The Root Cause of the Current Financial (Monetary) Crisis and Its Solution


Ever since I learned of the biblical prophecies—and later of the additional prophecies of the LDS—concerning these days in which we live, I’ve always wanted to be an observer of the affairs of men, watching the winding up scenes unfold before my eyes, without participating in the iniquities, frivolities and foolishness of men, nor in the judgments of God upon them.  However, I believe that the Lord wants more than this:

And now, as I spake concerning my servant Edward Partridge, this land is the land of his residence, and those whom he has appointed for his counselors; and also the land of the residence of him whom I have appointed to keep my storehouse; wherefore, let them bring their families to this land, as they shall counsel between themselves and me. For behold, it is not meet that I should command in all things; for he that is compelled in all things, the same is a slothful and not a wise servant; wherefore he receiveth no reward.  Verily I say, men should be anxiously engaged in a good cause, and do many things of their own free will, and bring to pass much righteousness; for the power is in them, wherein they are agents unto themselves. And inasmuch as men do good they shall in nowise lose their reward.  But he that doeth not anything until he is commanded, and receiveth a commandment with doubtful heart, and keepeth it with slothfulness, the same is damned.  (D&C 58: 24-29)

Notice that the Lord didn’t say we should be engaged in good causes (plural) but in a good cause (singular).  Many will interpret this passage to mean that we can be engaged in any cause that is good, but I believe that the Lord had reference to only one cause which is defined by Him as being good: the cause of Zion.

For thus saith the Lord God: Him have I inspired to move the cause of Zion in mighty power for good, and his diligence I know, and his prayers I have heard.  (D&C 21: 7)

Zion holds the solution to all of the world’s problems.  Zion is not just for the saints, but for all men and the time will come that many of the wicked will flee to it (see D&C 45: 68 and 133: 12) to escape the wrath of God and the judgments upon Babylon.  Every LDS, then, after escaping Babylon themselves, should also be helping others escape.  After all, as saints, we are supposed to be a light unto the world, setting an example of godliness to all those that view our good works, so that they can glorify God.

So, when I see the crisis happening on Wall Street and the $700 billion dollar solution our president is providing, I wonder what the latter-day saints will do.  Will we accept the solution provided us by our Gentile, Babylon-based government and be cast out as good-for-nothings?  Or will we provide the Zion solution and become the temporal saviors of men, even saviors upon Mount Zion?

For they were set to be a light unto the world, and to be the saviors of men; and inasmuch as they are not the saviors of men, they are as salt that has lost its savor, and is thenceforth good for nothing but to be cast out and trodden under foot of men.  (D&C 103: 9-10)

The Financial Crisis

By now everyone should be aware that there is a financial crisis happening in America.  It is no longer a question of whether bad financial times are upon us, but how bad they are and how long they will last.  The doomsayers predict a financial depression that will last many years and make the American Great Depression of the 1930’s seem like a walk in the park.  The optimists say we can ride this wave out because America is still dynamically very strong.

On everyone’s mind is both how to fix the situation and who will do the fixing.  Specifically, the question is, “Which presidential candidate, Obama or McCain, can fix it?” The two, major, political party candidates have become the saviors of men in the eyes of the masses who support them.

As an anarchist and a latter-day saint, my view is that government is usually the one that causes these problems to begin with, and therefore, should never be called upon to fix them, as it usually only ends up making things worse.  If there is a solution to our economic situation, it will come from the people themselves, working independent from the government.

But before a solution can be offered, the problem must be identified, not just the symptoms of it.

A financial crisis is a monetary crisis

A financial problem is a monetary problem, it usually being either that there isn’t enough money going around (deflation) or that there is too much money going around (inflation).  That seems to be simple enough to fix.  In deflation, you just print more money and circulate it.  In inflation, you just stop or slow down the printing presses and also destroy money that comes into your hands.  Yet, despite (more or less) being in control of the amount of money in circulation, by being in control of the printing presses, the Fed has failed to stabilize the economy, bringing us into the Great Depression of the 1930’s twenty years after it (the Fed) was created and now bringing us into an even greater depression known by some as the Global Systemic Crisis seventy-eight years after that.

So, owing that the Fed isn’t really doing the job we were told it was supposed to do (stabilizing the economy), maybe we ought to look a bit further and deeper and consider that the problem is not how much money is going around, but whether what is going around is actually money.

The Lord talked about money

In 17 of the revelations given to Joseph Smith, the Lord mentioned money.  Here are the specific scriptures: D&C 24: 18 given in July, 1830; D&C 48: 4 given in March 1831; D&C 51: 8, 11, 13 given in May, 1831; D&C 54: 7 given in June, 1831; D&C 56: 9-12 given in June, 1831; D&C 57: 6, 8 given on July 20, 1831; D&C 58: 35-36, 49, 51 given on August 1, 1831; D&C 60: 10 given on August 8, 1831; D&C 63: 40, 43, 46 given in August, 1831; D&C 69: 1 given in November, 1831; D&C 84: 89-90, 103-104 given on September 22 and 23, 1832; D&C 90: 28-29 given on March 8, 1833; D&C 101: 49, 56, 70, 72 given on December 16, 1833; D&C 103: 22-23 given on February 24, 1834; D&C 104: 26, 68, 84 given on April 23, 1834; D&C 105: 8, 30 given on June 22, 1834; and D&C 124: 70 given on January 19, 1841.

The above scriptures cover the time between July 1830 and January 19, 1841.  This means that whatever currency was used by these Americans during that time was considered by the Lord as actual money.

But what was money during the years 1830-1841?

The 1828 Noah Webster’s Dictionary of the English Language was the dictionary in use among Americans during this time and defined money in the following manner:

MONEY, n. plu. moneys.

1. Coin; stamped metal; any piece of metal, usually gold, silver or copper, stamped by public authority, and used as the medium of commerce. We sometimes give the name of money to other coined metals, and to any other material which rude nations use a medium of trade. But among modern commercial nations, gold, silver and copper are the only metals used for this purpose. Gold and silver, containing great value in small compass, and being therefore of easy conveyance, and being also durable and little liable to diminution by use, are the most convenient metals for coin or money, which is the representative of commodities of all kinds, of lands, and of every thing that is capable of being transferred in commerce.

