June 2004

If we estimated the debt of our nation, including all private, financial and government sectors -- federal, municipal, corporate, real estate, household consumers, etc. -- the total amount would exceed $37 Trillion at the time of this writing in 2004. This computes to over $124,000 for every man, woman and child. And the debt continues to soar higher!

65% ($24 trillion) of this debt has been created since 1990, a period primarily driven by debt instead of "make good things happen" productive activity.

Over recent years, the interest being paid on the national debt could have paid the cost of the entire Defense Department -- Army, Navy, Marines, Air Force and Coast Guard -- for about the same length of time. Unfortunately, that is not what happened. The money merely evaporated out of our coffers with nothing of value to show for it!

The economic instability of America has little to do with the policies of our current president. His tax relief package provided a temporary stimulus to individuals and businesses who would have otherwise been unwilling to spend or invest. Regardless, both of our major political parties have been guilty of squandering this nation's treasure.

Mismanagment of finances continues to be the primary problem we face. We need leaders who are capable of seeing the problems clearly, and who will be willing to make tough decisions like President Bush has tried to
do. Unless Congress cooperates with directives from the White House by subordinating their own personal goals for the good of the country, we
will witness the crumbling of Wall Street before 2008.

Do we worship God or money?

In the book of Matthew, chapter 6, verses 22 thru 24, we read: "The light of the body is the eye: if therefore thine eye be single, thy whole body shall be full of light. But if thine eye be evil, thy whole body shall be full of darkness. If therefore the light that is in thee be darkness, how great is that darkness! No man can serve two masters: for either he will hate the one, and love the other; or else he will hold to the one, and despise the other. Ye cannot serve God and mammon (money)."

Many generations have come and gone since America was first formed. Have the people of this great nation given their allegiance to God or money? It is rather ironic that the phrase "In God We Trust" has been proudly displayed on paper money. This declaration of faith is such an important part of our heritage as a nation that current debate regarding the removal of these words is creating confusion. In other words, if we understood the difference between God and money, there would be no argument; the phrase "In Evil We Trust" would be on our currency and the phrase "In God We Trust" would be on Bibles. (Of course, there will be no economists or politicians brave enough to endorse what I'm saying on my small web site.)

In the book of 1 Timothy, chapter 6, verses 9 thru 12, we read: "But they that will be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition. For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows. But thou, O man of God, flee these things; and follow after righteousness, godliness, faith, love, patience, meekness. Fight the good fight of faith, lay hold on eternal life, whereunto thou art also called,
and hast professed a good profession before many witnesses."

At the very heart of our economic sytem is a thing called "interest."
It is the driving force behind everything our financial institutions consider essential to their carefully laid plans. The "idea" of exchanging one man's blood for another man's wine didn't happen just by chance. The idea of "lending for a fee" has become so complex that most people of average intelligence have difficulty trying to explain whether it is a good or bad concept. Even though this practice seems like a legitmate way to do
business in our world, have we been guilty of doing anything wrong?

In the book of Exodus, chapters 22, verse 25, we read: "If thou lend money to any of my people that is poor by thee, thou shalt not be to him as an usurer (charge interest), neither shalt thou lay upon him usury."

In the book of Levi, chapter 25, verses 35 thru 37, we read: "And if thy brother be waxen poor, and fallen in decay with thee; then thou shalt relieve him: yea, though he be a stranger, or a sojourner; that he may live with thee. Take thou no usury of him, or increase: but fear thy God; that thy brother may live with thee. Thou shalt not give him thy money upon usury, nor lend him thy victuals for increase."

In the book of Deuteronomy, chapter 23, verses 19 and 20, we read:
"Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury: Unto a stranger thou mayest lend upon usury; but unto thy brother thou shalt not lend upon usury: that the LORD thy God may bless thee in all that thou settest thine hand to in the land whither thou goest to possess it."

In the book of Proverbs, chapter 28, verses 6 thru 9, we read: "Better is the poor that walketh in his uprightness, than he that is perverse in his ways, though he be rich. Whoso keepeth the law is a wise son: but he that is a companion of riotous men shameth his father. He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. He that turneth away his ear from hearing the law, even his prayer shall be abomination."

Many economists will argue that we have a collapsing economy with no possibility of repaying our national debt! Our indebtedness is greater than
the actual value of all real estate and corporate equities combined. We are insolvent! The Federal government presently borrows approximately a trillion dollars each fiscal year - more than a billion dollars each day, just to pay the interest! If European bankers called in our debt, the impact on our financial institutions would be disasterous.

