This is a guest post from Simit Patel. Simit is a currency trader and contributing analyst at InformedTrades.com, a site that provides free online courses on trading the world’s financial markets.
The economic downturn and the Bible
As our current economic dowturn continues, many people have begun to ask why: what is the cause of these economic problems? Is it a failure of free market capitalism? Honest miscalculations? Rampant greed? As always, we can look to the Bible for solutions to our problems. In particular, the Bible’s wisdom regarding money matters seems particularly poignant at this time. Below are some key passages from the Bible:
I counsel thee to buy of me gold tried in the fire, that thou mayest be
rich. (Revelations 3:18)Every value is to be set according to the sanctuary shekel, twenty gerahs
to the shekel. (Leviticus 27:25)The rich rule over the poor, and the borrower is servant to the lender.
(Proverbs 22:7)
How do those verses relate to our current economic downturn?
1. A key part of the problem is that we no longer use gold as money. Prior to 1971, every US dollar could be converted into a fixed amount of gold. Because the government guaranteed this convertibility, the amount of money it could create was naturally restricted. After 1971, the US went off the gold standard, and thus there were no restrictions on how much money could be created. Below is a graph of the money supply over the past few decades; note what happens after 1971.
Such an expansion of the money supply has resulted in currency devaluation, which has caused prices to rise, making it difficult for consumers to save. Rising prices, coupled with declining savings, naturally leads to record levels of debt. Had we adhered to the wisdom noted in Leviticus 27:25, we would have money backed by a gold or silver — which in turn would result in greater prosperity for all.
2. The poverty that has been created via expansion of the money supply has enabled those who receive the new money that has been created — especially banks, who end up receiving the new money that is created via deposits — to enjoy greater wealth, as it enables them to lend more. Banks make money by lending, and thus the more money they have to lend, the more profitable they will end up being. moreover, rising prices depletes the value of savings — which in turn creates greater demand for borrowing money. And thus we find the wisdom of Proverbs 22:7, in which the rich have secured their wealth by lending to the poor.
How do YOU use the wisdom of the Bible to protect yourself financially
1. Invest in precious metals.
While the US dollar has been strengthening for much of 2008, US government expenditures are still increasing at a time when the tax base is diminishing — which increases the likelihood that
the US government will need to print more money to finance its obligations. Currency devaluation will be the scenario in such a case. Historically, precious metals — particularly gold and silver — have
served as effective ways to hedge against significant currency devaluation.
2. Get out of debt.
Getting out of debt is easier said than done, of course, but the Bible’s wisdom remains true: the borrower remains servant to the lender, and thus true freedom requires being free of debt.
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As an unskilled poor person, there is little I can do but subsist as best I can.
Get your gold while it’s still cheap. Buy as much as you can.
Don’t know if you allow links, but I think this one is helpful. Has some interesting quotes, is somewhat biased, but does explain money in a basic, understandable way. Thank You, John
http://video.google.com/videoplay?docid=-9050474362583451279
Poor Boomer, I will disagree with you. Read your Bible, Pray, seek God. In the meantime, do not be afraid to give of the gifts you have been given! Not necessarily money, but a smile, words of encouragement, a helping hand! In the end those with the most toys will lose! But those with the most invested in God’s Kingdom will WIN!
Good post…the rich get richer…
I agree with Joshua on funds/ETF’s…and with his advice on caution…don’t overload…I only have (in my exceedingly modest) portfolio about 5-10% each in commodities/precious metals and REITs.
For what it’s worth, I still don’t think we’ve bottomed.
This is for poor boomer. Blessings are a part of the Abrahamic Covenant, in Deut. 28:1-14. We are the seed of Abraham and God’s Word says ALL of Abraham’s blessings rest on the Gentiles. (Gal. 3:29) His blessings come by living righteously and knowing what God has promised His children. If we live righteously. we can appropriate His promises. And we need to understand Biblical economics. God commands us to tithe, give offerings, and we can increase by sowing and reaping. If we have nothing to sow, God’s Word says we can ask and He will provide seed to sow. (II Cor 9:10) That is how I live as a Christian Missionary and God meets my needs in abundant ways. I lack nothing and I feed starving people in Africa, and I have no salaried job. The principles in God’s Word always work because they are spiritual laws. Seek God and read what His Word has to say about blessings. We do not have to remain poor. We are children of the King! II Cor. 9:8 says that God is able to make every favor and earthly blessing come to His people. So that we are self sufficient, lacking nothing, needing no aid from anyone, having what we need and enough for charitable donations. Keep reading and don’t give up on the blessed life. It works for me very well. I speak God’s Word over my life daily, I work it’s principles daily, and I have faith and expect it to manifest in my life. Also know that we have to not only understand that blessing is from God, but we must get rid of old thought patterns of lack. We must learn to think and speak and act like God. Even the Word says we must renew our minds by the washing of the water of the Word. Our thinking needs to be renewed to the truth of God’s Word. Mail me if you have any questions. AbundantDay@hotmail.com. If you don’t agree with me, I’m sorry. It works for me.
Alena, well done. Not once do any of the fore mentioned people on this site say anything about giving or sowing. God’s priciple has always been and will always be about giving. You can buy all of the Gold and Silver you want to buy. But if you are not living God’s word, you can forget about receiving any benefit of the return on that Gold or Silver. A lot of people who have been saving and doing the same things in the previous messages only to see their savings and investments go belly up. This is not a coincidence. It is not going to matter how much you have, satan is going to require you to take that mark. He won’t care if you have $500 million dollars or 25 bars of Gold. His price will always be higher than what you can pay. That’s his style. Lay your treasures up in heaven. I am not speaking to you Alena, I am speaking to those who are not living the word of God truely, and those not preaching the gospel.
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