2. Bank notes or bills of credit issued by authority, and exchangeable for coin or redeemable, are also called money; as such notes in modern times represent coin, and are used as a substitute for it. If a man pays in hand for goods in bank notes which are current, he is said to pay in ready money.

3. Wealth; affluence.

Money can neither open new avenues to pleasure, nor block up the passages of anguish.

(Money entry of the 1828 Noah Webster’s Dictionary of the English Language)

The Lord talked about talents

Within this same time period, the Lord also mentioned talents in two of the revelations given to Joseph Smith:

But with some I am not well pleased, for they will not open their mouths, but they hide the talent which I have given unto them, because of the fear of man.  Wo unto such, for mine anger is kindled against them.

Behold, they have been sent to preach my gospel among the congregations of the wicked; wherefore, I give unto them a commandment, thus: Thou shalt not idle away thy time, neither shalt thou bury thy talent that it may not be known.

(D&C 60: 2, 13; revelation received on August 8, 1831)

And all this for the benefit of the church of the living God, that every man may improve upon his talent, that every man may gain other talents, yea, even an hundred fold, to be cast into the Lord’s storehouse, to become the common property of the whole church—every man seeking the interest of his neighbor, and doing all things with an eye single to the glory of God.

(D&C 82: 18-19; revelation received on April 26, 1832)

But what is a talent?

TALENT (Lat. talentum, adaptation of Gr. τáλατον, balance, weight, from root ταλ-, to lift, as in τληναι, to bear, τáλας, enduring, cf. Lat. tollere, to lift, Skt. tulã, balance), the name of an ancient Greek unit of weight, the heaviest in use both for monetary purposes and for commodities (see Weights and Measures).  The weight itself was originally Babylonian, and derivatives were in use in Palestine, Syria and Egypt.  In medieval Latin and also in many Romanic languages the word was used figuratively, of will, inclination or desire, derived from the sense of balance, but the general figurative use for natural endowments or gifts, faculty, capacity or ability, is due to the parable of the talents in Matt. xxv.

(Talent entry of the 11th Edition of the Encyclopædia Britannica, published in 1910)

(See also the talent entry of the 1828 Noah Webster’s Dictionary of the English Language.  That entry explains: “Among the ancients, a weight, and a coin. The true value of the talent cannot well be ascertained, but it is known that it was different among different nations.“)

So, the talents mentioned in D&C 82: 18, which were “to be cast into the Lord’s storehouse, to become the common property of the whole church” could be a reference to money, specifically, a unit of weight used for monetary purposes.  But what American unit of weight used for monetary purposes was in use on April 26, 1831?

The Lord talked about dollars

In two of the revelations received by the Prophet, the Lord mentioned dollars:

Or in other words, if any man among you obtain five dollars let him cast them into the treasury; or if he obtain ten, or twenty, or fifty, or an hundred, let him do likewise; and let not any among you say that it is his own; for it shall not be called his, nor any part of it.

If it be five dollars, or if it be ten dollars, or twenty, or fifty, or a hundred, the treasurer shall give unto him the sum which he requires to help him in his stewardship—until he be found a transgressor, and it is manifest before the council of the order plainly that he is an unfaithful and an unwise steward.

(D&C 104: 69-70, 73-74; revelation received on April 23, 1834. See also the Book of Commandments XCVIII: 12, page 244, which used the word talents in stead of dollars.)

And they shall not receive less than fifty dollars for a share of stock in that house, and they shall be permitted to receive fifteen thousand dollars from any one man for stock in that house.  But they shall not be permitted to receive over fifteen thousand dollars stock from any one man.  And they shall not be permitted to receive under fifty dollars for a share of stock from any one man in that house.

Verily I say unto you, let my servant Joseph pay stock into their hands for the building of that house, as seemeth him good; but my servant Joseph cannot pay over fifteen thousand dollars stock in that house, nor under fifty dollars; neither can any other man, saith the Lord.

(D&C 124: 64-66, 72; revelation received on January 19, 1841.)

From the above it becomes plain that the words dollars and talents are interchangeable, meaning the same thing.

But what is a dollar?

DOLLAR, n. [G.] A silver coin of Spain and of the United States, of the value of one hundred cents, or four shillings and sixpence sterling. The dollar seems to have been originally a German coin, and in different parts of Germany, the name is given to coins of different values.

(Dollar entry of the 1828 Noah Webster’s Dictionary of the English Language)

DOLLAR, a silver coin at one time current in many European countries, and adopted under varying forms of the name elsewhere. The word “dollar” is a modified form of thaler, which, with the variant forms (daler, dalar, daalder, tallero, &c.), is said to be a shortened form of Joachimsthaler. This Joachimsthaler was the name given to a coin intended to be the silver equivalent of the gold gulden, a coin current in Germany from the 14th century. In 1516 a rich silver mine was discovered in Joachimsthal (Joachim’s dale), a mining district of Bohemia, and the count of Schlitz, by whom it was appropriated, caused a great number of silver coins to be struck (the first having the date 1518), bearing an effigy of St Joachim, hence the name. The Joachimsthaler was also sometimes known as the Schlickenthaler. The first use of the word dollar in English was as applied to this silver coin, the thaler, which was current in Germany at various values from the 16th century onwards, as well as, more particularly, to the unit of the German monetary union from 1857 to 1873, when the mark was substituted for the thaler. The Spanish piece-of-eight (reals) was also commonly referred to as a dollar. When the Bank of England suspended cash payments in 1797, and the scarcity of coin was very great, a large number of these Spanish coins, which were held by the bank, were put into circulation, after having been countermarked at the Mint with a small oval bust of George III., such as was used by the Goldsmiths’ Company for marking plate. Others were simply overstamped with the initials G.R. enclosed in a shield.  In 1804 the Maundy penny head set in an octagonal compartment was employed. Several millions of these coins were issued. These Spanish pieces-of-eight were also current in the Spanish-American colonies, and were very largely used in the British North American colonies. As the reckoning was by pounds, shillings and pence in the British-American colonies, great inconveniences naturally arose, but these were to some extent lessened by the adoption of a tariff list, by which the various gold and silver coins circulating were rated. In 1787 the dollar was introduced as the unit in the United States, and it has remained as the standard of value either in silver or gold in that country. For the history of the various changes in the weights and value of the coin see Numismatics.  The Spanish piece-of-eight was also the ancestor of the Mexican dollar, the Newfoundland dollar, the British dollar circulating in Hong Kong and the Straits Settlements, and the dollar of the South American republics, although many of them are now dollars only in name.

