Lux Lucet

The politicians keep on fueling an illusion that you can spend yourself out of the misery, and that by printing money you will improve the economy which is not the case. – Marc Faber

Whatever their nature, all debts must be paid. This is a basic feature of God’s creation and one that reflects his character. We see this in Romans where Paul described God as both just and the justifier of the one who has faith in Jesus. Sin put us in God’s debt, and his justice demands payment, a payment no sinful son of Adam can ever make. God doesn’t wink at our sins, he doesn’t let us file bankruptcy or default. Our sin debt must be paid, either by our eternal condemnation or by the blood of his Son Jesus Christ. This is a simple point, an elementary point, a point that a child can understand. And yet this simple point often causes us to stumble. We want to believe that there really is a free lunch.

This wishful thinking isn’t limited to our sin problem, but shows up in how we think about more mundane areas such as fiscal and monetary policy. The United States, and indeed the whole western world, has incurred an enormous monetary debt because people believe in free lunches, that is, they think that debts do not have to be paid.

One of the few prominent investors who gets the debt issue is Marc Faber. I don’t know whether he’s a Christian, but his understanding about debt is certainly consonant with Scripture. We cannot spend our way out of debt, that’s a Keynesian lie. Our debt, he tells us, must be paid. That’s not the line the folks from Washington, Wall Street or Main Street want to hear, but it is the truth. Check out this video interview with Faber.