Historically, inflation was defined as any increase in the quantity of money, other than an increase from a switch in the money commodity (that is gold) from nonmonetary uses to monetary uses. Inflation resulted from new discoveries or mining of gold or artificial creation of additional quantities of the media of exchange.
In more recent years, inflation has been defined as higher prices.
Consequences of inflation
Inflation and wage and price controls have been more or less a constant fixture in civilization for the last forty centuries.
Inflations are psychologically destabilizing, contribute to the maldistribution of scarce resources, aid some people while harming others (by design), are one of the important causes of wars and revolutions, and create the climate for complete government intervention—that is, complete government control. Once the government controls the economy, the abundant life, the free flow of God’s energy from the source to man, it controls the life of its citizens.
Lenin correctly noted that the quickest way to destroy the capitalist society was to debauch its currency. It has also been said that “ruin and revolution are the normal consequences of inflation.”
Hitler rose out of the ashes of the German economy that was destroyed after World War I—not by the war but by the German hyperinflation from 1921 to 1923. Inflation causes the poor to suffer most. It does the work of Marxism and causes people to become so insecure that they turn to political extremists, usually a Caesar type.
We must have a realistic attitude towards inflation. We must see that it does not come from a rise in prices but that inflation is caused by the expansion of the money supply by the Federal Reserve system.
People in high places in and out of government often treat inflation like a mysterious plague, something perhaps from outer space. Yet only government can stop inflation because only government can start inflation.
According to Austrian School economist Dr. Murray Rothbard, credit expansion (i.e., easy money) coupled with interventionism beginning in the 1920s interfered with natural business cycles of the free-market system, resulting in the stock market crash and Great Depression. Rothbard cites inflation as the primary cause of the depression. Rothbard states:
Government is inherently inflationary because it has, over the centuries, acquired control over the monetary system.... Inflation is a form of taxation, since the government can create new money out of thin air and use it to bid away resources from private individuals, who are barred by heavy penalty from similar “counterfeiting.”...
Given the Federal Reserve System and its absolute power over the nation’s money, the federal government, since 1913, must bear complete responsibility for any inflation. The banks cannot inflate on their own; any credit expansion can only take place with the support and acquiescence of the federal government and its Federal Reserve authorities. The banks are virtual pawns of the government, and have been since 1913.
No inflation is ever started without an increase in money supply. No inflation has ever ended without corrupting society in proportion to the degree of the inflation itself. In recent history, it has destroyed more lawfully constituted governments than any other force except war itself.
The Federal Reserve system
Congress created the Federal Reserve system. Congress today does not control the Federal Reserve system, the power elite does. Yet only Congress can uncreate the Federal Reserve system.
Our congress is like Brahma, Vishnu, Shiva—the Creator, the Preserver, and the Destroyer. It has created and preserved the Federal Reserve, but it is unwilling to destroy. And there are many reasons for this. It is because the power elite throughout the nation greatly benefit from this inflation at the expense of the poor. If Congress does not uncreate the Federal Reserve system, then there is little chance for a government responsive to the people to control inflation.
Inflation serves the purposes of the bankers who have created the system. If the Federal Reserve system, the bankers, and the international bankers are served by inflation and they are autonomous and not controlled by an objective outer body of people, mainly the U.S. Congress, then obviously they’re going to continue the inflation because they benefit from the inflation. And if we don’t watch out, the nation will be destroyed by this manipulation of our supply.
It is the manipulation of the people directly, not indirectly. By the labor of their hands, the people have the right and the free will to accumulate abundance, to save it, to draw interest upon it. Through inflation, the very sacred labor of the people is being destroyed. The labor of one day is not adequate to feed the family the next day.
This is what the power elite are doing today in America. Unfortunately, the American people don’t realize that they have far more power than the ruling elite and that if they would unite as one body, not by a blood revolution but by the Spirit of the LORD, they could quickly dispense with these controllers and destroyers of their destiny.
It is imperative that Congress bring the Federal Reserve system under congressional control or dissolve the system entirely. And it is imperative that our nation go back on the gold standard for both spiritual and material reasons.
The federal government must start to live within its means. Or the dollar and perhaps the economy will collapse.
Saint Germain on inflation
Saint Germain has spoken about the challenge of inflation:
I AM Saint Germain and I summon the stalwart to consider the critical condition of inflation in America today side by side with the manipulation of the free market and the community of the Holy Spirit.
Many who express their opinions in economics today are no more qualified to run the economy than the run-of-the-mill religionists are to analyze and preach the mysteries of the sacred scriptures of East and West. With a few courses in Keynesian economics and Marxist socialism, mere amateurs approach the subject of the nations’ money systems, a balanced budget, taxation, and the financial burdens of a federal bureaucracy as though they were experts in the science of supply.
