Since our homeschooling journey has only brought us up to early Jr. High-school, we have not studied economics yet. I’m so ignorant when it comes to this subject…..and I have no business even discussing this. I’m embarrassed at my own lack of knowledge but am bound and determined to add economics to our course of study in the future. Perhaps though, if I write about it, I will begin to understand it more. Possibly, there are other homeschool families reading this who are interested as well….maybe we can pray about this and seek the Lord’s wisdom and guidance for our families.
My friend and I were chatting today about our economy and what the Federal Reserve has been doing this month. We used different analogies to try to understand what is going on. She said that what the FED did this week was like trying to fill up your empty water well with your hose. It was like playing a game of monopoly and just taking all the money you want from the bank when you are losing the game. Our government has pulled 600 billion dollars from a carpet bag just like Mary Poppins did.
Even though Federal Reserve Chairman, Ben Bernanke, promised the Congress that they would not monetize the debt of the U.S. government; they did. On November 3rd, 2010, the FED announced a colossal “quantitative easing plan” that would purchase 600 billion dollars of U.S. Treasury Securities by mid 2011. Although I did not know what “monetizing debt” meant last week, today I understand that printing up 600 billion dollars and using it to buy up U.S. government securities is monetizing the debt. Monetizing debt is as simple as turning on the printing presses in order to cover our debt. If we pay our debts to other countries with money we just print up we would be technically paying off our debt, but at the same time we would be destroying the value of our dollar.
As I continue to read up on this subject, I’m discovering the dangerous ramifications of this act. I understand that not long ago our American currency could trump any other currency in the world. Our dollar was dependable and valuable and many nations were happy to buy up U. S. Treasuries. Evidently, we have become accustomed and dependent upon other countries buying up our debt. Now though, our interest rates are near zero and our dollar has been devalued. Many nations of the world are losing confidence in our dollar, and because of this our America is more vulnerable on so many levels. Some are saying that this will undoubtedly be the end of the U.S. as a legitimate foreign power and may leave only our military as a way to achieve international prestige.
Some economists are warning that we are headed for an unprecedented inflationary cycle and that food prices will likely skyrocket. We are repeating the mistakes of Weimar Germany years ago. Our leaders are copying the mistakes of third world countries and failed economies.
My fear is that many of these folks in our government do not really love America and they want to destroy our way of living. It almost seems deliberate to me. Ben Bernanki has not followed our Constitution or his own word. I’m not sure what will happen next and I know that the Lord is in control of this all. I admit that I do not understand economics. I do know what the Bible tells us though and our leaders are not following principles that will allow us to live free and prosper.
Please forgive us dear Lord for being such poor stewards of all you have blessed us with. Please forgive us for electing men and women who are ungodly. Please help us to do the right thing…to pay off our debts and stop spending what we do not have. Help each family in America to turn our hearts towards you and to get our own homes in order. Help us to depend upon you and not upon this worlds wealth or security. Give us wisdom Lord during these very insecure days and guide our steps. You are our hope. You are our security. You are the answer to our prayers for America and our world. Amen
The wicked borrows and does not pay back, but the righteous is gracious and gives.
The rich rules over the poor, and the borrower becomes the lender’s slave.
Wealth obtained by fraud dwindles, but the one who gathers by labor increases it.
A wise man thinks ahead; a fool doesn’t, and even brags about it!
And my God will supply all your needs according to His riches in glory in Christ Jesus.
1 Timothy 5:8
But if anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever.