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Financial Crisis

A prudent man foresees evil and hides himself, but the simple pass on and are punished.

    Proverbs 22:3

It was back in August that we began our look at the ongoing 2008 financial crisis. The immediate occasion for my writing on this topic was the sudden plunge in the US stock indices following the Federal Reserve’s decision to raise interest rates in late July. The market sold off hard, but managed to stabilize, or more accurately, was stabilized by the powers that be after a phone call by President Trump with three major bank CEO’s.

This was a similar situation to what happened around the end of the year in 2018. On December 23, the day before the Dow and S&P indices had their largest ever declines on Christmas Eve, Treasury Secretary Steve Mnuchin placed individual calls to America’s six largest banks – Brian Moynihan, Bank of America; Michael Corbat, Citi; David Solomon, Goldman Sachs; Jamie Dimon, JP Morgan Chase; James Gorman, Morgan Stanley; Tim Sloan, Wells Fargo. When the market re-opened after the Christmas break on December 26, the Dow closed up 1,086.25 points, the largest single day gain in the history of the index. This huge day was after a terrible December and in the absence of any news that would have caused a market surge.

Was there a relationship between Mnuchin’s call on December 23 and the blast off in the stock market three days later? While this can’t be formally proven, in the opinion of this author it is the most likely explanation. In short, I think that Mnuchin told these CEO’s to buy the market and that they obliged.

If my understanding is correct, this means that at least twice in the period of eight months orders came down from on high to rescue the stock markets. What, I would ask you, does this say about the state of our financial system? What are we to think of a system that requires this level of manipulation to keep from crashing?

Of course, calls from Trump and Mnuchin are not the only sort of manipulation in the financial system. In the short time that I’ve been writing this series, we’ve seen additional extraordinary measures taken by the Fed to prop up the system.

First there was the bailout of the overnight Repo market. Originally, this was to be for a few days in September. Next, they extended it to a couple weeks. Then it got pushed out to the second week of November, then it was January 2020. Just last week, Fed President James Bullard expressed his preference for a “standing repo facility.” By this he seems to mean that he wants the current repo market intervention by the Fed to become a permanent policy tool of the central bank.

And that’s not all. Last week on Wednesday, the Fed started QE4. With this latest iteration of what in 2008 was termed an “emergency policy,” the Fed will by purchasing $60 billion a month in T-Bill (T-Bills are short-term US Treasury debt instruments). Where, you ask, does the Fed get the $60 billion per month to conduct QE4? They get it by a process that, were you or I to try it, we’d be arrested. In short, they counterfeit it out of thin air.

Here’s another question you may want to ask yourself. If the economy is doing so great as we’re constantly being told by the mainstream financial press, why is the Fed running simultaneous bailouts of both the overnight repo market and the bond market, both of which are designed to prop up the stock market? The obvious answer is that, far from being the greatest economy ever, the US, and indeed the world’s, financial markets are a mess and getting messier by the day. All the hype you hear about how great the economy is doing is propaganda designed to keep you locked into the system for the benefit of those who run it.

In light of the enormous lies that are being told to the American people by government officials, by bankers, and by the press, in the opinion of this author it is imperative that God’s people hear the truth about the financial state of the country and some sound advice about how to take measures to protect themselves financially. That is the purpose of this week’s installment.

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Financial Crisis

A prudent man foresees evil and hides himself, but the simple pass on and are punished.

    Proverbs 22:3

“How did you go bankrupt?,” Bill asked. “Two ways,” Mike said. Gradually, then suddenly.”

That line from Hemmingway’s The Sun Also Rises could, I am sure, be repeated by many who have found themselves in serious financial trouble. A man can pile up debt for years with seemingly little consequence, until suddenly it all comes crashing down. Likewise, a scam artist can go on scamming, until one day his fraud is exposed. Think about Bernie Madoff whose Ponzi scheme blew up during the 2008 financial crisis.

