Profit and Loss


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Where does profit come from? Many say it comes because of exploited workers. Others say it is because of exploited natural resources. While others blame monopolies. When we begin to talk about profit a good place to start is in ignorance. When someone undertakes a business his profit will only come from accurate forecasting and planning. Nobody knows the future, or what it will bring. This means that whatever decision the business owner might take will be very important, for it will determine if there is profit or loss. However, profit only comes after everything has been paid. This includes factors of production, interest payments, and property and sales taxes.  Considering an eroneous forecast, then loss follows. New technologies or products may not necessarily produce profits, but losses may be made. It is customers that decide whether or not they will buy it, or use the service. Profit and loss are not automatic, but they are a result of decisions made with ignorance.
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Wooden Spoon


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As simple as a pencil is a wooden spoon. Everyone has one in their kitchens. Let it be a house, a restaurant, or even a business. As simple as it may seem, it has gone into a process where a widespread division of labor was required.

Many people had to chop off the trees in order to get the wood. Of course, in order to chop off the tree a saw had to be built. Not to mention all the people that had to work in order for the saw to be put together. Then, the wood required transportation that included trucks filled with it. That takes us to the people that worked on the truck and on all the others that collaborated on making the parts of it. Not only this, but pieces of wood had to be cut down and smoothened, which again, included a lot of people. You might think that the process is finished there, but the wood requires a lot more transportation. This includes ships, trains, airplanes, and a lot more trucks, that only work with the use of gasoline. With this we can remember on all the people that work on acquiring petroleum.

The wood passes from hand to hand with the use of money. This means that even money contributes to the making of a wooden spoon. Without the money many people wouldn’t work. So, we now add in paper, computers, printers, and ink. After that, it took your labor in order to go into a store and buy the wood. Where else would you have gotten the money? Even if it was given, it took that other persons labor in order to obtain it. Once you see this, you realize you keep the whole thing going. If you don’t buy the wood, then there is no income to keep the process flowing.

However, if you thought that the wood was the only thing you needed in order to make the wooden spoon, you are wrong. You need much more than that. In the materials you need to make the wooden spoon, we include a pencil. So, let me warn you that you don’t want to know everything that is needed in order to make the pencil.

Video on how a pencil is made.

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Taxes on the Broken Window Fallacy


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A tax is a sum of money demanded by a government for its support or for specific facilities or services levied upon incomes, property, sales, etc. It is also defined as a burdensome charge, obligation, duty, or demand. Every country has this, and everyone must pay taxes.

When a government intervenes to build a bridge, it is supposed to build it with the tax money. A bridge is supposed to make transportation easier and faster. It is a construction that makes many people happy. It is interesting to see that when the bridge is built, nobody thinks about the taxes they paid for the government to build it. People simply applaud to the government, thinking it is finally doing the right thing. That it is using the money for the right cause.

The thing seen is the bridge. The thing not seen is the tax money. However, with the tax money, the thing seen is what the government can do with it. The thing not seen is what the people could have done with it.

According to the mind of the people money conveys authority. In reality money only conveys paper. Nevertheless, sticking to the idea of it conveying authority, then tax money gives the government authority to “control” us. It is, however, an indirect “control”. What they do is choose for us. For example, the government chose to build the bridge, but maybe the people would have chosen a highway. Then, the thing seen is the bridge, and the thing not seen is the highway.

It is not an easy task to eliminate all taxes. Nobody likes taxes, yet nobody does anything to eliminate them. It is easier to let someone else do the work for you, than for you to do it yourself. Notwithstanding, many people think that it would be hard for everyone to come to an agreement with the lack of unity there is in the world. Of course, unity is only achieved when everyone thinks, and feels the same thing. One thing I believe is only achieved when having one religion or God.

Going back to the taxes and the government intervention on them, it is what is seen that has shaped society, but what is not seen is left alone. Ironically, people are still in discomfort.

The Illusion of Money

Freedom from Mammon

The Broken Window Fallacy

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Job Wages


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Many people today are not conformed to the minimum wages we live with currently. Of course, this has been going on for years. The question is; why wouldn’t someone voluntarily offer you a job at twice today’s minimum wage? Even if this happened it would be very rare.

First of all we would have to take not of the wage laws. This means that if minimum wages were above what a worker is worth, then he would not find a legal job.

