learn to be
content in this life, and you will be a rich man
or woman throughout eternity, where the true riches
are found.
If God
blesses you, and you are a wealthy Believer, you
are to be extra generous: Those who are rich
in this present world ought not to be conceited
or fix their hope on the uncertainty of riches,
but on God who richly supplies us with all things
to enjoy. They are to do good, be rich in good
works, be generous and ready to share, storing
up for themselves the treasure of a good foundation
for the future, so that they may take hold of
that which is life indeed (1 Timothy 6:17-19).
If you are a Messianic Jew or a true Christian
and you are wealthy, remember that you are a steward
- it's really the Lord's money, and He wants you
to be generous with it to those who are in need.
Do good things that will serve the Kingdom of
God, and help others, so that your life is characterized
by good works.
It's important
to have a godly perspective on money. Perhaps
you've heard of "The Prayer of Jabez," a popular
book in some Christian circles, based on the prayer,
"God, bless me indeed and enlarge my border."
But, have you considered the prayer of Agur, which
is found in Proverbs 30:8-9? It presents us with
a balanced view about our finances: Give me
neither poverty nor riches; feed me with the food
that is my portion, that I not be full and deny
you and say, "Who is the Lord?" or that I not
be in want and steal, and profane the name of
my God. Agur prayed that when it came to money
and wealth, God would keep him from the extremes.
He did not want to be rich or poor. Agur knew
that if he had too little, he might be tempted
to steal, and by doing so, dishonor God. His prayer
was, "Give me this day my daily bread. Send from
Heaven my food that is sufficient for each day,
as You sent the manna in the wilderness, which
was enough for each day."
We can
easily understand someone not wanting to be poor,
but it is unusual for someone to not want to be
rich. But Agur was such a man. He knew that wealth
tends to make people feel proud, independent and
forgetful of God. They think to themselves, "Who
is the Lord" that I should obey Him? I don't need
God, therefore I have no obligations to Him. What
can the Almighty do for me? Therefore I will do
nothing for Him." Agur reasons that if he has
too much, he might develop a proud attitude, and
an arrogant spirit of independence. He doesn't
want to be rich and forget God and thereby sin
and dishonor God, and he doesn't want to be too
poor, steal, and thereby sin and dishonor God.
"Lord, give me moderation when it comes to wealth.
Enough Lord, but not too much."
In conclusion,
it's OK to have some money. It's good to leave
something to your children. If you want to increase
your wealth, work hard at an honest job, improve
yourself, have a financial goal, be careful with
your spending, avoid luxuries, don't take on too
much debt, avoid co signing loans, save your money,
invest wisely, don't become greedy, or make wealth
your life's pursuit, be patient, and generally
your wealth will increase. If it does, be generous
with it. But even if you do everything right,
there are no guarantees, since human economic
systems are inherently unstable, and wealth
certainly makes itself wings like an eagle that
flies toward the heavens. |
