Dealing With Money Problems

From http://el-paso.ucg.org/ or call 1-888-886-8632. Please follow this site here.

Dealing With Money Problems

Money in one form or another has been around and valued highly by most for thousands of years. But money, debt and finances have also been the source of many personal and family problems over those years. What does the practical wisdom of the Bible teach us about how to deal with money problems?
Skip, a Christian from California, relates this story:

"We were not making enough money to cover our needs. My wife had quit her job because I thought that I was the one who should be the principal income maker. Our income went from $14,000 per year in 1971 to $6,000 a year in 1972. We needed help.
"The first thing we did was to seek counsel. After that we both sat down and admitted that this would have to be a mutual effort. Together we would succeed or fail. Then we prayed, together.
"At this point we wrote down everything that we really needed to live. Since I had a job, I needed to get to work. I had a car and it needed gas, but I didn't need to stop before work for coffee. We wrote down exactly what we needed and did not need and discussed this with each other.
"Many things then became wants and not needs.
"We had no children yet, so we could evaluate a bit more ruthlessly on items like food. All expensive items were eliminated; basics became normal. Shopping is not a pastime if you are in survival mode! Soups and casseroles were standard, and nothing was wasted. Lunch was often leftover dinner from the night before.
"If you have a job, thank God and tithe on your increase! We did. I had trained and studied to become a teacher, but there were few, if any, openings in 1976 and 1977.
"It became disheartening, but with my God-given, vigorous good health and working at all the labor jobs that I could find, we managed to almost scrape by—actually going into the hole a little each month. Things got worse before they got better.
"And then that recession was over, and school districts started hiring again. I had gotten my credentials in 1975 but hadn't even looked for a teaching job that year. But as soon as I interviewed for a teaching job in 1978, I was told that one awaited me at the beginning of the spring semester 1979.
"Were there lessons I needed to learn before God answered yes to our prayers for a good job? They are too numerous to recite! But in retrospect, not having much money was a valuable training program for when we were blessed with more money. You can't really remember what you never went through."

Share Your Story

What Does the Bible Say About Money?

How long has money been around? Probably ever since there were more people than one extended family. The Bible tells about various financial transactions Abraham made about 4,000 years ago (Genesis 13:2; 14:20; 20:16; 23:9). It is obvious Abraham was a rich man, but he was also a generous, good man.
Does God object to riches?

Proverbs 10:22
The blessing of the Lord makes one rich, and He adds no sorrow with it.

If God gives riches, obviously money isn't bad in itself, and He does not object to wealth.
What isn't good in God's sight?

Matthew 6:24, 33
"No one can serve two masters; for either he will hate the one and love the other, or else he will be loyal to the one and despise the other. You cannot serve God and mammon...
"But seek first the kingdom of God and His righteousness, and all these things shall be added to you."
1 Timothy 6:9-10
But those who desire to be rich fall into temptation and a snare, and into many foolish and harmful lusts which drown men in destruction and perdition.
For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows.

Trusting in riches or wealth is wrong. Serving mammon (the New International Version translates this "Money") and not God is wrong. Greediness is absolutely wrong. But can we enjoy both God and the correct bounty of this world? We can if we do things God's way. Matthew 6:33 indicates that God can and will bless us abundantly if we get the right perspective in our mind.
Why aren't many of God's people rich or wealthy?

1 Corinthians 1:26, 29
For you see your calling, brethren, that not many wise according to the flesh, not many mighty, not many noble, are called...
that no flesh should glory in His presence.
1 Timothy 6:17-19
Command those who are rich in this present age not to be haughty, nor to trust in uncertain riches but in the living God, who gives us richly all things to enjoy.
Let them do good, that they be rich in good works, ready to give, willing to share, storing up for themselves a good foundation for the time to come, that they may lay hold on eternal life.

God has not chosen to call many of the "important" or famous people of the world now, but to use the weak and the poor to demonstrate that it is God who makes a difference in our lives. "He who glories, let him glory in the Lord" (1 Corinthians 1:31).
Paul's instructions to Timothy tell us that some Christians were rich. But his warnings give some hints about the spiritual problems being wealthy can cause. Unfortunately when and if we strike it rich, we tend to take credit ourselves and not give credit to God. On the other hand, if we have had to struggle a bit, we have a much better chance of learning that the race is not always to the swift. As a result, we just might more easily and readily thank God.
Can there be real problems with having more than enough money?

Mark 10:21-27
Then Jesus, looking at him, loved him, and said to him, "One thing you lack: Go your way, sell whatever you have and give to the poor, and you will have treasure in heaven; and come, take up the cross, and follow Me."
But he was sad at this word, and went away sorrowful, for he had great possessions.
Then Jesus looked around and said to His disciples, "How hard it is for those who have riches to enter the kingdom of God!"
And the disciples were astonished at His words. But Jesus answered again and said to them, "Children, how hard it is for those who trust in riches to enter the kingdom of God! It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God."
And they were greatly astonished, saying among themselves, "Who then can be saved?"
But Jesus looked at them and said, "With men it is impossible, but not with God; for with God all things are possible."

What if God asks us to give up the good life? This parable shows a real challenge that a wealthy Christian could face.
The world around us bases financial decisions on self-interest—and even blatant greed. But what underlying attitude does the Bible teach?

Acts 20:35
"I have shown you in every way, by laboring like this, that you must support the weak. And remember the words of the Lord Jesus, that He said, 'It is more blessed to give than to receive.'"

The apostle Paul showed by his own example and by a quote from Jesus Christ that we should live a way of give, rather than basing all our decisions on what we can get. We can give to others in need and give gifts to show our love. We are also instructed to give tithes and offerings to God, since everything we have comes from Him in the first place (Malachi 3:8-9; Matthew 23:23). Offerings state to God that we know where our blessings really come from.

Using Money Wisely

Is there a correct sequence for living life?

Proverbs 24:27
Prepare your outside work, make it fit for yourself in the field; and afterward build your house.

The New Living Bible translates this: "Develop your business first before building your house."
God anticipated that people could become infatuated before they had established a trade or profession. Worrying about having a good, solid job might seem somewhat mundane when you're in love, but you still need to earn a living! Get a good education, the best that you can, but don't end up being a perennial student with lots of smarts and no real wisdom.
Having good skills and good work habits will help in finding and keeping a good job. And work is a vital aspect of the training program God has for us in this life. See also our lessons on "Job Satisfaction and the Value of Work" and "Dealing With Unemployment."
What should we do to avoid money problems? How can we make sure we spend our money correctly?

Proverbs 22:3
A prudent man foresees evil and hides himself, but the simple pass on and are punished.
James 1:5
If any of you lacks wisdom, let him ask of God, who gives to all liberally and without reproach, and it will be given to him.

A major part of financial wisdom involves planning. Have a budget and follow it. We publish a practical and helpful booklet titled Managing Your Finances that will help you begin to formulate your own personal plan or budget. Seeking wisdom from God, His Bible and wise counselors can help us avoid problems or map out a way through those problems.
Does God encourage saving?

Proverbs 13:22
A good man leaves an inheritance to his children's children, but the wealth of the sinner is stored up for the righteous.

Saving for a rainy day (Proverbs 6:6-11) and providing an inheritance are two things for which God encourages us to save money.
What do we need to do to improve our financial situation and prepare for the future?

Proverbs 27:23-27
Be diligent to know the state of your flocks, and attend to your herds; for riches are not forever, nor does a crown endure to all generations.
When the hay is removed, and the tender grass shows itself, and the herbs of the mountains are gathered in, the lambs will provide your clothing, and the goats the price of a field; you shall have enough goats' milk for your food, for the food of your household, and the nourishment of your maidservants.

God encourages us to be diligent in our work and in attending to our personal property and financial situation. When we do, our fleeting life will not become a mad scramble to meet our needs in the retirement years.
What are some specific financial steps to take to avoid problems?