(Dollar entry of the 11th Edition of the Encyclopædia Britannica, published in 1910)

The American Dollar is a Silver Coin

This may come as a surprise to many LDS (and Americans), but nowadays we don’t use American dollars, which is a quantity of silver, usually coined for ease of use.  What we use today are Federal Reserve Notes, otherwise known as fiat currency.  In all of the modern revelations quoted above, whenever the Lord was referring to money or talents or dollars, He was referring to the commodity currency then in use, specifically, a quantity of (usually coined) silver.

Silver is the only legal, American money

Douglas V. Gnazzo of the Honest Money Gold and Silver Report web site wrote an excellent article entitled Honest Money and published in 6 parts, in which he went over the history of American legal currency.  In it, Douglas explained that a “dollar” is defined both by the Constitution and by the Original Coinage Act of 1792 as being a specific quantity of silver, namely, 371.25 grains of silver.  This legal definition has never been changed, meaning that what we are currently calling a “dollar” is not real American currency.  To read the entire Honest Money article, click the following links:

Honest Money, Part I: The Constitution and Honest Money

Honest Money, Part II: Silver Standard with a Bimetallic Coinage System

Honest Money, Part III: Coinage Acts of 1834-1900

Honest Money, Part IV: Treasury Notes

Honest Money, Part V: History of American Money and Banking

Honest Money, Part VI: The European Connection

Honest Money, Part VII: The Moneychangers – Secrets of the Temple

Honest Money, Part VIII: Final Summary and Conclusions

You will recall, for example, that Congress has power to “coin money.”  It doesn’t have power to “make money” or to “print money,” but merely to coin it.  The money referred to in the U. S. Constitution is silver, thus, a power to coin money is a power to coin silver.  The two phrases are synonymous.  In fact, in many Latin American countries the word for money is plata, which is the word for silver. We can see from this that the Spanish milled dollar, which is what our American dollar is based upon, has had influence in many countries.

Fiat Currency, Fractional Reserve Banking and Usury is the Problem

Like evil bedfellows, fractional reserve banking and usury almost always accompany a fiat currency.  (See the above Honest Money article for an explanation about these banking practices and why they are so evil.)  Usury is condemned in the scriptures (both ours and others’ scriptures) and religions past and present have spoken against it as a great evil.  However, all three principles have been generally accepted among today’s society and even among most Latter-day Saints.  In fact, even in the church we find usury among ourselves (e.g. Perpetual Education Fund), though many do not consider it so as they interpret usury to mean excessive interest and not just any interest.

Notice that the current financial problem has nothing to do with regulation (or lack thereof) of the banking institutions by the government.  As long as a currency is metal-based, society naturally regulates itself without any need of government intervention, eliminating the practice of usury and making sure that only full-reserve banking occurs.  So, the roots of the financial crisis go deeper than mere de/un/regulation.  They go all the way to the currency itself, for fiat currency will always result in financial instability and prosperity for the few at the expense of the many.  This is a long way off from the Zion ideal of all having all things common.

Commodity Currency is the Solution

The use of metals as money has historical precedent and is the surest foundation upon which to build.  The following is part of the money entry of the 11th Edition of the Encyclopædia Britannica, published in 1910:

The Metals as Money. Reasons for their Adoption. Superiority of Silver and Gold. – The employment of metals as money material can be traced far back in the history of civilization; but as it is impossible to determine the exact order of their appearance in this capacity, it will be convenient to take them in the order of their value, beginning with the lowest.  Iron – to judge from the statement of Aristotle – was widely used as currency. One remarkable instance is the Spartan money, which was clearly a survival of a form that had died out among the other Greek states; though it has often been attributed to ascetic policy. In conjunction with copper,  iron formed one of the constituents of early Chinese currency, and at a later time was used as a subsidiary coinage in Japan.  Iron spikes are used as money in Central Africa, while Adam Smith notes the employment of nails for the same purpose in Scotland.  Lead has served as money, e.g. in Burma.  The use of copper as money has been more extensive than is the case in respect to the metals just mentioned. It, as stated, was used in China along with iron – an early instance of bimetallism – and it figured in the first Hebrew coins. It was the sole Roman coinage down to 269 B.C. and it has lingered on to a comparatively recent date in the backward European currencies. It even survives as a part of the token coinage of the present.  Tin has not been a favourite material for money: the richness of the Cornish mines accounts for its use by some British kings. Silver holds a more prominent place than any of the preceding metals. Down to the close of the 18th century it was the chief form of money, and often looked on as forming the necessary standard substance. It was the principal Greek money material, and was introduced at Rome in 269 B.C. The currencies of medieval Europe had silver as their leading constituent; while down almost to the present day Eastern countries seemed to prefer silver to gold.

The pre-eminence of gold as money is now beyond dispute; there, is, however, some difficulty in discovering its earliest employment. It is, perhaps, to be found in ” the pictures of the ancient Egyptians weighing in scales heaps of rings of gold and silver. ” According to W. Ridgeway’s ingenious theory gold comes into use as a currency in due equation to the older cattle unit, the ox. It was certainly employed by the great Eastern monarchs; its further development will be considered later on. Metals of modern discovery – such as nickel and platinum – are only used by the fancy of a few governments, though the former makes a good token coinage.