One can find examples of the gradually then suddenly principle in the pages of Scripture as well. Psalm 73 records the psalmist’s lament that wicked men can do what they want and never seem to suffer the consequences of the actions. That is, until he understood that God would bring them “to desolation in a moment.”

Jonathan Edwards’ famous sermon “Sinners in the Hands of an Angry God” expounds a passage in Deuteronomy which expresses much the same idea as Pslam 73. “To me belongeth vengeance, and recompence; their foot shall slide in due time: for the day of their calamity is at hand, and the things that shall come upon them make haste.” In his exposition of Deuteronomy 32:35, Edwards wrote, “It implies that they [unbelievers] were always exposed to sudden unexpected destruction. As he that walks in slippery places is every moment liable to fall; he can’t foresee one moment whether he shall stand or fall the next; and when he does fall, he falls at once, without warning.”

Gradually, then suddenly. Was that not also the case with the men in Noah’s day? They were marrying and giving in marriage. Yet all the while they were adding to their sins, until, as Jesus said, the flood came and took them all away. They never saw it coming.

Much the same can be said of the Canaanites. It was told to Abraham in his day the iniquity of the Amorites was not yet fulfilled. That is, God would judge them, but not yet. Some four hundred plus years later, destruction cane swiftly. Gradually, then suddenly.

Or consider what happened to Israel once the nation was settled in Canaan. Despite God’s sending prophets to warn, gradually the people became more and more corrupt, until suddenly they were carried away into captivity. The Northern kingdom in 722 BC when Samaria was taken by the Assyrians, the southern in 586 BC with the fall of Jerusalem to Babylon.

Gradually, then suddenly. These ideas can be applied to America in our own day. A nation born out of the Protestant Reformation has gradually forgotten its roots, has gradually turned away from the source of its strength. And what are we to say about such a nation? What will be its end? If the Bible, and even secular history, are any guide, unless the Lord grants many repentance, quite obviously it is headed for a fall. Likely a sudden one at that.

But a sudden fall for America, if in fact it comes, and the West more generally, does not mean that American Christians or Christians in other Western nations have no defense and no hope. We shall look at this further in a few moments. But before we begin our discussion of practical pointers for Christian preppers, I would like to point out a couple of noteworthy announcements last week relative to the financial markets.

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Financial Crisis

A prudent man foresees evil and hides himself, but the simple pass on and are punished.

    Proverbs 22:3

In Part 8 of this series, we began formulating a Biblical theory of prepping. In Parts 4-7, we had looked at some examples of prepping in Scripture. While the examples of Noah, Lot and Joseph clearly establish that God approves of prepping, it seemed good to me to begin to articulate some of Christian prepping’s main components with an eye to defining the term.

In last week’s post, I closed by asking the question, For whom do we prep?, and answered, in part, that we prep for ourselves. It may seem strange to say that we prep for ourselves. After all, isn’t that just obvious? Not necessarily. The unchristian idea of altruism has so tainted many Christians’ thinking that some believers think that it is somehow sinful to think of their own interests. But although it is common to hear Christians deny they have a self interest, this is not a position consistent with the Scriptures.

Today, I’d like to continue, and hopefully conclude our discussion of the Biblical theory of prepping by exploring the other parties for whom Christians prep apart from themselves. But before we do that, I’d like to briefly review the financial news from last week.

When I began this series a couple of months ago, the stock market was recovering from a serious downturn in early August that was, apparently a reaction to the Fed’s decision to lower interest rates and the inversion of the Treasury yield curve. The Plunge Protection Team (PPT), apparently, saved the day once again, pushing the major stock indices out of correction territory. But even though the stock market has been stabilized and, at least on the surface, things seem normal, there are abundant signs that all is not well on Wall Street.

Just last week (September 29 – October 5), there were more signs of major problems in America’s economy. First, as MarketWatch reports, the Chicago Purchasing Managers’ Index (PMI) dropped in September for the third time in four months. The expected number was 50, but the index reported 47.1 in September. So what does all that mean? When it comes to the PMI, any reading above 50 means the economy is expanding, any reading below 50 indicates economic contraction. Not only did the September number come in well below expected, but it actually was the worst reading since 2009, around the time of the last financial crisis.

