As we approach the last hours of 2012 I think it would be a good idea to take a few moments and reflect on the year that has past.  2012 brought with it some amazing and also tragic events that have forever shaped our country and world.  The important thing is to embrace the good memories and learn from the hurtful ones.  We must look forward to 2013 with a sense of anticipation, joy, and growth.

     Probably the biggest event of the year was the election (yeah I'm tired of politics too) of the President of the United States.  To most Christians there was great disappointment in the country's choice, but don't get too down.  What we must do at this point is pray for President Obama to have a revelation of God's will for his life.  That is all that is required of us.  If we truly believe that God is in control then we have nothing to worry about as far as our lives are concerned.

     The second biggest story was the tragedy that was hurricane Sandy.  I think a lot of people still do not fully comprehend the extent of damage and loss of life that occurred.  People went without power for weeks and water was scarce to come by, but our country once again showed its compassion as donations came in by the millions and volunteers arrived ready to help.  It may take years to rebuild and recover, but I believe with our spirit of brotherhood it will happen.

     One of the great stories of 2012 was the performance of the stock market as it gained nearly 6% in an otherwise weakened economy.  Even as our Congress is letting the country go over the fiscal cliff later tonight, the stock market still surged over 100 points.  To a person interested in economics I really don't see the reason for the optimism that traders have, but none-the-less it has been a remarkable year.  Hopefully next year these same companies will open their vaults and begin to put Americans to work.

     I have high hopes for 2013!  I want everyone to have a great night celebrating the New Year, but make sure to be safe so you can make it to next year.

Let Big Banks Fail and Not Show Other Countries How to be Corrupt

            Robert E. Litan’s article “Toward a Global Financial Architecture for the 21^st Century” couldn’t be more relevant to what the United States and other developed nations are facing today.  Litan raised important points about how the global banking and monetary systems need to evolve to face future crisis’s, but in light of the current banking situation in the developed world I don’t know if ‘our’ system is the best answer.  The one idea Litan mentioned that seemed to be legitimate was that in order for market forces to correct inefficient or corrupt banking practices the security of government bailouts needed to be taken out of the equation.  While I don’t think this will happen, it is definitely a real problem that the market must figure out.

            The idea that the United States and Western European banking systems are superior to that of the developing world is correct, but maybe the superiority is a bit exaggerated.  Litan argues that developing countries need to allow foreign banks (from the developed world) to set up shop on their soil.  The idea being that these banks will bring in their knowledge and expertise and in effect help the developing countries banks learn more prudent financial practices.  There is one major problem with this idea though, and that is ‘our’ banks are mired in high-risk and in some cases outright fraudulent lending practices.  The very thing that Litan warned about when he wrote, “…U.S. banks that had weakened capital positions as a result of uncollectible loans to less developed countries were not forced by regulators to recognize the full extent of their losses, and instead were allowed to take risky bets-primarily in commercial real estate.”  While the author stated that the United States, ‘…learned the lesson of regulatory “forbearance” the hard way’, that is obviously not the case.  

            The ‘Western’ banking system may be a technically superior way of monitoring financial markets, but one could argue that the same problems still exist.  In “Toward a Global Financial Architecture for the 21^st Century” the author showed many examples of how the modern banking system was regulated, but I have to ask myself if the so called ‘prompt corrective regime’ and other regulatory agencies actually do what they are credited with.  The current housing situation and failure of many banking institutions help tremendously in answering that question.  I would argue further that even while ‘our’ system is technically superior, the consequences of failure are much greater as we may soon find out. 

Bad News! International Agreement To Regulate Immigration

            Immigration is a key issue in many developed countries and in the United States a candidate for President could win or lose because of his stance on the subject.  With millions of people traveling abroad these days it would seem prudent to develop an agreement such as the GAMP, but the ideas put forth by Mr. Straubhaar are fraught with danger. 

            Taxing immigration to prevent ‘The Brain Drain’ seems at first thought to be a good idea, but when a closer look is taken the problems are many.  First, what if a migrant was unable to pay this ‘migration tax’?  Would they just give up and stay in their home country?  I think not!  A tax would likely lead to an increase in the amount of illegal immigration.  Secondly, how would an international body impose such a tax?  If this body were created it would have to be large and operate in every country participating.  Lastly, I don’t think governments of the world would like to have an international body imposing taxes on their citizens.  They would like to tax them themselves.

