Dear Brethren and Friends,
It is my responsibility to warn all of you to begin to prepare now for rough financial times ahead. This world is in great turmoil. The recent capture of Saddam Hussein is certainly encouraging—as far as it goes. But that fact alone will do very little to bail out most of our Israelitish nations from a coming financial disaster!
As a people, we—particularly in the United States—are spending far beyond our means. In our consumer oriented, credit card society, we are continually buying things we do not need with money we do not have. But the day of reckoning is fast approaching. For, even as I write, the United States dollar has fallen to another all time low against the euro. Only months ago, the euro was only worth 82 cents compared to the dollar. Now it has risen to $1.25—a gain of more than 40 percent in less than two years!
Meanwhile, as the dollar continues to slide, the massive amount of imported goods that Americans buy—to satisfy their insatiable appetite for more and more cars, clothes, toys, televisions, computers and other consumer goods—will of course continue to cost us more and more in terms of our own devalued currency. This will soon become like an added “tax” on the American consumer. Then, within a few more years, we will see either massive inflation if we continue to print more dollars—or a crippling deflation or even depression.
The Apostle Paul was inspired to tell us: “Now godliness with contentment is great gain. For we brought nothing into this world, and it is certain we can carry nothing out. And having food and clothing, with these we shall be content” (1 Timothy 6:6–8).
Brethren, as the people of God, we must be careful not to become caught up in the materialism of this world! We need to be careful not to become over-indebted, not to buy things we do not need. We need to prudently set aside at least a portion of our income to guard against a “rainy day”—a day when a coming financial disaster may strike many of our friends and neighbors who are not prepared.
Just yesterday, our local paper here in Charlotte, North Carolina ran this headline: “Deficit still climbing despite rise in exports” (Charlotte Observer, December 13, 2003). Then, the article by Martin Crutsinger of the Associated Press, stated: “The U.S. trade deficit climbed to $41.77 billion in October as Americans’ appetite for imports hit a record high, offsetting a sizable gain in exports, including the best showing for sales of farm products in seven years. The politically sensitive deficit with China hit an all-time high. For the year, the U.S. trade deficit in goods and services is running at an annual rate of $490.8 billion, far worse than last year’s record deficit of $418.04 billion.”
This record deficit is going to give a “headache” not only to President Bush, but also to you. For each of us will be deeply affected not only by the political and religious persecution that is coming, but also by the financial excesses of our peoples—unless we start taking steps to set aside at least a moderate “emergency fund” for each of our families, and also cut back on unnecessary expenses and purchases.
Many of you have probably read about Warren Buffett, the world’s second richest man, after Bill Gates. Buffet made his money over a long period of time by carefully investing and then saving the money he made. He is regarded as an absolute financial “guru” and is paid huge sums for his financial advice. In a November 10, 2003 interview with Fortune magazine, Buffett ominously warned: “America’s growing trade deficit is selling the nation out from under us… As head of Berkshire Hathaway, I am in charge of investing its money in ways that make sense. And my reason for finally putting my money where my mouth is, is that our trade deficit has greatly worsened, to the point that our country’s ‘net worth,’ so to speak, is now being transferred abroad at an alarming rate. A perpetuation will lead to major trouble” (Emphasis ours).
Not understanding the principle behind Buffett’s advice, our personal and corporate bankruptcies here in America continue to soar. Millions are unemployed. Jobs continue to be exported overseas. U.S. business investment in equipment continues to drop. The U.S. dollar continues to plunge, and the U.S. trade and budget deficits are certainly exploding.
Another top financial advisor, Richard Russell, commented on November 12, 2003 about the U.S. budget deficit: “The Bush administration says that next year’s federal budget deficit will be $500 billion, better known as half a trillion dollars. Then add the $87 billion that Congress just approved to partly cover the cost of Afghanistan and Iraq. OK, that puts the deficit at $587 billion. But this doesn’t count the $217 billion that the government is borrowing from the Social Security trust fund. That takes the deficit to $804 billion. Then there’s the added cost of the tax cuts, prescription drugs and other special expenses and times, and you’re talking about an actual deficit of probably over $1 trillion dollars.” Also, the London-based Economist magazine recently wrote: “As baby boomers retire, the pressure from entitlement spending will be more acute. Set against this background, the path back to a sustainable fiscal policy will be extremely painful, even without any dramatic fiscal crisis. Long after Dubya is back on his ranch, Americans will be trying to recover from the mess he created” (November 8, 2003).
It is important that you and I realize that much of the financial community around the world is beginning to recognize that America is in financial trouble. We are only staying afloat by virtue of out-of-control consumer borrowing and spending, and the creation of trillions of dollars in currency out of “thin air” to paper over the cracks in our financial system. In the second quarter, U.S. corporations and consumers together borrowed at an annualized rate of $2.52 trillion! The U.S. government now has $44 trillion in unfunded liabilities. The process of printing trillions of dollars to cover unfunded liabilities will certainly destroy the dollar if it continues!
Mr. Herbert Armstrong used to say: “Knowledge is of no value unless it is used or applied!” So there are times when we have to act! This is one of those times.
The truth is that most Americans would rather be lied to and kept in their “comfort zone” than hear the truth and be moved out of their comfort zone. But you, brethren, as the people of God, should be willing to stir yourselves and be sure you do not fall into this financial “trap” that is affecting so many millions of families. The Bible says in Proverbs 27:12: “A prudent man foresees evil and hides himself; the simple pass on and are punished.” Remember that the “simple” generally just “go along” with the majority and do nothing when a disaster of this sort is about to strike. I pray that all of you will understand the warning I am now giving you, and begin to take action.
Finally, brethren, I hope that all of us will strive to get our balance on this and on every issue of life. This is not a time to panic. But, it is a time to act. Acting as dedicated Christians is the ultimate “key” to our financial, physical and spiritual survival. So, obviously, we should obey God’s command to tithe and to give offerings. For our Creator directly tells us: “‘Will a man rob God? Yet you have robbed Me! But you say, “In what way have we robbed You?” In tithes and offerings. You are cursed with a curse, for you have robbed Me, even this whole nation. Bring all the tithes into the storehouse, that there may be food in My house, and try Me now in this,’ Says the LORD of hosts, ‘If I will not open for you the windows of heaven and pour out for you such blessing that there will not be room enough to receive it’” (Malachi 3:8–10).
Remember, if we truly obey God’s financial laws, and are also careful to do our part in wise financial management—not overspending, and taking care to set aside a moderate financial reserve—then God will intervene to take care of us in this area of our lives, and protect us even from financial and other perils that we may not be able to foresee. We will certainly be in all kinds of trouble if our heavenly Father does not watch over us, and guide and protect us in all things, in the years ahead. So it behooves us to do our part. Yet we must look beyond the purely physical circumstances, and know that the great God whom we serve will intervene to take care of every one of His faithful children.
God’s inspired Word tells us: “Let your conduct be without covetousness; be content with such things as you have. For He Himself has said, ‘I will never leave you nor forsake you.’ So we may boldly say: ‘The LORD is my helper; I will not fear. What can man do to me?’” (Hebrews 13:5–6).
