The High Cost of Economic Ignorance (Part II): The Solutions

By Andrew McColl, 31/8/2010.

The first thing a person has to do in finding a solution to their problems, is to accept that they have a problem in the first place. Last week I endeavoured to show how through ignorance, folly and Biblical disobedience, some significant economic problems internationally, are ready to be visited upon us.

So, what are some solutions?
The Christian person must read and obey the Bible in all that it says, including its statements that pertain to economics, (and there are a lot of those). Socialists might dispute this, but the Bible has been the foundational document of western civilisation in general, and of capitalism. We were made to obey it. It is the source of our liberties. English common law has its origins in the Bible.

Give yourself some time to steadily develop an understanding of Christian economics. This is a vital education for every believer, and the Church is in desperate need of it. We have a lot of catching up to do. Because of the internet, Christian education is now a lot easier. There is excellent material available to read free, on-line.

Dr Gary North has written some 40 books on Christian economics. His works are almost all available on the net to read, free. Go to, then click on “Gary North’s Free Books,” on the left hand side of the home page.  A good book to start with for the novice, is “Inherit the Earth.” This is suitable for a person aged from about 15 and older.

If you finish this book and are saying to yourself, “I want some more challenging material,” try North’s commentary on the book of Exodus, called “Moses and Pharoah.” Then go to his commentary on the gospel of Matthew, called “Priorities and Dominion.”

Then “The Dominion Covenant,” a commentary on Genesis. That is probably enough for most people, for at least a few months.
These and other works will encourage you to:
a) Tithe to your local Church. This is the form of economic obedience, that Abraham practiced (Gen.14:17-20).
b) Embrace the GOOD policy: Get Out Of Debt. The Puritans had a saying, “he that goes a borrowing, goes a sorrowing.”
c) Work hard, and maximise your income.
d) Be thrifty, and teach habitual thrift and saving to your children.
e) If possible, plant a vegetable garden.
f) Whenever possible, avoid purchasing items that have high depreciation.
g) Buy gold as a means of asset protection from inflation. Gold has been used as a means of exchange since the time of Genesis. Every paper currency in history has ultimately devalued to nothing, and no currencies today, are gold backed. That is not good.

Individuals and central banks of Russia, India and China are steadily buying up large amounts of the world’s gold. Demand consistently exceeds supply. For this reason and others, the price of gold has risen steadily over the last 7 years, from U.S.$250 to $1235 an ounce. There is every reason to believe that this trend will probably continue. Consider these comments by Dr Alex Cowie, who writes for “Diggers and Drillers,” in June this year:

China overtook India as the largest importer of gold this year. Strong physical demand is being driven by the exploding middle classes keen to display their wealth, and invest in low risk assets that will protect against inflation. Culturally the Chinese have long seen gold as a secure investment.

The government has been encouraging private gold ownership by removing restrictions on gold ownership, and heavily marketing gold as a good investment. To assist this program, the country's top state-owned bank (ICBC) has established a gold marketing co-operation with the World Gold Council. The government is also ensuring banks offer gold bars and coins to customers. The Chinese government is clearly engendering the perfect environment for hundreds and millions to invest in gold, thereby increasing the country's holdings.

The astonishing thing is that as well as being the biggest importer; China is also the biggest producer of gold in the world. It's mining domestic reserves very rapidly in order to reduce dependence on imports. It extracted 16% of its known reserves last year. This is 4.5 times the rate of extraction from Australian gold reserves. China is trying to prevent overheating the gold price by sourcing as much of its gold at home. It is clearly in overdrive trying to achieve this.

The net result shows its efforts are working – World Council reported that the country has increased its gold holdings by 75% to 1,054 tonnes in the last seven years.

In Australia, you can buy gold from Australian Bullion Company (ABC). See their website:

h) Understand that God wants His Church to represent Him in the world on all subjects, including economic truth. We are to be His ambassadors. That means we have to work towards long-term change in how the Church thinks and acts, and this may take generations to accomplish. But without this change, an economically ignorant Church continues to contribute to an economically ignorant world, with dire consequences for everybody.

Is this change something you want to be a part of?

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