            Another area I strongly disagree with Mr. Straubhaar is that of the amount of immigration that happens from south to north.  I’m not sure if the author has read the statistics or not, but there are 12 million illegal immigrants in the United States alone.  That means 1 out of every 25 people living in the United States are free riding.  That does not seem like ‘extremely exaggerated fears’. 

            A General Agreement on Movements of People should not be a global agreement.  Rather, such an agreement should be negotiated between two countries on a bilateral basis.  A nation should be able to act in its own interest and to the benefit of its own people.  If one nation is experiencing a ‘brain drain’ then it should find alternative ways to keep its brightest at home.  To tax a country for providing immigrants with a better opportunity seems a little absurd.  The rush to regulate every aspect of the global economy through global institutions needs to slow and in my opinion stop altogether.

Rebuttle Against: A New World Order

           “The Real New World Order” by Anne-Marie Slaughter was intended to promote the idea of transgovernmentalism as an end state to the world governments and economies, but unfortunately it seems more to be an essay on the current state of global affairs.  While Mrs. Slaughter did make some mention of the ‘New Medievalism’, it doesn’t seem plausible to think most people would look realistically at a world with no governments.  As far as transgovernmentalism is concerned I believe that it is just a transitional stage in the evolution to a one-world government.

            Mrs. Slaughter is correct when she writes about the dangers of having a global governing body with no means of checking its powers.  The problem with her argument for transgovernmentalism as an ideal form of international cooperation is that governance always seems to be in a state of flux.  In “The Future of Statecraft” by Fareed Zakaria the author gives example of this when he writes, “Over the past two centuries the central state wrested authority from the hundreds of duchies and other principalities on its terrain that once fielded armies and collected taxes.  It took over from the church that critical function, the education of the young.”  The consolidation of power appears to be a natural occurrence in respect to governments and authoritative organizations. 

            In the United States this fact is clearly evident in the Democratic Party.  In this current election year every ‘blue’ candidate for president has a myriad of new ways to expand the power and taxation of the government.  Whether they intend to force Americans to partake in nationalized healthcare, or confiscate the profits from oil companies, the end result is a governing body with more power.  While these initiatives may have a moral reasoning behind them, that is not the issue at hand.

            While I do agree to a certain extent with Anne-Marie Slaughter that transgovernmentalism may offer the best remedy to current global problems, I don’t think it is likely to stay that way for long.  As argued above, I believe that the natural tendency of government is to consolidate power, and when you transpose this on a global scale the idea is frightening.    

My Grace is Sufficient!

     Grace is a word that Christians around the world are finally starting to embrace and practice.  Martin Luther was one of the great Christian historical figures who expounded on what the difference was between Grace and the Law.  His ideas on the true meaning of Grace were so earth shattering they nearly cost him his life.  Sadly, after a couple of hundred of years the church reverted back to hell, fire, and brimstone preaching.  Erroneously thinking that this was the way to get a person saved and have their heart truly changed.

     The preachers who did attempt to preach that Grace was a new law and that believers were no longer under the Mosaic Law were condemned as heretics.  Their detractors would use the arguments that if one no longer has to keep the Law then they will sin even more.  To the person who is acting in the flesh and using its' reasoning this would appear to be true, but when someone is under Grace it produces something far different.

     Paul repeatedly taught that Grace would allow the Laws of God to be written on our hearts, and that attempting to live according to the Law to gain salvation would mean that Christ' death was in vain.  If most of us are honest we have compared our lives to what the Law requires, but where does that lead us?  Usually, it leads us to feeling condemned and guilty, not worthy of a Savior like Jesus Christ.  But the Bible says there is NO guilt or condemnation in Christ Jesus!  So what do we do with this wonderful gift of Grace?  When you finally embrace how God sees you, through the blood of His Son, you're able to confess your sins and let the wonderful blood of Jesus continually cleanse you.  Instead of going out and sinning more, your realization of His love for you causes you to follow His ways out of love, and not to earn salvation.  So when you do find yourself feeling guilty or condemned, and past the place where you think God can forgive you, remember He loved you so much that He gave His Son so that you could stand boldly before Him as His beloved child.  This boldness will give you the strength to overcome any obstacle in your life.  God Bless!

