Illusion #1: The Illusion of Value

In Bible times, the prophet Micah observed those who were exploiting and cheating the poor. They were powerful people using dishonest scales. He says in Micah 6:11,

“Shall I acquit a man with dishonest scales, with a bag of false weights?

            What does he mean by “dishonest scales” and “false weights?” In Micah’s time, a buyer would make purchases using silver or gold coins. When it came time to buy a particular sheep, a standardized weight equal to the value of the sheep would be placed on a scale to measure the amount of silver or gold the buyer was using. The standardized weight was set on one side of the scale, while the buyer’s coins were set on the other side of the scale. When the scale balanced, both parties knew that the proper amount of gold or silver had been given to the merchant in exchange for his merchandise, and the buyer walked home with his new sheep.

Let’s say the standardized weight was the ancient equivalent of one pound. The sign next to the ox read, “One Ox for One Pound of Silver.” A seller would set the “standardized” weight for one pound on one side of the scale, and the buyer would then begin placing his coins on the other side until the scales were balanced. The buyer would achieve the agreed-upon price once the scales were even. This fair weighting system allowed for honest and free transactions between both the buyer and the seller.

Yes, the transaction was fair and balanced unless you were dealing with a merchant who merely gave the illusion of fair value. These deceitful money changers used dishonest scales by adding a little extra weight to the standardized “pound,” or whatever standard weight they were using. Since the tampered weight representing one pound actually now weighed one and a quarter pounds, it would require more coins to make the purchase. When the buyer placed his one pound bag of gold coins on the scale, it wouldn’t balance out because the seller’s counterweight now weighed more. The deceived buyer would need to place more coins onto the scale in order to weigh down the standard. This sheep or ox was costing the buyer one and a quarter pounds of gold rather than one pound. The buyer was being cheated because the seller had devised a way to devalue his currency. The seller found a way to make the buyer’s coins worth less, meaning the buyer needed more of them to buy the same sheep or ox.

Now, it’s not like the sheep suddenly cost more or was of more intrinsic value. By cheating the system and the scale, the merchant could get more of the buyer’s money by making the weight weigh more. Bottom line: The buyer walked away with a sheep valued at one pound while the seller walked away with one and a quarter pounds of gold.

You might be thinking, “We don’t even use that type of system today. How does that illusion of value apply to us today?” That is why we’re looking at what God would say to Alan Greenspan. In 1913, our twenty-eighth U.S. President, Woodrow Wilson, set up the Federal Reserve. This entity uses a similar insidious way of stealing and devaluing citizen’s money without us even realizing the scales have been tampered with. What do I mean by that? The Federal Reserve System has weighted the scales.

Alan Greenspan served under George Bush until he passed the baton to Ben Bernanke, who currently chairs the Federal Reserve. What would God say to Alan Greenspan, Ben Bernanke, and Woodrow Wilson?” God would say, “What are you doing using dishonest scales? You are hurting the economy and the poor by devaluing the currency.”

For more information, watch the first 30 minute session of Godonomics here.