FEDERAL DEBT AND THE SECRET THEFT OF GROWING INFLATION
One political hot topic is vaguely understood by many Christians. However, it is one of the most crucial problems facing the Biden administration.
Consider Jesus’ warning in the sixth chapter of Matthew.
“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also. (Matthew 6:19-21)
Inflation is the moth or rust that slowly eats away at wealth, day by day. The robber comes in and steals all at once, but the moth can go unnoticed for long periods of time, often undiscovered until it is too late.
Insider Intercessory Information
I would not claim to be any kind of financial expert, but economics has been a main area of focus for me both in college and in my writing since then.
“The master commended the dishonest manager for his shrewdness. For the sons of this world are more shrewd in dealing with their own generation than the sons of light.” (Luke 16:8)
We don’t want to be dishonest, but the world should not be wiser than us when we have access to the wisdom of God!
I believe it helps to be educated in what we are praying for, if at all possible, so I’ll try now to briefly explain this issue and why it matters.
The Consumer Price Index, a key marker used to track inflation, is the highest in 13 years, according to the latest federal data released this week. This continues an ongoing trend this year of increasing prices and rising inflation.
Higher inflation means everything, from rent to groceries to clothes, is more expensive. Your money buys less than it did the previous month.
Inflation is partially fueled by the federal government’s ongoing debt monetization.
To describe debt monetization in a major oversimplification….
The federal government prints more money and then uses that money to buy bonds from itself. Now that the government has the money it printed, it can fund its obligations. When the government can rely on this steady supply of newly printed money, it essentially begins to consider it as another revenue source, in addition to tax revenue.
That sets a precedent for ever-increasing federal debt spending and makes the federal budget reliant on ever-increasing inflation.
If you’re still a little confused, that’s ok.
To put it another way, the federal government helps pay its debts by printing more money. The more money they print, the less money is worth. The less a dollar is worth the less it can buy. The less a dollar can buy, the more prices have to go up. This practice allows the government to borrow more money, but now your money buys less than it did before.
Since the government benefits, but your finances pay the price, inflation is actually a secret tax.
For example, if you have a savings account today with $1,000 in it, and you do nothing, that same $1,000 will be able to buy much less in ten years. If inflation is 5% annually, your money becomes 5% less valuable each year. Most savings accounts don’t have interest rates even close to keeping up with inflation. Even if you are invested in a mutual fund that gives 8% return, much of that is lost to inflation. When inflation is elevated, some investments don’t grow your money, they just keep up with inflation.
Lastly, the U.S. dollar is the best currency in the world and is used as the global standard. If the dollar ever stops being the international standard for currency, as it is today, that would have huge negative effects for our economy. God has given our nation a major gift in that regard, and we cannot take it for granted.
With this in mind, let us pray:
-Father, we pray that our leaders would rein in the federal debt spending that is helping drive inflation. Give our leaders self control, Holy Spirit, that we can prosper as a nation.
-Father, we pray for wisdom for the federal reserve, that they would use the right monetary policies to protect our economy from disaster and our nation from poverty. Protect us from the rust and moth of inflation!
-Lord, we ask that our competitors and enemies do not take advantage of us and our financial mismanagement. Give us grace, mercy and provision of resources, wisdom and repentance to get back on track. Thank you Lord for your abundant blessing that we have experienced in our land.
Verses to press into as you pray on this topic:
“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.” Matthew 6:19-21
“The rich rules over the poor, and the borrower is the slave of the lender.” -Proverbs 22:7
“With me are riches and honor, enduring wealth and prosperity. My fruit is better than fine gold; what I yield surpasses choice silver.” -Proverbs 8:18
Are you concerned about the impact of our nation’s monetary policy? What are you praying?
Article written by Casey Harper. Casey Harper is a writer in the Washington, D.C. area covering national politics. He has worked for The Daily Caller, The Hill, and Sinclair Broadcast Group. A graduate of Hillsdale College, Casey’s work has also appeared in Fox News, Fox Business, Washington Examiner, and USA Today. Follow him on Twitter: @CaseyHarper33. (Photo Credit: Canva.)
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