Apocalypse: Funny Money In
The Last Days

One of the necessary evils of surviving and thriving in these turbulent last days is M-O-N-E-Y

by Preston McNutt

The subject of money has been debated, preached, exalted and reviled. It has been praised as the reward for diligent stewardship and decried as the root of all evil in this world. One thing is certain. We all use it now and we’ll all need it in the times to come.

Whenever I ask the question “What is money?”, I often get responses ranging from a blank stare to a simple explanation that money is TGSIOWS (The Green Stuff In Our Wallets Stupid!). Some who are more in the know might give a better answer about how the money we use is actually credit and not money at all, which is far more accurate. You see, every time a bank makes a loan, money is created in the form of debt.

If I say things like “the economic system of western society is going to collapse”, why I might as well have said The Star Spangled Banner is a Nazi war song. The reason is such a statement is too big for the average person to grasp. Their belief system simply rejects it. “Preposterous!” they say. (Do people really use words like this any more?) “Balderdash! They’ll never let that happen!” they spout with an indignant TOTHAWOTT (Toss Of Their Head And Wag Of Their Tongue). Don’t ask them who “they” is, though. You’ll finally tire of the BS (blank stares).

Well, the readers of WildBranch Ministry articles are going to find themselves part of an elite group of people who have a solid understanding of what money is, what it is not, and why the monetary system we use today will fail, has to fail by its very nature, indeed was probably designed to fail at this precise time in history. (Remember, history is nothing less than His Story in the making). You are encouraged to use this simple scenario with your friends, family and neighbors. Heck, use it on your Congresscritter. Not that I think there’s much hope in him/her doing anything about it. They’re the ones who got us in this fine mess to begin with. But at least they’ll know that somebody is wise to what they’ve been doing with our money!

This is a very simple and straightforward discussion of how today’s money is created, and why it is a self-destruct system that can only devolve to it’s intrinsic value, which is zero. There will be other articles later that speak to what I call “natural economics” as they are based on Biblical principles and natural economic laws of supply and demand. More to the point, I hope to offer readers a compass to help navigate the rough waters ahead. See disclaimer.

I said before that every time a bank makes a loan, money, which is actually debt, is created. This fictional account explains what really happens in real life in order for you to have that hundred dollar bill in your pocket.

Let’s say ten people find themselves stranded on a remote island somewhere in the uncharted waters off the Oregon coast. This island is replete with natural resources, rich dirt for farming, ample timber for building construction and plenty of wildlife for food, leatherworking and other animal husbandry. All of the ten people are skilled craftsmen, farmers and builders with all the knowledge necessary to make a thriving community, albeit a remote one. The obvious trades begin, with the farmer trading wheat for bread, the baker trading bread for shoes, the shoemaker trading shoes for cows, the rancher trading cows for lumber and so on. This system of barter works well for a while, but is rather unwieldy and complicated, what with cutting up a perfectly good cow to trade for a single loaf of bread and all. What to do?

As fate would have it, another storm blows another hapless survivor onto the beaches of Prestoland. (It’s my story and I’m one of the original survivors. I’ll call it what I want!) The new guy has no trade skills, no goods with which to barter. Seems he’ll have to trust in the very generous nature of his hosts if he is to survive here in Prestoland. But wait! After surveying the cumbersome barter economy of his NAIN (Naive And Innocent Neighbors), he realizes he is the very answer to their prayers. He is a BANKER!

The Banker offers a simple and effective method of trade that seems to solve all the complex problems that go with a straight barter system. “Here’s what we’ll do” he says. “With my vast understanding of accounting and economic theory, I’ll create for you a monetary system and maintain it for you. All you’ll have to do is continue to produce your stuff, and spend my money to purchase from each other. Won’t that be swell?” To which all the citizens, being NAIN, replied “Hear! Hear! That sounds like a fine plan.”

So, the banker created a beautifully embossed currency, replete with pictures of dead presidents and lots of official looking text. To start, the Banker printed 1000 notes, and in deference to the DCOP (Dumbest Citizen Of Prestoland), called them Presto Notes (as in Presto Changeo). Each citizen received 100 Presto Notes (PNs) with which to carry on business, trade and any other endeavor that required exchange. For his expertise in setting up and maintaining this wondrous enterprise, he would ask a simple 5% interest at the end of the year from each of the hardworking citizens. “By the way,” he says. “I’ll also require rights to some of your property as collateral.” “Small price to pay for such an ingenious and efficient system” they say.

The new money plan works wonderfully for the first year. At the end of the year, each of the citizens owes the Banker 105 PNs. But wait! That makes a total of 1050 PNs, and there are only 1000 PNs in the system. If all the COP (Citizens Of Prestoland) were diligent in their business and each retained the full 100 PNs at the end of the year, then each would be left with 95 PNs after paying the Banker his 5% fee. But alas! The economy had become dependent on having 1000 PNs in the system in order to function properly, yet now there are only 950 in circulation. “What to do?” the citizens cried in unison. “Not to worry” said the Banker. “I’ll simply print another 1000 PNs and lend each of you another 100 Notes. That will give each of you 195 Presto Notes to allow you to continue your daily business without worry. And I’ll still only charge you 5% for this supreme sacrifice of service I do for you. And by the way, I’ll also require a portion of your business as collateral”.

After calculating that the interest owed at the end of the next year would only be 9.75 Presto Notes each, they again cried in unison “Hear! Hear! A mere pittance! Let’s go to the movies.”

And the good citizens resumed their daily labors, sensing a strange weight on their community shoulders and with not as much joy as they once knew and not quite understanding why. But being survivors, they carried on.

Another year passes. And another interest payment is made from an account that has not enough money to make the payment at the same time retaining enough to do business. And so another injection of created money is injected into the system. And the merry-go-round picks up speed.

See the problem? You may be able to pay back the original 100 PNs. But where do the other 5 Presto Notes come from? They can only be borrowed. Or, they must be worked off. The CoPs will be the Banker’s slaves until they’ve worked off their debt. Or they could exchange some of their personal property in lieu of their interest payments.

Something very important is happening here. Do you see what it is? We are increasing the MONEY SUPPLY year after year! Another term for it is INFLATION. Each new loan, without an equal loan payoff, increases the money supply. Every PN forced into the system means there is more money buying the same goods which equates to higher prices.

Hopefully, you can see the end result of a credit-based monetary system. I’ll expand on this theme next time. See you then.

Your Brother and Fellow Sojourner,
Preston McNutt

Thomas Jefferson"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them (around the banks), will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."