Inasmuch as the real laws of economics and the God-solutions to the international economy are not to be found in the most elite schools of the day nor in the minds of the experts (if they were, we should have no problems of such immense proportions), it behooves the children of the light to systematically study the disease of inflation and to invoke the God-solution and the God-science to this cancer of the economy before the very life-force of the free peoples of the earth is devoured by its tentacles.
May I suggest that, to begin with, honest and responsible leadership by noble hearts be seen as the necessary fulcrum. A part of the problem as we see it is that those who are in the position to pull the purse strings of America are often those with a vested self-interest who lack the spherical vision of a very complex problem whose solution would be forthcoming out of a profound understanding of the simple truths and basic principles which are the foundation of the law of the abundant life and of the sacred labor.
The system of political parties and frequent elections, though designed to preserve democracy in a republican, representative, form of government, makes severe demands upon those seeking office. In order to be elected, they must secure the popular vote. Inasmuch as the control of inflation and the cutting back of government spending must affect vast segments of the people adversely, it is never a popular cause for politicians to preach the real cure for inflation, which is the sacrifice of immediate gain, inordinate profits, and even the life of leisure for the long-term gain of prosperity and the sound management of the nation’s government and business based upon the realities of the money supply and the resources at hand. Thus those seeking election are unwilling to place before an uneducated populace the gravity of the issue or the consequences upon all of the people of the real solutions.
This generation of Americans and their prosperity is built upon the credit system. The increase of the money supply has created an unreal concept of the abundant life. While some have become millionaires through inflation, others have been robbed of the fruits of their sacred labor. Thus the synthetic self has built its synthetic economic system, and the illusion of a materialism without God and of mechanization without the presence of the Holy Spirit has produced a wholly unreal consciousness of the abundant life.
The surfeiting of the people in consumer products bought with unsound money unbacked by a gold standard has produced a profound insecurity in the American people, a subconscious resistance to take the responsibilities of living and working together in the cosmic honor flame to produce the abundant life that is the only true foundation for a golden-age civilization. Though it is unnatural to the children of the light to expect something for nothing, to expect others to pay their way and to indulge in surfeiting in nonessentials, this has become the mark not only of Western civilization but also of those in the Communist bloc nations and in the underdeveloped countries.
Materialism is a disease which is as debilitating to the human spirit as is that of Communism. Both of these products of the minds of the manipulators have affected millions of lightbearers, and their acceptance of the philosophy of the Serpent has left them in a euphoric nightmare. Their psychic peace, the product of their psychological separation from the I AM Presence, has left them nonthreatened in an era when all around them, permeating the economic crisis of the decade, are the most threatening conditions to the human spirit which have ever existed in modern history.
Those who sleep on in their nonthreatened state of unawareness are the greatest enemies of the people and of the outcome of the destiny of the United States. These perpetuators of the false peace who preach their “all is well” doctrine while applying a few Band-Aids to the gaping wounds of the nation’s economy are the false pastors who must be replaced in this urgent hour of world need by true shepherds who will have a humility to apply themselves first to God and God’s laws and then to a new science of economics that is neither Marxist nor Keynesian but rather Christic in its orientation.
Inasmuch as all laws of economics proceed out of the sacred labor of the heart, the head, and the hand of the people themselves through their interaction with the Holy Spirit and their integration with the personal God of Israel, I am summoning as my disciples in the field of economics the fishermen, the farmers, the workingmen and women of America, the laborers—those who are the pillars of a great society that can yet be realized if they will put their hands to the plow of the Great Plowman and have respect for the Ox who treadeth out the corn even as He bears the burden of the karma of the world economy.
Let those who are still tethered to the reality of the sweat of the brow and the work of the hands, those whose minds have not been taken over by intellectual theories that have no relevance to the heart or to the practicalities of life come forward then and begin anew an in-depth probe of the history and the law of cycles which have governed the economic policies and the consequent rise and fall of nations. Meanwhile, let those who have made certain philosophies of economics their religion and their proponents their gods be deprogrammed from the synthetic self with its synthetic systems that have never worked and never will work, except to destroy those who espouse them.
Let us proceed from the empirical method. Let us disallow what has not worked and let us allow what does work. Communism is the dream of the fallen ones who would escape the consequences of their karma and of their neglect to integrate with the source of all life and abundance. It is not viable because it is inconsistent with cosmic law, which operates independently of men’s theories or their mockeries of divine justice.
