Saturday, October 13, 2012

Economics: Keynesian v. Austrian

What is QE3 and a bit about Keynesian v. Austrian economics.

What does the Bible say about honest money?

 Dueteronomy 25:13-16 Do not have two differing weights in your bag—one heavy, one light.  Do not have two differing measures in your house—one large, one small.  You must have accurate and honest weights and measures, so that you may live long in the land the Lord your God is giving you.  For the Lord your God detests anyone who does these things, anyone who deals dishonestly.

Leviticus 19:35-36 Do not use dishonest standards when measuring length, weight or quantity.  Use honest scales and honest weights, an honest ephah and an honest hin. I am the Lord your God, who brought you out of Egypt.

Proverbs 11:1 A false balance is an abomination to the Lord, but a just weight is his delight.

Since we were taken off the gold standard there is essentially nothing backing our dollar besides the public's faith in it.  That faith seems to be declining.  A large national debt is something our Founders had to deal with, and then warned against!  In the Constitution it says that congress has the power to COIN not print.  

Section 8 of the Constitution grants congress the power..."To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;"

Our dollars used to say "Redeemable for Gold or Silver" now they just say "Federal Reserve Note".

‎"The trifling economy of paper, as a cheaper medium, or its convenience for transmission, weighs nothing in opposition to the advantages of the precious metals... it is liable to be abused, has been, is, and forever will be abused, in every country in which it is permitted." -Thomas Jefferson

When our dollar is devalued (more money printed with nothing extra to back it) it makes the money you have in your bank account, pocket, purse, investment, ect., worth less.  When people used different weights in Bible times it devalued the asset of the other person involved in the transaction.  This displeased God then and since He is the same yesterday, today, and forever I assume it displeases Him now.

Pro-Keynesian Economics Book by John Maynard Keynes

Pro-Austrian Economics Book by F. A. Hayek

Keyensian and Austrain Economics.  What is that and why do they matter?

"It's just money..."  

Road to Serfdom page 126:
"Economic values are less important to us than many things precisely because in economic matters we are free to decide what to us is more, and what less, important.  Or as we might say because in the present society it is we who have to solve the economic problems of our lives.  To be controlled in our economic pursuits means to be always controlled unless we declare our specific purpose. Or, since when we declare our specific purpose we shall also have to get it approved, we should really be controlled in everything."

Disclaimer: I am not a trained economist.  This simply interests me and I thought you might find it interesting and important as well.  If you have any questions/comments feel free to share in the comment section below.  I may not know the answer, but I'll try to point you in the right direction.  = )

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