The preceding examination of the varied materials of currency, metallic and non-metallic, suggests some conclusions respecting the course of monetary evolution, viz.: (I) that the metals tend to supersede all other forms of money among progressive communities; and (2) that the more valuable metals displace the less valuable ones. The explanation of these movements is found in the qualities that are specially desirable in the articles used for money. There has been a long process of selection and elimination in the course of monetary history.

First, it is plain that nothing can serve as money which has not the attributes of wealth; i.e. unless it is useful, transferable and limited in supply. As these conditions are essential to the existence of value, the instrument for measuring and transferring values must possess them. A second requisite of great effect is the amount of value in proportion to weight or mass. High value in small bulk gives the quality of portability, want of which has been a fatal obstacle to the continued use of many early forms of money. Skins, corn and tobacco were defective in this quality, and so were iron and copper. Sheep and oxen, though technically described as ” self-moving,” are expensive to transport from place to place. That the material of money shall be the same throughout, so that one unit shall be equal in value to another, is a further desideratum, which is as decidedly lacking in cattle-currency as it is prominent in the metals. It is, further, desirable that the substance used as money shall be capable of being divided without loss of value, and, if needed, of being reunited. Most of the articles used in primitive societies – such as eggs, skins and cattle – fail in this quality. Money should also be durable, a requirement which leads to the exclusion of all animal and most vegetable substances from the class of suitable currency materials. To be easily recognized is another very desirable quality in money, and moreover to be recognized as of a given value. Articles otherwise well fitted for money-use, e.g. precious stones, suffer through the difficulty of estimating their value. Finally, it results from the function of money as a standard of value that it should alter in its own value as little as possible. Complete fixity of value is from the nature of things unattainable; but the nearest approximation that can be secured is desirable. In early societies this quality is not of great importance; for future obligations are few and inconsiderable. With the growth of industry and commerce and the expansion of the system of contracts, covering a distant future, the evil effects of a shifting standard of value attract attention, and lead to the suggestion of ingenious devices to correct fluctuations. These belong to the later history of money and currency movements. It is enough for the ordinary purposes of money that it shall not alter within short periods, which is a characteristic of the more valuable metals, and particularly of silver and gold, while in contrast such an article as corn changes considerably in value from year to year.

From the foregoing examination of the requisites desirable in the material of money it is easy to deduce the empirical laws which the history of money discloses, since metals, as compared with non-metallic substances, evidently possess those requisites in a great degree. They are all durable, homogeneous, divisible and recognizable, and in virtue of these superior advantages they are the only substances now used for money by advanced nations. Nor is the case different when the decision has to be made between the different metals. Iron has been rejected because of its low value and its liability to rust, lead from its extreme softness, and tin from its tendency to break. All these metals, as well as copper, are unsuitable from their low value, which hinders their speedy transmission so as to adjust inequalities of local prices.

The elimination of the cheaper metals leaves silver and gold as the only suitable materials for forming the principal currency. Of late years there has been a very decided movement towards the adoption of the latter as the sole monetary standard, silver being regarded as suitable only for a subsidiary coinage. The special features of gold and silver which render them the most suitable materials for currency may here be noted.  “The value of these metals changes only by slow degrees; they are readily divisible into any number of parts which may be reunited by means of fusion without loss; they do not deteriorate by being kept; their firm and compact texture makes them difficult to wear; their cost of production, especially of gold, is so considerable that they possess great value in small bulk, and can of course be transported with comparative facility; and their identity is perfect.” The possession by both these metals of all the qualities needed in money is more briefly but forcibly put by Cantillon when he says that “gold and silver alone are of small volume, of equal goodness, easy of transport, divisible without loss, easily guarded, beautiful and brilliant and durable almost to eternity.” This view has even been pushed to an extreme form in the proposition of Turgot, that they became universal money by the nature and force of things, independently of all convention and law, from which the deduction has been drawn that to proscribe silver by law from being used as money is a violation of the nature of things.

(An excerpt from the money entry of the 11th Edition of the Encyclopædia Britannica, published in 1910)

So, when the Lord told the kings of the earth and the saints to bring their gold and silver to Zion, He was referring to commodity money, as that was the commodity money of the time.  (See D&C 124: 11, 26 and 111: 4.)  Have we complied?  Do we contribute commodity money to the cause of Zion, or do we contribute fiat money?

We need a private, LDS, commodity-based (gold and silver) currency

I am among those who believe that we are currently witnessing the beginning of the eventual (and planned) break-up of the United States of America.  We may also soon witness a corresponding break-up of the Church.  Regardless of what happens, though, the prophecies must be fulfilled, which means that when we cast our talents “into the Lord’s storehouse, to become the common property of the whole church”, upon living the law of consecration, we will be casting in commodity money, specifically, gold and silver money, and not fiat money.

In anticipation of the complete break-up of the USA, the total devaluation of our current fiat currency, the attempted introduction of another currency and another type of government, even regional government, and, after all these (and other) tribulations, the cleansing of the church and the establishment of the law of consecration, we ought to be pro-actively engaged in the good cause of Zion.

Zion needs a currency, independent of the governments of the world, meaning that it must be a private currency.  As private currencies are legal in this country, there is nothing to stop the LDS from creating one.  To get us started in that direction, in the Establishment of Zion Think Tank Forum I gave some examples of what can be used as this private, LDS currency.

The corporate Church won’t do it

Many members wait for Salt Lake to issue the instructions, but the Lord has already told us that “it is not meet that I should command in all things.”  Besides, I have reason to believe that the dissolution of the corporate Church is on the horizon.  So, if a silver and gold-based commodity currency is to be had again among the saints, in fulfillment of prophecy, the saints themselves must be the ones to create it.  Such a currency would not only stabilize all LDS communities who use it among themselves, but would also allow non-LDS to escape the financial wrath of God upon all those who transact in fiat currency.

A side benefit

Having a private, LDS, precious metals-based currency will also allow those using it to get around the mark of the beast prophesied by John in the Book of Revelations.  (See Rev. 13: 16-18; Rev. 14: 9-12; Rev. 19: 20; and Rev. 20: 4-6.)

