On September 13, 2012 the Federal Reserve announced that it would start creating $40 billion out of thin air each month to buy mortgages until the labor market improves “substantially.” Some people have nicknamed the policy “QEternity.“
In a previous post, I wrote that QE3 is nothing more than a policy of petty theft executed on a grand scale. In this six-part series of articles I will elaborate on that connection. In the next article I will discuss in more detail the economic link between policies and QE3 and the economic malaise that follows.
In the previous article I made a link between central bank policy and God’s judgment. I said that according to the Bible — the Word of God — theft is immoral (Exodus 20:15). Because we have adopted a national economic policy that condones immoral behavior, we should expect — and brace for — God to judge us as a nation just as he did Israel (reference the second Book of Kings. The northern kingdom of Israel was conquered by Assyria, and the southern kingdom of Judea was conquered by Babylon).
This is because our elected representatives make decisions on our behalf before God and Man. Because they have adopted immoral national policies, we have all adopted immoral policies. We will be judged collectively if we do not turn from our ways. I doubt that we will.
[This is not to say that central banking is our country’s worst crime. Permitting mass-murder through legal abortion is something to be much more concerned about. But this article is about our economic policy.]
This is because our elected representatives also represent us before God. We can’t balance our budget because nationally — we don’t want to! Deep down, we all want our entitlements. We want the working generation to pay for our cushy retirement through the Social Security tax. We want the working generation to pay for our medical expenses through the Medicare tax. We want to maintain a huge overseas military and invade foreign countries. We all want to be paid six-figure salaries and work as little as possible. Deep down we really want all of these things. Our politicians know this.
Not everyone wants all things, of course. Some would cut Social Security, but they don’t want to shrink the military. Some want to cut the military down to size, but they don’t want to give up Social Security.
THE MORAL BANKRUPTCY OF OUR SOCIAL POLICIES
All of these programs are immoral because, at the bottom, they are also just programs of theft that are fueled by envy and greed. It’s the politics of “soak the rich!” In our hearts, we are corrupt. Instead of being glad that the rich, through their entrepreneurial spirit — by which they bore risks that most of us would never take ourselves — have produced innovations that have made us all wealthier, we gnash our teeth at their success.
Big government doesn’t want to shrink. Though they could all be voted out almost overnight if the electorate so chose, they won’t. To help us along in our envious complacency, the men running the government make sure that we don’t become diverted in our discussions. They want us to remain focused on the golden calf.
The low-class in this country today lives wealthier than any low-class in the history of the world. In many regards, the low-class and poor in America have luxuries even the elite didn’t have 200 years ago.
OUR ENVY FUELS GOVERNMENT POLICY
And yet we cannot be happy about this. We are envious. We want the rich to be punished for their success. The Bible speaks on this:
A tranquil heart gives life to the flesh, but envy makes the bones rot. (Proverbs 14:30 ESV)
Often we like to think that the people with the most riches are not good people. We see their debauched lifestyles flaunted before us, and it makes us angry. We don’t heed the Bible and take heart that the riches of the wicked are being stored up for the righteous (Proverbs 13:22). In response, we demand that they pay. But the Bible speaks of this as well:
Truly God is good to Israel,
to those who are pure in heart.
But as for me, my feet had almost stumbled,
my steps had nearly slipped.
For I was envious of the arrogant
when I saw the prosperity of the wicked.
(Psalm 73:1-3 ESV)
Rather than remembering that the Lord is by our sides, we become brutish and ignorant and allow our souls to become embittered. Rather than singing the praises of the Lord’s blessings in our lives, we look upon the wealthy, even if they are unrepentant sinners, with bitter envy in our hearts and demand that they pay. We don’t focus on the work that we are here to do; we become the servant who buried his talents in the soil.
We should remember the words of the psalmist:
Whom have I in heaven but you?
And there is nothing on earth that I desire besides you.
My flesh and my heart may fail,
but God is the strength of my heart and my portion forever.
(Psalm 73:25-26 ESV)
Because we are greedy, because we want to participate in the politics of greed and envy, and because our insatiable appetites for immediate riches cannot be met by the current output of our production, the politicians make promises to us that they cannot keep. They go into debt in order to fund today’s demand.
THE BANKERS STEP IN TO HELP US OUT
The Federal Reserve is happy to oblige. The Big Bankers believe that all of that debt must be paid back — interest payments. The bankers collect the interest. The Federal Reserve effectively spends our own money to buy our own debt, and the interest that we then pay is given to the bankers.
We are paying with our left hand to buy a lie written by our right hand. We pay the banker a fee to take the promise-to-pay from our right hand and place it in our left hand.
This is where QE3 comes into play. It is because of our greed that the Federal Reserve interferes with the market and disrupts the economy, as I’ll show in the next article.