Romans 13:1-2, 6
Let every soul be subject to the governing authorities. For there is no authority except from God, and the authorities that exist are appointed by God.
Therefore whoever resists the authority resists the ordinance of God, and those who resist will bring judgment on themselves...
For because of this you also pay taxes, for they are God's ministers attending continually to this very thing.
Exodus 21:33-34
"And if a man opens a pit, or if a man digs a pit and does not cover it, and an ox or a donkey falls in it, the owner of the pit shall make it good; he shall give money to their owner, but the dead animal shall be his."

God expects us to pay taxes and obey the laws of the land we live in. We should also work hard to avoid accidents (usually involving cars, not oxen, today). But it is also wise, and often required, to have insurance in case of accidents. Insurance is also a cost that proves its value should you somehow run afoul of a litigious person who intends to sue you for everything you've got.

Avoiding Pitfalls

What does the Bible say about debt and credit?

Proverbs 22:7
The rich rules over the poor, and the borrower is servant to the lender.

Why does God state that "the borrower is servant to the lender"? Because it is simply true! Become frugal and ignore the pleas on TV that state, "You owe it to yourself!" You will end up owing everybody who talks you into believing that lie. If you don't need it, don't buy it. If you do need it, look for a sale. Sometimes, like waiting 15 minutes after a meal to have dessert, you find you don't really want it at all.
What is a credit card? A device that unlocks your personal wealth and gives it to others. Okay, most people in the Western world need at least one credit card to rent a car or establish a solid financial history. Credit cards can also be helpful to cover short-term costs for a legitimate emergency. But do not ever think that the company who gave you the credit card has your best interest at heart. Unless it is the interest you will pay!
If you are in debt, make a plan for getting out of debt as quickly as possible. Managing Your Finances has practical information on paying off credit-card debt, avoiding debt, a "buying self-test" and a sidebar on "credit counseling services."
Can money can be a test?

Luke 12:16-21
Then He spoke a parable to them, saying: "The ground of a certain rich man yielded plentifully.
"And he thought within himself, saying, 'What shall I do, since I have no room to store my crops?'
"So he said, 'I will do this: I will pull down my barns and build greater, and there I will store all my crops and my goods.
"'And I will say to my soul, "Soul, you have many goods laid up for many years; take your ease; eat, drink, and be merry."'
"But God said to him, 'Fool! This night your soul will be required of you; then whose will those things be which you have provided?'
"So is he who lays up treasure for himself, and is not rich toward God."

In this parable the person obviously was successful, but instead of thanking God for such a blessing and sharing it appropriately with others, he chose to really protect his investment like Fort Knox. God saw his plan and changed it by simply requiring that man's life that night.
All we have said about planning and even saving is true, but if it is all only for self, as this man's plan was, it can be all for naught. "One's life does not consist in the abundance of the things he possesses" (Luke 12:15).
What is it that people really want that money can't buy?

Philippians 4:6-7
Be anxious for nothing, but in everything by prayer and supplication, with thanksgiving, let your requests be made known to God; and the peace of God, which surpasses all understanding, will guard your hearts and minds through Christ Jesus.

Our consumer culture emphasizes what we don't have, but God wants us to recognize and be content with what we do have (Philippians 4:11-13). Being content, thankful and reliant on God will help us to have peace of mind. And isn't peace what people really want? You can have peace of mind and satisfaction that you have lived your life as God intended.
If we seek God's Kingdom first and foremost and if we diligently search God's Word daily, asking God to help us understand His truth, then we will be given resources now, brimful and overflowing, and eternal life later.
That is certainly more than money can buy.

Apply Now

There is much more to this subject than we could cover in this lesson. Our free booklet Managing Your Finances gives even more practical information that can really help. Click on the link to read, download or order a printed copy now.
Please especially read the practical and helpful chapter "Keys to Successful Money Management" and use the accompanying charts, "Determining Your Net Worth" and "Monthly Income and Expense Worksheet," to help you plan and manage your budget. Even if you have never planned a budget before, these tools can help make it simple and effective.
Also, if you are having money problems, then let our heavenly Father know about it now. Yes, He already knows, but He appreciates hearing your sincere prayer. And don't reject His response! Humbly work at what you can until your plans for financial success begin to pay off.
Questions about this lesson? Feedback about this lesson?
Related Resources:
Managing Your Finances
Managing Your Finances in Tough Times: Five Steps You Can Take
Five Steps to Teach Your Children Money Management
How can I avoid credit card traps and eliminate debt problems?
What can I do to increase my job security in an uncertain job market?
Successful Failure
Getting Control of Your Money
The Debt Trap: How Do I Get Free?
Will Global Economic Turmoil Precede Jesus Christ's Return?
Your Best Investment for Financial Security

Germany Conquering Europe?

From http://el-paso.ucg.org/  or call 1-888-886-8632.


Germany Conquering Europe?




article by Tom Robinson





It’s not every day that you open a major British newspaper and read a headline like this: “Rise of the Fourth Reich, How Germany Is Using the Financial Crisis to Conquer Europe” (Simon Heffer, Daily Mail, Aug. 17, 2011). Many observers are pointing out the same thing—though typically in much less blunt terms.



Underwriting the bailouts of eurozone members, Germany is demanding austerity measures and increased control: “There was forceful talk of Eurozone countries being coerced into balancing their budgets and reducing their debt through what [German Chancellor Angela] Merkel and [French President Nicolas] Sarkozy called a ‘true European economic government movement’ made up of all the heads of state and led, initially, by the EU President Herman Van Rompuy. . . If such a plan succeeded it would make Europe effectively a German empire, with non-Eurozone countries such as Britain on the sidelines” (ibid.).



For eurozone members, “this would entail a loss of sovereignty not seen in those countries since many were under the jackboot of the Third Reich 70 years ago. For be in no doubt what fiscal union means: it is one economic policy, one taxation system, one social security system, one debt, one economy, one finance minister. And all of the above would be German” (ibid.).



Strong sentiments but, as Bible prophecy reveals, Europe is indeed in the process of becoming a new German-led empire. It will be the last in a series of prophesied revivals in Europe of the Roman Empire (see the March-April 2010 issue of The Good News to learn more). And this final revival will fall with the return of Christ. Stay tuned to events in Europe and the Middle East (Source: Daily Mail).

.

"Will the Euro Collapse?"

From http://el-paso.ucg.org/  or call 1-888-886-8632.

"Will the Euro Collapse?"

article by Good News Editor





Some great factor - quite possibly the economic crisis that is increasingly shaping up in Europe - will force the transformation of the European Union into a new, more tightly integrated and powerful alliance.







Source: Photos.comNewsweek recently reported: "Mayhem in the euro zone is a major contributor to the international financial crisis. The immediate cause may be reckless policies pursued by governments and banks, but the institutional structure of the European Monetary Union is the stubborn root of the problem" (John Eatwell, "Euro Vision," Sept. 5, 2011).



The magazine article went on to ask: "Can the Europeans build the necessary institutions to run an effective monetary union—institutions that took 100 years, a civil war and a Great Depression to build in the United States? Or will the euro collapse?"



Three days later the Financial Times published an article stating, "Angela Merkel, German chancellor, declared on Wednesday that 'the euro will not fail'" ("Merkel Promises Euro 'Will Not Fail,' Sept. 8, 2011). It continued with the Chancellor's explanation that "Germany would continue to demand drastic debt reduction from its eurozone partners in exchange for providing them with financial guarantees."



Yet Merkel faces a great deal of opposition from the greater German ruling intelligentsia. The International Herald Tribune observed that "the euro zone's debt crisis gets messier, and Germany, the euro's self-styled guardian, is playing a large role in magnifying the uncertainty.



"Despite repeated pledges by Chancellor Angela Merkel to keep Europe together, the cacophony of dissent within her country is becoming almost deafening. That is casting fresh doubt—justified or not—over the nation's commitment to the euro" ("Dissent Adds to Euro Zone Uncertainty in Germany," Sept. 12, 2011).



Financial commentator Thorold Barker of The Wall Street Journal asked, "What is the future of the euro if old hands from Germany's Bundesbank have lost faith in the institution charged with overseeing the currency?" ("Stark Signal for the Euro," Sept. 12, 2011).