Nobody likes to pay more and obtaining less. Even so, businesses cannot automatically pass on the added costs to customers. What if the employee isn’t worth as much, yet the employer hires him with an obligation to pay him more. The employee in return would not produce as much, and the employer would then have to raise prices due to the lack of productivity. Inevitably, the economy would go down making losses. Not only this, but the employer would not be able to hire more employees, because of the lack of money. Then, this will create more competition making it harder to find a job. This competition would then force wages even lower forcing the state to put the unemployed on relief (unemployment insurance). This insurance would then raise taxes or counterfeiting declining the economy.

Then comes the other problem, which is hiring someone at a minimum wage when the employee is worth more. This is only the result of unrighteousness.

The problem begins when we put the state in charge. Also, the problem goes back to the state when they have to raise taxes and/or counterfeit. The truth is that there shouldn’t be price floors (minimum wages) and price ceilings. An employee should be paid what he is worth. Many people think that lots of jobs mean high economy, but what if the jobs weren’t productive enough?

We shouldn’t base ourselves on how many jobs we have, but on how much production they give. High production means high economy, and this doesn’t necessarily mean that there are many jobs. If we begin to value our employee to the amount of production he or she gives, then we offer a just salary. That is why we pay that person in the first place. You don’t pay someone for having the job, but for the service he is giving you. He could have the job, and not do anything. Yet, you still pay him. This would leave out others, when they are worth more than the current employee.

If we begin to value employees based on the service and production they give, then we could possibly have some being paid twice the minimum wage. Not only this, but people would be encouraged to produce more, and the economy would increase.

Freedom from Mammon

Price Controls / Money and its Origin

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The Broken Window Fallacy


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This fallacy technically says that destruction helps the economy. For example, a hooligan decides to throw a brick at the window of a bread shop, and in result, forced by the circumstances, the baker will have to buy a new window. Hence, it will mobilize money, because now the man of the window will be able to buy crops with that money, and the man with the crops will be able to buy something else, etc. As good as this sounds, it is illogical to imagine a whole city burning and call it prosperity.

The second part of this fallacy explains that the baker would have bought a new suit instead of a new window, if the hooligan wouldn’t have broken the window. This means that what is not seen is the prosperity that would have been created if the window wouldn’t have been broken. A society grows with the acquisition of goods, not with the destruction of them.

What is seen is the broken window, what is not seen is the suit. Not only would the baker have his window, but also his new suit, making him richer in goods. Nonetheless, even without the broken window there would have been economic growth.

This happens in almost every area of society, if not in all. For example, people are always worried about the fact that technology is growing. They say that robots will substitute humans, and therefore jobs will be lost. What they don’t see is the cheaper prices went, because of the facility of obtaining more for less. In one side they want more jobs, but in the other side they want cheaper prices. It has been proven that more jobs doesn’t necessarily mean greater economy. As a matter of fact, it has been proven that a better developed work area increments the economy more than hundreds of jobs.

Think about this, what if making water bottles was to its highest potential, the prices would go booming down. Yes, some lost their jobs, but they would inevitably find another one. A society with technology creates entrepreneurs. Technology gives us the chance to innovate. Instead of doing the same thing every day, sticking to your same job for the rest of your life, you are given the chance to create something that can improve society. This is why it has become easier to obtain things that were almost impossible to reach, or why you can get from one place to another faster. Admit it; we prefer a faster, more productive, cheaper society, and technology has given us that chance.

Technology and the window are not the only things that are seen and unseen, but a whole big gap of the society has this. We have been accustomed and raised to only see what may seem obvious, hindering our creativity and learning ability. We must get out of the nest or that bubble that stops us from truly growing, and we must go back to the origin.

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Freedom from Mammon


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What is money? The Ron Paul Curriculum teaches that it is the most marketable commodity. It is a medium of exchange.

Throughout history, there has never been seen a record of a state or government inventing money. This is because money was never brought out by a government or a committee. Money came through barter. People used to exchange their goods directly, until gold and silver were used as a form of indirect exchange. After a process of making silver and gold coins, the government then began to take control.

We saw banks being created, this way people would be able to save their coins in the bank, and in return receive some papers that would back up the amount of coins you had in the bank. It seemed a lot easier to carry paper in your pocket, instead of coin money. People wouldn’t really know how much money you were carrying, and therefore you could feel a lot more secure.