Second, the ongoing “repo madness.” Not only has the Fed been bailing out the overnight repo market to the tune of $75 billion every night, but last week pledged to continue the bailout. Originally, the Fed was going to supply funds to the repo market just for a few days. This was then extended to October 10. Friday, the New York Fed announced that it will “continue to boost liquidity in money markets [the repo market] into November.” Fund manager Dave Kranzler said of the repo operations that they will eventually morph into outright money printing. With every extension of the Fed’s repo market intervention, Kranzler’s evaluation comes closer and closer to being realized.

Third, the chances of a Fed interest rate cut in October are going up. The reason behind this seems to be the previously mentioned bad September PMI reading, which was not limited to just the US, but extended to other industrialized economies as well. Please keep in mind, the Fed cuts rates when it sees economic activity slowing down, either in an attempt to prevent a recession or to pull the economy out of one. If the US economy were really as strong as the Trump Administration would like people to believe, they would not at the same time be pushing the Fed to lower interest rates.

Fourth, layoffs. As was widely reported last week, Hewlett-Packard (HP) announced that it plans to cut its workforce by up to 16% and expects to cut between 7,000 and 9,000 jobs from its global workforce of 55,000. Kroger, America’s biggest grocer, announced plans to lay off hundreds of workers last week, as question arose about its turnaround plan.

In summary, last’s weeks economic news provided further evidence that the US and world economies are slowing down. It has been in anticipation of a significant economic shock that I undertook to write this series on prepping several weeks ago. Let us now continue to look at what the Bible says about prepping.

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Financial Crisis

A prudent man foresees evil and hides himself, but the simple pass on and are punished.

    Proverbs 22:3

Last week we concluded our look at various examples of prepping the Bible. In Parts 4, 5, 6 and 7 of these series, our focus was on Noah, Lot Joseph and the teachings of Christ in that order. Not that this list exhausted all the examples of prepping found in the Bible. Indeed, there are a great deal more examples of prepping in the Scriptures than I have the time or space to discuss in this short series on Christian prepping. That said, I believe the examples we looked at are enough to establish that God approves of prepping.

It had been my intention today to follow the prepping examples discussed in Parts 4-7 with some practical advice on prepping. But the more I thought about it, the more it seemed good to follow the Scriptural examples of prepping with a more doctrinal discussion. Examples are helpful, for they help us to see the practical application of Christian doctrine, but examples do not replace doctrine.

But before we dive into Biblical prepping theory, I’d be remiss if I did not review the financial news from this past week. As has been noted previously, the main title for this series, “The Ongoing Financial Crisis of 2008,” expresses this author’s opinion that the Global Financial Crisis (GFC) that struck in that year has never really ended. As some historians consider World War II to be a continuation of World War I separated by 21 years of uneasy peace, so too are there many financial market observers who argue that the next financial crisis simply will be a continuation of the GFC, separated by a decade or so of uneasy financial normalcy.

The reason some market observers argue this way, and I happen to agree with them, is that the cause of the GFC was never honestly dealt with, but rather was papered over. The 2008 crisis was caused by excessive debt, which itself was the inevitable result of a corrupt global financial system, founded as it is on the fraudulent, debt-based, central bank issued, fiat US Dollar.

When things became unglued in 2008, the US and the world in general were presented with an opportunity to deal honestly with a bankrupt – bankrupt in both the economic and moral sense of the term – financial system. It was a bit like the alcoholic being given the opportunity to clear out the liquor cabinet, sober up, and get his life back, or to again reach for the bottle and find temporary solace in the very thing that’s destroying his life.

America, and the West generally, made the wrong choice, deciding to take another hit from the debt bottle that is destroying our nations, all the while making some fabulously wealthy.

