CRISIS AFTER CRISIS

Everyday that goes by history is being written. What is being written is the failure of man to avert crisis. Man has rejected God’s law and seeks to establish his own law which has led to one crisis after another and yet man thinks that the civil government will somehow solve the very problems that they have caused. This is because the populace of this country do not understand the law of cause and effect.

The law of cause and effect is a spiritual construct and when your thinking consists of the visible moment, you will not be able to predict the consequences of your actions and so it goes on and on. Noah Webster’s 1828 Dictionary’s second definition of the word crisis is "The decisive state of things, or the point of time when an affair is arrived to the height, and must soon terminate or suffer a material change."

Crisis management is the normal situation under man’s rule. Each day brings the new crisis and tomorrow there will be another one. An example is the Big Three Automakers asking the government for $50 billion in low interest loans. The reason that these Automakers are going to the government is because no bank has the ability or wants to loan the Automakers that amount of money. Also, investors will be unwilling to purchase any bonds (debt) issued by the Automakers. Thus, they appeal to the government for protection from competition.

Instead of keeping up with the trends i.e,. rise in gas prices, Detroit continued to put out gas guzzlers and now they are suffering the consequences. Of course, the government has had a hand to play in this situation with their regulations against domestic drilling and not building new refineries. These decisions which were made many years ago are now having a dramatic effect upon this nation’s ability to compete. After the fact, Detroit is seeking to adjust to market conditions with taxpayer money.

To avert financial turmoil, the government has taken control of mortgage giants Fannie Mae and Freddie Mac. This is a contradiction of terms. The one that caused the present mortgage crisis is the one that is now taking control and the market system will be blamed for the failure. By offering easy debt (credit) with artificially low interest rates, people borrowed money that they could not repay. The Federal Reserve kept cutting the interest rates until they were at 1%. This enabled people who were poor credit risks to obtain loans and the greed of mortgage brokers working on commission resulted in this financial meltdown.

All of this is predictable because of the issuance of paper money. Bad money drives out good money and bad loans drive out good ones. The market can determine the rates of interest better than the Federal Government can. All that the Federal Government can do is what they are best at doing creating another crisis with the taxpayers bailing out bankrupt companies. It is just tha matter of time before the next crisis hits. The civil government never learns from history.