Download An Introduction to Christian Economics by Gary North PDF

By Gary North

An try to set forth the biblical presuppositions in numerous sector of economics, yet basically within the box on financial idea.

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Cf. Constantine Breseiani-Twroni, The Economics oj Inflation (London: George Allen and Unwin, 1937). 11. Murray Rothbard, Man, Ecaromy and Srate (Princeton: Van Nostrand, 1962), II, 854 ff. , w 860). , LOS An>eles. 40 An Introduction to Christian Economics pay up, with interest. He goes to his bank, takes out the $90, and his bank has to call in the $81 it had loaned out. The $900 built on the original $100 disappears, again as if by magic. This is the process of demonetization of debt, and it is clear why there would be a drastic decline in prices, and why a lot of banks would be closed, some of them permanently.

Each individual’s bank account is not increased by $5 more than it was yesterday. Certain individuals and firms, those closest to the State’s treasury or the banks’ vaults, receive the new money before others do, either in payment for serviees rendered or in money loaned to them. Inflation enters the economy at a point or points and spreads out; the drug enters an addict’s vein, and this foreign matter is carried through his system. In both cases, the “junk” enters at a point and takes time to spread.

Insolvency by any other name is still insolvency. This, in short, is the nature of the problem facing Mr. Nixon and his advisers. We can print more money (or create it through the national banking system ), inflate further, lower the value of the dollar, encourage a gold rush on our reserves, and gain the wrath of foreign opinion. Thk policy cannot go on forever without serious international repercussions, both political and economic. On the other hand, we can raise interest rates, raise taxes, slow down the growth of our domestic economy, balance our budgets (national, 28 An Introduction to Christian Economics state, heal, and personal ), increase the unemployment rate, and risk a recession.

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