As proof that the issues of the GFC were never resolved, consider the absurd spectacle of negative interest rates. According to Mike Shedlock, there are five central banks with negative interest rates – the Swiss National Bank, Denmark, the European Central Bank, Sweden and the Bank of Japan. Negative interest rates – this is a situation where savers are charged a fee to save and borrowers are paid to borrow, the exact opposite of how a financial system is supposed to work – rob the prudent and reward the profligate. Put another way, they are the financial equivalent of calling good evil and evil good. Such a situation never could exist in a market economy, but has come about as a result of the monetary sorcery of an immoral central banking cartel that currently runs the West.

Negative interest rates are a screaming danger signal to anyone with any financial sense that there are serious problems in the global financial system, but that hasn’t stopped President Trump from calling for them.

But negative interest rates aren’t the only danger signal flashing red. As we discussed last week in Part 7, the Fed continues to bail out the overnight repo market. To give you a sense of just how big the ongoing bailout is, CNN noted on 9/20 that in the first four days of the operation, the Fed had injected over $275 billion into the repo market. “In less than a week,” CNN went on to say, “the Fed injected 34.4% of the $800 billion that it printed during the 2008 bailout.”

That is simply breathtaking. To think that in the first four days of the most recent bank rescue the Fed printed more than a third of the total it did during the 2008 crisis. And note well, that total was as of 9/20. An entire new week of repo market bailouts has since gone in the books. And the bailouts are scheduled to continue until 10/10! At the current rate, the repo bailouts will exceed the (at least publically admitted) bailouts of 2008.

Apart from its sheer size, another remarkable facet of the current repo market rescue is that the cause of the crisis has not yet been disclosed. One clue to the locus of the problem is in the fact that this is a repo market bailout. According to an article by Pam and Russ Martens posted on Wall Street On Parade, “The New York Fed is only allowed to engage in these repo transactions with its 24 primary dealers. That list of 24 primary dealers includes the securities units of big U.S. banks like JPMorgan Chase, Citigroup, Bank of America and Wells Fargo, but it also includes the U.S. based securities units of troubled foreign banks like Deutsche Bank, Credit Suisse, and Societe Generale (SocGen).” Because the New York Fed is not announcing which banks are drawing down the bulk of its loans, neither Congress nor the American people know if the money is flowing to U.S. banks or foreign bank subsidiaries in the U.S. Propping up troubled foreign banks in not what most Americans want their central bank to be doing.” Of course, I would add that I don’t want the Fed bailing out troubled American banks either.

So here you have this massive bank bailout going on, a bailout that more than one analyst think involves Deutsche Bank, but the American public is largely in the dark. This, naturally, is exactly what the fed and other financial ne’er do wells want. Let the people obsess about the Democrats’ frivolous impeachment proceedings against Donald Trump, while the Fed once again bails out the billionaire bankers and hands the bill to the American people.

Very clearly, there are serious problems in the financial system. Enough so that it probably is inaccurate to speak of a coming Phase 2 of the GFC, for it is already upon us.

But enough of Wall Street intrigue for the moment. Let us now turn to discussing the Biblical doctrine of prepping, to see what the Scriptures teach us about how Christians should prepare for the financial storm in which we find ourselves.

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Financial Crisis

There were at least a three noteworthy events in the financial markets this past week. In the first place there was outgoing European Central Bank (ECB) head Mario Draghi’s announcement of what some are calling QE Infinity (Infinite Quantitative Easing). According to Draghi, the ECB will begin asset purchases at the rate of €20 billon per month for as long as it deems necessary, “to reinforce th accommodative impact of its polity rates.”

Translating all this central bank talk into plain English, Draghi has committed the ECB to counterfeit an absurd about of money on a monthly basis just to make sure the European economy doesn’t collapse. Further, there is no definite stopping point to this program. Draghi’s policy is both sinful and incompetent. It is sinful, because it violates the Bible’s clear teaching that differing weights and measures are an abomination to the Lord It is incompetent, because it fails not only to address the real reasons for the economic problems in the nations that use the Euro currency, but actually makes them worse.


