There has been a world-wide crash in the Western Economies. The US, UK and European economies are trying to recover from the latest troubles. There are a number of problems to be addressed if it is not to happen again. The governments have

1. The origin of the Ponzi scheme

It all started in the early 1920s. Carlo Ponzi had a scheme that money invested today was going to be paid for by money received in the future. People were promised large returns and that is what they got. What they didn’t know was that Ponzi was simply using the next investors’ money to pay them their profits. Economists use the term “Ponzi scheme” to describe a disastrous mechanism in which someone pays off old debt by constantly taking on new debt. Bernard Madoff carried out a massive “Ponzi scheme” that defrauded people of billions. Western Governments make this look like small fry!

2. The Ponzi scheme of Social Security

It is an unfunded or underfunded entitlement program. There is massive problems in US and UK. The money coming in is not ring fenced and can be used to fund other things. The young will pay for the old in the future. With the current economic recession even more young people are unemployed. The ring fence needs to “electrified” (untouchable) but all budgets are being squeezed.

3. War and National Defence

The US has spent more on defence than any other country. The Western world has embarked in “policing” the world with billions spent taking the military half-way across the world to ensure supplies of oil and to counteract terrorism. WW1 and WW2 were devastating on the economies of the world and alas wars have continued since. Rough states like North Korea and Iran may soon have nuclear bombs and may decide to push the button! Peace is still elusive.

4. The growth of Big Government

At the end of WW2 came big growth from government to create many agencies. The ratio of workers in government has gone up and up. From around 1 in 24 in 1900, 1 in 8 in 1948 to 1 in 5 in 2009. This huge Public Sector kills a nation financially. There is no product. There are services but virtually nothing to sell.

5. National and private debt

Too many people have been living beyond their means. The multiple credit cards are all maxed out. Compound debt is one of the worse financial enemies you can have. People have lost their homes. Businesses that have been around for years have disappeared from the High Street. The governments are “kicking the can further down the road”. The US faces a “financial cliff”, the Eurozone is threatening to come apart and the UK Government is taking tough austerity measures. Countries are having to be bailed out! Spain, Greece, Ireland, Portugal and Cyprus so far. The European Court of Auditors has refused to sign off on the EU accounts for eighteen years in a row! (2013 – Tax Payer’s Alliance). Money is being wasted.

6. The debt is compounding interest

The interest on loans prevents you from quickly reducing the capital. The nation’s debt is crippling the country. The individual debt is crippling families. It is all passed on to those who have not been born yet! We are wealthy but in debt. See Deuteronomy 15:6 “For the Lord your God will bless you just as He promised you; you shall lend to many nations, but you shall not borrow; you shall reign over many nations, but they shall not reign over you”. The Western countries owe huge sums to countries like China and Japan. Borrowing has got out of hand.

7. The cancer of inflation

As nations look for more money then interest rates will go up. This will cause our costs to go up and raise inflation and the price of most things will go up. Inflation is an increase in the supply of money. The more money is printed, the more prices go up! Hyper-inflation robs money of its value. Money may become worthless if wages do not keep pace. It will be like monopoly money!

8. The spectre of bankruptcy

There are individuals losing their homes. Businesses are going bankrupt. The danger is that countries may go bankrupt! There is a danger of countries having to default on their massive debts. Taxes may have to go up to 70% and revolution would follow. This is a new experience. Governments are bailing out banks, taking over businesses, buying up mortgages, keeping interest rates near zero and printing new money. The dollar/sterling and euro has been sinking and the value of gold rising.

9. Today’s economic meltdown in Biblical prophecy

See James 5:1-6. These verses are addressed to wealthy unbelievers. James mentions about the last days before the return of Jesus. The day of judgment was drawing near and these rich people were storing up riches. They would not last. The rich are also getting hit. There is a growing gap between the rich and poor. The poor are being hit hardest and protests will get stronger if they are not listened to. God is watching and He will judge!

10. Eroding wealth

The material things are not eternal. They will not last. Even the billionaires are having a hard time! Earthly treasures are to be eroded. See Matthew 6:19-21. The world economies are deflating and wealth has transferred from West to East.

11. Erupting wickedness

There is sinful acquisition of their wealth by the rich. See Jeremiah 22:13 and James 5:4. The gap between the rich and poor is getting greater during a deep recession with wage cuts or no pay at all! God does not approve! The Last Days before the rapture of the Church will see a rise in wickedness. The rapture will remove the salt/light from the nations of the world as it falls apart in moral decline.

12. What should we do?

It is basically “Keep calm and carry on”! God’s Word tells us to “Both honourable marriage and chastity should be respected by all of you. God himself will judge those who traffic in the bodies of others or defile the relationship of marriage. Keep your lives free from the lust for money: be content with what you have. God has said: ‘I will never leave you nor forsake you’”. (Hebrews 13:4-5 Phillips NT). God is in control even if the world is not!

Categories: Apologetics