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12/30/05 a.m. In his latest newsletter (which arrived here last night), Legacy Institutes' Leon Sexton wrote:

What I AM ASKING is this: Are you completely and totally dedicated to God and His End-Time Work? Are you doing EVERYTHING you can to demonstrate that commitment to Him?

God’s Work is a Work of the HEART and the SPIRIT! We demonstrate to God where our hearts are by what we DO with the resources He gives us.

“For where your treasure is, there your heart will be also.”

Luke 12:34 NKJV

Everything already belongs God! What He is MOST concerned about is where your heart is – Are you 100% involved in His Work!?

We are ALL – every single one of us – called to DO HIS WORK! We must ALL be fervently “about Our Father’s business”! Every time a new person is baptized, the angels in heaven break out in song! Every time some one new dedicates their lives to Him, God is well pleased! But people such as these will NEVER hear the Word of God unless more of us are sacrificing to get that Word out to the Nations! The Apostle Paul wrote in Romans 10:14-15:

”How then shall they call on Him in whom they have not believed? And how shall they believe in Him of whom they have not heard? And how shall they hear without a preacher? And how shall they preach unless they are sent? NKJV

Do we REALLY understand how God uses us? We cannot just stand by and say that the job belongs to someone else; or belongs to some time in the future. Our present role as members of the Body of Christ is CRUCIAL to the accomplishment of God’s Work on Earth today!

Every sacrifice we make leads to someone new hearing the GOOD NEWS of the Kingdom of God. Without the Gospel going forth to ALL NATIONS – they have NOTHING to respond to!

Can we all see just how important the role of each and every one of us is in God’s Work? It is CRUCIAL! It is INTEGRAL! It is VITAL!

I hope we get our eyes opened soon so that we can all see. Yes, I see some of my brothers and sisters peacefully asleep! Some are entangled in the cares of this world. Some are seduced by the pursuit of riches. Some have allowed trials and tribulations to cause them to “check-out” of God’s Work. Some are so far from God that they have become easy prey for Satan!

And while I do not agree with every teaching or practice of Legacy (see related article Teachings and Practices of Legacy Institute), I do agree that God's people do need to be supporting the work of proclaiming the gospel and that includes making that the top financial priority of whatever COG they are affiliated with.

Those with a prior WCG background may wish to read the article Should the Church Still Try to Place its Top Priority on Proclaiming the Gospel or Did Herbert Armstrong Change that Priority for the Work?

On other matters, this morning I have noticed that while I was out-of-town Jared Olar of the anti-COG XCG site posted a variety of comments about some of my writings. A few parts of his comments were correct (like "As a matter of fact, what Thiel wrote is absolutely correct—the reference to “the Great Sabbath” in The Martyrdom of Polycarp does indicate that there were Sabbath-keepers in Asia Minor at the time of St. Polycarp’s death."), but most not so. There are only two comments I feel like addressing now. Here is the first:

Polycarp quotes a passage from the Book of Tobit...When was the last time followers of Herbert Armstrong heard a sermon or sermonette that quoted from the Book of Tobit?

The inaccurate point Jared is trying to make is that Polycarp was a Roman Catholic, and that is why he quoted Tobit. I first quoted from Tobit several years ago. And have heard it mentioned in sermons. One article I quoted from it is titled Is Third Tithe Still Valid Today? Specifically I quoted the following:

Tobit 1:6-8, "Taking the first fruits and the tithes of my produce and the first shearings, I would give these to the priests, the sons of Aaron, at the altar. Of all my produce I would give a tenth to the sons of Levi who ministered at Jerusalem; a second tenth I would sell, and I would go and spend the proceeds each year at Jerusalem; the third tenth I would give to those to whom it was my duty".

The fact that I, Polycarp, and others sometimes cite secular (non-inspired works) does not make either of us Roman Catholic.

The second comment I wish to address is the false claim that Ignatius and Polycarp were trinitarian. Specifically, Jared Olar wrote:

St. Polycarp believed that the saints and martyrs are now in heaven with Jesus, there is also evidence that he and St. Ignatius also apparently held to an early form of the doctrine of the Holy Trinity.

