Biblical Economics 6: Saving Money with a Frugal Budget

UPDATE (7/17/22): Because silver and gold drastically fluctuate in value from month to month, and especially drop in value during recessions, I do not recommend buying silver and gold as an emergency fund. John Maynard Keynes wrote many things against using gold in modern times. Dave Ramsey agrees. Warren Buffett has experimented with gold stock before, but after finding it unprofitable, he pulled out of it. The Puritans and the men of the Bible lived in a time when gold and silver were used as currency: actual real money. Today, they have no other value in our economy than a piece of jewelry, which again is a commodity whose sale price drastically fluctuates in value. If we want to imitate the Puritans in the way that they saved money, then it should be in the gradual accumulation of real currency: CASH. The Puritans didn’t have dollar bills in the seventeenth century, but if they were living in our times, then CASH MONEY is what they would be saving in their safes, safety deposit boxes at the bank, and FDIC-insured savings accounts in the bank. Towards the end of chapter 4 in his A Tract on Monetary Reform, Keynes explained that the Federal Reserve Board (aka the Fed), which controls the money of the United States, has the largest hoard of gold in the world. Second to this is the Bank of England’s hoard of gold. Because these two banks have hoarded so much gold, it has created scarcity for gold in the rest of the economy, as the gold is not being used in everyday coinage and currency for the common man. Instead, currency has become CASH: and that issued by the Fed as the U.S. dollar and the Bank of England as the pound sterling. These two government banks have done away with the “gold standard” of using gold as everyday money and currency. They are hoarding large amounts of the world’s gold. Their hoarding of it is preventing it from being circulated as currency, and so, for the everyman, gold is not a smart tool of saving money, because of its drastic fluctuation in price levels. If you’re going to save money, then save U.S. dollars. The only way that saving gold would be of any value, would be if both the United States and England were destroyed! Then gold value would skyrocket. But seeing that is not likely to happen, we should be content with saving actual real cash money, and avoid the unstable prices of gold and silver. They are currencies of the past; and might serve as a nice ornament somewhere in your house, but don’t fill up your safety deposit box with them. Better to save cash. 

Bullion dealers will sadly resort to fear-inducing conspiracy theories in order to provoke people to buy gold and silver from them. Most of these theories are anti-government Chicken Little speculations pointing to the total collapse of the American economy and country: a nearly post-apocalyptic scenario in which all the gold-owning preppers will one day be able to barter with others, in a world in which the U.S. dollar is no longer used. They will at times go into detail about the cash flow of the Fed, saying that they just keep printing money without enough gold to back it, that money is the U.S. dollar by fiat (because the Fed says so), or the Bretton Woods Agreement, and that because the nations all pay each other through U.S. dollars, and inflation keeps rising at the same time, the value of the dollar should be questioned when compared to the intrinsic value of gold. The printing of paper money is called a Ponzi scheme: the reliability of the government is called into question as they point to the national debt. What these apocalyptic bullion speculators fail to mention is how much gold prices fluctuate and how negative that is for the individual who buys, holds, and sells precious metals. The U.S. dollar always keeps pace with the rate of inflation, but gold and silver never do: their price levels are crazy and unpredictable. Once you’ve lost money from buying gold, or have had to sell it at a loss during a time of distress, the hypocrisy of bullion dealers should become pretty obvious: all the while they are building a case against the U.S. banking system and the dollar as unstable, they themselves are selling bullion that is exponentially more unstable than even one dollar bill.

About Wesley Gospel is self-published in the spirit of John Wesley and the Reformers, as when they used the printing press. The truth of God won't be censored or suppressed!
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