One key person has resigned from the European Central Bank apparently because of the prospect of further decisions like the purchase of Italian and Spanish sovereign bonds. The Journal article concluded with this stark assessment: "Even when compared with weak currencies like the dollar, the euro's future as a store of value looks bleak."



Still, many seasoned observers consider scrapping the eurozone at this stage highly unlikely because they believe an economic catastrophe would ensue for Europe. One recalls the Germany of the early 1930s, when economic conditions were so bad that a wheelbarrow full of German marks would purchase just one pound of butter. So much has been invested in monetary and human resources that it's considered foolhardy to turn back because of the current crisis!



But catastrophic occurrences are clearly possible, if not likely, in this world of unstable and uncertain economics and politics. As Time magazine somewhat counterintuitively declared earlier this year: "Out of times of chaos and uncertainty can come a world order that is strong and vital. It happened in Europe centuries ago" (Parag Khanna, "For a New Renaissance," Jan. 31, 2011).



From the biblical point of view, this semi-prophetic declaration certainly has been accurate a number of times in centuries past. Parts of Europe are in economic travail now, but make no mistake: Europe is indeed in the process of becoming a great superpower empire, with Germany in the forefront.

Some great factor—quite possibly the economic crisis that is increasingly shaping up in Europe—will force the transformation of the European Union into a new, more tightly integrated and powerful alliance. It will be the last in a series of revivals of the old Roman Empire foretold in Bible prophecy. To understand more, request or download our free booklets The Book of Revelation Unveiled and Are We Living in the Time of the End?

.

European and American Debt: No Easy Way Out

From http://el-paso.ucg.org/  or call 1-888-886-8632.

European and American Debt: No Easy Way Out

article by Good News Editor





The huge debt problems in Europe and the Unites States are creating enormous problems on the world geopolitical scene.







Source: Photos.comFinancial Times columnist Gillian Tett declared in FT Magazine, a supplement to the weekend edition of the newspaper: "Another week, another bout of wailing about global debt woes. In Europe, there is panic about the finances of places such as Italy or Greece. In America, the US debt headache gets ever worse. And, on a more mundane level, millions of people (like me) have just returned from holiday feeling uneasy about their next credit card bill" ("Debt: It's Back to the Future," Sept. 10-11, 2011).



The lead editorial in the Sept. 12, 2011, International Herald Tribune took Europe to task over its management of the eurozone debt. It stated: "Europe's leaders believe they can stave off economic disaster without taking real action. They keep pretending that they will not have to ask taxpayers to help shore up fragile banks . . . and that Europe can continue to reap the benefits of monetary union without the shared responsibilities of greater fiscal union.



"No one else believes this—not credit markets, which have bid up interest rates on sovereign debt; not the International Monetary Fund, which has warned repeatedly that major banks appear undercapitalized; and not the Organization for Economic Cooperation and Development, which last week forecast negative growth in the coming quarter for Germany, France and Italy, the euro zone's three biggest economies.



"The immediate fear is that one or more major European banks may fail. Confidence is plummeting because they have large holdings of Greek, Spanish and Italian bonds. A major bank failure would damage America's economy as well—which helps explain the urgent pleas from Washington last week for Europe to come up with a strategy for recovery and growth" ("Europe's Fiscal Fantasies," emphasis added throughout).



Desmond Lachman, resident fellow of the American Enterprise Institute, wrote in The Wall Street Journal about the financial crisis in Europe possibly diminishing President Barack Obama's reelection chances. The U.S. financial system suffers from "massive exposure to the European banks . . . of over a trillion dollars—or roughly 45% of money markets' overall assets" ("The Euro's Problems Are America's Too," Sept. 9-11, 2011). Lachman fears Greece will default on its sovereign debt before year's end.



He also stated: "Judging by recent events, the euro zone's end-game may not be far off. Greece's economic and fiscal reforms appear to be seriously off track, and the debt crisis has now spread from Greece, Portugal and Ireland to Spain and Italy. These latter two countries are aptly described as being both too big to fail and too big to bail."



These huge debt problems are creating enormous problems on the world geopolitical scene. At this point no one can say with certainty how it will all shake out. But while an individual realistically can do nothing about these great problems, as an individual you can still apply time-tested biblical principles to your personal life.



If you are in debt, or just want to exercise better financial control over your economic affairs, request or download for our free booklet Managing Your Finances.



A companion booklet, Making Life Work, expands these biblical principles to subjects such as "Finding Success in Your Job and Career." These two publications work well together to bring the Bible into the problem-solving aspects of your life.

.

The World's Financial Turmoil: What Are the Root Causes?

From http://el-paso.ucg.org/  or call 1-888-886-8632.

The World's Financial Turmoil: What Are the Root Causes?

article by Ewin Barnett





Nothing has dominated the news over the last few years like the economic crises still battering many nations. What, fundamentally, is the problem? Let's examine some financial basics from a biblical perspective.







Our desire to live beyond our individual and collective means has enticed us to engage in individual and collective coveting.



Source: iStockphotoRegardless of where they live, nearly everyone has taken a hit in the wallet due to rising prices or rising taxes, with more likely on the horizon—not to mention budget crises, staggering debt and unemployment problems that threaten more and more governments and citizens alike.



What's at the core of so many of these problems? Let's look at some basic realities about economics to gain a better understanding of the world's financial turmoil.



Economics is about behavior and choices

All economic interaction springs from human beings expressing wants and needs by deliberate action to improve their circumstances.



At the heart of economic decisions are our limitations in terms of resources and mortal time constraints. How we allocate and prioritize resources reflects our thoughts, appetites and values. Thus, economics is far more about our behavior and choices than it is about money.



Jesus said that out of the abundance of one's heart his mouth speaks (Luke:6:45A good man out of the good treasure of his heart bringeth forth that which is good; and an evil man out of the evil treasure of his heart bringeth forth that which is evil: for of the abundance of the heart his mouth speaketh.)—a person's words reflecting the values that motivate his thoughts. Similarly, we could say that out of the abundance of one's heart his wallet speaks, as people use money for what matters to them.



Respected economist Carl Menger opened his 1871 book Principles of Economics with the statement, "All things are subject to the law of cause and effect." This parallels Scripture, which is full of spiritual cause and effect, such as in the blessings and curses of Deuteronomy 28 and the fact that we reap what we sow (Galatians:6:7Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap.). Our behavior and choices always have spiritual consequences. They often have economic consequences as well.



How is wealth created?

From man's beginnings, people have grown and made things. They harvested fish and game and raised domesticated animals. They extracted minerals from the earth. They created works of art. While people have many different preferences, the things we value make up our wealth. Some of our wealth is in the form of our home, our furnishings or other possessions. Our wealth also includes our job skills and ability to earn a living. Some forms of wealth are readily convertible into money; others are not.



A wonderful place to see many of these forms of wealth creation is in the praises for the resourceful and hardworking wife in Proverbs:31:10-31[10]Who can find a virtuous woman? for her price is far above rubies.[11]The heart of her husband doth safely trust in her, so that he shall have no need of spoil.[12]She will do him good and not evil all the days of her life.[13]She seeketh wool, and flax, and worketh willingly with her hands.[14]She is like the merchants' ships; she bringeth her food from afar.[15]She riseth also while it is yet night, and giveth meat to her household, and a portion to her maidens.[16]She considereth a field, and buyeth it: with the fruit of her hands she planteth a vineyard.[17]She girdeth her loins with strength, and strengtheneth her arms.[18]She perceiveth that her merchandise is good: her candle goeth not out by night.[19]She layeth her hands to the spindle, and her hands hold the distaff.[20]She stretcheth out her hand to the poor; yea, she reacheth forth her hands to the needy.[21]She is not afraid of the snow for her household: for all her household are clothed with scarlet.[22]She maketh herself coverings of tapestry; her clothing is silk and purple.[23]Her husband is known in the gates, when he sitteth among the elders of the land.[24]She maketh fine linen, and selleth it; and delivereth girdles unto the merchant.[25]Strength and honour are her clothing; and she shall rejoice in time to come.[26]She openeth her mouth with wisdom; and in her tongue is the law of kindness.[27]She looketh well to the ways of her household, and eateth not the bread of idleness.[28]Her children arise up, and call her blessed; her husband also, and he praiseth her.[29]Many daughters have done virtuously, but thou excellest them all.[30]Favour is deceitful, and beauty is vain: but a woman that feareth the LORD, she shall be praised.[31]Give her of the fruit of her hands; and let her own works praise her in the gates.. While this wife has many skills, carpentry is not listed. We may suppose that when she expanded her sewing room, she hired carpenters. Yet those carpenters might have chosen to hire a blacksmith for something made out of iron. People deciding their own occupation leads to "the division of labor," a vital factor in wealth creation.