First of all the quote he referred to does not state that the saints and martyrs are in heaven--that is a presumption Jared has made--but there is no point in going into that (or some of the other inaccurate assertions of his writings).

Secondly, and most importantly, Jared has failed to look at the fact that Polycarp and Ignatius both referred to the Father and the Son as God, but never to the Holy Spirit as God. Thus, Polycarp and Ignatius held binitarian views. And while unitarians tend to believe that binitarianism was an early form of trinitarianism, that is untrue--the true Church of God has always been binitarian (this is documented in the article Binitarian View: One God, Two Beings Before the Beginning).

Polycarp was known as the Bishop of Smyrna and probably the first physical head (under Jesus Christ) of the era when Smyrna dominated. He was neither trinitarian nor unitarian according to various historical documents. The following quote attributed to him shows that he (and thus by inference the rest of Smyrna) was not unitarian,

Now may the God and Father of our Lord Jesus Christ, and the eternal High-priest Himself, the [Son of] God Jesus Christ, build you up in faith and truth, and in all gentleness and in all avoidance of wrath and in forbearance and long suffering and in patient endurance and in purity; and may He grant unto you a lot and portion among His saints, and to us with you, and to all that are under heaven, who shall believe on our Lord and God Jesus Christ and on His Father (The Epistle of Polycarp to the Philippians in APOSTOLIC FATHERS (as translated by J.B. LIGHTFOOT) 12:6,7).

It probably should be noted that Dr. Lightfoot left out "Son of" in his translation, which is in the Latin. It should also be pointed out that I am aware of another translation of this section by Roberts and Donaldson in Ante-Nicene Fathers, Vol, 1 which omitted the term "God" before Jesus Christ, but I verified that the term "deum" is in the Latin version of this epistle {the original Greek versions did not survive pass chapter 10}. Dr. Lightfoot's translation "our Lord and God Jesus Christ" is a literal translation of the Latin "dominum nostrum et deum Iesum Christum". The University of Notre Dame Latin Dictionary and Grammar Aid states "deus -i m. [a god , deity]". The term "deum" is the masculine accusatory form of the word "deus". Since traditional unitarians do not call Jesus God, it appears clear that Polycarp clearly was not one of them. Furthermore, he did not ever call the Holy Spirit God.

Ignatius wrote around 100-110 A.D.,

For our God, Jesus Christ, was conceived by Mary in accord with God's plan: of the seed of David, it is true, but also of the Holy Spirit. He was born and baptized so that by His submission He might purify the water (Ignatius of Antioch, Letters to the Ephesians 18,2--note this is translated the same by at least three separate translations as done by Dr. Lightfoot, J.H. Srawley, and Roberts & Donaldson).

Hence, Ignatius (who apparently lived in the times dominated by both the Ephesus and Smyrna eras of the Church), who received Polycarp's praise, also recognized Jesus as God, and thus could not have been a traditional unitarian.

Ignatius also stated

Ignatius, who is also Theophorus, unto her which hath been blessed in greatness through the plentitude of God the Father; which hath been foreordained before the ages to be for ever unto abiding and unchangeable glory, united and elect in a true passion, by the will of the Father and of Jesus Christ our God; even unto the church which is in Ephesus [of Asia], worthy of all felicitation: abundant greeting in Christ Jesus and in blameless joy (Ignatius' Letter to the Ephesians, Verse 0. In Apostolic Fathers. Lightfoot & Harmer, 1891 translation).

He also stated something similar to the Smyrnaeans:

Ignatius, who is also Theophorus, to the church of God the Father and of Jesus Christ the Beloved, which hath been mercifully endowed with every grace, being filled with faith and love and lacking in no grace, most reverend and bearing holy treasures; to the church which is in Smyrna of Asia, in a blameless spirit and in the word of God abundant greeting. I give glory to Jesus Christ the God who bestowed such wisdom upon you" (Ignatius' Letter to the Smyrnaeans, Verses 0-1.1. In Apostolic Fathers. Lightfoot & Harmer, 1891 translation).

It is important to note that Ignatius referred to both the Father and the Son as God in both places (and I verified that it is in the original Greek), but he never called the Holy Spirit 'God'.

