Debt: The Ruin of us all?

There is nothing wrong with making mistakes. Just don’t respond with encores. – Unknown

It would appear that we are starting to reach the end of our financial ropes in The West. Greece has been in trouble for a quite a while along with several other European countries, while the rest of them are desperately trying to put out the financial fires.  The USA has just gone through a massive debate about their 'debt ceiling' and the American government's credit rating has been cut for the first time in modern history.  It seems that we have us a full blown debt crisis.

This Site's Calculation of the US debt situation does not paint a pretty picture.  If you add together all the debt held by all levels of government and then combine that with personal and corporate debt you end up with close to 55 trillion dollars in debt.  That's quite a bit of debt.  At least I think so.  Now, I'm not going to talk about what I think the solution is to this problem other than to say the obvious 'you need to spend less than you make,' and I'm not going to say that there should be no debt (I have a mortgage myself).  Instead, I want to talk about the cultural implications of this.

This kind of debt load shows us something about the culture we live in. It show us that we live in a culture of immediacy. After all what is debt besides getting something now that you (or maybe your grandkids) pay for later?  I want a new couch?  NO PAYMENTS FOR 18 MONTHS!!  well I better get one.  I want a new car?  0% down!!  Well I better get one.  We want a new road?  Hey look, this banker has money!!  We better build one.  Patience and contentment seem to be a long forgotten virtues. 

It can be hard to be content with what we have.  Others have so much more.  We keep getting bombarded with messages about all the things we 'need.' The bigger house, the nicer car, a newest electronic device, these things keep tempting us to buy, buy, buy. It makes one wonder if there is a way to find contentment and patience in this discontent and hectic world that we live in?  Well, the Apostle Paul claimed to have found it.  He said  that he had learned in whatever situation he was to be content.  I wonder what his secret was?

'I have learned the secret of facing plenty and hunger, abundance and need. I can do all things through him who strengthens me.' (Phil 4)  So that's the secret.  A friend who strengthens us.  A friend who keeps us.  a friend who fulfills us.  I wonder what friend that might be?   Well let's keep reading and see what he says.

'And my God will supply every need of yours according to his riches in glory in Christ Jesus.'

So that's where our needs are met!  That's where we find fulfillment and contentment and patience.  In God working through his Son, Jesus Christ.

I suppose that in the end I have proposed a solution to the debt crisis.  Find your satisfaction in Christ and not in the things that you have, and certainly not in the material things that you want!  Look to him and he will provide for your needs in a way that will make those wants and desires fall into their right place. Why overextend yourself to get what will not make you happy when you can get that which will make you happy as a free gift of God?

Have we forgotten how to fix the 'foundations of freedom?'

I'm including this video primarily for this quote at about 3.15

'We should avoid pressuring governments for  any new services that aren't absolutely necessary'

I think this gets down to the root of the problem.  Ballooning deficits.  Unconscionable spending.  Ludicrous money wasting.  It all traces back to us always asking and expecting the government to 'do more.'  Nothing comes for free!  someone has to pay for and some freedoms have to be given up.  We need to learn how to be less dependent on the government and stop asking them for things we are perfectly capable of doing ourselves.  Just because its easy in the short run does not mean its good for us in the long run!

State of the Union

Just for you Lynnette :-P

I'm alive.

Almost done my final term of school!!

Life is good.

Soo...The other night I was watching the State of the Union address and I was struck by a few things. The environmental stuff is a bit scary because everyone is just getting on the bandwagon and forgetting to take their brains with them and think through this stuff and how it is going to affect the country.

Another thing that I found a bit worrisome was the "stimulation package" that is supposed to help reduce the effects of the coming recession. Why am I worried about it when it involves things like tax cuts (which I like :)? simply because tax cuts without corresponding budget cuts are not tax cuts at all but merely tax deferrals. Also, stimulation ultimately won't correct the economic problems that have led to a recession, and they may in fact make it worse in the long run. The government can't create jobs and productivity (i.e. as much as some people would like you to believe to the contrary, the government is not God, and so it cannot create wealth out of nothing...all it can do is artificially redistribute(and waste)wealth). The whole speech talked about how we need to trust the people, so lets trust them to do what is best. Let people make their own decisions without clouding reality over with an artificial 'stimulation package' that is only going to fool people into doing something that really doesn't make sense. This may prop up the economy for a period of time; however, eventually people will catch on to what is really going on at which point the recession will hit harder than ever.

Oh and a little advice here. Don't believe the talking heads on TV who try to tell you that you have a moral responsibility to spend money in order to spend our way out of a recession. Investing your money stimulates the economy just as much as buying a new computer with it does. Either way you are contributing to new jobs since that invested money is used by someone to start a business or build a house or something else that stimulates economic growth. You have no moral duty to spend your way out of a recession, and savings can help you get through it. Don't forget that savings are a good thing to have :)

One other note: Stop and think about what aid to Africa really means in terms of ending poverty.

It wasn't all negative though. I really liked Bush's stand again 'Pork barrel' or special interest funding.

There I posted. Happy? :)

Dave Westy