Another factor in the creation of wealth is free exchange. In fact, free exchange is the only form of economic interaction through which the wealth of all parties is increased. Free exchange can be seen in many of the parables of Jesus, such as that of the pearl of great price (Matthew:13:45-46[45]Again, the kingdom of heaven is like unto a merchant man, seeking goodly pearls:[46]Who, when he had found one pearl of great price, went and sold all that he had, and bought it.).



The last main factor in wealth creation is savings. Wealth used to purchase new equipment or to start a new business can only come from what people have saved. The greater the savings, the more wealth is available for capital investments, resulting in higher worker productivity and new opportunities to create more wealth.



Of course, total wealth is increased only by activity that produces more wealth than it consumes. And we need to realize that wealth and money are not exactly the same. Indeed, confusion on that point is one of the causes of the present financial crisis.



That crisis illustrates that wealth can also be wrongly acquired by sinful means—through taking from others, whether by violence, coercion, fraud or dishonesty perpetrated by private individuals or government.



The role of God in wealth is primarily in blessings—by intervening to enable earning or wealth creation in harmony with His law and by giving those who love Him clarity of vision and understanding by which they can be skilled and prudent in the conduct of their personal affairs (see Exodus:35:31And he hath filled him with the spirit of God, in wisdom, in understanding, and in knowledge, and in all manner of workmanship;; 1 Kings:4:29And God gave Solomon wisdom and understanding exceeding much, and largeness of heart, even as the sand that is on the sea shore.; Psalm:111:10The fear of the LORD is the beginning of wisdom: a good understanding have all they that do his commandments: his praise endureth for ever.; Daniel:9:22And he informed me, and talked with me, and said, O Daniel, I am now come forth to give thee skill and understanding.). While God wants those who love him to prosper, He is focused on our spiritual wealth far more than our material wealth (Hebrews:11:24-26[24]By faith Moses, when he was come to years, refused to be called the son of Pharaoh's daughter;[25]Choosing rather to suffer affliction with the people of God, than to enjoy the pleasures of sin for a season;[26]Esteeming the reproach of Christ greater riches than the treasures in Egypt: for he had respect unto the recompence of the reward.).



God also decrees the rightful possession of wealth, placing such importance on private property that He directly protects it in two of the Ten Commandments—the Eighth, which forbids theft, and the Tenth, which forbids coveting (Exodus:20:15Thou shalt not steal., 17).



What is money?

The concept of money came about in part because it was impossible to divide a large item of value like an ox when it was bartered for something of far lesser value. Money must be easily divisible, durable and difficult to falsify. Money has three roles—a medium of exchanging value, a way of storing wealth and a unit of accounting. Again, money should not be confused with the wealth it represents.



God shows in Deuteronomy:14:23-26[23]And thou shalt eat before the LORD thy God, in the place which he shall choose to place his name there, the tithe of thy corn, of thy wine, and of thine oil, and the firstlings of thy herds and of thy flocks; that thou mayest learn to fear the LORD thy God always.[24]And if the way be too long for thee, so that thou art not able to carry it; or if the place be too far from thee, which the LORD thy God shall choose to set his name there, when the LORD thy God hath blessed thee:[25]Then shalt thou turn it into money, and bind up the money in thine hand, and shalt go unto the place which the LORD thy God shall choose:[26]And thou shalt bestow that money for whatsoever thy soul lusteth after, for oxen, or for sheep, or for wine, or for strong drink, or for whatsoever thy soul desireth: and thou shalt eat there before the LORD thy God, and thou shalt rejoice, thou, and thine household, that wealth in the form of grain or livestock can be exchanged for money, which can later be exchanged for food. Notice that the wealth is retained even though its form is changed. Today, it's common for people to keep only a fraction of their total wealth in the bank, and an even smaller fraction in the form of cash in their pocket.



When money is made of something that itself has value, such as gold or silver, the money has its own intrinsic value apart from government. Such money is acquired by exchanging value for value, and that value would be hard for any third party like government to influence or manipulate.



When the money is just a piece of paper, its value is initially determined by government decree. Of itself, a piece of paper money or a plastic card has almost no value. Electronic money doesn't even exist in physical form. For example, 10 bushels of grain is exchanged for $100 in electronic money in a bank account that exists only in a computer. There is no intrinsic value.



While money itself is subject to the law of supply and demand, because it's not used up it's not a commodity like oil or wheat. If the supply of money in circulation increases, its value declines, so it takes more of it to buy the same items. Paper money can be printed at will. The supply of electronic money can be changed with the click of a mouse button. But if gold or silver is used as money, the amount available for use cannot change rapidly or at a politician's whim.



Inflation is a form of theft

When government spends money newly created by mere decree, the wealth that money represents comes from all the existing holders of that currency by dilution of the value of their holdings. More dollars (or euros, or yen, or rubles) are chasing the same amount of goods and services. This results in rising wages and prices, an effect we call "inflation." It's actually a subtle form of theft, because the money is then worth less than it was before. And there are other consequences.



Since people place higher value on receiving something now instead of later, money has a time value. When combined with risk, this leads to the concept of interest. When people borrow money, what is really being borrowed is the wealth the money represents. The lender will only freely lend if he can expect to be repaid and to be compensated for the risk he took.



However, if over the life of the loan the money is inflated, then the borrower will be repaying with less valuable money. This works to the lender's disadvantage and the borrower's advantage. When borrowing stretches over decades, even a modest amount of inflation can destroy a substantial fraction of the wealth repaid to the lender. For example, at a 4 percent inflation rate over 20 years, $1 declines in value to 46 cents.



In Deuteronomy:25:13-15[13]Thou shalt not have in thy bag divers weights, a great and a small.[14]Thou shalt not have in thine house divers measures, a great and a small.[15]But thou shalt have a perfect and just weight, a perfect and just measure shalt thou have: that thy days may be lengthened in the land which the LORD thy God giveth thee. God instructed Israel to keep honest weights and measures. When government inflates the value of money by deliberate policy, this destroys the amount of wealth being paid in long-term contracts and loans. It is the same as having dishonest weights and measures—again, a form of stealing.



The largest amount of long-term debt is issued by governments. Government officials openly talk of printing new money with which to pay the interest on previously issued debt. But none of this money printing creates any new wealth or resources. Money printing can only induce a temporary mirage of prosperity that fades when the money printing stops.



What about prices?

Prices have two functions in an economy. They facilitate value-for-value exchange. We equate money with wealth because when we go shopping, we look at monetary prices, not prices in terms of hours worked or bushels of wheat or barrels of oil.



Prices also inform every other participant in the broader economy about the relative value of things, sending signals that help everyone adjust their own expectations and plans. They also help businesses set production levels.



Prices then allow us to easily make judgments about relative value. Should we work an extra hour or go to the movies? Is this pair of shoes a better value than that other pair?



When any third party intrudes in the economy, this distorts the signals about relative values of the myriad of goods and labor skills. These distortions cause faulty decisions and plans about possible investments. This is especially true when government intrudes in the monetary system and distorts the time value of money by manipulating interest rates. These decisions cause what prominent 20th-century economist Ludwig von Mises called malinvestment.



For example, in recent years when people thought housing was a good investment and home loans were easily available, many malinvested in a home that was bigger and more expensive than they otherwise would have purchased. In advancing its policy goal of increasing home ownership, governments also relaxed lending standards.