The fact that Ignatius and Polycarp did not teach the trinity is also not just my opinion. A trinitarian scholar has admitted:

The binitarian formulas are found in Rom. 8:11, 2 Cor. 4:14, Gal. 1:1, Eph. 1:20, 1 Tim 1:2, 1 Pet. 1:21, and 2 John 1:13...No doctrine of the Trinity in the Nicene sense is present in the New Testament...There is no doctrine of the Trinity in the strict sense in the Apostolic Fathers...(Rusch W.G. The Trinitarian Controversy. Fortress Press, Phil., 1980, pp. 2-3).

Hence, there is no proof in the writings of Ignatius and Polycarp (who are considered to be Apostolic Fathers) that there is any trinity.

Those interested in the truth about the nature of the Godhead should read the article Binitarian View: One God, Two Beings Before the Beginning.

12/29/05 p.m. Well, I have been out-of-town for the past 11 days, and just was informed that Gavin Rumney shut down his Ambassador Watch website. Here is what The Journal reports about it:

After five years on the Web, the Ambassador Watch Web site, earlier known as The Missing Dimension, has been "put out to pasture," says its creator and operator, Gavin Rumney.

The upkeep of the site, at www.ambassadorwatch.co.nz, which took a highly skeptical approach to much that goes on in the various Churches of God, was "hugely time-consuming," Mr. Rumney told The Journal Dec. 20.

"Twenty hours a week was the bare minimum to keep it rolling over," he said, "and requests for information and resulting workload was becoming unmanageable."

Mr. Rumney, a former Worldwide Church of God member who lives in the Auckland, New Zealand, area, said that, from the beginning, "I wanted to create a place where the issues of accountability in the various churches--both financial and structural--could be aired."

"After five years I felt that there wasn't much else to add to that basic message and that it was time to move on."

Gavin posted a year or so ago that he was considering dropping his site, so apparently he has now done it. The AW site was essentially the most popular anti-COG website on the worldwide web.

12/29/05 a.m. In its Jan-Feb 20056 newsletter, CGOM-UK notes:

LIMBO - lost children?
 Did you ever muse, 'We need to go back to square one'? It's an acknowledgement that the solution to a problem doesn't lie in the place we are currently looking or working on.   Seven centuries ago the Roman Church addressed the question: What happens to babies who die un-baptized? You couldn't really send them to spend eternity in a blazing Hell. Yet, being un-baptized they were deemed unfit for Heaven. Solution: LIMBO.  

Limbo is a state of being 'on the edge of Heaven'. There are two aspects - the state of the righteous who died before Jesus came (Abraham, Moses etc), and the state of infants. The latter are deemed to have 'original sin' but not to have personally sinned.  It is reported that Pope Benedict is again addressing the question, and there's talk of the concept being abolished.  

Here, 'square one' is the idea of the human soul as immortal. It's a view held almost universally by all major faiths - each of which has its unique solution. For the Hindu it is re-incarnation, the soul either ascending - in another human body or if perfect to God - or descending  to a lower caste or even to animal or plant life. In Islam all infants go straight to Paradise, a view shared by most Protestant Christians. A strand of Judaism accepts a dogma of the 'transmigration of souls' - re-incarnation. 

Back to the Bible
 To abolish Limbo would raise deep theological questions. Unless forgiven, 'original sin' would exclude infants from Heaven. Perhaps a blanket universal forgiveness would solve this - similar to Mormon belief in 'baptizing for the dead'. Or perhaps a rethink of 'original sin' might satisfy. But overthrowing two millennia of what would then be false teaching would be hard to swallow. 

 Alternatively, the Biblical understanding might - with clenched teeth - be embraced.
 The notion that humanity has inherent immortality was the first great deception, the first direct rejection of divine truth.

In a related story, the New York Times reported:

"Limbo has never been a definitive truth of the faith," Cardinal Joseph Ratzinger, elected Benedict earlier this year, said in an interview in 1984, during his long term as Pope John Paul II's doctrinal watchdog. "Personally, I would let it drop, since it has always been only a theological hypothesis."

As pope, Benedict has said nothing on the subject, though many experts

I mentioned the Pope's limbo comments before. Biblical information about what happens to babies and those who did not understand God's ways prior to death is found in the article Hope of Salvation.