Second was Donald Trump’s calling for the Federal Reserve to lower “interest rates down to ZERO , or less.” This is a remarkable statement by the President, and has left many asking why he made it. The short story is this, the American economy is not as good as what Trump and others have tried to convey and the President is concerned that, if the Fed doesn’t cut interest rates, the stock market will tank and the economy will fall into recession. Neither of these things would be good for his reelection chances.

Of course, neither a Zero Interest Rate Policy (ZIRP) nor a Negative Interest Rate Policy (NIRP) would be good for the country, especially for those who rely on interest income from their savings, but that doesn’t seem to matter to the President.

A third noteworthy item of financial news from last week was the sudden spike in the 10-year US Treasury interest rate. The 10-year US Treasury is considered the benchmark interest rate for the entire bond market. More than that, the 10-year Treasury is the benchmark which goes a long way to determining the price of stocks as well.

When interest rates move sharply upward, this means that the price paid for bonds has gone sharply down. Bond interest rates and bond prices move in opposite directions, much as the ends of a teeter-totter do. If yields are going up, this means that there is a selloff in the bond market.

So bonds are selling off, what does this mean? Peter Schiff and Gregory Mannarino have warned that this could portend a larger bond selloff as holders of US Treasuries become nervous about the financial condition of the US. Mannarino is of the opinion that China may be the major actor here.

Another interpretation is that the Exchange Stabilization Fund (ESF) – the ESF is part of the US Treasury Department – is manipulating the 10-year interest rate to make sure that the yield on the 10-year Treasury stays well above the yield on the 2-year Treasury, thus preventing an inverted yield curve, which is a strong recession indicator.

These moves in the bond market are important, yet most people don’t follow the bond market nearly as much as the stock market. But it’s the bond market that controls what goes on in the stock market, not the other way around. If we ever do get an uncontrolled selloff in the bond market – this would mean sharply higher interest rates, remember when bond prices go down, interest rates go up – you would see a simultaneous crash in all markets that derive their value from debt: stocks, and housing in particular.

Put another way, if the bond market tanks, the whole economy tanks.

One thing all three bits of news above have in common is that they are all related to what I’ve called the Ongoing Financial Crisis of 2008. My contention is that, due to the interventions of governments and central banks, the debt problem that triggered the 2008 global financial crisis not only was not solved, but actually made worse. Calls for QE Infinity, ZIRP, and NIRP together shaky bond markets are all symptoms of this.

In light of the fact that the serious problems with the West’s financial system have never been addresses, and given the foolishness of Western leaders, never will be voluntarily addressed, it seems wise to this author for Christians to take steps to protect themselves from a breakdown in the financial system now.

It is this need to get prepared and stay prepared, together with a conviction that very little has been written for Christians by Christians on this subject, that have prompted me to write this series in the first place.

As part of this series on the financial crisis and on getting prepared for it, I have been examining what the Bible has to say about prepping. As a Scripturalist – a Scripturalist is defined as one who believes that all knowledge is either expressly set forth, or can be derived by good and necessary inference, from the 66 books of the Bible – it is critical to ground all prepping the Word of God.

One question to ask is this, Does the Bible support prepping? The clear answer is, yes it does. This can been seen in the numerous, clear examples in the Scriptures of those took steps to prevent suffering and death, both their own and that of others, by taking preventive measures in the face of oncoming catastrophe. “A prudent man foresees evil and hides himself,” says Proverbs, “but the simple pass on and are punished.”

A second question to ask is, What should Christians do to get prepared? I contend that Christians must answer this question in the same as the first, by looking to the Scriptures. As part of this series, we’ve already looked at two examples, that of Noah and that of Lot. Today, I’d like to turn the reader’s attention to another obvious example from Genesis, the case of Joseph, Prime Minister of Egypt.

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Financial Crisis

A prudent man foresees evil and hides himself, but the simple pass on and are punished.