Many loans were granted to people with a poor credit record. This easy money allowed buyers to bid up home prices. Homebuilders saw this as a signal to build more new homes with upscale features. Building supply companies then built new factories. Investors saw these price signals as verification the economy was sound, and so on.



At some point, many realized that home-owners could not sustain the level of debt they had incurred and that many would default on their loans. This caused a cascade of signals through the U.S. economy to retract and contract. Home prices in some areas fell to almost half of what they were at the peak of malinvestment. We suffer from a boom-bust business cycle exactly because we have disconnected money from wealth.



In Luke:14:28For which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?, Jesus asked, "For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it."



Yet even when you can count the cost of a big project down to the penny, if the value of the penny changes over the life of the project, you cannot count the cost in terms of wealth. Worse, you cannot reliably anticipate if that new business or factory or apartment building will create more wealth than it consumes. This is how uncertainty and risk are introduced into private economic calculation by government manipulation of the value of money or as a result of its efforts to directly influence prices.



If erroneous price signals fool people into approving a project that diminishes their wealth, they may eventually have no wealth at all. Von Mises explained that an economy with significant levels of government intrusion was unsustainable—a pattern we have seen repeated around the world through the years.



Government intrusion at work

Governments come up with funds to spend by taxing, borrowing, or creating money. Spendable funds also come from expanding credit. This is done by allowing banks to lend out the same deposit multiple times. America's recent housing bubble was funded mainly by allowing government-related corporations, like Fannie Mae, to lend money based on corporate assets subject to dramatic market value change (in Fannie's case, home mortgages).



As of March 31, 2008, Fannie had borrowed $804 billion (short term) to buy more mortgages (mostly long term) while its stockholders provided it with only $39 billion in equity to serve as capital, a ratio of 20:1. At its peak, the ratio may have been 30:1 or worse. While such massive borrowing allows the rapid creation of new lendable funds as misleading market signals cause a malinvestment upswing, it doesn't take much of a decline on the eventual downswing to completely wipe out all corporate equity. And that is exactly what happened.



The Federal Reserve has swapped hundreds of billions of dollars' worth of low-quality bank debt and created money and money instruments like bonds for banks to hold as reserves. Bloomberg News reported on August 11, 2011, that in 2008 the Federal Reserve created a total of $1.2 trillion to lend to banks in addition to other government bailouts.



The various ways the European Central Bank is bailing out banks in Greece and other member countries are all a form of money printing—leading to dilution of the value of the euros held by others. Experts fear that this rescue program is too small for anticipated future bailouts. Economists who follow in the footsteps of Menger and Von Mises warn that old debt cannot be paid off by new debt—that any proposed solution that involves the issuing of more debt will eventually fail.



Any expansion of credit by a central bank results in the creation of new debt that carries an obligation to pay interest. When a government attempts to stimulate an economy by inflating or borrowing to finance projects and those projects fail to produce enough economic benefit to pay their costs, the public must pay the interest. This becomes a budgetary issue when revenues are insufficient to pay for ongoing needs like defense, upkeep of roads and the care of the truly indigent.



The root causes are ultimately spiritual

Without property rights, a free market, price information that allows calculation of profit, the ability to save and invest those savings, and honest money, a growing economy is impossible. And the roots of the present financial crisis are found where these points touch God's laws.



People as individuals cannot broadly destroy property rights or distort the value of money. But governments can. Yet governments often reflect the character and values—and demands—of the peoples they represent.



James:1:14But every man is tempted, when he is drawn away of his own lust, and enticed. warns that "each one is tempted when he is drawn away by his own desires and enticed." Here are the roots of our present financial crisis. Our desire to live beyond our individual and collective means—or to require that others bail us out if we run a failing business—has enticed us to engage in individual and collective coveting.



We think we can live at the expense of others, even if government must print or borrow money to pay for it. But no one has the authority to take from others what he can provide for himself. The sin of coveting ripens into the sin of theft.



It matters not that we sanitize and legalize this through a democracy. We are told we can all be more prosperous when we spread the wealth of others around. But this does not lead to increased prosperity—except for the few beneficiaries of government favoritism.



And so we must live with the consequences of our collective behavior and choices, consequences we would have avoided had we followed God's laws individually and collectively. As Galatians:6:7Be not deceived; God is not mocked: for whatsoever a man soweth, that shall he also reap., cited up front, tells us, "Do not be deceived, God is not mocked; for whatever a man sows, that he will also reap."



As nations and individuals, we all need to repent and make sure we are following what God says when it comes to our economic choices and interaction—and humbly look to Him to deliver us from the mess we have gotten ourselves into.



To Learn More...

Would you like some sound financial guidance in dealing with your personal finances, especially in this time of financial uncertainty? We’ve prepared an important booklet, Managing Your Finances, to help you better handle your household finances and budget. Download or request your free copy today!

.

America's Debt Debacle

From http://el-paso.ucg.org/  or call 1-888-886-8632

America's Debt Debacle


article by Mike Kelley





The recent debate over raising the U.S. debt limit showed a national leadership bitterly divided over the country's priorities and how to address its debt explosion. What are the larger implications of this debacle?







Source: Photos.comMany have seen the growing gridlock in the U.S. Congress between the conservative Republicans and liberal Democrats.



That gridlock played out in a deplorable way in late July during the debate to raise the U.S. federal debt ceiling from its present $14.3 trillion to $14.6 trillion or more. The historic tradition of compromise in Congress evaporated as conservatives and liberals refused to budge from their firm positions on efforts to trim billions in federal spending over the next decade.



Each side dug in its heels as the clock neared midnight on August 2, when the Federal government would supposedly shut down if a debt ceiling compromise was not reached.



With less than a day to go before the threatened shutdown, Congress managed to agree on a deal that would raise the debt ceiling by $1 trillion immediately and an additional $1.7 trillion in four months. The increase in the debt ceiling would be offset by budget cuts over the next 10 years, a condition demanded by Congressional Republicans, while leaving the larger picture of significant budget cuts to a Congressional "super committee" of six Democrats and six Republicans.



They have until late November to develop a plan acceptable to Congress, with the alternative being automatic cuts of $1.7 trillion over the next decade. Of that amount, roughly half would come from U.S. defense spending.



Ground rules for the super committee are few—everything is on the table, including cuts to entitlement programs such as Social Security, Medicare and Medicaid. On the revenue side, the super committee could eliminate certain tax breaks to corporations and wealthy individuals, a matter Republicans refused to consider during the debt limit debate.



So just what does this mean to the United States?



What really got cut?

After all the hype and drama, it was soon apparent that this was not a big deal. Actual cuts to the 2012 Federal budget amounted to only $21-25 billion out of a budget of $3.7 trillion—a paltry 2⁄3 of 1 percent.



With the super committee idea approved, Congress was able to kick the tough choices down the road. It neither solved the debt crisis, which has ballooned to become a threat to the very viability of the U.S. government, nor helped the creation of jobs desperately needed in an American economy mired in three years of high unemployment.



However, avoiding major, immediate budget cuts probably saved a number of jobs for the time being. And some economists argued that an already feeble economic recovery could be threatened by large cuts to federal spending. The first half of 2011 marked the worst six-month economic performance since the Great Recession officially ended in June 2009.



Around the world, political and economic watchers labeled the deal "America's budget debacle." Congress demonstrated to the world a broken system that could not solve the reality of the debt crisis. To quote the famous movie line, they could not handle the truth.



But the largest of the international credit rating agencies, Standard & Poor's, did understand the truth that the United States will not address the harsh reality of its ballooning national debt. S&P promptly downgraded its rating on U.S. treasury securities from AAA to AA, the first bond rating downgrade in U.S. history. The news reverberated through the world's financial institutions, and the U.S. stock market plunged.



But, as some have pointed out, America has done this to itself!



Insignificant as the true budget cuts were, it must be pointed out that the deal was done, clearing the way for a rise in the U.S. debt ceiling from its current $14.3 trillion limit. Default was averted for the moment, which likely would have had catastrophic effects on U.S. borrowing. Future Treasury securities buyers would demand higher interest rates

to compensate for the perception that America, now the world's largest debtor, was no longer the world's safest debtor.