When people began to borrow money from the bank, the bank would then make a plan. It would give the person a paper that would back up the amount borrowed, but at the same time it would steal money from the person saving in the bank. For example, if you went over to the bank and borrowed ten coins, the bank would steal those ten coins from me, because I have 100 coins saved in the bank. The bank then has violated my trust and acted without my consent. An interesting part to note the high corruption is that not only would the bank steal from me, but it would create more paper money out of your debt. This means that the bank would charge you an interest payment for the loan, and therefore would create paper money “backing up” that interest, but without the interest money currently existing. Not only did this happen, but the bankers began to see that people would not take their coins out of the bank. In result, this began a theft movement where they would create money out of nowhere and inflate. Inevitably, this made them rich.

This is the banking system we have today. However, we now add in checks, cards, and digits making it a lot easier to counterfeit.

What is counterfeiting? As explained in my past essay it is fraud, unreal, pretended, obsolete, forged, and not genuine. Counterfeiting is theft when we talk about money, governments and banks. Counterfeiting is creating money based on debt or on nothing as we have seen.

It is interesting to see that the government would pass down laws against private counterfeiting. In other words, the government is the only one allowed to create money. Of course, they would have their favorites, and license commercial and central banks allowing them to counterfeit through deposits. These would then inflate, just as seen before.

In a more explained way, banks counterfeit based on deposits and loans, and government’s counterfeit based on the debt of the nation. Governments prefer counterfeiting, because the people prefer it too. If governments wouldn’t counterfeit they would tax, and nobody likes taxes.

As a parenthesis, the reason taxes and counterfeiting increments so much is because of the insistence of letting the government do more than what it is supposed to do. The people grant control and power to the government, because of what they believe. As Einstein said the world will change when we begin to change what we believe. The government’s role is to enforce law and grant justice. However, we have now given it the power to build, go to war, control the economy, control private property, control the entrance to nations, jobs, etc. This makes them tax, tax, tax, and/or counterfeit, counterfeit, counterfeit based on all of that. One point I will make is that the bible says we must treat foreigners (people from other nations) like one of our own. 

Exodus 12:49

One law shall be to him that is homeborn, and unto the stranger that sojourneth among you.

Exodus 22:21

Thou shalt neither vex a stranger, nor oppress him: for ye were strangers in the land of Egypt.

Disgracefully, this counterfeiting creates more debt in the nation. One that is practically impossible to cover. We can remember the fall of the twin towers in September 11, of the year 2001, an act that created an economic “good”; judge yourself.

When corruption goes too high the attempt of solving the problem also becomes corrupt.

What is honest money? The opposite of counterfeiting would be acting in truth and justice. Saying there is “honest money” is ironical, deceitful, and an illusion. The love for money is the root of all evil, it was what made the devil fall, and it is what makes man fall.

1Timothy 6:10

For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.

For certain we cannot serve two masters. We either love God and hate mammon (riches/money), or abhor God and love mammon.

Matthew 6:24    

No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon.

Money is used by all, and the only way we can know when it is used in a righteous way is when we are not attached to it. Our teacher Gary North in the economics course says that money screams. This is true. We either listen to the voice of money (mammon) and act conformingly, or we listen to the voice of God and do His righteousness. There are no intermediaries, for His righteousness is the only valid one.

Isaiah 64:6

But we are all as unclean thing, and all our righteousness are as filthy rags; and we all do fade as a leaf; and our iniquities, like the wind, have taken us away.

I believe that money was not the original design from God. In the Garden of Eden Adam and Eve had everything they needed, they would just stretch their hand and grab. When Jesus comes to restore everything He changes sowing and reaping to give and it shall be given unto you.

Luke 6:38

Give, and it shall be given unto you; good measure, pressed down, and shaken together, and running over, shall men give into your bosom. For with the same measure that ye mete withal it shall be measured to you again.

Therefore, the true and original design that God had since the beginning was giving. Noting that money was not the original design from God, then “honest money” wasn’t on His plan either. It was giving. Nevertheless, there is a way we can use money in a righteous way, and that is only achieved through listening to the voice of God.

Since there is no true “honest money” the government doesn’t have to issue its own money in order to secure it. The problem begins when we begin to idolize money. Money was originally invented in order to exchange goods, but when people began to realize that the more money they would have would mean the more goods they would have, greed and avarice began to take control of their hearts. Money today is treated like a god. Everyone wants to secure it, and the only way you can find your peace, security, and future is if you are filthy full of it. This is when corruption begins to take place; in the immorality of betraying God and following money/mammon.