The manipulation of the free market and the free governments of nations through monopoly capitalism or corporate socialism will not work. It destroys individual creativity and snuffs out the fires of hope that ever rest in the heart of the individual as the desire to be self-sustaining in God. What will work? Well, I say, that remains for you to discover. But I will tell you this—it begins with the fundamental principle: Whatsoever a man soweth, that shall he also reap; and its corollary: Whatsoever a man soweth not, that shall he not reap.
There are too many people in every walk of life who still want something for nothing and they are willing to espouse any economic philosophy that will deliver to them immediate pleasures and material prosperity. These are not noble hearts but they whose names go down in history as the ignoble and as the destroyers of the abundant life of the soul.
Let the government and the people learn to live within their means, and let the real value of goods and services be based upon the theory and the altogether practical application of the law of the sacred labor performed to the glory of God who is resident within his humanity.
Let the value of life rest upon a gold standard that comes from the golden rule, which is the principle of the divine economy—do unto others as you would have them do unto you. This golden rule is applied to the gold of the heart, the golden wisdom that serves the needs of the community through love—applied love that becomes compassion, charity, and the sharing of the joys of the abundant life with those who entertain the impoverished sense.
If you ask me why the economy of America is in such a disastrous state, I will tell you that it is because not enough people care for God or for one another. They see solutions only in terms of more money and more government control and the regulation of life. But without heart or attunement with the threefold flame of Life that is the spark of each one’s divinity, the light of God does not flow to meet the needs of the people....
Angels of the seventh ray and “experts” in the application of the law of Christhood to the day-to-day problems of economics are working diligently at inner levels to heal the wounds in the body politic of the nations. Thus we repeat that it is in the influx of the sacred fire in an accelerated and rolling momentum of the violet flame invoked by Keepers of the Flame, as well as in specific calls for the economy, that the answer is given.
Contrary to all of the powerful opinions of the worldly, it is in fact the light of the devotees of the ascended master teachings as well as the light of the pure prayers of all children of God that today holds together the international economy. We seek to translate this light into a practical and effective plan for a new economic foundation to be implemented in the United States and in the nations of the earth.
This calls for a massive education of the people, the overturning of the most cherished systems because they are not of God, and a banding together of those who see through the seed of the serpents who have gone forth to destroy the souls of the people through the destruction of their economic base.
Let the faculty and students of Summit University gather ... to begin to tackle these most pressing problems. Minutemen and women of the light, let us place the magnifying glass of the mind of God upon all financial affairs. Let there be an exposure of the truth and of error. Let the people be educated so that they might follow the candidates who have the courage to tell the truth as to what is the necessary course of action and what will be the disastrous consequences of neglect.
And to those who would hear me discourse on more pleasing subjects of esotericism I say, Come off of your meditation pads and get out of your ivory towers! There will be little to discuss if you fail to apply your hearts to the problems of the world distribution of oil, wheat, food, technology, and gold.
I AM Saint Germain. And to all I say, Wake up! The hour is late and the future of Camelot hangs in the balance of the economic survival of the nations.
Yours for the alchemy of the sacred labor and for the binding of the manipulators of the abundant life on earth,Saint Germain
Definition of inflation by Percy L. Greaves, December 31, 1976.
Elizabeth Clare Prophet, July 1, 1983.
Elizabeth Clare Prophet, Prophecy for the 1980s.
- Theodore B. Dolmatch, ed. Information Please Almanac, Atlas, and Yearbook, 1980, 34th ed. (New York: Simon & Schuster, 1979), p. 127.
- William Reese-Mogg, The Reigning Error: The Crisis of World Inflation (London: Hamish Hamilton, 1974), p. 50.
- E. McMaster, Jr., Cycles of war: The Next Six Years (Kalispell, Mont.: War Cycles Institute, 1977), p. 14.
- Antony C. Sutton, The War on Gold (Seal Beach, Calif.: ’76 Press, 1977), pp. 67–68.
- Murray Rothbard, America’s Great Depression (Kansas City: Sheed and Ward, Inc., 1975), pp. 29, 33.
- Rees-Mogg, Reigning Error, p. 66.
- James Davidson, “Cartergate IV: The Inflationists,” with an introduction by Craig S. Karpel, Penthouse, February 1978, p. 45+.
- Sutton, War on Gold, p. 83.
- Jer. 23:1–4.
- Deut. 25:4; I Cor. 9:9, 10; I Tim. 5:18.
- Gal. 6:7, 8.
- This spiritual principle is entirely set apart from Marx’s labor theory of value, which is its perversion.
- Saint Germain, “The Economic Survival of the Nations,” Pearls of Wisdom, vol. 23, no. 7, February 17, 1980.