Jeffrey Brandon Lee

Origin of Central Banks

One of the greatest concerns of European rulers during the 17^th century was their inability to finance the increasing size of organized war.  Prior to this period in time, many monarchs around the world simply commanded what was needed from the peasantry and merchants, but by the close of the century this was becoming increasingly difficult.  The size and duration of war in Europe was making the repayment and securing of loans nearly impossible for governments.  This was certainly the case for William and Mary of England.  As war between England and France showed no signs of abating, and eventually bankrupted both kingdoms, King William II decided the English needed a better financial system to fund his campaign against the French.  The growing pressure that was being applied to the government’s revenue by interest payments and repayment of the loans was hurting British chances of victory.  Similar interest payments were crippling many countries of Europe and in the case of France it was consuming as much as forty percent of the crown’s income.  This necessitated a drastic change in the relationship between the government and private companies.  It is important to briefly analyze the ‘9 Year’s War’ and its effects on the economic interactions between William II and English merchant bankers.  It must also be shown how the creation of the Bank of England benefited both the English government and the persons who funded the initial loan that gave birth to it.  Lastly, the interrelationship of the bank and Parliament must be looked at to understand how this revolutionary idea of lending to governments, with the loans being backed by future taxes, led to governments being better able to manage their debt and in turn help their economies take off.

            Prior to the creation of the Bank of England, European banking consisted largely of groups of merchants who were generally all members of the same guild.  Unlike banks of today, the banks of the fourteenth and fifteenth century didn’t make their profits off of interest, with usury being outlawed by the Pope, but rather from the conversion of currency and procuring rare goods from far away countries.  This fairly unorganized system of finance was a problem for many monarchs in Europe as their thirst for conquest on the great continent began to grow. 

            William of Orange was no exception to this trend as he constantly sought victory over his nemesis Louis XIV of France.  The 9 Year’s War (1688-1697) was a conflict that William was willing to fight to the end, and by the end of the seventeenth century the strain on the English government’s finances became apparent.  Short-term loans were becoming increasingly difficult to pay back and securing new loans by force from wealthy merchants became equally as challenging.  Unable to command financial support from the wealthy merchants because the merchants were obsessed by a fear of  complete financial breakdown.  William II was forced to seek out other options to finance his war. 

            William collaborated with brilliant Whig financiers such as Charles Montagu and Scottish banker William Patterson to create the Bank of England.  In order to get this institution up and running the initial charter loaned 1,200,000 pounds to the government at 8%.  The difference between this loan, and loans that had been made in the past, was the duration.  King and merchants alike decided the best way to manage this contract would be over longer periods of time.  In fact, the contract stipulated that the loan was never required to be paid in full, and thus, the interest payments would be made perpetually unless the King decided to pay the principal balance.  The initial investors were also able to sell their ‘stock’ to anyone willing to buy.  This would therefore transfer the interest payments to the new holder of the note.  This primitive version of the stock market allowed governments and people in general to borrow against future earnings which helped stimulate economic growth by increasing the money supply circulating in the economy.

            The initial charter also stated that the contract was to be renewed every 12 years, at which time either the crown or the stockholders could terminate or renegotiate their position.  This was a key factor in attempting to establish a balance of power between the two parties, which would help prevent the crown from dominating the Bank and also from the Bank forcing the Crown’s hand in matters that may benefit the investors. 

            Mercantile and Governmental benefits of this way of financing were astounding and far surpassed those of the French.  The duration of the contract allowed the King to take out larger loans due to the lack of necessity to pay the principal sum in the near future.  The only thing the King need be concerned with was the interest payments that were owed, which were paid by taxes collected from the citizenry.  Interest payments such as these, when made timely, greatly increased a governments credit rating.  The ability to raise a large army and navy in turn meant the need for larger and more factories to equip his troops.  With a greater private manufacturing base England escaped many of the financial problems that plagued the French monarchy.