Stark realities no one wants to admit

So we come back to the question of what the deal means for the country.



Remember that figure noted above—only $21-25 billion cut from a $3.7 trillion budget. The compromise was only a speed bump on the road of runaway debt. The 2010 budget deficit of $1.29 trillion was the largest in U.S. history to that point, but the deficit has grown to an estimated $1.7 trillion for fiscal 2011.



Since August 2, there has been no slowdown in government borrowing. With the restraints off again, the debt quickly jumped to $14.7 trillion as of Sept. 9. CNN pointed out that the debt is forecast to burgeon to more than $23 trillion by fiscal 2021, and keep rising thereafter.



Interest on that debt will also grow. The United States was on the hook for more than $383 billion in interest on the debt in fiscal 2009, which grew to more than $413 billion in fiscal 2010, and is projected to be $434 billion for fiscal 2011.



At the current rate of increase, and with somewhat higher interest rates as a result of the credit rating downgrade, that annual interest could easily amount to more than $700 billion by 2019. Within a few years, then, the interest on the debt alone could equal or surpass the current U.S. defense budget of about $665 billion.



Burgeoning debt to force crippling choices

All this has major implications for America's future. It means saddling future generations of Americans with ongoing debt payments that have no end in sight. By the end of this decade the vast majority of federal tax revenue is projected to be eaten up by interest on the debt and payouts to Medicare, Medicaid and Social Security. Little would be left for vital national defense and hundreds of other areas of the federal government.



The debt burden also reduces the ability of the nation to make future investments in infrastructure, energy and other crucial physical needs. America achieved the prosperity of the post–World War II era in part because it invested in interstate highways, modern airports and a growing electrical grid. But this infrastructure is crumbling.



For more than a decade, the American Society of Civil Engineers has sounded the alarm on our deteriorating infrastructure. By its estimates, $2.2 trillion is needed to fix America's infrastructure. But any funds to address these urgent needs would have to be borrowed, only worsening the debt problem.



Also curtailed is the nation's ability to respond to the rash of natural disasters that have struck the United States this year. Like a plague, disasters such as Hurricane Irene and a destructive wave of tornados in April and May swept across the land, taking hundreds of lives and causing hundreds of billions of dollars in damages. September saw wildfires raging throughout Texas, parched by the worst drought in nearly a century. But the Federal Emergency Management Agency (FEMA) is nearly broke, its cash reserves less than $800 million as of early September 2011.



A deeply troubled future outlook

A growing worldwide fear of American default has killed the confidence of millions of investors. The value of stock portfolios has plummeted, with new two-year lows in both the Dow Jones and S&P 500 stock averages.



Just when the economy desperately needs the natural stimulus of consumer spending, millions of consumers are closing their wallets, too fearful to spend and apprehensive about the future. The phrase "double-dip recession" has become all too frequently used of late.



Three years after the autumn 2008 mortgage meltdown, the housing market continues to limp along as builders refuse to start new homes in markets still flooded with foreclosures. Banks hold billions in cash but are leery of making new mortgage loans. With new home construction at depressed levels, the economic ripple effect has also reduced demand for new furniture and other household items.



Seniors of retirement age and baby boomers looking to retire soon are worried over the growing chorus of influential voices that has zeroed in on entitlement reform as part of the answer to America's burgeoning debt.



Social Security, enacted in the 1930s, is widely seen as a retirement plan by millions who have no other source of income once they stop working. It certainly can be argued that people who have worked all their lives and paid into the Social Security system should get the benefits they have paid for. But the consensus is growing that major adjustments to these programs are inevitable if the federal government is to take a serious stand on reducing the runaway debt.



In short, the debt deal averted disaster for the moment, but nothing more. Mohamed El-Erian, who heads the gigantic bond fund Pimco, gave the deal a grade between an incomplete and failure. "Other than eliminating default risk emanating from a self-manufactured crisis, there is nothing good about America's debt ceiling debacle," he wrote (quoted by Fareed Zakaria, "The Debt Deal's Failure," Time, Aug. 4, 2011).



No good choices—only bad and worse

Economists are noted for their disagreements over economic policy, but nearly all agree that the nation now faces a simple dilemma. Cut taxes, and many government employees and those who rely on government contracts could be out of work. Raise spending in another round of Keynesian-type economic stimulus, and the national debt balloons even more. But major cuts in federal outlays would increase hardship for the millions who rely on government aid programs, possibly exacerbate the unemployment problem and potentially drive the economy back into recession. The choices are painful.



But perhaps more troubling than these stark choices is the diminishing of America in the eyes of the world.



Fareed Zakaria, originally from India, served as the managing editor of Foreign Affairs and editor of Newsweek International before becoming editor-at-large for Time magazine and hosting a CNN program covering domestic and international affairs. In the column cited above, he pointed out the damage America suffered abroad in the recent circus that masqueraded as public policy:



"The world once looked at America with awe as we built the interstate highway system, created the best public education in the world, put a man on the moon and invested in the frontiers of knowledge. That is not how the world sees America today.



"People watched what happened over the past month and could not comprehend it. We have taken something that the world never doubted—the credibility of the U.S.—and put it into question. From now on, every time the debt ceiling has to be debated, the world will wonder, Will America honor its commitments? Will it keep its word? Will the system break down? We have taken our most precious resource, the trust of the world, and gambled with it."



"Is something fundamentally wrong with America?"

Across America and around the world, more and more voices echo Zakaria. In The Global Post, an international news blog, writer Phillip Balboni poses the question, "Is something fundamentally wrong with America?"



He goes on to say: "America has a deep political malaise. Seldom before in the nation's history have the two main parties been so bitterly divided and so unable to find common ground in the national interest. Average Americans are worried and deeply frustrated. Many are angry."



Your Bible, believe it or not, has something to say about America's economic condition. Take a few minutes and turn to Leviticus 26 and Deuteronomy 28, known as the "blessings and curses" chapters. Notice especially Deuteronomy:28:43-44[43]The stranger that is within thee shall get up above thee very high; and thou shalt come down very low.[44]He shall lend to thee, and thou shalt not lend to him: he shall be the head, and thou shalt be the tail. and ponder this fact: America has gone from the world's leading lending nation to the greatest debtor nation in human history, all in the space of less than 20 years. Do the verses here seem to read exactly like our situation today?



The warnings in these chapters describe a series of curses that read remarkably like our national headlines—curses of agricultural failures, disease, war, drought, military failure, mental illness, emotional distress, confusion, exploding debt and finally national collapse. It's a sobering and terrifying glimpse into the future if we do not wake up, repent of our many sins and turn to the God who made us and so abundantly blessed the nation for so many years.



History shows that the crushing weight of government debt can bring about national decline and downfall. The Decline and Fall of the Roman Empire, by Edward Gibbon, has for nearly two centuries been the classic work on the why Rome fell. Gibbon cited excessive taxation and mounting government debt as a major cause of the empire's collapse.



Beyond disaster, a bright future

The recent debt debacle in the U.S. Congress failed to solve the problem of America's growing debt and all it portends. But the good news is that there is hope. While America's leaders have created these problems and now have utterly failed to solve them, you have a choice in the decisions you make in your life.



Moreover, unbelievable as it may sound to those who read today's headlines, a new world economic order is coming. It's not one that people or nations must work to bring about—in fact, it would be impossible for human beings to bring it to pass.



This magazine has for years taught the true identity of America, Britain, Canada, Australia and other major English-speaking countries. This vital key in understanding just how things will worsen before finally working out positively in the end is revealed in our booklet The United States and Britain in Bible Prophecy. Request your free copy or download it from our website.



The good news is that a new economic world order is on its way, and it's like nothing you have imagined. Regardless of whether or not the United States gets a handle on its debt and resulting economic malaise, you can ensure your place in the exciting, prosperous world to come!



To Learn More...