This news item was reported yesterday:

MOSCOW, December 28 (Itar-Tass) - Patriarch Alexy II of Moscow and All Russia said the Moscow Patriarchate expects Vatican to take concrete steps towards settling disagreements between the two major Christian churches.

In an interview with the BBC Russian Service on Wednesday, Alexy II said, “Now it is early to speak about concrete progress in relations. We laud the statements by the new pontiff who calls for continuing a dialogue. We hope that actions will follow words.”

“What we should meet for in order to show the world that we have no problems? But we have problems too. First it is necessary to overcome problems and then meet. We should solve problems that arouse concern in the Russian Orthodox Church and its flock,” the patriarch explained.

There are several interesting Similarities and Differences Between the Orthodox Church and the Churches of God.

On other matters, I have been asked why the AW site contains the following message:

You do not have permission to access the requested file on this server.

I have no idea. My best guess is that there was an update error a week or two ago, and since he said he was not going to update his site for a while, the error is staying there. At the COGwriter site, sometimes updates do not go correctly either :(.

12/28/05 p.m. In his latest commentary, LCG's Gary Ehman states:

In just a few more days it will be the New Year and the glut of holiday celebrations will cease and we all can get back to normal—at least until Valentine’s Day, Easter, Mardi Gras, etc. Ahh, the New Year, it is the traditional time to look forward and to look back. But, why do that? Where did this concept come from and why such wild celebrations to see a year end and a new one begin? Is there a reason why people make resolutions to do better then they have during the past year? The answers are the same for the world’s New Year festivities as they were for Christmas, Halloween, Easter and Valentine’s Day—rank paganism! Once again, in regard to New Year’s, mankind turned to the creation rather than the Creator, establishing their own traditions, ignoring the commandments of God (Matthew 15:3–9). A quick survey of thousands of Internet sites and dozens of reference books, shows New Year observances reach far back to Babylonian fertility rites associated with the spring and the renewal of the land following winter. It is believed that the Babylonians were the first to make New Year’s resolutions as part of divination of what the new year was to bring. The Romans worshipped Janus, the two-faced god of doors and gates. Janus had two faces, one looking forward and one looking back. Roman emperor Julius Caesar in 46bc established January 1 as the Roman New Year's Day and named the month “January” after the god Janus. He set this month as the appropriate “door” to the year. But is the middle of winter the “appropriate door” of time to begin the year? Jesus Christ, the God of the Old Testament, when giving the nation of Israel His Holy Days, said man should begin the year in the spring (Exodus 12:2; cf. Deuteronomy 16:1).
Is January 1st a Date for Christians Celebrate? Discusses historical and biblical answers to this question.

12/27/05 p.m. Jesus taught that we are to be one with the Father and the Son. What did He mean?

We Are to Be One With the Father and the Son

Jesus also taught

I do not pray for these alone, but also for those who will believe in Me through their word; that they all may be one, as You, Father, are in Me, and I in You; that they also may be one in Us, that the world may believe that You sent Me. And the glory which You gave Me I have given them, that they may be one just as We are one (John 17:20-23).

Jesus is one with God the Father as He expects His people to be one. As His people are made up of different individuals, so therefore is God. Jesus continually emphasized the family relationship between Himself as Son and the Father. Furthermore, Jesus' statement makes it clear that those called will be part of God's family as well--how else will true Christians attain the same glory as Jesus? Paul essentially reiterates this in Romans 8:28-29 (which will be quoted later).

Matthew recorded, "And He answered and said to them, "Have you not read that He who made them at the beginning 'made them male and female,' and said, 'For this reason a man shall leave his father and mother and be joined to his wife, and the two shall become one flesh'? So then, they are no longer two but one flesh. Therefore what God has joined together, let not man separate" (Matthew 19:4-6). "Therefore a man shall leave his father and mother and be joined to his wife, and they shall become one flesh" (Genesis 2:24). The New Testament, thus, also clearly shows that two can be one!