Next Anarchism/Anarchy article: Introducing a new bartering currency—the first coin: 1/2 Troy oz pure silver .999 fine

Previous Anarchism/Anarchy article: If voting could change things, it would be illegal

Complete List of Articles authored by LDS Anarchist

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34 Comments

  1. I came across this martial law question today. I wonder if this is the answer.

  2. Would you argue that the charging of interest on a loan is a sin?

  3. I’d probably stay out of that argument and just point people in the direction of those who have researched usury in the scriptures, both of those who interpret the scriptures as condemning usury, like this guy, as well as those who feel the scriptures permit it. There are at least three ways of looking at usury: 1) any amount of interest on a loan is okay, as people are free to take, or not to take out, a loan, 2) only excessive interest loans are inherently evil and should be condemned (such as what loan sharks do), that being defined by the laws of man, or 3) no amount of interest on a loan is just. Then there’s the biblical laws on loans with interest to strangers (allowed) vs. loans with interest to brethren (not allowed). Under the gospel law we are all brothers and sisters and children of God, so, how does that work?

    My personal strategy concerning usury is to err on the side of caution, meaning that I won’t lend with interest to anyone, family, friend or stranger.

  4. Just wanted to say I enjoy reading your posts, although I’m a slow reader and they’re full of insight.

  5. Thanks for comment and visit, Mike. I am amazed you (or anyone else) got through this post, as it was pretty long.

  6. In case anyone is interested, I’ve created a post of a newsletter I am subscribed to, which I received last night, the words of which I thought were important enough to record. As it is kind of off-topic to this blog, I made it a private post, but as it is on-topic to this post, I am mentioning it here. You can read that private post by CLICKING HERE.

    Also, I just now came across an article written by Douglas V. Gnazzo and published yesterday (9/30) on The Silver Bear Cafe web site which agrees with what I wrote above about fiat paper currency being the root cause of the financial difficulties we are in. Here is an excerpt:

    Highway to Hell

    So, how the hell did we end up in such a mess? Does anyone have the answer? Yes, there are those that have the answer: they are the same visionaries that have been saying for years that this is the final destination that a road of paper money leads a nation down – any nation, even one as great as ours.

    Many so-called experts have been spewing forth pabulum to the masses: it’s housing, it’s real estate, it’s subprime, it’s too much credit, it’s too much debt, it’s too many derivatives, it’s greed, and on and on. Yes, it is all of these things and more. But what came first? Which is cause and which effect?

    What precipitated this journey down the highway to hell is paper fiat money and the Federal Reserve – the buck literally stops with them, as paper fiat money started with them; along with an inept Congress that had no constitutional authority to grant any such powers to the Federal Reserve.

    To read the entire article, CLICK HERE.

  7. The first link is broken.

    I read this post a couple days ago and have been thinking about it since. I have been trying to figure out how a group would begin to make the shift. Any group trying to make their own currency would run into trouble if they find even a little success, the American Liberty Dollar is a good example of that. We would have two hurdles to cross, the US Government and the church government. I have been thinking about the point you make about the church not doing it, requiring us to. With the church “rendering unto Cesar what is Cesar’s” and disfellowshipping members for not paying taxes, I have a tough time believing the church (as it is now) would not take action against a group who develops their own currency, regardless of the motive. Wouldn’t it be ironic if a group of people were removed from the church for building a foundation on which to establish Zion. It would make sense though, as those sorts of things are suppose to come from the church leadership.

    I understand the necessity for Zion to be separate in all things and especially in money/currency. Given the current economic crisis, may be we won’t have to worry about the government much longer, as the dollar fades and the Amero rises (I saw a prototype Amero on eBay), as the governments of the world begin to collapse, a new form of currency will have to emerge, the paper the Fed issues will be as the German Marks after WWI. During this transitional time, any reliable form of currency would probably find success.

  8. PallasAthena, sorry about that link. I thought that Word Press private posts could be shared with others, but apparently they become “for my eyes only,” so I’ve taken it out of private status and inserted a password instead. Click the above link and then input the following password to read the post:

    liberty

    I think it is understandable that the Liberty Dollar ran into trouble. The Liberty Dollar organization had too much political baggage for the average American. Although I agreed with their political viewpoints concerning the IRS and the Federal Reserve, for most Americans, that was just too much. Also, when they put a dollar amount on the rounds, they ran into trouble with people trying to conceive of how a five dollar piece of silver was worth ten dollars, etc. Of course, when it was explained to me, it makes sense, but a lot of people just couldn’t get their brains around that. Plus the coins looked just too much like American money, having Trust In God and USA on them, an image of the Statue of Liberty, etc. They should have distanced themselves from the US government as much as possible.

    Zcoins, I think, is a better idea, though it doesn’t appear that anyone is doing anything with it. But Zcoins, also, is too visible. I think a group of people, quietly getting together, pooling their resources, selecting a minting company and creating dies and coins for personal distribution and use, with no images associated with the US government and without any value placed upon them, kind of in the same vein as the Zcoins, which I think was a novel idea, would be unstoppable. It would be an “underground” network, relying totally on anarchic voluntary association.

    People naturally run to metals when paper becomes unstable. They do this to protect their assets and they buy bullion bars or bullion coins. This is entirely for self-preservation. It is reactive and not proactive. One of the points I tried to make with the above article is that LDS ought to be visionaries preparing and assisting in the fulfillment of prophecy and instead of selfishly putting their money into bullion bars and coins, which would only benefit themselves and which cannot be easy used for bartering purposes (for making purchases), they ought to put their money into creating a private currency that can be used to bypass the “mark of the beast” system so that everyone using it could buy and sell without having to go through Babylon. Such a work would invoke the principle of charity, for, although we’d still be protecting our assets, we would also be creating a vehicle which could protect the assets of everyone that used it.

    Concerning the church taking action against members, I don’t think that would or could happen. There is nothing illegal about creating private currencies. As long as you are not breaking the law you can remain a member in good standing. I’d even go so far as to say that there is nothing the Church can do to a member who chooses to pay tithing in gold and silver coins or bullion, or even in kind. Whether the Church receives it or not is the Church’s problem, not mine. Heck, I’ve paid tithing using Liberty Dollars before. I don’t know what they did with it, nor do I care. It was real silver and once in their hands, they are responsible for it, not me. My duty is to give tithing, their duty is to receive it and that is good enough for me. If I give and they don’t receive, well, I’ve still done my part and complied with the commandments.

