At Anselm Study House we have highlighted the generational problem with current attitudes towards debt (see our debt slavery article and our economics articles). The western world seems to be thirsty for debt. This thirst cuts across all spheres; personal, family, business, church, state and federal. Like most nation's Australia's federal reserve bank (the RBA) simply creates money ex-nihilo to increase the monetary supply. If this were not so serious it would be funny! But the problem is that "there are no free lunches." Someone will pay for the foolishness of our debt appetite. Before you, dear reader, wave the "not a Gospel issue" flag, think about what Christ has done for you. He has set you free from bondage, given you a new heart and mind. This comes with an expectation, one of obeying the Word of God (i.e. the Scriptures) in every area of life. No, it is more than that. Christ has commanded His Church to go out and disciple the nations, teaching them to obey His commands. It is not our chief end to simply evangelise everyone. The Great Commission is grandiose, world changing and triumphant. Debt is slavery. The scale of debt we are in as individuals, churches and a nation will hold us, our children and many generations in bondage. Think about this...what further freedom would you have, to expand Christ's kingdom, if you had no debt. Multi-generational thinking is now missing from within the church. It is time for it to return. We, as a generation (amongst several) are squandering our inheritance. In fact, the cheques are bound to start bouncing soon. Continue to read a humorous look at the sovereign debt crisis by ABC's Clarke and Dawes and a video on How does the financial system work. We also suggest that you follow the articles from The Daily Reckoning Australia, the Economic Edge, the Ludwig von Mises Institute and lewrockwell.com. Sign up to their newsletters or RSS feeds. We also recommend two great resources from our shop - Biblical Economics (book) and A Christian View of Economics (cds). You need to think about ways to build a family vision that reaches into the next few generations. High debt accumulation will simply cripple our families' and churches' Gospel impact upon society.
Clarke and Dawes ask the million dollar questions
Transcript
KERRY O'BRIEN, PRESENTER: Time for John Clarke and Bryan Dawe with a few reflections on Europe's financial woes.
BRYAN DAWE: Your name is Roger yes?
JOHN CLARKE: Roger.
BRYAN DAWE: Ah, that's your name?
JOHN CLARKE: Roger.
BRYAN DAWE: Good. And what do you do Roger?
JOHN CLARKE: I'm a financial consultant.
BRYAN DAWE: Ah, financial consultant, eh?
JOHN CLARKE: Roger, yes.
BRYAN DAWE: Terrific and Roger how is business at the moment?
JOHN CLARKE: Not bad thank you. Been a bit quiet lately.
BRYAN DAWE: How do you mean lately?
JOHN CLARKE: Since the war. Been a bit quiet.
BRYAN
DAWE: Fair enough. Okay, Roger your special subject tonight is the
economies of the European community. Your time starts now. Best of
luck.
JOHN CLARKE: Thank you.
BRYAN DAWE: How much does Greece owe, Roger?
JOHN CLARKE: $367 billion.
BRYAN DAWE: Correct. And who do they owe it to?
JOHN CLARKE: Mostly to the other European economies.
BRYAN DAWE: Correct. How much does Ireland owe?
JOHN CLARKE: $865 billion.
BRYAN DAWE: Correct. Who do they owe it to?
JOHN CLARKE: Other European economies mostly.
BRYAN DAWE: Correct. How much does Spain and Italy owe?
JOHN CLARKE: $1 trillion each.
BRYAN DAWE: Correct. Who to?
JOHN CLARKE: Mainly France, Britain and Germany.
BRYAN DAWE: Correct. And how are Germany, France, Britain going Roger?
JOHN CLARKE: Well they're struggling a bit, aren't they?
BRYAN DAWE: Correct. Why?
JOHN
CLARKE: Well ‘cause they've lent all the vast amounts of money to other
European economies that can't possibly pay them back.
BRYAN DAWE: Correct so what are they go to go have to do?
JOHN CLARKE: They're going to have to bail them out.
BRYAN DAWE: Correct. Where are they getting the money to do that Roger?
