Monthly Archive for February, 2016

The Philosopher’s Stone!

From the Middle Ages to the late 17th-century, the so-called “philosopher’s stone” was the most sought-after goal in the world of alchemy, the medieval ancestor of chemistry. According to legend, the philosopher’s stone was a substance that could turn ordinary metals such as iron, tin, lead, zinc, nickel or copper into precious metals like gold and silver. It also acted as an elixir of life, with the power to cure illness, renew the properties of youth and even grant immortality to those who possessed it.

The Bank of England was created in 1694 by a Scotsman William Paterson who famously said: “The bank has benefit of interest on all moneys which it creates out of nothing.”  Today, our banks are enjoying the philosopher’s stone which they have created. Money out of nothing but paper!  It is said that at the incorporation of the bank of England that it was promised, “We will provide unlimited financial means – in return, we will keep the absolute privilege to create money.” (To be precise: false money – or what the banks call fiat money!)  Fiat money is money that has value only because of government regulation or law. The term derives from the Latin fiat, meaning “let it be done.“ (Wikipedia) Fiat money is the opposite of honest money. Fiat money is money that is declared to have value even if it does not.

Faust and Mephistopheles

About a hundred years later. The influential German author Goethe, tells the story of a young scholar, Faust, who enters into a pact with the devil, Mephistopheles. In return for Mephistopheles’ services to help him realize his ambitions, Faust wagers the devil his soul.

The the Second Part of Faust, Faust attends the court of a ruler whose empire is facing financial ruin because of government overspending. (Sounds familiar?) Rather than urging the emperor to be more financially responsible, Mephistopheles—disguised as a court jester—suggests a different approach, one with disturbing parallels to our own age. Continue reading ‘The Philosopher’s Stone!’