    I agree with you that a reliable form of currency at this time would probably be accepted widely with less resistance on the part of Americans due to the unstable financial times we are in. Because of this, this might be our window of opportunity to act and financially save the nation. However, as the author of The Law of Harvest pointed out in his book, LDS typically do not take advantage of our windows of opportunities. So, I’m not going to hold my breath.

  9. This economic turmoil has been amply discussed for many months now on line and is no surprise to any one who cared. I recommend theautomaticearth.blogspot.com. They have been completely prescient about what is going on and their future predictions scare the crap out of me. Ron Paul, also told us this would happen and was of course labeled a crack pot by most people. He too suggests an alternate bullion based currency.

    What amazes me is that Utah didn’t vote for Ron Paul in the primaries. He sounded just like Ezra Taft Benson. Pres. Benson’s pamphlet on the proper role of government could have been Ron Paul campaign literature. Unfortunately ‘dead’ prophets don’t hold much sway. Utah supporting Ron Paul could have given his candidacy a legitimacy that could have changed things. Instead the Saints voted for an imperialist and fiat money man (but at least he was wholesome, good looking and one of their own!).

    .. a day of wrath, a day of burning, a day of desolation, of weeping, of mourning, and of lamentation; and as a whirlwind it shall come upon all the face of the earth, saith the Lord.
    25 And upon my house shall it begin ..
    D&C 112

  10. Has anyone ever heard of the Relief Mine? I just stumbled across the website. It is an interesting story and I am curious if anyone has looked into it enough to formulate an opinion. According to the story, there seems to be a divine plan in place for when the economy fails. Given the history on this, it looks as if the church doesn’t want anything to do with it.

  11. I have heard of the Relief Mine, but that particular web site is new to me. Looks like they did a good job in amassing information regarding it. Until you brought it up, I hadn’t thought of the Relief Mine (or Dream Mine, as I’ve heard it called), in quite awhile. I do not have an opinion one way or another concerning it. I’ve never inquired of the Lord to know whether the Relief Mine prophecies are true.

    I can say, though, that the stories concerning Koyle are consistent with my experience with the gift of prophecy. (I’ve got the gift to prophesy.) But his prophetic gift, if indeed the stories are true, was much more developed than mine is. I would not put it past the Lord to prepare such a mine for the future purpose stated by Koyle.

  12. Here’s an interesting article on the monetary situation, dated October 8. I got this tip from the Mormanity Blog:

    The Fed is Bankrupt: Update on the Helicopter

    Ron Paul broke the news about this days ago. This is the real news, not the phony $700 billion bailout that the public was witnessing. As usual, all the real dirty deeds happen quietly, behind the scenes.

    And yet despite all this information, the Establishment of Zion Think Tank still remains relatively unused by LDS…

  13. Thanks for the article. Here is another one. It is a little essentric but if you can get past that, he basically agrees with what you have laid out. This was all planned out to create a one world government, but it went to far. It is sliding out of control and even the people who caused it are going to lose out.

  14. I never heard of Chapman before, but I love his writing style and his article rings true. I, too, have heard that most of this iceberg, the hidden part below the water level, is derivatives.

    Already this manufactured crisis is starting to hit home (Main Street). My mother revealed to me tonight that she and her husband have so far lost $80,000 on their 401(k).

  15. They are not alone, I am relatively young and as such have only been inputting into my 401k for a few years. My company offers a 100% match up to 15% of my salary so I have been inputting 15% to take advantage of that. Given that I have many years until I plan on using it, I had it set up to take the most risk but with the most chance of gain. As of tonight, my 401k has lost 38% since 01 Jan 08. I recently changed my deductions to next to nothing, I figure I can put the money to use in much better ways.

  16. Pallas
    I too have seen a shrinkage of my 401k. in a similar situation to yours, my company matches my contributions so I am, in effect, doubling my money. Since this money is pre-tax, I am getting to earn money on what would have gone to the government. Even if I have lost, as you have, 38 percent of the value of my 401k that is roughly equal to what taxes come out of my paycheck. You have lost your earnings back to what you would have had if the money didn’t go into the 401k. In addition to that, you have the company matching which means you are still ahead by the amount added to your account.

    Simply said, you would have to lose much more than 38 percent of the value of your 401k before you would break even on keeping the money.

  17. Yes, except mine is a Roth 401k, which means it has already been taxed.

    I think that is a little beside the point, it may make us feel better but the fact remains that even with the billions dumped into the financial markets, trillions have been lost from retirement accounts. We are coming up on an influx of retirees due to the baby boomers and they are going to need that money to survive. The money I lost, I can (hopefully) recover from. People planning on retiring in the next year or two do not have the luxury of time that I have. If our economy makes it until then, it will still be fragile when all these retirees, not having enough money to survive ,will be looking to Social Security and welfare programs. The financial problems in this country are going from bad to worse and I am not sure of any way out other than complete collapse and rebuild (I am not an expert, just my opinion).

  18. Re: 401(k)’s:

    Retirees Wake Up to a Swindle

  19. A friend of mine just sent me this video link entitled, Hal Turner shows the Amero. Hal Turner is, well, a bit controversial. I’ll leave it at that. But despite the controversial aspects of his personality and views, he has uncovered in the past some real zingers, scoops that no one has reported. I don’t know who his sources are, but there is no doubt in my mind that he has some insider contacts that no one else has, or at least, that no one else is willing to report. This report is, like many of his others, breaking news you won’t get anywhere else. Is this report true? In a very short time, we will know. Many people would chuck it into the garbage since it is coming from Hal, but I’m not one to throw out the message because of the messenger. So, I leave it up to you to come to your own conclusions.