Is the United States really mentioned in Bible prophecy? While Bible prophecy mentions several rather insignificant nations by name, are major nations left out? Or are they identified in ways that few people understand? You need to know! Be sure to request or download your free copy of The United States and Britain in Bible Prophecy today!

.

A Buying Self-Test

From http://el-paso.ucg.org/  or call 1-888-886-8632.

A Buying Self-Test


Before committing to a major purchase, give yourself this self-test to determine whether your purchase would be a wise decision.



1. Do I really need this?

2. Do I need this now?

3. Can I get a better price elsewhere?

4. If this is a bargain, is it a current or suitable model?

5. Can I get by with a less expensive version or model of the product?

6. Is the item of good quality?

7. Will I still be pleased with my purchase in 30 days?



Answering these questions will help you decide whether this is an impulse purchase or one for which you have done sufficient research.

Why the Euro Crisis is My Crisis-and Maybe Yours Too

From http://el-paso.ucg.org/  or call 1-888-886-8632.

Why the Euro Crisis is My Crisis-and Maybe Yours Too




by Darris McNeely

Submitted November 4, 2011





Source: Photos.com"So why aren't people out buying homes and at least looking at homes for sale", I asked my real estate agent with only a small hint of frustration. This was the second phone call in a month telling me I should consider lowering the asking price for my home. I am relocating to a new assignment and need the cash to buy a home when I move. We have had no action on our sale. No one is looking. The local real estate market is frozen.



"Fear" was his reply, "people are living in fear today".



It's true. People are afraid they might lose their jobs and afraid the United States might dip back into a second recession. They fear Congress will not come up with a viable deficit reduction plan. They fear the unknown problem of Europe's ongoing crisis. They frankly fear there is a lack of political will and leadership to produce effective solutions to our economic problems. This fear is keeping them from making even sound some sound financial decisions.



While applying for a mortgage loan yesterday the lending officer I am working with gave her take on the current housing crisis. "First time home buyers are afraid to step into the market and buy a home even when it makes economic sense to buy rather than rent" That's true too. Interest rates are at historic lows making monthly housing payments for modest homes very affordable–much cheaper than rent. Now I know home ownership is not for everyone but today there are some bargains in today's housing market that could pay future dividends. But if fear rules, then nothing happens.



Fear may be the biggest part of our dilemma. We have some big problems facing us but they are not insolvable. With some moral, ethical and political will the United States and other world economies could climb out of the sinkhole of economic malfeasance that has brought us to the brink. But if fear locks up the mind and will then it will be very difficult to work our way to a solution. Fear immobilizes and closes down possibility and opportunity. Like him or not, Franklin Roosevelt hit upon the core of the issue when he said, "we have nothing to fear but fear itself".



Folks, there is a lot of fear on the today's street.



Since I am buying a home out of state I am working with another agent at our destination. She is like many who are looking for hopeful news in each days economic report. Like us, she has seen many years of good times and believes the good times will return. Most of us think the same way, we have no real choice. And I do hope we soon see the end of rough times and a stabilizing in world markets that will cause the numbers to go up.



I look at Europe's economic problem and understand how it impacts Main Street in America. American Banks are exposed to Greek, Italian and Spanish debt. If any one of those nations default on their debt it could bring down another large American financial institution. The ripple effect through the economy is unknown. This keeps banks from making loans out of fear, even as they sit on billions of dollars in cash. And that locks up capital and expansion of business which in turn keeps jobs from growing and puts in jeopardy existing jobs. And that explains why a lot of people are afraid to step out in a large long term commitment like a home mortgage. And so, Europe's crisis becomes my minor "crisis" as I wait for someone to buy me out of my existing home.



But life goes on and we have to make decisions. I am reminded of how the prophet Jeremiah was instructed by God to buy a field in Jerusalem as the city was about to fall to the Babylonians and the citizens killed and led off in captivity. It didn't make economic sense. Buying real estate in the midst of an entire cultural collapse is pretty risky if not outright stupid. But Jeremiah bought the field from his cousin and filed the deed in a clay jar in the ground. God said, "houses and fields and vineyards shall be possessed again in this land." (Jeremiah:32:15For thus saith the LORD of hosts, the God of Israel; Houses and fields and vineyards shall be possessed again in this land.)



Talk about hope and confidence–there it is. Jeremiah made a decision and put down his money based on confidence in God. He made a statement to live, to move forward in hope without fear. With this action he said there is a future. Jeremiah was a pretty positive man when you scrape away the outer anxiety we sometimes see.



The world economy is going through some rough waters right now. America's leadership role is changing. Europe is seeing its biggest crisis since going to the single currency more than ten years ago. But Europe will hold together and the Euro will remain in place. They have too much invested to see it all collapse. Too much history is pushing Europe toward a solution that will bring them to an even larger role in world affairs. Don't count them out.



And don't count America down and out just yet. For reasons most do not understand, America still plays the key military, economic and political role in world. God is bringing this world to a moment of decision. Keep your eyes and heart focused on Him. Put your hope and confidence in Him and keep fear at bay