Interestingly, Paul brings both concepts together in Ephesians when he writes, "For we are members of His body, of His flesh and of His bones. For this reason a man will leave his father and mother and be united to his wife, and the two will become one flesh." This is a profound mystery-but I am talking about Christ and the church" (Ephesians 5:30-32).

Thus Paul shows that two are one flesh and that the marital relationship pictures Christ being one with the Church.

Which is part of what Jesus was talking about in John 17--that there is a oneness and two-ness in the relationship between He and the Father and that there will be a oneness between Him and Church--which is composed on many (not just two) members. Paul also made this clear, "For as we have many members in one body, but all the members do not have the same function, so we, being many, are one body in Christ, and individually members of one another" (Romans 12:4-6).

Although many have attempted to portray the English word 'one' to mean there are not multiple beings in the God Family, both the Old Testament (which was written in Hebrew) and the New Testament (which was written in Greek) show that while God is also one, the Godhead (the term 'Godhead' could probably also be translated as 'divinity') is currently shared by two, including Jesus (Colossians 2:9;Romans 1:20).

It is the lack of understanding of these concepts by the traditional unitarians and trinitarians that can blind them to the plan of God. And that we are to be one with God as the God Family (now consisting of the Father and the Son) now is one!

More information, including historical teachings, on the nature of God can be found in the article Binitarian View: One God, Two Beings from Before the Beginning.

12/26/05 p.m. WCG sent me an email wishing me a Merry Christmas and New Year last Friday. Perhaps they and others so inclined to celebrate these days should read the following articles:

What Does the Catholic Church Teach About Christmas and the Holy Days? Do you know what the Catholic Church says were the original Christian holy days? Was Christmas among them?
Is January 1st a Date for Christians Celebrate? Historical and biblical answers to this question.

12/24/05 a.m. Here is information from a news article titled Call Darwinism what it is -- a religion:
R. Albert Mohler Jr., president of Southern Baptist Theological Seminary: This was a bad case in the first place, and now we have a bad decision to go with it. When establishing a defense for the action of the school board, the legal team attempted to demonstrate that, scientifically, Intelligent Design was on the same par with Darwinism. They attempted to use scientific data to substantiate their strategy. But in a hostile court given to secular training and modern jurisprudence, this is like comparing the proverbial apple with an orange. You may score some verbal points with the home crowd but you will lose the court battle...
 
The school district's legal team should have invested more energy exposing Darwinism as the key tenet of a religion, namely secular Naturalism. It is this religion's worldview that is espoused every day in our nation's public education system and the vast majority of our nation's public science educators are the missionaries for this religion that appeals to a student's logic.

However, when one actually thinks about how unbelievable Darwin's theory of macro-evolution really is, it becomes increasingly illogical. Think about it -- you start with dust particles, then rocks, then through a spontaneous event, water emerges, then oceans, then over millions, perhaps billions of years there is the spontaneous concoction of atoms and molecules to form the basic trace elements like carbon and calcium. Then to top it all off, the world spontaneously experiences the formation of one-celled life forms with intelligence. After many millions and millions of years, the one-cell forms spontaneously produce multi-celled beings and, by a freak of nature, humankind arrives on the landscape with the capacity to build buildings and computers and.... For one to believe that people are the result of a random chance of nature takes a real leap of faith.

Just because many people are taught this nonsense and claim to believe it does not make it so. Nevertheless, they do believe it and because people place their faith in something, you have the formation of a religion, a worldview that filters everything they think.
On this point, the Baptists have it right. Evolution is certainly a religion. It is not based on rationale biological science. The complete article is at http://www.sbcbaptistpress.org/bpnews.asp?ID=22351. Three articles of possible interest may be:
 
Is God's Existence Logical? Some say it is not logical to believe in God. Is that true?
Is Evolution Probable or Impossible or Is God's Existence Logical, Part II This short article clearly answers what 'pseudo-scientists' refuse to acknowledge.
What is the Meaning of Life? What is your ultimate destiny?
 
On other matters, the Pope was wearing a "Santa" hat recently.  Officially, according to an AP story it is called:

"Called a "caumaro," the long forgotten head-covering dates back to the Middle Ages and figures in many famous papal portraits, including one of Julius II by Raphael. It was last worn by John XXIII, who was pontiff more than 40 years ago.