            This economic model also had other important implications.  For one, it allowed the King to pay his troops on a more regular basis, and thus individuals in the military had more money to spend.  England’s credit and easy access to long-term loans made the maintenance of these troops less expensive when considering the savings in interest expenses and potential military plunder.  Also, the increase in monetary circulation that payments to troops created, and the Bank’s printing of a form of paper money, helped real and disposable incomes to rise.  This increase in non-essential income created demand for a wider range of products.  Thus, wealthy merchants began to invest capital into new industries, which in turn created more jobs.  This form of an expanding economy is still being felt by the societies of today.

            Problems arising from trying to raise an army for war and maintaining a stable or growing economy has plagued leaders since Sun Tzu.  These economic issues began to further hamper governments when the size and scale of war began to increase.  Countries tried many different methods to confront the situations they found themselves in, but only England, following Dutch practice, found a solution that helped that small country become one of the greatest nations on Earth.  The brilliant combination of public and private institutions that created the Bank of England has changed the way countries deal with the political economic realm.  The private funding of governmental loans, which were guaranteed by the King in lieu of future taxes, greatly increased the ease with which the British government raised money for its war efforts.  War time loans became simpler to manage, because parliaments only concern was to maintain the interest payments that were owed.  This situation was also advantageous to the private holders of the notes because they were guaranteed perpetual interest payments.  Britain’s credit rating thus began to rise and loans rates began to drop.  This helped increase its ability to pay its troops, which increased circulation of money, and thus helped England’s economy to grow.  ‘King Williams War’, and the need for money that it created, helped form one of the most important financial systems that affect our world today.

Stand Up and Support Israel!

     How must it feel to be an Israeli?  Going all the way back to the Roman Empire, the Jewish people have been hated and despised for their way of life and devotion to one God.  There has been a constant attack on their people in an effort to exterminate them.  Why?  Is it because they were chosen by God as His  people?  Whatever the reason for the hatred, we as Christians and human beings need to put it to a stop!

     Muslim nations that surround this small country are constantly plotting how to snuff out the Jewish people, and we as Americans have now decided we don't care.  Some even go so far as to call Israel a terrorist nation!  How absurd can one be.  If our nation was constantly having rockets fired upon us I doubt we would ignore them and just go about our day.  In fact, we were attacked by Muslims once and we took it so personally that we invaded and conquered two nations in quick order.  So what's the difference?  Are we so afraid of not being politically correct that we can't just call Islam what it is, a violent religion? 

     As Christians all we have to do is open the Bible and go to the Old Testament and it states clearly that the descendants of Ismael will be in constant conflict with their neighbors.  Muslim nations are the descendants of Ismael.  God also states, who is not for Israel, is against God!  So it's clear where our loyalty should lay, with Israel.  Does that mean we go and destroy all Muslim nations?  By no means!  We need to pray for them to see the truth in the salvation of Jesus Christ and continue to fully support Israel in its sovereignty.  The current administration needs to stop providing Saudi Arabia and other Islamic nations with fighter jets and start to repair and strengthen our relationship with our Israeli brothers.  When God does return it would be nice to be on the right side of history.  God bless and keep Israel in your prayers!   

Oil & Gas: Why Do They Cost So Much?

     There are many factors that effect the price of oil and gas in the United States.  The main reasons are; supply, demand, supposed scarcity, government policy, and investors.  Each one of these will be dealt with briefly, and hopefully after reading this article the reader will have a better idea of why they pay so much.

     In a perfectly free market, supply and demand would be the only factors in determining the price, but unfortunately the United States is NOT a free market economy.  The main argument for the higher prices of oil is its scarcity.  Many scientist believe that oil is the byproduct of decomposing dinosaurs and plants, and thus there can only be so much in the ground.  That is also why oil companies only drill 3-6,000 feet in order to search for oil.  Recently, Russian scientist have determined that oil is a-biotic and not from a living source, and therefor a natural byproduct of the earth.  With this information they began to drill to depths of 12,000 feet and discovered huge reserves of oil and natural gas.  This discovery has changed Russia from a net importer of oil to the second largest exporter in the world.  It is evident from this new information that the scarcity reasoning is flawed to a certain extent.