    Proverbs 22:3

US Slaps New Tariffs On China; One Minute Later China Retaliates,” was the headline on ZeroHedge this morning. This, of course, is in reference to the US/China trade war which has been ongoing for the past two years.

Just last week, US stock markets rallies on reports that China was going to be “calm” in its response to the trade war. But in this headline we see that China immediately retaliated when the Trump administration imposed tariffs on $112 billion in Chinese imports. Whether China’s response, a decision to place higher tariffs on $75 billion of imports from the US, will be considered “calm” by American financial markets when they reopen on Tuesday after the Monday closure for Labor Day is a matter of opinion.

In the view of this author, come Tuesday the moves by the US and China to impose a new round of tariffs on each other likely will put downward pressure on US stocks, force money into bonds, drop long-dated US treasury yields further inverting the already inverted yield curve, and cause gold and silver to spike. This opinion comes with the usual caveats that things could change between now and Tuesday morning and that past performance does not guarantee future results.

I bring up the trade war, not because it’s the focus of this post, but just by way of warning that there is a lot of uncertainty in the financial markets, a great deal of which is caused by the geopolitical stresses in the world today, none of which seems likely to be resolved anytime soon.

And geopolitical stresses are not the only things that pose a threat to the well-being of private citizens of the US and the West generally. The Western financial system is in a state of collapse. Deficits and debts are out of control, yet there is no political will to address these issues. To date, politicians and central bankers have largely been able to hide the destructive effects of out of control spending government spending has had on the lives of average citizens, but this will not go on indefinitely.

Speaking of debtors, Jesus said in his Sermon on the Mount that, unless they settled with their creditors, they would be thrown in jail and not get out until they paid the last cent. In God’s economy, the books always balance in the end. Put another way, no debt goes unpaid. The once Christian West has managed to rack up the greatest debts in the history of mankind, and these debts most certainly will be paid in full. That payment will come in the form of currency devaluation, loss of standard of living and, probably, a loss of personal freedom as well.

So what are Christians, in particular, Western Christians to do in the face of the challenges facing our nations? In the first place, we must remember who it is we serve. The Lord Jesus Christ is our king and it is in his name we put our trust. Jesus never promised his people that they would have lives of perfect, uninterrupted bliss. On the contrary, he repeatedly warned his hearers that following him came at a cost. But Christ has promised that he will always be faithful and that our Father in heaven will supply our needs.

In the opinion of this author, barring the near-term return of the Lord Jesus Christ, there is no possible way for the West to avoid a major financial and political crisis in the next few years. But in light of the promises of Scripture – for example, “But seek ye first the kingdom of God, and his righteousness; and all these things (food and clothing) shall be added unto you” – Christians have no business falling into despair.

This leads me to my second point. Rather than falling into despair, we Christians need to get to work. That is to say, we need to get prepared for what is coming. We want to be the prudent man in the verse from Proverbs quoted at the top of this post and not as the fool who ignores all warnings signs and is punished for his failure to take reasonable action.

Put another way, recognizing potential dangers and making prudent preparations against them is part of the Christian enterprise.

In today’s post, beginning with Noah I’d like to begin exploring some of the major examples in Scripture of prepping and what applications these examples have for Christians in the early 21st century.

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Financial Crisis

They have also healed the hurt of My people slightly, saying, ‘Peace, peace!’ when there is no peace.

    – Jeremiah 6:14

A prudent man foresees evil and hides himself, but the simple pass on and are punished.

    – Proverbs 22:3

In his recent piece “11 Reasons Why So Many Experts Believe That A US Economic Crisis Is Imminent,” Michael Snyder makes the case that there are numerous and important economic indicators that are flashing red, warning us that a the next recession is imminent. I strongly suggest that you read it.

Predictions about the future are always difficult. Michael Snyder does not claim to be a prophet. Neither does this author. But God has given us his Word and the ability to reason from it. In the Scriptures we can learn the mind of God on what sound government is, what sound money is, and what pleases him as well as what incurs his wrath.