    Hal Turner shows the Amero

    Update: My friend sent me another email concerning the above video. This one debunking it as a hoax. See:

    Rumors of “Amero” coins

  20. I quit contributing to 401K about 3 years ago when I realized it is just a big pyramid scheme. This is also true of Social Security of course (though unfortunately I can’t stop contributing to that). As always the people at the top will be well rewarded (current retirees) and the ones at the bottom will get nothing. Anyone under 55 will soon find they are at the bottom. Better to spend the money on a garden and chickens.

    Third Nephi 16, 20 and 21 are coming up in our Gospel Doctrine lesson. I have read them about 5 times recently and I have to believe that our way of life is doomed. We will have to become one with the Remnant of Jacob or die. I am not sure what this means but I expect it means a radical change in how we live, what we eat, how we interact. My guess is that free market capitalism as we currently live it won’t continue. Making money as the ruling principle will end.

    Rather than see this as a message of doom, I am starting to see it as a message of great hope. Zion will be established. Peace will prevail. Poverty will disappear. The only question is whether we as a people will be able to accept it or whether we will choose to stay in the great and spacious building as it falls.

  21. i am curious why you have reason to believe the corporate church will shortly dissolve…

  22. As I pondered over the Prop 8 thing (prior to writing the above post) and wondered what the effects of its non-passage would be to the church, the Spirit told me that whether it passed or whether it didn’t pass, the church would still be broken up.

    Off topic: Interestingly enough, what4anarchy and I had a meeting prior to the election in which we discussed this topic. He made a prediction that Prop 8 would pass because the Lord blesses the efforts of the faithful. I made a prediction that Prop 8 would not pass because 1) the latest polls I had read indicated that it would lose, 2) because I felt the people were only doing the canvassing, etc., because they were asked to do so by their leadership and if it weren’t for that they would not have done a damn thing and based on the faithlessness of the people (meaning that they needed to be commanded in all things, being slothful) the Lord would not extend his miraculous power and 3) the secret combination would assure that it wasn’t passed. After the election, what4anarchy was quick to point out that his prediction came true while mine did not. However, as we all know, there has been a backlash and now Prop 8 is heading to the courts over whether it is a revision or an amendment. I’m making no more predictions concerning this, but what4anarchy, if you are reading this, we’ll have to have another meeting after the court makes it decision to determine which prediction, mine or yours, was the accurate one… 😉

  23. so, your belief that the corporate church will soon break up is based solely on general legal antagonism over homosexual marriage, or are there other factors involved?

    and what do you think a post-corporate church might look like? I am of the belief that a de-centralized church hierarchy is not a bad thing and would have many benefits.

    but if the corporate church is anticipated to be dissolved in the near-future, large investments such as the City Creek real estate redevelopment project in salt lake city would appear financially ill-advised. sure, the corporate church requires income-producing investments, but the return on that investment does not look very good in the short-term.

    and if the corporate church does dissolve, my heart will go out to Elder Packer. Poor guy wont know what to do with himself in such a personal nightmare scenario. probably Bednar as well…

  24. TheNastyOne, my belief is based upon revelation that I received from the Spirit. (See the comment just above your comment.) I don’t have any idea of how the church will look afterward.

    You bring up a good point concerning the Church’s recent investments. Even if the Church were not going to be broken up, because of the current economic environment these investments might not have been the wisest course to take.

    Why do you specifically mention these apostles? Are Elders Packer and Bednar heavily involved in the corporate or financial aspects of the Church?

  25. That was just an attempt at benign sarcastic humor. Elder Packer strikes me as the type of person who thrives in and finds satisfaction in a hierarchical corporate organization, seems to be a very corporate individual. I suspect the dissolution of the corporate structure he is in line to head might be a difficult change for him. But its an observation, not a criticism. Same with Elder Bednar….seems to be made of similar cloth.

    My point on the structural real estate expenditures and investments the church has made is this: If the corporate church is going to be dissolved in the near future, which the leadership would have to be aware of, why would they be investing heavily in infrastructure? The City Creek Center and the Conference Center make bold statements of longevity.

  26. TheNastyOne, you asked,

    If the corporate church is going to be dissolved in the near future, which the leadership would have to be aware of, why would they be investing heavily in infrastructure?

    That’s a really good question. Unfortunately, I don’t have that answer. I have my suspicions, though. I suspect it has something to do with the prophecies found in chapter 2 of 2 Thessalonians:

    Now we beseech you, brethren, by the coming of our Lord Jesus Christ, and by our gathering together unto him, that ye be not soon shaken in mind, or be troubled by letter, except ye receive it from us; neither by spirit, nor by word, as that the day of Christ is at hand. Let no man deceive you by any means; for there shall come a falling away first, and that man of sin be revealed, the son of perdition; who opposeth and exalteth himself above all that is called God, or that is worshiped; so that he as God sitteth in the temple of God, showing himself that he is God. Remember ye not, that, when I was yet with you, I told you these things? And now ye know what withholdeth that he might be revealed in his time. For the mystery of iniquity doth already work, and he it is who now worketh, and Christ suffereth him to work, until the time is fulfilled that he shall be taken out of the way. And then shall that wicked one be revealed, whom the Lord shall consume with the spirit of his mouth, and shall destroy with the brightness of his coming. Yea, the Lord, even Jesus, whose coming is not until after there cometh a falling away, by the working of Satan with all power, and signs and lying wonders, and with all deceivableness of unrighteousness in them that perish; because they received not the love of the truth, that they might be saved. And for this cause God shall send them strong delusion, that they should believe a lie; that they all might be damned who believed not the truth, but had pleasure in unrighteousness. But we are bound to give thanks always to God for you, brethren beloved of the Lord, because God hath from the beginning chosen you to salvation through sanctification of the Spirit and belief of the truth; whereunto he called you by our gospel, to the obtaining of the glory of our Lord Jesus Christ. Therefore, brethren, stand fast, and hold the traditions which ye have been taught, whether by word, or our epistle. Now our Lord Jesus Christ himself, and God, even our Father, which hath loved us, and hath given us everlasting consolation and good hope through grace, comfort your hearts, and stablish you in every good word and work. (JST or Inspired Version 2 Thessalonians, Chapter 2)

  27. Europe2020 posted an open letter to the G20 leaders meeting on April 2nd, along with suggestions on how to clean up this financial mess. Read what they state will be the result of not putting in place their recommendations:

    We will content ourselves with giving you three recommendations that we consider strategic ones in the sense that, according to LEAP/E2020, if they have not been initiated by this summer 2009, global geopolitical dislocation will become inevitable from the end of this year onward.

