Is debt a mirage?

Is debt a mirage? All my life I have been told by my parents, the bank, and creditors that debt is bad. If I had a dime for all the businesses that folded because of bad debt I’d be rich. If debt is nothing, then why do businesses go under due to debt? I knew someone who got their first credit card. They went out and spent to the limit the first day. In the process they claimed personal bankruptcy a few short years later. If debt is no big deal, then why did Visa pick on them?

            I read a while ago that 60% of people will be in debt when they retire. Is that really true? If they all died, who pays the bills. I know so many that don’t own a home. They have very little assets. Will banks just consume the debt? The government has changed the rules for borrowing to curb those who can’t afford big debt. Does the government fear lost debt?

            I am just wondering. Some years ago, in Alberta Canada we were debt free. Many people said that the government burdened us with paying it off. Yet, there we were debt free. Probably about 10 years later we are 96 billion dollars in debt. This province pays out about 2 billion in interest. So, is there a problem or is debt no big deal. Can we pay police, build schools, and run government through borrowing? Some say yes and others say no. which is it?

            I am not a banker or money wizard. Yet, being out of debt is important to me. Why? I dunno, my parents told me to manage my money. They didn’t but I do. I will be debt free when I retire. That is something most people will not say. However, I do see a confusion. People debt seems real. We have to pay it back. Banks do not like default. Companies go under in debt. Claire’s sells jewelry and stuff all over the world. They pierce ears too. In fact, it’s the bulk of their business. They are a billion in debt. The problem is on-line shopping. You can’t pierce your ears on-line. So, they are going under.

            I know, Bible stuff is stupid, out dated, and irrelevant.

Deuteronomy 23:19 “Do not charge a fellow Israelite interest, whether on money or food or anything else that may earn interest.”

Deuteronomy 28:12 “The LORD will open the heavens, the storehouse of his bounty, to send rain on your land in season and to bless all the work of your hands. You will lend to many nations but will borrow from none.”

See God is stupid with money.

            It’s odd but God warns us with many things. He is the good parent. Don’t sin. Don’t borrow. Do good and give to the poor. God is all about focus. Yes, we should focus on God. He will lead the way. Yet, we should not focus on money, ourselves, and things. Why? Why not take care of ourselves and our family with money and things? It’s not a humble or pride thing. It’s all about focus. We do better when we concentrate on what really matters. You can’t take anything with you.

            Government debt is tricky. It’s certainly possible to go under. Greece and several other countries are going down in debt. Can Canada or the USA? Here is the interesting part. Let’s touch on Canada. In 2008 we had a production to debt ratio of 67.8%. Now we are at 98.1%. Greece is at 181% while Japan is at a staggering 234%. What it means is the higher the number over 100% you’re paying on debt is more than you make as a country. Canada is now cruising into the top 15 indebt countries in the world.

            I am a pastor so economics is for those guys. Yet, the Bible shouts a warning to be prudent. There were pictures given out by the Nazi in WW2 about the money hungry, tight fisted Jews. Ironically, they were following the Bible. Germany was not. They were in debt. Hitler spent his way out by seizing Jewish assets and printing money. War was his way of getting out of debt. Canada can’t do it that way. We have a tiny miniscule army.

            People debt is troubling. This consumer greed is troubling. The leaders of our country have lower support ratings that are historic. Taxes and poverty are rising as we cruise into the top ten debts in the world. The current leaders are rich. They will not default or go to jail if things go down. They will leave for greener countries. We the people will hold this debt. That’s the problem in Greece right now. No economy is making it impossible to pay it back. Meanwhile back in Canada?

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