JOHN CLARKE: That is a good question. I don't know the answer to that one. (laughs)
BRYAN DAWE: How much does Portugal owe?
JOHN CLARKE: Hang on a minute, what was the answer to that earlier question?
BRYAN DAWE: Just keep answering the questions Roger.
Where is Portugal going to get the money it owes to Germany if Germany can't get back the money that it lent to Italy?
JOHN CLARKE: Just a minute. What was the answer to the previous que-
The
question was: How can broke economies lend money to other broke
economies who haven't got any money because they can't pay back the
money the broke economy lent to the other broke economy and shouldn't
have lent it to them in the first place because the broke economy can't
pay back?
BRYAN DAWE: You are wasting valuable time Roger. How much money does Spain owe to Italy?
JOHN CLARKE: $41 billion. But where are they going to get it?
BRYAN DAWE: Correct. What does Italy owe to Spain?
JOHN CLARKE: $27 billion but they haven't got it - they're broke.
BRYAN DAWE: Correct. How can they pay each other if neither of them has any money?
JOHN CLARKE: They're going to get a bailout, aren't they?
BRYAN DAWE: Correct. And where is the money coming from for the bailout?
JOHN CLARKE: That is what I'm asking you!
BRYAN DAWE: Correct. Why are people selling the European currency and buying the US dollar?
JOHN CLARKE: Because the US economy is so much stronger than the European economy.
BRYAN DAWE: Correct. Why is that Roger?
JOHN CLARKE: Because it's owned by China.
BRYAN DAWE: Correct and very well done! And after that round you've lost $1 million.
JOHN CLARKE: I've lost $1 million? I thought you said well done!
BRYAN DAWE: Yes well done - you've only lost $1 million. That's an extraordinary performance Roger.
JOHN CLARKE: I've only lost $1 million.
BRYAN DAWE: Very well done.
JOHN CLARKE: That's quite good is it?
BRYAN DAWE: Oh it's excellent.
JOHN CLARKE: Sell everything immediately. Quickly!
KERRY O'BRIEN: I think it's called laughing as you sink.
This transcript was taken from the Australian Broadcasting Corporation, Broadcast: 20/05/2010, click this LINK for the original transcript and to view/download the video (it is work it!).
At Anselm Study House we have highlighted the generational problem with current attitudes towards debt (see our debt slavery article and our economics articles). The western world seems to be thirsty for debt. This thirst cuts across all spheres; personal, family, business, church, state and federal. Like most nation's Australia's federal reserve bank (the RBA) simply creates money ex-nihilo to increase the monetary supply. If this were not so serious it would be funny! But the problem is that "there are no free lunches." Someone will pay for the foolishness of our debt appetite. Before you, dear reader, wave the "not a Gospel issue" flag, think about what Christ has done for you. He has set you free from bondage, given you a new heart and mind. This comes with an expectation, one of obeying the Word of God (i.e. the Scriptures) in every area of life. No, it is more than that. Christ has commanded His Church to go out and disciple the nations, teaching them to obey His commands. It is not our chief end to simply evangelise everyone. The Great Commission is grandiose, world changing and triumphant. Debt is slavery. The scale of debt we are in as individuals, churches and a nation will hold us, our children and many generations in bondage. Think about this...what further freedom would you have, to expand Christ's kingdom, if you had no debt. Multi-generational thinking is now missing from within the church. It is time for it to return. We, as a generation (amongst several) are squandering our inheritance. In fact, the cheques are bound to start bouncing soon. Continue to read a humorous look at the sovereign debt crisis by ABC's Clarke and Dawes and a video on How does the financial system work. We also suggest that you follow the articles from The Daily Reckoning Australia, the Economic Edge, the Ludwig von Mises Institute and lewrockwell.com. Sign up to their newsletters or RSS feeds. We also recommend two great resources from our shop - Biblical Economics (book) and A Christian View of Economics (cds). You need to think about ways to build a family vision that reaches into the next few generations. High debt accumulation will simply cripple our families' and churches' Gospel impact upon society.