Here is a link if you would like to see it:  http://cnews.canoe.ca/CNEWS/World/2005/12/22/1364810-ap.html
 
On news with a prophetic implication:
"The Temple Institute is pleased to announce the completion of the me'il techelet - the Blue Robe - of the High Priest. This robe is the culmination of over three years of research and painstaking labor. But much more so, it is the fulfillment of a positive commandment - one that until now has stood unfulfilled since the destruction of the Second Holy Temple. This is the first time in nearly two thousand years that such a garment has been created".
Sacrifices must start in order to be stopped. This complete article, with multiple photos, is available at:  http://www.templeinstitute.org/meil_techelet_complete.htm

12/23/05 p.m. Did you know?

1) The Bible never speaks of Rome in any manner suggestion is supremacy
2) The historical evidence shows that Peter did not spend much (if any) time in Rome
3) There were several early lists of Roman bishops that disagree with each other
4) The bishop of Rome did not assume the title of Pope until towards the end of the fourth century
5) Much of what is told about the lives of the early bishops of Rome is not based upon historical fact
6) The idea that the Letter to the Corinthians proves Rome's early primacy is an assertion that does not follow from the letter itself
7) The writings of the so-called "apostolic fathers" do not indicate a Roman primacy, nor clearly mention any Roman bishops by name
8) The writings of the so-called "apostolic fathers" do indicate that Ignatius and Polycarp had leadership roles in Asia Minor
9) The early churches in Asia Minor, which claimed apostolic succession from the last living apostle John, did not accept the rule of the Roman bishops
10) Catholic sources admit that there was a succession of leaders/bishops in Asia Minor that could be traced to an original apostle.

All of this is documented in the new article What Does Rome Teach About Early Church History? This truly is a must-read article for any interested in early Christian history.

12/22/05 p.m. UCG had this in an article by John Ross Schroeder:

Although clearly sympathetic to the Catholic point of view, Ruth Gledhill, religion correspondent of The Times (London) summed up the overall effect: "The hierarchy of the Roman Catholic Church [in Britain] has published a teaching document instructing the faithful that some parts of the Bible are not actually true" (Oct. 5, 2005)...

Parts of the book of Revelation are viewed quite differently than a Bible student would understand them from a normal reading of this final book of Scripture—even taking the clearly identified symbolic portions into account. The booklet says: "Such symbolic language must be respected for what it is, and not be interpreted literally. We should not expect to discover in this book details about the end of the world" (p. 48)...

Do not draw unwarranted conclusions

The views of the British Catholic Church establishment may not fully represent those of the Vatican in Rome, other national Catholic hierarchies or even lay members in Britain. So we must be cautious not to draw unwarranted conclusions about the biblical beliefs of the Roman Catholic Church as a whole.

He is correct that the views of British Catholic leaders may not necessarily reflect those of the Vatican itself. However, on the Book of Revelation, the Roman Catholics officially do teach that it does not mean what it says it does. The Roman Catholic often prefer Traditions over the Bible.

Specifically, even The Catholic Encyclopedia teaches:

Apocalypse, from the verb apokalypto, to reveal, is the name given to the last book in the Bible. It is also called the Book of Revelation...

PURPOSE OF THE BOOK

From this cursory perusal of the book, it is evident that the Seer was influenced by the prophecies of Daniel more than by any other book. Daniel was written with the object of comforting the Jews under the cruel persecution of Antiochus Epiphanes. The Seer in the Apocalypse had a similar purpose. The Christians were fiercely persecuted in the reign of Domitian....

It would appear, and is so held by many that the Christians of the Apostolic age expected that Christ would return during their own lifetime or generation. This seems to be the more obvious meaning of several passages both in the Epistles and Gospels (cf. John 21:21-23, 1 Thessalonians 4:13-18). The Christians of Asia Minor and the Seer with them, appear to have shared this fallacious expectation. Their mistaken hope, however, did not affect the soundness of their belief in the essential part of the dogma. Their views of a millennial period of corporal happiness were equally erroneous. The Church has wholly cast aside the doctrine of a millennium previous to the resurrection. St. Augustine has perhaps more than any one else helped to free the Church from all crude fancies as regards its pleasures. He explained the millennium allegorically and applied it to the Church of Christ on earth. With the foundation of the Church the millennium began. The first resurrection is the spiritual resurrection of the soul from sin (De Civ. Dei Lib. XX). Thus the number 1,000 is to be taken indefinitely.