Once we realize this we begin to note that no matter in what hands the control of money falls to, if there is immorality and corruption the result will be the same. Once we have purified our hearts from all of that corruption and immorality, then we begin to despise money and love God.

One way we can see that we are truly dependent on God and not idolizing money is not living in a poor or a rich way, but knowing that its voice won’t control you. If we still guide ourselves by what it is telling us, by what it screams at us, then we have fallen into what the devil fell; the false and illusive power of knowing that the more riches you have, the more powerful you are. However, if the world became dependent of God and not on money, no matter who would be the person or committee with the most money or “power”, we would never be controlled by that someone or something.

When we keep on seeing how much money we have, and what we can buy or not buy or do and not do with that money, then we are being controlled and idolizing money/mammon.

We must not find our security, peace, and future in money. We must not seek our success or reputation in money, for as we have seen money is an illusion that grants a false power that is easily destroyed. We must guide ourselves by the voice of God, and attend to His righteousness, for it is the only way there will be true prosperity in us, and in our land.

The Illusion of Money

A Generation of Greatness

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The Illusion of Money


The dictionary defines the word “counterfeit” as being made an imitation so as to be passed off fraudulently or deceptively as genuine; also as not genuine; forged; pretended; unreal; obsolete; imposter; and pretender. Knowing the definition of this word; is it counterfeiting when government-licensed banks create money out of nothing? In other words is it deceptive and unreal when government-licensed banks create money based on air or debt and not on gold?

Let’s go back to the beginning. Before there was money, barter was the system people used in order to exchange goods. Once people saw that gold and silver was valuable to their eyes, they began exchanging goods for gold and vice versa. Until the government realized that they could take control of this system.

They offered fiat money which is the paper money with the people’s faces on it. This fiat money would be based on the amount of gold they had. For example, people would save their 10 coins of gold in the bank, and in return they would receive 1 paper with a 10 dollar sign on it. This would back up the amount of gold or money they had in order to make an exchange for goods and services. As time went on, banks began to realize that they could make money based on the loans they gave out, even though they did not have that money yet. This began to create a high debt, but as the bank gave more loans, the more money they created based on those loans, which eventually it ended up being based on the debt. In short terms, the more loans, the more creation of money, the higher the debt, and once you begin asking yourself where this money came from, you realize it came out of the debt of the loans.

This means that when the government-licensed banks create money, it is not based on the amount of gold the country has, but on the amount of debt it has. Disgracefully, everyone else believes the illusion that based on the amount of paper money they have is how rich they are, when that fiat money is really worth nothing. Money as an illusion is worth what you value it, but as the truth it is worth nothing. This is why it is counterfeiting when government-licensed banks create money out nothing. They are making the role of the imposter that says the economy of the society is growing, when the debt is the one that is really growing. However, the most tremendous and impacting truth is that we are the ones that let this keep on going.


Money, Banking and The Federal Reserve:

Kingdom Riches

Society’s Problems: Part I

Price Controls / Money and Its Origin

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A Generation of Greatness


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One of the things I’ve learned throughout all my life is that there is nothing better than following the voice of God, and walking in His righteous path. We have all been designed with a powerful purpose that comes from God that brings the heavenly designs onto earth. We must choose and determine ourselves with all our heart to fulfill it.

Walking in the identity of Jesus in us will take the death of our own ego. In order for us to receive His identity, we must lose our lives. For he who loses his life for Jesus will find the Life. That will take the love for Him first, and then the love for our neighbor. It is not about seeking our own, but about fighting along with your brother and sister. It is not about winning a name for us, but about changing the destiny of our nation and future generations. It is not about fulfilling our dreams and desires, but about opening a gap where the Kingdom of God can be established here on earth. It is not about seeking the success the world seeks, but about giving our lives for those we love, for He who we love, in order for His will to be done here and now.

Do not seek that which the world seeks, for it is perishable. Seek that which is eternal, for that is what brings true Life, fulfillment, and success. Our success is not determined on how much money we won, or how many goods we have, or how much the world recognizes us, or on all the great things we achieved, for that only fills our ego and perishes. God is looking for those that will go to the darkest and deepest places on earth in order to fill them with light, and free His people. He is looking for those that are willing to die in order for others to live. He is looking for those that are brave enough to stand in the gap and stop the next flood or judgment.