     Another reason for the rise in oil prices is our governments policies.  First, the Administration has prevented drilling in many oil rich areas in our country, and without this expansion in supply, prices will continue to stay high.  The most important policy failure of the government that hurts Americans at the pump is its monetary and fiscal policies.  When our government continues to overspend and print money as it has it devalues the American dollar.  Why does this matter?  When we go to Saudi Arabia to buy a barrel of oil for the previous amount of $90 they will refuse because the $90 dollars paid this month is not worth the same as the month before.  Now they want $95!  So the more we weaken the dollar, the more we will pay at the pump.

     Lastly, investors have a huge impact on the price of the commodity.  When oil hit prices over $140 a barrel, it was found that 95% of oil contracts were help by 6 non-oil using firms.  They used the idea of scarcity and demand to drive up the price of oil while they bought the rising contracts.  When the market finally began to work and the bubble burst companies like AIG, Lehman Brothers, and other investment banks were left with $140 a barrel contracts with no one willing to pay.  The result was a major part of the financial meltdown (It wasn't just the housing market).  Some of these companies were allowed to borrow $70 dollars for every $1 they had in assets, thus creating a huge risk for the investors.

     The reality for us common consumers is that we are at the mercy of Big Oil, Big Government, and Big Investment Banks.  So when you hear about reasons on the news just remember this article so you don't buy their lies.

Jeffrey Brandon Lee

Stop Being A Victim And Blaming Others For Your Life!

     The worst state someone can find themselves in is one I found myself in recently, being a victim. While I had been in that state of mind for quite some time, I never realized it. What exactly is being a victim? What I would define a victim as is when someone begins to blame everyone else for what has happened in their life. After time it begins to define who you are as a person. It is your bestfriend that you hold onto tightly so that you don't have to look into the mirror and deal with what you have done. I think a lot of us can relate to this feeling. Whether your spouse left, or you left your spouse, didn't get the promotion at work, lost your house, or many other terrible things we go through in life. Instead of owning up to what our part in the situation was, we find justification in blaming the other spouse, our manager, the evil bank that gave us the mortgage. And once you let yourself head down that road you begin to blame everybody, including the devil, for what goes wrong in your life. Sadly, in time, you have changed your name to victim. Others know that is your name and they begin to avoid you because it is always a sob story of who wronged you. Whether you cry in your beer at night, or surround yourself with people patting you on the back confirming you were right to do what you have done...you're still a victim.

     There is hope though! You can wake up out of the storm of pity that surrounds you. It happened for me when I took time to think of Jesus dying on the cross. I thought about what it meant and what it cost! The intellectual knowledge of the word began to seep into my heart and my eyes were opened. When He bore the weight of the world on the cross He took away every right I had to be mad or hold a grudge against somebody. I had no right to blame or point fingers. I had only one right and that was to forgive! Not only others, but myself as well. It gave me the courage to look in the mirror and own up to what I had done in life, and then let His grace and forgiveness wash over me. I began to look in the mirror and realize that I am not a victim and I'm not condemned...I am a victor in Christ. I no longer had to sit back and let the worries and hardships of life attack me...I can go out and happen to life! Be the man God made me to be with no regret or fear. I could see myself how God sees me, through the blood of His son, white as snow. I hope this short admission can help others to live victoriously in the Christ!

Jeffrey Brandon Lee

Fiscal Cliff vs. Baby Boomers

     We are being constantly pounded by the media with the fear that our country is about to go over the fiscal cliff.  While this is a major economic issue, there are other issues involved in how we got to this point in the first place.

     Humans are increasingly of the mindset that it is better to feel good now and put off the inevitable pain until a later time.  We use our credit cards because we can't fight off the urge to purchase something we should take time and save for.  Then we get other credit cards to pay the credit cards we already have.  The government acts in the same way as we borrow from China until that is no longer an option.  Then we begin the process of printing money and borrowing from our own central bank, which devalues our dollar.  So how did we get here?

     When you look back to the 1930's you see an America that was struggling through the Great Depression, as unemployment hit rates as high as 25%.  The government tried, as they are now, to spend their way out of the problem, and it in effect lengthened the economic downturn.  At that same point in history FDR came up with the plan for Social Security.  It was originally intended to benefit those who were over the age of 65, but the key to the plan was that the average life expectancy was 63.  So the majority of Americans would never benefit from the plan eventhough they paid into it.