    “Global geopolitical dislocation” sounds like a politically correct term for anarchy, doesn’t it?

    I can’t wait to learn what the outcome of that meeting will be!

  28. This sounds ominous:

    What we are about to tell you may be the most important information that we have imparted in almost 50 years. something very bad is looming – we don’t know the exact configuration yet, but we think the key is the collapse of the dollar, which will send gold and silver to considerably higher prices. These events could unfold over the next 2 to 4 months. There could be devaluation and default of the US dollar and American debt. You must have at least a 6-month supply of freeze dried and dehydrated foods, a water filer for brackish water, and assault weapons with plenty of ammo and clips. You should put as much of your wealth as you can in gold and silver coins and shares. You should not own any stocks in the stock market except gold and silver shares, you should not own bonds the exception being Canadian government securities, you should not own CDs, cash value life insurance policies and annuities. And, needless to say, except for your home you should be totally out of real estate, residential and commercial because it will remain illiquid for many years to come. Continue to pay your normal debts down because we do not know how they will be treated when we arrive at devaluation and default. We certainly don’t want to have to tell you this, but the way things are shaping up it doesn’t look good. As we write this the dollar is breaking 80 on the USDX. Interest rates are climbing, and have broken out to the upside. Gold and silver are poised to break into new high territory and the stock market is preparing to retest 6,600 on the Dow. You have been warned, act accordingly.

    (Taken from Gold To Stand Against Big Devaluations, the latest article from The International Forecaster.)

    2 to 4 months puts this forecast from July to September.

  29. The Real problems effecting the economy will never be addressed because it’s symptoms are not recognized as even being REMOTELY CONNECTED to the cause…Imorality of Every Form.

    If you have placed your eggs in the Basket of Material Flesh, then you are eventually facing Spiritual Bankrupsy.

    Even Every Last Righteous soul will experience the complete loss of Everything Material you may have once treasured , let alone the Wicked loosing these things.

    Righteous wealth will be Reconstructed upon the Higher Laws of Heaven for the Righteous and TRUE WEALTH may take on a surprising twist even in regard to the Material Blessings recieved from Pleasing God.

    As we move toward a Terrestrial Level of Establishing Zion to be occupied by the candidates for the Terrestrial Kingdom, a whole new LACK of Telestial Needs will introduce a whole New perpective on what may constitute wealth on a Higer Level.

    So a preoccupation with the impending collapse of a Telestial Babylonian Finacial System is sure to reap great disappointment for those Depending on & placing their Hopes in it as THOUGH it were a RELIGION…

    It sure seems like the NATURAL thing to worry ones self with. So is THAT CONCERN our Main Concern ? If so, then I suppose Money HAS become our Religion just like the Scriptures said it would.

    This is why even the RIGHTEOUS must be STRIPED of the “THINGS” that Bind Us to this Material Religion of the World in favor of introducing us to the sublime experience of not NEEDING what this World has to offer in order to Break it’s Babylonian Spell on us.

    Of course the wicked Leaders of the World at this time are attempting to Force us into that Paradigmn whether we like it or not !

    God will Lovingly Invite Us…But none the Less Place Strict Requirements on the Exactness in which His Higher Laws are implemented.

    If it becomes More than we can tollerate, then we are Free to Leave the Covenant to face the ALTERNATIVE left to us in a Decaying World bent on self destruction.

    But NO ONE will be permitted to INTERJECT their OWN Brand of Justice or Fairness. Only the LORD’S Brand will be permitted for us to participate in or LEAVE it… but we will NEVER BE FREE TO CHANGE IT.

    This will elliminate ALL THOSE who ALWAYS HAVE a “BETTER IDEA”. Se La Vie…

  30. Nasty one, Regarding your question concerning the Churches Long Term investment out look, all one needs to do to Understand where the Leaders are coming from is to look over chapters 28-30 of Isaiah.

    It very Clearly deliniates our Leaders Non Concern with impending Storms on the Horizion.

    They have convinced potential Foreign Enemy Leaders that SHOULD they make future Mints Meat of our Nation, that WE , as a Benign Lack of threat, even to an opressive form of Government, would be HAPPY to support anything they chose to do to our wicked Nation , as Just Punishment from God , with the Caveot that WE be left to our HARMLESS SELVES.

    Sort of a Live & Let Live Approach to dealing with wickedness.

    This is the “DEAL” made with the Devil of “DEATH” spoken of in these chapters.

    This is what the Church has come to in regard to our placing BLIND TRUST in Men who think they have the Smarts to Deal with the Coming Devil of Destruction and like the Scriptures say…Will find that Satan and His Earthly Servants aren’t very Good at keeping promises….What FOOLS.

  31. In one of the comments above, I mentioned a discussion I had about Prop 8 prior to its vote, about whether it would pass or not. I believed it would not pass. Obviously, it did pass. I also believed that even if it did pass, it would be struck down by the courts. But then it went to the courts and was upheld by the courts. So, it looks like my prediction was flat out wrong. Or was it? Look at this article in the Los Angeles Times dated today, August 4, 2010:

    Ruling against Prop. 8 could lead to federal precedent on gay marriage

  32. Wow; great site. Good article. Liked you article on Priesthood and learned a LOT. Keep up the good work. I am encouraged and reinvigorated. PS – In 2008, you said buy gold – in hindsight, people who took that advice in 2008 are realizing huge gains – you were right! Unfortunately, I was flat broke back then, and still just make ends meet, so no extra to invest, but great advice it was.

  33. Without contention or vexation, when has buying gold ever been a bad investment? (or bad advice?)

  34. Why don’t ewe’all just stop supporting the financial crisis~secret combination and end this nonsense?
    Why does everyone has to mimic the beast in their own personal SC…


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