Gordon Clark and John Robbins both noted in their writings that the once Christian West is in a state of collapse and has been for some time. This collapse, which can be traced at least to the second half of the 19th century has advanced to the point where the nations that once rejoiced in the blessings of God brought about by the Christian Reformation of the 16th century are now falling apart before our very eyes.

It is beyond the scope of this series to look at all the ways in which the West is in collapse. Rather my focus has been on the failure of the Western financial system. That is quite enough for one series.

Getting back to Michael Snyder’s article after listing out the 11 economic danger signs, Snyder comments, “On the surface, the Trump administration is trying to assure us that everything is going to be just fine, but behind the scenes they appear to be preparing for the worst.”

Worth noting is that Michael Snyder is not some snowflake Trump hater. He’s a conservative Republican, but one who is honest enough to admit that the rhetoric out of the Trump administration does not match with the policies the President wants to pursue. Lowing interest rates and demanding Quantitative Easing – Quantitative Easing (QE) is a new term that came into common use during the 2008 financial crisis; QE is a roundabout way of saying “money printing,” which has the effect of destroying the value of the dollar – are measures designed to pull an economy out of a recession. These are not measures one uses when the economy is doing well, but when it is struggling.

It appears that Trump is concerned that the economy may tip over into recession before the 2020 presidential election. Were this to happen, it would weaken his chance of reelection.

Trump is right to be concerned. When the next recession hits, it likely will be much worse than the one we saw in 2008. In fact, many economic observers don’t speak of a coming recession. Rather, they speak of a coming Greater, or even Greatest, Depression.

Those who speak of a Greater Depression rest their case on the fact that the 2008 crisis was never dealt with honestly. The 2008 crisis was debt driven. There was too much debt in the financial system and not enough capital to service it. So what did governments and central banks do to “solve” the 2008 crisis? Unbelievably, they added more debt to the system!

While adding more debt to the system had the effect of reflating the collapsing bond market, stock market and housing bubbles and kicking the can down the road, not only did it not solve the debt problem, it actually made it much worse. As did the false prophets Jeremiah’s day, so too have done elected officials and central bankers in our time: They have healed the wounds of their people slightly.

I would like to be optimistic and say that the nations of the West will come to their senses and reject the policies, chief among them central banking, that have driven them to the point of bankruptcy, but it appears that this will not the case. There are simply too many powerful, vested interests to expect a change of course at this point. In the view of this author, it will take a major economic collapse before there is any opportunity for change.

But even an economic collapse of historic proportions will not be enough. As John Robbins has noted, events do not explain themselves, but must themselves be explained. Were an economic collapse to happen tomorrow, not a few people would take to the microphones of the MSM to declare that it is all the fault of too much liberty, that those who favor capitalism are to blame, and that what we need is more centralized government authority to pull us out of this mess and ensure that such a disaster won’t happen again.

Of course, such an explanation is nonsense. It is not too much economic and political liberty that has led the nations of the West to the brink of economic collapse, but too little. It is the central planners, the central bankers, the authoritarians and the socialists who have created this mess, and it is imperative that Christians point this out once the collapse occurs.

There is a sense in which Christians can be faulted for the collapse of the West, but not in the way that our enemies think. Our fault lies in the fact that we have not fought the good fight of faith as we ought to have. Too often we have been seduced, either by the pleasures of this world, by the so-called wisdom of this world, by our own laziness, by our own self-imposed ignorance, or by the fear of men, from teaching, rebuking, and correcting the enormous fallacies that have poured forth from both religious and secular thinkers over the past 150 years.

The ideas of Thomas Aquinas, Soren Kierkegaard, Karl Marx, Charles Darwin, Oscar Wilde, Sigmund Freud, Karl Barth, John Maynard Keynes and many others have replaced the systematic truth of the Scriptures in the West to the point that even many Christians have absorbed at least some of what these men taught under the mistaken notion that their ideas are Christian.

Christians in the late 19th and 20th centuries first lost the intellectual battle, and now their descendents are losing their countries.

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