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Q. So what if the Secretary Treasurers do bailout or don't bailout the U.S. What does it matter anyway? What is the problem? I can't see it. I'm really bored with the news and constant coverage of this issue.
This is not a putdown - I understand that economics is a very dry, boring subject to many U.S. citizens. We don't teach it in most high school courses (and this may be a deliberate "dumming down" of Americans). But, keeping one's job, earning enough to retire or putting your kids through college, is not. It affects each one of us.
Consider this: If the government does not bailout the U.S. banking system, credit will continue to "freeze." This means you won't be able to borrow enough from your bank or credit union to purchase a new car. The car industry will totally fail.
You won't be able to purchase a new home, either, or take out equity loans. That will cause homes to continue to plummet in value. You won't be able to "float" funds to make payroll if you are a small business.
Millions will lose even more jobs. The credit card industry will probably lower amounts we can borrow and more quickly jack-up interest rates to those who are late with their payments. Recently, many of these jacked-up rates exceed 30 percent! More people will default on paying off credit card loans and this industry will fail, too.
Even worse, this credit freeze is affecting other countries, too. When investment bankers like J.P. Morgan or Morgan Stanley packaged mortgage loans (called "mortgage-backed securities") and sold them overseas, they caused them to suffer just as we are.
For example, your son - who walked away from his home because he couldn't pay the escalating rent - has affected overseas investors as well as mortgage companies in the United States. In effect, we are all guilty of spending too much and walking away from paying our debts.
In other words, this problem isn't just in America - it is worldwide.
No Guaranteed Bailouts
Of course, there are no guarantees that our government's bailout will work on a long term basis anyway. This "papering over" of our credit losses could turn into a hyperinflationary spiral. This is what happened in Weimar Germany in the 1920s and in 1990s Argentina.
3 Days to Destruction
To give you an idea of how bad that is, consider that in less than three days Weimer German citizens saw their entire savings evaporate into nothing. People who had enough to retire couldn't buy a loaf of bread in less than three days. In recent Argentina's hyperinflationary spiral it took less than eleven days to find the currency worthless - totally destroyed.
Example of Currency Destruction
For example, a one-ounce silver coin that was worth 12 German marks in 1921 became a one-ounce silver coin worth trillions of marks by the end of 1923. (In comparison, your $300 utility bill could become a trillion dollar utility bill).
That is why a bailout is not a "so what" question.
We need to pray:
If my people who are called by My name humble themselves and pray and seek My face and turn from their wicked ways, then I will hear from heaven, will forgive their sin and will heal their land (2 Chronicles 7:14, NASB).
God's answer does not depend on the liberal left or the godless atheists repenting of their sins. His answer depends upon the actions of "His peoples." That's US - the church!
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