Chewing over the 'Credit crunch'... and some bigger issues
As the Global credit crunch bites hard, Roy Todd looks at some wider issues that the economic
down-turn and Global events should cause us to consider
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Turn on your news channel or open a newspaper ... and the words 'credit crunch' are likely to be mentioned within a few minutes. It's the story that's dominating the headlines and more importantly, impacting our current standard of living – in contrast to what Bank of England chairman Mervin King recently described as 'the nice decade', the period roughly of 1997-2007.
Petrol prices are up. Gas and electricity costs are up. Food expenses are up. But salaries are not rising nearly as fast – a necessary and painful ploy that's meant keep the dreaded inflation down.
To understand the root cause of the economic down-turn, it might be helpful to amend some commonly used terminology. For example, if you replace the word 'credit' with 'debt' – then the latter sums up exactly what the problem is. To slightly rephrase an old saying 'It's the 'debt' wots done it'. People have borrowed like there's no tomorrow – without realising that one day it will all have to be paid back. Now, the price is being paid for living beyond our means – many of the major banks taking the full brunt of unpaid loans and all the implications that has on their viability. In Britain, the Northern Rock crisis came as a wake-up call to the problems – in America, the equivalent being the shocking news of Bear Stearns woes.
Hard times often lead to hard lessons. Here are some thoughts on what might be learned:
1. The world really is a fragile and volatile place
Though it's been building up for a long time, people have still been shocked at how quickly the credit crunch has impacted. I remember sitting with a young couple in the beautiful home of their dreams that they'd purchased just a few months earlier. They were so filled with optimism and hope at the possibilities of what they could do with the property they'd acquired. Yet, within the next 12 months, all their hopes and dreams came crashing down around them. They couldn't afford the monthly re-payments on their mortgage and sadly, were repossessed by their lending company.
What seems secure today can become fragile and insecure tomorrow. That's a pretty good description of our world.
2. Never take your way of life for granted
Western society is far too apathetic about the standard of life we've come to enjoy. Without wishing to sound like a doom and gloom merchant, it really is unwise to just assume that this way of life will last forever. The prosperity we enjoy today could easily be taken away from us tomorrow.
3. Surely there is a better foundation on which to build
Despite the instability of economic and political events, one thing's for sure – God is in control. That's why he's God. It is therefore wise to make him our foundation. That's why Jesus came – to show people a better way. He came to bring forgiveness and security – a hope that will last forever. Better to root your trust in him than base your faith on the mere possibility that circumstances might just get better.
4. Life is very short
Whilst walking recently, I came by an old grave-yard quite close to where I live. As I looked around the gravestones, some of which were hundreds of years old, the thought of the sheer brevity of life struck me with new force. In his New Testament letter, James asks a deeply profound question. 'What is the nature of your life? You are really but a wisp of vapour, a puff of smoke, a mist that is visible for a little while and then disappears into thin air.' (James 4:14)
Isn't it strange that the one thing that everybody knows for sure will happen is the very thing people are least prepared for – death? Life is short – so we ought to make it as meaningful and purposeful as possible. Time lost can never be re-claimed. So surely we should make the most of the time we've got?
5. Live debt-free
Whilst the credit crunch (debt crunch) is certainly biting hard, it's amazing to think that Jesus Christ came to clear the massive and un-payable debt of guilt and sin over humanity. J John puts it well when he says that Christ come 'to rub it out – not rub it in'. There's nothing we can do but simply trust in what God has already done. That's what faith is all about – entering into a faith-relationship with God through which forgiveness and freedom are found. This way alone is how we can live a truly debt free life.
© Roy Todd, 2008.
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