The Growing Economic Crisis: A Biblical Perspective

From http://www.el-paso.ucg.org/

The Growing Economic Crisis: A Biblical Perspective
The recent turmoil in U.S. financial markets has drawn the attention of the entire world. What's behind the crisis? Where could it lead? A look from a biblical perspective helps us understand.
by Mario Seiglie
A look at the financial news reveals a world full of economic difficulties. Most of us are—or will be—affected in some way.
A growing crisis in U.S. financial markets led the presidential administration to propose and Congress to pass a $700 billion intervention to prevent an economic meltdown. On Sept. 19, 2008, President George W. Bush warned: "This is a pivotal moment for America's economy . . . Given the precarious state of today's financial markets . . . government intervention is not only warranted, it is essential."
When such difficulties arise, it's good to review biblical principles. Let's examine aspects of Scripture, history and prophecy that can help us gain some proper perspective.
Greed: the root of the crisis
The magazine BusinessWeek stated: "What brought down the markets? Bad choices, greed—and never learning from past mistakes" (Paul Barrett, "Wall Street Staggers," Sept. 17, 2008, online edition).
The Bible describes greed as a sin and talks about what happens when it takes over. It's well summarized in the famous quote from the movie Wall Street where the lead character Gordon Gekko says: "Greed is right. Greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed is good."
This fictional person was based in part on the financier Ivan Boesky, who once said in a university commencement address: "I think greed is healthy. You can be greedy and still feel good about yourself." A few months later he ended up in jail for insider trading, paying a $100 million fine and banned from the stock market.
Jesus warned about greed—the lust for money or other things—in Luke 12:15: "Watch out and guard yourselves from every kind of greed; because a person's true life is not made up of the things he owns, no matter how rich he may be" (Today's English Version).
The Bible also says: "People who want to be rich fall into all sorts of temptations and traps. They are caught by foolish and harmful desires that drag them down and destroy them. The love of money causes all kinds of trouble. Some people want money so much that they have given up their faith and caused themselves a lot of pain" (1 Timothy 6:6-10, Contemporary English Version). Sadly, in today's interconnected world, the greed of many can lead to financial pain for everyone.
Let's divide this complex topic into three parts to try to clarify some of the confusion.
Why do things like this happen?
Simply put, from time to time the financial world falls victim to unbridled greed—the unchecked lust to make money in spite of great risks. True perspective is lost, as when a gambler on a roll thinks his luck will last forever. Eventually his luck runs out.
Psychologist Erich Fromm warned, "Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction."
The Roman poet Aurelius Clemens Prudentius said around 1,600 years ago, "Hunger for gold is made greater as more gold is acquired." His words are just as true today.
A Sept. 18, 2008, article in The Washington Post, "Scrambling to Clean up a Category 4 Financial Storm," provided an overview of the nation's complex financial crisis:
"What is really going on, at the most fundamental level, is that the United States is in the process of being forced by its foreign creditors to begin living within its means . . . For most of the past decade, foreigners seemed only too willing to provide U.S. households, corporations and governments all the cheap money they wanted—and Americans were only too happy to take them up on their offer.
"The cheap money was used by households to buy houses, cars and college educations, along with more health care, extra vacations and all manner of consumer goods. Governments used the cheap money to pay for services and benefits that citizens were not willing to pay for with higher taxes. And corporations and investment vehicles—hedge funds, private-equity funds and real estate investment trusts—used the cheap financing to buy real estate and other companies.
"Two important things happened as a result of the availability of all this cheap credit. The first was that the price of residential and commercial real estate, corporate takeover targets and the stock of technology companies began to rise. The faster they rose, the more that investors were interested in buying, driving the prices even higher . . . Before long, these markets could best be characterized as classic bubbles . . .
"Suddenly, in early 2007, something important happened: Foreigners began to lose their appetite for financing much of this activity . . . What should have happened at that point was that the interest rate on those loans should have increased, demand for that kind of borrowing should have decreased, the price of real estate and corporate stocks should have leveled off, takeover activity should have slowed and companies should have begun to cut back on expansion.
"Mostly, however, that didn't happen. Instead, the Wall Street banks that originally made these loans before selling them off in pieces decided to try to keep the good times rolling—and, significantly, keep the lucrative underwriting fees pouring in. Some used their own 'AAA' credit ratings to borrow more money and keep the loans on their own balance sheets or those of 'structured investment vehicles' they created to hide these new liabilities from regulators and investors.
"Others went back to the foreigners and offered to insure those now-unwanted takeover loans and asset-backed securities against credit losses . . .
"As a result, when the inevitable crash finally came, it wasn't only those unsuspecting foreigners who bought those leveraged loans and asset-backed securities who wound up taking the hit. It was also their creators—Bear Stearns, Merrill Lynch, Citigroup, Lehman Brothers, AIG and others—who made the mistake of doubling-down on their credit risk at the very moment they should have been cutting back.
"We are now nearing the end of the rocky process of uncovering the full extent of the credit losses of the major Wall Street banks and hedge funds. But . . . the markets have only just begun to force some financial discipline on the majority of U.S. households that relied on borrowed money to maintain their lifestyles. With nobody willing to finance those lifestyles, there are really only two choices.
"One is to turn to Uncle Sam to keep the economy and the financial system afloat. In the end, however, there is only so much the government can borrow and so much the government can do.
"The only other choice is for Americans to finally put their spending in line with their incomes and their need for long-term savings. For any one household, that sounds like a good idea. But if everyone cuts back at roughly the same time, a recession is almost inevitable . . . The inevitable second round of this financial crisis . . . still lies ahead."
What can we do?
We should first carefully analyze our own economic situation and seek sound financial advice (see, for example, "Coping With a Growing Economic Crisis,' The Good News, May-June 2008 and "Are You a Slave to Debt?" The Good News, July-August 2008). While we can hope for the best, we need to be prepared for the worst.
We also need to ask: What is our true currency, ultimately? It shouldn't be money, but faith. If we are faithful to God, He will provide. In a period of widespread famine, He fed the prophet Elijah through ravens bringing him food for many days. God can intervene in many ways to provide for His obedient and faithful servants.
As Jesus said in Matthew 6:24-33: "No one can serve two masters, for either he will hate one and love the other, or else he will attach himself to one and despise the other. You cannot serve both God and Money . . . Look at the wild birds—they neither sow, nor reap, nor gather into barns; and yet your heavenly Father feeds them! And are not you more precious than they?
". . . Do not then ask anxiously 'What can we get to eat?' or 'What can we get to drink?' or 'What can we get to wear?' All these are the things for which the nations are seeking, and your heavenly Father knows that you need them all. But first seek his Kingdom and the righteousness that he requires, and then all these things shall be added for you" (Twentieth Century New Testament).
We do not want to sound like all is doom and gloom, that the economy can't recover from its current battering. Too many people cry wolf at the first signs of crisis. It's good to remember that there has been at least one recession for each decade in recent years—roughly around 1973, 1982, 1992 and 2001. In any case, this should be a wake-up call for each of us to examine our financial situation and our faith.
Economic turmoil and Bible prophecy
Furthermore, as regular readers of The Good News magazine understand, we should keep in mind the framework of end-time prophecy whenever we consider the world scene.
The fulfillment of Bible prophecy can be compared to riding on a roller coaster—there are many ups and downs with world events, but eventually, according to the Bible, humanity will reach the end of the ride.
However, we don't know when that will be. So Christ told us we have to watch world events (Luke 21:36), and just as fig leaves come out as summer nears, so when biblical end-time events start to happen, we should be ready (Matthew 24:32-34).
Could the current financial crisis eventually lead to end-time events foretold in Scripture? No one knows, and it would be premature at this point to suggest this. Nevertheless we should carefully watch and analyze the long-term effect of this crisis, which is spreading to other countries. The Bible does indicate that the world will one day fall into great economic turmoil that will trigger a new world order centered in Europe and not the United States .
An end-time prophecy in Revelation 17:12 speaks of "ten kings who have received no kingdom as yet, but they receive authority for one hour [a brief period] as kings with the beast." Indications are that conditions will be so desperate and dramatic that these 10 rulers will give their authority to a powerful figure who, as head of a new global superpower, will bring order out of chaos.
The political and economic system of these rulers and a dominant leader described as "the beast" is called in biblical language "Babylon" (Revelation 18:2).
Why does it rise to power? In the midst of great turmoil, people will be desperate and in need of a savior figure. This leader will then take charge. He will share power with a deceiving religious leader called in Revelation "the false prophet" (Revelation 19:20). The merchants of the earth will be pleased because the system will bring security and prosperity (Revelation 18:3).
Remember Adolf Hitler's rise to power in the early 1930s? It was enabled by the economic depression in Germany at that time. Without it, there would have been no discontent to exploit, and Hitler probably would have gotten nowhere.
And what did he do when he took over? He introduced his program—a fascist system known as national socialism (the party name National Socialist being abbreviated as Nazi). Soon Hitler began to control the nation's economy and to rapidly build up its huge military, which gave people work. He also did much for the ordinary German citizen.
Of course, the future system need not follow exactly the same track, but there may be similarities.
Hope during troubling times
While the Bible prophets revealed what is coming, they did not know exactly when their prophecies would transpire. So it is today. We know what will happen in the future, but not exactly when significant end-time events will begin.
Also, in spite of the future difficulties foretold, the Bible gives us a message of hope. It tells us God's people will be protected through the coming turmoil. We read in Revelation 3:10: "Because you have kept My command to persevere, I also will keep you from the hour of trial which shall come upon the whole world, to test those who dwell on the earth. Behold, I am coming quickly! Hold fast what you have, that no one may take your crown."
Yes, our protection and our ultimate currency is our faith—our trust, obedience and love of the truth. Those who have made wealth into an idol will be devastated. But God will provide for the faithful, and He has promised not to abandon us.
Jesus Christ asked in Luke 18:8, "When the Son of Man comes, will He really find faith on the earth?" Will we remain faithful? Will we seek God in times like this? Let's develop a strong faith! For as has been said of earlier difficult days, "These are the times that try men's souls"—testing their spiritual character and faith in God. GN
Related Resources
Coping With a Growing Economic CrisisLast year was the worst year for U.S. home foreclosures since 1932, at the height of the Great Depression. The economy may be in trouble, but you can take steps to prepare for the growing downturn.
Are You a Slave to Debt?Millions have allowed themselves to become enslaved to a harsh taskmaster—debt. Are you one of those caught in this trap? What can you do to break free?
Whose Economic Plan Is Superior?In this time of U.S. presidential and vice-presidential debates, whose plan for solving the world's long term economic problems will work best?
God's Bailout Plan to Solve Permanently Our Economic ProblemsThe fundamental cause of the recent economic developments in the United States is not economic but spiritual—human nature.
America's Growing Debt CrisisThe amount of U.S. debt, federal and state combined, that has been placed by government legislation on the shoulders of every U.S. taxpayer is staggering.
The Global Economy and Jesus Christ's ReturnWhat possible connection could Christ's return have with the global marketplace?
Beyond Today: Surviving an Economic Crisis How can you get control of your life, behavior and money? The answer comes from a surprising, yet very wise source.