Pastor Randy has written a good post for us!
We can generalize what he has written a bit. In these recent banking failures, we can detect the consequences of idolatry. If we serve an idol instead of serving God by helping our fellow man (or customer), we can fall into the trap we have laid for others.
What idol would a banker worship? Crony Capitalism is the worship of money. In the throes of our worship of money, we can lose our minds and throw in with politicians whose policies are almost certain to destroy our economy and our country.
Inflation driven by excessive spending is the primary cause of these banking failures.
Did irresponsibility have a role? Did ignoring the consequences have a role? Yes and yes.
Banks exist to loan money. When interest rates go up, that reduces the value of their loans. If interest rates rise high enough and fast enough, long term loans made at lower interest rates suddenly start to become worth less. That can quickly put banks out of business.
An unstable currency is a direct threat to the finance industry. Unfortunately, instead of defending the value of our currency, bankers too often focus on buying politicians. The banks that went belly up did a lot of that, actually. Look where it got them.
There is no honor among thieves. Remember Proverbs 1:8-19.
As voters, we too can be Crony Capitalists. We too can listen to false promises of scoundrels and vote for politicians who promise to fill our pockets with other people’s money.
There is only One God. All else are idols.
When we go to church, we must remember who it is that we worship. Then when we leave church, we can begin each week by keeping our focus upon our Lord God and what He has commanded us to do.
Don’t be misled—you cannot mock the justice of God. You will always harvest what you plant. Those who live only to satisfy their own sinful nature will harvest decay and death from that sinful nature. But those who live to please the Spirit will harvest everlasting life from the Spirit.
Galatians chapter 6, verses 7 and 8; from the New Living Translation (NLT)
Recently two banks failed causing Federal officials to take control–Silicon Valley Bank (SVB) (California) and Signature Bank (New York). And maybe you didn’t notice that 2 days before the collapse of SVB that Silvergate Bank (California) had also collapsed. That’s 3 banks in the span of 4 days. Now, answer me this:What do these banks and the decline of some churches have in common? Oh, yes, Billy Bob, there is a common thread.
One might could do a significant amount of eisegesis to determine the commonality…
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I did a couple hours of research last night on how far back this type of boom and bust goes. It goes WAY back. In terms of current type of investing, it goes back to the 1600s. People have always been greedy for gain, just like the Bible warns. Sure, it will eventually return to ‘good times’, but not for everyone, and freedom will be lost with every crash.
Inflation actually goes back much further, at least to the time when monarchs began coining money.
Coins are desirable because they, supposedly, come with the guarantee that a specific amount of precious metal is in each coin. That means that people engaging in a transaction with precious metals (gold for trade goods, for example) don’t have to assay the amount of gold in the coins being traded for cloths, arms, food, or whatever.
Unfortunately, monarchs borrow money (often to fight wars foolish wars) and they don’t like paying it back. So, from time to time the have been known to pay back loans with a reduced amount of precious metal in their coins.
That information is available in more detail in the “Wealth of Nations” by Adam Smith.
If I only had more hours in the day to read !
“The Wealth of Nations” would be worth your time. The book is justly famous.
No doubt and I am definitely in that camp. I am just super busy. But it’s on the list!