If the United States gets into serious financial trouble in the near future, economic instability will be the result in every nation! Divisions within our political systems, lack of ethics within large corporations, balance of trade inequities, and diminishing productivity by low-wage workers is leading to insurmountable problems. As we move into the years 2004 through 2007, terrorist related events -- combined with sporadic natural disasters could conceivably lower the GNP as inflation begins to spiral out of control. Payment of interest on debt will soon become impossible without resorting to artificial corrections. We will see irresponsible money managers in government and in the private sector advocating excessive printing of currency as an expedient solution to difficult problems. Like it happened
in Germany before World War II, we will see money becoming useless in
the marketplace. It might take a truck full of cash just to buy gas for
vehicles and groceries for hungry tummies each week.

Concepts that make interest on loans and purchases possible has created huge gaps between certain segments of our society. While a few folks are getting richer, most of us are slipping deeper and deeper into poverty.
Money has not been printed to cover interest, so there isn't enough cash
in circulation to cover debts.

Instead of paper money back in the olden days, our ancestors were using things like shells, stones, animal skins, gold, silver, tobacco, salt -- or just about anything they believed had value. In our world of this day, economists make reference to that kind of usage as "commodity money," because it has value outside of real money. On the other hand, paper bills and coins are known as "fiat money." Basically, money has value simply because everyone agrees that it does. ("Fiat" is a Latin meaning "let it be done.")

Money for most of us who are too busy to barter
is our "substitute" that makes trading possible --
as we exchange one thing of value for another
thing of equal value in an easy way.

As most Republicans and Democrats can explain, the federal government receives income in the form of taxes. What they seldom care to explain is how they spend it when defending our country, educating our children, building our roads, supporting our Social Security systems -- and so forth. When government expenses get bigger than income, politicians are forced
to borrow money by selling U.S. Treasury bonds to private citizens as investments to the Federal Reserve and to foreigners.

Children, and irresponsible adults, often suggest printing or minting money to pay off our national debts. To the innocent among us, it seems like printing more money and putting it into circulation would make it easier for people to trade stuff. Of course that balloon is popped real easy when we realize that extra money in the marketplace does nothing to increase the stuff people want to buy. More money in our pockets doesn't increase the amount of homes, furniture, cars, bread, vegetables or fruit that is produced. When the artificial supply of money goes up, the cost of everything we want to buy goes up even higher. As this is happening, the value of money goes down, and we then experience what is known as "inflation."If the cycle of changing values happens too quickly -- like when a government prints too many paper bills -- we get "hyperinflation."

People like Alan Greenspan at the Federal Reserve Board are responsible
for making decisions that control the amount of money in the American economy at any given time. They make changes in interest rates, direct the Mint and Treasury to press coins and print money in amounts equal to what people generally like to keep as part of their normal cash flow -- and they do their best to make sure consumerism stays active.

During inflationary or hyperinflationary times, everyone has less power to buy or trade. People with little money and those who live on fixed incomes always suffer the most.

If Christians were united and made a worldwide effort within the context of morality, we could conceivably disengage ourselves from everyone who cares more about money than God. We could just walk away from the financial mess, letting politicians, bankers, large corporations and credit card companies do their own crazy thing minus our cooperation. Reality tells a different story, however, and most Christians are like flies trapped in webs made of easy credit, high interest, artificially high prices
on goods and "desires" coming out of excessive advertising from merchants who know how to seduce their victims like spiders.

The financial weaknesses of the United States and other nations will become more and more obvious as we move into the future. There will be more debate about trade wars and what might be favorable or unfavorable trade agreements. Two important factors in the discussions to come will be NAFTA and GATT. The GATT agreement includes provision for a
World Trade Organization with no practical option for withdrawal.

The European Union has ambitions which are less than honorable. Leaders of the European Union consider the United States to be an obstacle to their purposes. As time moves forward, there will be startling revelations as tragic events bring about anarchy in many places. Now might be a good time for individuals to set realistic priorities as they strive to survive -- both physically and spiritually.

In the book of Matthew, chapter 19, verses 23 and 24, we read: "Then
said Jesus unto his disciples, Verily I say unto you, That a rich man shall hardly enter into the kingdom of heaven. And again I say unto you, It is easier for a camel to go through the eye of a needle, than for a rich man
to enter into the kingdom of God."

Potential Solutions for Rich Men from a Wise Man: (1) Seek a 30% forgiveness of debt across the board. (2) Further reduce income taxes
on American producers and workers. (3) Create financial institutions in cooperation with marketplace entrepreneurs who favor various forms of barter. (4) Rely more on production of goods and provision of services rather than upon monetary interactions within market endeavors meant to expand the GNP. (5) Try to eradicate systems designed to sustain high income from interest-bearing agreements. (6) Transform wasteful and obsolete entitlement programs into equitable community-based services to enhance private charities. charitable services. (7) Negotiate Trade Agreements designed to assure interaction and transfer of wealth.

In simple terms, we need to make the economic pie large enough to accomodate the growing worldwide population! This cannot be done unless "ingredient resources" are expanded sufficiently! Tell friendly politicians to get out of the kitchen, so the "Chef"
can bake a bigger pie before hungry people starve!