God does not want to destroy the world. He wants to save it with all that He is, that He was willing to give His one and only Son for us. That is what we must be willing to do. So I say to you, do not faint, do not give up, don’t let yourselves be fooled by the enemy. Always listen to the voice of God. For those that achieve greatness, are those that walk conforming to YHWH, are those that are capable of going further than the impossible, are those that are not fearful of climbing the steepest mountains, are those that are fearless of going past their limits, are those that run with the sound of warhorses and eagles, are those that make the earth and hell tremble, are those that die for other, and are those that guide themselves by the voice of God.

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Labor Unions on Price Inflation


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Labor unions are a group of workers that negotiate their interests in the areas of their working hours, working conditions and wages.

When a labor union sets down to discuss wages, there is a very big chance of price inflation. As wages go up, so do prices. It is as simple as that. These unions only take note of their interests and benefits. Inevitably, this will leave out others.

It is like having four chocolate bars and giving three to a boy and one to a girl. One will benefit and the other will not. When companies are able to see that some employees are paid more, and therefore can afford more, they will raise prices. The boy in this case will be the winner and the girl the looser. Of course the boy will gain his three chocolate bars at the cost of his freedom. Every time the government will give you something, it will be at the cost of your own freedom.

This is one of the many reasons why there are poor people and rich people; the pursuit of our own ego and the illusion of being able to gain power and dominion over everyone.

The next time you are asked if labor unions cause price inflation, don’t hesitate on answering yes.

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The Dark Side of Tariffs


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In my last essay (More Competition, Higher Quality), I wrote that tariffs were not good for the countries. It is interesting to note that we allow free trade (tax free) from state to state thinking it is good for the country, but complain when the trade is made from country to country. We have been taught or told that jobs are reduced when companies from other nations compete better in our own nation. This is why laws are passed down by the money of businesses that make it harder for trade to be made due to the tariffs (taxes) imposed on them.

Some of the arguments that are told favoring tariffs are the following. They, as you will see, are not backed up.

People confuse immigration with imports. Notwithstanding, goods don’t vote. It is different when a person crosses the nation and has a mind of his own, than when a good crosses without being able to think for itself. Goods don’t bring cultures, and they do not make decisions. Goods are only tools that can be used to improve the lives of people.

“Keep the money and jobs at home.” They say people lose their jobs, because of their failure to compete better. The truth is more jobs will be made, because of export companies. Not only that, but customers would live a more abundant life, because of the reduced costs. Even if jobs are lost, others gained. It is also better for a company that is not serving you with good quality, and honesty as a customer to close up.

I would like you to think about this. People need money, and they get it by working. This means that they serve customers, and in order to keep the customers happy and their wallets big, they must produce goods with a higher quality. However, there is too much competition which makes it harder for businesses to compete, some may even go bankrupt. So they think, if competition is reduced, their lives would be easier.

This is when they pay congress to make laws (tariffs/taxes) that favor them, and reduce competition. What happens when there is no competition? What if you were the only person selling milk in your town? You would be able to charge a very high price, because of the demand. Though, it wouldn’t have to be of good quality, because customers have no other choice than to buy from you. What if the public found out that there is someone else from a close town selling milk with a better quality and a lower price? They would realize that you were ripping them off. From whom would they prefer to buy? Suddenly, you get mad. You need to find a way that would force the public to buy from you, even though you’re ripping them off. You go on to paying the mayor of the town, for him to pass a law imposing a tariff (tax), that would make it harder for the other milk seller to sell his milk in your town. Even if the other seller gets to sell his milk in your town, the milk would cost more than yours, because of the tax imposed on him. Then more people would buy from you, and customers would suffer from a reduced quality in their living standards.

In this analogy, I want you to realize that it wasn’t towns that were trading, but it was two people. Nations don’t trade, people do.

I also want you to see that when imports are reduced, exports are reduced. Gains are lost from other the nation, but also from your nation. Why? When you impose a tax on the other nation making harder for it sell on your nation, profit is reduced. When the other nation’s profit is lowered, it will not have enough money to buy from your exported goods. Therefore, you will not be able to sell as much in the other nation either. Both sides lose.

Now, if you still have the ego way of thinking that says “they’re not us”, what if they did it to you? What if it was the other way around? What if it was your nation that would have to pay high taxes in order for you to sell on other nations?

Tariffs reduce imports and they reduce exports. With tariffs both sides lose. They offer a low standard of living. The only winners are the bureaucrats and the businessmen that payed the bureaucrats. The question is, will you keep favoring tariffs (taxes)?

The Government or The Public? Make Your Choice! Part:I 

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