The official Roman Catholic position is that even though this book and early Christians believed in a 1000 year reign of Christ on the earth, that this is erroneous, that Revelation contains a lot of allegories, and that even John understood it incorrectly (called the Seer in the above).

12/21/05 p.m. The January 2006 edition of The Philadelphia Trumpet has the following in an article related to outgoing Federal Reserve Chairman Alan Greenspan:

To Mr. Greenspan's credit, throughout these crises he still engineered two of the longest economic expansions in American history.

However, the U.S. economy is not as healthy as Greenspan cheerleaders believe. Mr. Greenspan's easy-money policy of slashing interest rates and thereby making massive credit available for the markets every time there is an economic slowdown has been a major cause of the erosion of America's financial strength (Financial Times, Aug. 26, 2005).

This easy-money policy may help in the short term, but as economy columnist Peter Eavis says, it does much more harm in the long run by preventing necessary restructuring of the economy, driving down savings, inhibiting future spending and endangering the long-term health of the banking system (TheStreet.com, Feb. 12, 2004).

Mr. Greenspan's policies have had other side effects as well.

One of the not-so-obvious but enormously negative consequences of Mr. Greenspan's economic policy has been the continual erosion of the dollar's value. His guiding principle of managed low inflation, not zero inflation, is one factor that has led to the colossal loss in purchasing power of the dollar. According to Barron's, the damage to the dollar's purchasing power came not in the onslaught of historically high inflation during the 1970s, but in the continuous drip-drip of compounding some inflation every year (Oct. 24, 2005).

Exacerbating the weak-dollar problem is the massive 334 percent increase in the supply of money that has occurred over Mr. Greenspan's 18 years. As the supply of dollars has grown beyond demand, its value has fallen.

There are three other major problems with the economy that Ben Bernanke will have to confront.

First, federal government debt has been skyrocketing. Last October it reached a record $8 trillion, more than triple the $2.3 trillion the U.S. owed in August 1987. Just since June 2002, the national debt has increased by a third.

Frighteningly, the percentage of U.S. Treasury securities now owned by foreigners has also increased from 17 to 50 percent since 1987.

Second, Americans no longer save money. When Mr. Greenspan took office, the personal savings rate was a comparatively healthy 7.5 percent. From June to September, the personal savings rate was actually negative.

For four months, Americans spent more than they earned by borrowing on credit cards or home equity, selling investments (stocks, bonds and other assets), or by using savings from previous months. A lack of savings does not bode well for future economic growth, since savings fuels investment and a nation's subsequent growth.

Third, the easy-money policy has helped create multiple bubbles and an economy more and more dependent on rising asset values to fund spending. In the late 1990s, people counted on the technology-stock mania to fund their retirement. Today it is the refinancing and home-equity-line-of-credit boom that is inflating the bubble...

As Peter Schiff of Euro Pacific Capital says, Never has a changing of the monetary guard taken place with the U.S. economy in so precarious a position (Oct. 27, 2005).

Bible prophecy shows that natural disasters, terrorist attacks and violence in the cities will further weaken the U.S. As they do, asset values will collapse and the mountains of debt they support will bury the nation.

The Federal Reserve policies implemented in the last two decades have only hastened the economic Armageddon facing an unrepentant nation.

Although the outgoing Fed Chairman has a tremendous amount of economic skill, the sad truth is that the USA is set up for a major fall beyond what most Americans have ever imagined.

On a related note, in his last co-worker letter, LCG's R.C. Merdith also noted:

Our national debt is skyrocketing. In spite of repeated warnings from Federal Reserve Chairman Alan Greenspan and dozens of top economists, our Congress and our President keep spending money like drunken sailors. The "day of reckoning" is only a few years away!

In that same letter, he also wrote:

No wonder Jesus Christ tells us to constantly pray, "Thy Kingdom come!"

Amen.

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Volume 9, issue 21