Friday, November 05, 2010

Quantitative Easing

Most economic problems are moral problems, not technical ones.

Money is a good example. Many economists treat money as a technical problem that needs a technical solution. For example, the big issue being debated at the moment is how effective the new round of Quantitative Easing will be in getting the American economy going. This debate about efficacy misses the point.

Monetary policy is always a moral issue, as it allows theft to creep into the money system. Quantitative Easing Problems is immoral, whether it works or not. In Biblical times, people cheated by using false scales. Later kings cheated, by debasing the metal in coins. When printed banknotes became the norm, governments really got into printing money. Now it can be done with digits on computers transactions on the central bank’s balance sheet.

The bible is clear about the morality of using false measures for weighing silver or gold, which were the early forms of money. Cheats would use heavy weights when they were buying and light weights when they were selling.

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 (Deut 25:13-17).
Quantitative Easing is just a different technique for achieving the same purpose, so it is morally wrong. God detests quantitative easing, so it will not bring blessing to the land.

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