There is still considerable capital capacity in the LCMS that could be leveraged into discounted loans and gifts, but original sin and moral hazard are significant obstacles.
With regard to co-operation in externals, I am vehemently opposed. There is not a single example of LCMS co-operation in externals that has not compromised its confession to the point of grieving the Holy Ghost. Ultimately, all those partnerships become dangling goodies in front of the needy and greedy in the hopes of luring them to the gospel. That's not how gospel proclamation works.
What we see with all these external programs is that they move their attention from the nearer neighbor to the most distant neighbor. We talk a great game about how all the activities are "gospel opportunities". Let's be honest - where have they borne fruit? We have poured billions (cumulatively) into foreign missions, Concordias, disaster relief, comfort dogs, immigration, and refugee support. After all that, LCMS membership and weekly attendance have halved in just a quarter century.
The LCMS has a fundamental problem with mission and gospel proclamation. It is singularly unsuccessful at making converts, yet wildly successful at shedding its founding stock.
I hope our theologians can get to the root cause. This has to be a problem of impure doctrine, not a lack of doing nice things for the needy.
One of the things we need to realize is that we have become conditioned to believe and accept that inflation was created on one of the seven days of Creation. It is neither God-given nor natural.
One of the most iniquitous developments is how inflation is used by the government to "taper the Ponzi scheme" of its unsustainable welfare programs.
That said, reasonable men might agree that a loan should be repaid at the inflation-adjusted equivalent so that the lender is not out of pocket against inflation; otherwise, there is no incentive to lend if it's not pure charity.
If we consider the most adverse conditions possible for a lender—a fixed-rate, compound-interest loan for 10 years at 4.25% per year, starting in 2016 when rates were low and ending in 2025 —it still beats the massive inflation over that period.
The lender would have gained 53% against the cumulative inflation for that period, which was 33.9%. Perhaps the lender breaks deducts another 2.5% for its weighted average cost of capital to provide the loan in the first place, plus some admin overhead. That's a very unusual case - the banks have not been placed in that situation for decades. When they have been on the losing side, they have threatened to implode the system to get bailed out, even as their risk profiles multiplied.
The government student loan racket is as bad as payday loans and the legalized credit card theft, thanks to the Senator from MBNA. Glad you have fought that wickedness!
We don't need or want a revolution, just Christian charity starting at home and healthy paternalism for people who don't have the 112 IQ necessary to process financial documents properly.
For any interested who happen to read German, here is an excellent article on what is called the "Regensburg affair," circa 1587. Basically, a handful of faithful pastors dared to follow Luther and preach against lending at interest. The magistrates tried to silence them, but they wouldn't be silenced. They brough in Jakob Andreae to attempt to soften the view of these stubborn traditionalists. It didn't happen, so they were exiled for preaching the truth, for preaching the same exact thing Luther preached only half a century before.
This conversation must happen. And we must be courageous when it gets uncomfortable.
I’ve been thinking on usury for quite a while, can’t avoid what the Bible says about usury, there is a prohibition.
The other unfortunate topic that kind of goes hand in hand with usury is indentured servitude/slavery for no more than a 7 year term, to pay off debts. There were instances the slave remained serving in the household after being granted freedom, because of the righteous and benevolent master, who was fair. This is not to say that this institution wasn’t grossly abused as it was. (See the story of Laban and Jacob). Not trying to advocate for slavery, but like usury, a topic that has been ignored
If you have over one billion US dollars worth of leverage, you are way past having the capacity to act with moral agency no matter how you wrap the package.
There is still considerable capital capacity in the LCMS that could be leveraged into discounted loans and gifts, but original sin and moral hazard are significant obstacles.
With regard to co-operation in externals, I am vehemently opposed. There is not a single example of LCMS co-operation in externals that has not compromised its confession to the point of grieving the Holy Ghost. Ultimately, all those partnerships become dangling goodies in front of the needy and greedy in the hopes of luring them to the gospel. That's not how gospel proclamation works.
What we see with all these external programs is that they move their attention from the nearer neighbor to the most distant neighbor. We talk a great game about how all the activities are "gospel opportunities". Let's be honest - where have they borne fruit? We have poured billions (cumulatively) into foreign missions, Concordias, disaster relief, comfort dogs, immigration, and refugee support. After all that, LCMS membership and weekly attendance have halved in just a quarter century.
The LCMS has a fundamental problem with mission and gospel proclamation. It is singularly unsuccessful at making converts, yet wildly successful at shedding its founding stock.
I hope our theologians can get to the root cause. This has to be a problem of impure doctrine, not a lack of doing nice things for the needy.
Thank you, Dr. Benke.
One of the things we need to realize is that we have become conditioned to believe and accept that inflation was created on one of the seven days of Creation. It is neither God-given nor natural.
One of the most iniquitous developments is how inflation is used by the government to "taper the Ponzi scheme" of its unsustainable welfare programs.
That said, reasonable men might agree that a loan should be repaid at the inflation-adjusted equivalent so that the lender is not out of pocket against inflation; otherwise, there is no incentive to lend if it's not pure charity.
If we consider the most adverse conditions possible for a lender—a fixed-rate, compound-interest loan for 10 years at 4.25% per year, starting in 2016 when rates were low and ending in 2025 —it still beats the massive inflation over that period.
The lender would have gained 53% against the cumulative inflation for that period, which was 33.9%. Perhaps the lender breaks deducts another 2.5% for its weighted average cost of capital to provide the loan in the first place, plus some admin overhead. That's a very unusual case - the banks have not been placed in that situation for decades. When they have been on the losing side, they have threatened to implode the system to get bailed out, even as their risk profiles multiplied.
The government student loan racket is as bad as payday loans and the legalized credit card theft, thanks to the Senator from MBNA. Glad you have fought that wickedness!
We don't need or want a revolution, just Christian charity starting at home and healthy paternalism for people who don't have the 112 IQ necessary to process financial documents properly.
Glad to see this conversation continuing.
For any interested who happen to read German, here is an excellent article on what is called the "Regensburg affair," circa 1587. Basically, a handful of faithful pastors dared to follow Luther and preach against lending at interest. The magistrates tried to silence them, but they wouldn't be silenced. They brough in Jakob Andreae to attempt to soften the view of these stubborn traditionalists. It didn't happen, so they were exiled for preaching the truth, for preaching the same exact thing Luther preached only half a century before.
This conversation must happen. And we must be courageous when it gets uncomfortable.
https://babel.hathitrust.org/cgi/pt?id=mdp.39015062685980&seq=313
(The article begins on pg. 313 of this document.)
Thank you, Pastor.
I’ve been thinking on usury for quite a while, can’t avoid what the Bible says about usury, there is a prohibition.
The other unfortunate topic that kind of goes hand in hand with usury is indentured servitude/slavery for no more than a 7 year term, to pay off debts. There were instances the slave remained serving in the household after being granted freedom, because of the righteous and benevolent master, who was fair. This is not to say that this institution wasn’t grossly abused as it was. (See the story of Laban and Jacob). Not trying to advocate for slavery, but like usury, a topic that has been ignored
Pope Francis spoke against usury fairly recently. What are you referring to in 1918?
Apologies, it should be 1917. Here is a reference: https://canonlawmadeeasy.com/2014/09/04/what-does-the-church-say-about-usury/
In Latvian there is a saying "Debt is not a brother." It, at the very least, should not be treated as one.
If you have over one billion US dollars worth of leverage, you are way past having the capacity to act with moral agency no matter how you wrap the package.