Tuesday, March 20, 2012

The Impossibility of You Getting Out of Debt





Do not be among those who give pledges, Among those who become guarantors for debts.


Proverbs 22:26




You've got your favorite financial guru.  You've bought his or her latest book.  Brother/Sister, I know this will be hard to swallow, but the reality is you cannot get out of debt, no matter how hard you try.  You are part of a system, and the system has got you under control. Nevertheless, hear me out because there is hope.

For most people, their concept of financial reality is built around a concept of individualism--their individual financial reality is the result of their individual actions alone.  Therefore, their individual debt is the result of their individual behavior alone.  This concept is easy to buy into because it is based on a fundamental truth, the truth that we are all individually accountable to our Creator.  This is the fundamental basis of responsibility and it is definitely real, but when it comes to financial debt, our situation is different.  It is different because our representative government has temporarily changed the rules of the game.  With the creation of the Federal Reserve Banking System and associated laws, our representatives have morphed us into a corporate body.  Now, like it or not, everyone's debt is your debt.  I give you the example of a house:

A house price is determined primarily by two things:  one, the demand for the house, and two, how much money the potential buyer is willing and able to spend.  How much money the potential buyer is willing and able to spend is generally determined by how much credit he or she can command and this is where the system comes into play: the term of the loan, the interest rate, the lending rules, and the ultimate backing of the loan--these are all being driven in unrighteous ways by government, with the risks being spread among all.  In a big way the cost of a house has been socialized--you will pay for your neighbor's default.  Therefore, the price you must pay for a house is the socialized price, and this makes all the difference in the world.  It is the difference between what the price of the house is with a 30-year, near-zero interest, government-backed loan and what the price would be if everyone had to either pay cash or get credit with bank lending based on individual character and individual risk and with lending discrimination uncoerced by federal law.  The same holds for every product you buy.  Even if you can manage to pay cash, you are still  paying the inflated socialized credit price.

The credit system of the U.S. is at the same time both mystifying and complex.  It is also perpetuated by a self-interested propaganda campaign--the system players who profit at your expense want to keep profiting at your expense.  They do not care about concepts such as justice and liberty, but God does.  Eventually the system will collapse.  There will be a day of reckoning. Just as our Creator's physical laws determine that what goes up must come down, His moral laws determine the same--what goes up against the Word of God, must come down.  Our system will eventually collapse because it is contrary to God's moral law, but there is hope on the other side.  God has a better plan, but we must acknowledge that our present system is a product of our popular support.  We have a system of our own design.  We must desire something better.  You cannot get out of debt no matter how hard you try because to do so would require drastic systemic change, something impossible for you. Nevertheless, "what is impossible with men is possible with God."  We have good reason to hope if we are willing to change.  To start, I encourage you to read the free e-book, Honest Money by Gary North.  It is only a click away.

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