     Today the story is much different.  The average American lives about 15 years past the date they begin to receive benefits.  Now this is a simple mathematical problem that a basic high school student could understand.  If you look at how much is taken out of your check each year for social security taxes, and then multiply that number by the number of years you plan to work, it becomes quite apparent that you will receive far more benefits than you paid in.  This is where the Baby Boomers come into play...

     The Baby Boomers generation is starting to retire and they want full benefits paid, but they are unwilling to accept reality.  They paid far less into the system than they will receive, and that will become the largest of fiscal deficits within the near future.  The government knows this, but they don't want to lose the votes of this enormous demographic group, so the debt continues to rise.  It is amazing to this author that this group of grandparents can look their children and grandchildren in the eye and say, "I need to receive this money at the expense of your furture."  Whatever happened to the person who tightened their belts for the benefit of their family?  I call on every American to stand up and take responsibility for your own finances and face the reality that our government cannot be the source of our future!  If we don't, the house of cards will soon come tumbling down.

Jeffrey Brandon Lee

My Little Jeffrey

            I’m writing this article to reach out to those of you who may be struggling with the forgiveness of a parent.  I know at times they’ve hurt you or betrayed you, but know that with the power of Jesus all things are possible!

            One of the most vivid memories I have as a child was when I was 7 years old.  It was the night that my parents split up.  My Mom was pouring a huge pile of dog food on the porch while my brother’s and I waited in the car.  I remember wondering why the dogs would need so much if we were coming back that night.  As we drove down the dark desert road we asked our Mom where we were going.  She replied that we were going to stay with our grandparents in Colorado.  We all began to cry and plead with her that we didn’t want to go without our new bikes.  As I looked back at our home and the pile of dog food I had no idea what was really happening that night.

            After that day my Mom continually felt the need to tell us how horrible our Dad was and the terrible way in which he had treated her.  I personally didn’t witness any of this mistreatment and therefore began to resent my Mom and blame her for taking my Dad away from me. 

            My Mom remarried within a year and her new husband had taken on more than he could handle.  My 2 brothers and I were not going to let a new man take Dad’s place, and we made sure to let him know that.  Combine this fact with his temper it made for a hostile living environment.  My older brother had been thrown into a wall, which left an imprint of his spine, and I had been given a bloody nose twice.  In each instance we were blamed and my older brother and I were eventually told to go live with our grandparents.  My heart was broken and I felt betrayed by my Mom for choosing her husband over me.

            After a year, I went to live with my Dad in California and the resentment toward my Mom continued to grow.  I began to say negative things about her as she went through another divorce to her third husband.  Each time the man was blamed and each time I began to despise her more.  It was hard to talk to her because I could tell she was angry with me as well for going to live with my Dad.

            It went on like this for years as she went through a fourth marriage and began to drink heavily.  My brothers and I began to make fun of her and the mistakes she had made.  It was hard for us not to, because it seemed as if every time we were around her for a prolonged period of time she would end up hurting us in some sort of way. 

            I began to pray a few years back for God to bring forgiveness into my heart towards my Mom.  I would put effort into restoring our relationship, but every time it would end up bad and I would be mad again.  The bitterness was deep in my heart and remained that way until 2 a.m. this Christmas.

            I awoke from sleep thinking about my son Jeffrey Lee II and how he always ran to me smiling with a heart full of love.  This thought remained in my mind for a few minutes and a smile began to form on my lips, and then the thought hit me.  It was as if God had opened a door to a new way of thinking.  It occurred to me at that point that I was once my Mom’s little Jeffrey running to her with a huge smile and heart full of love.  I thought about how much it would hurt if my ‘Little Jeffrey’ had the same thoughts and feelings about me.  It would crush me!

            That morning I texted my Mom and told her what I had been thinking about and that I loved her and thanked her for the life she had given to me.  She replied that my words had made her cry (with happiness) and that she could still see my smiling face as a kid. 

            Although there is work to be done in our hearts, I know that it was a beginning.  I plead with you to reach out to God and ask Him to work on your heart so that you too may begin to mend a relationship with a parent.  Just remember that at one point YOU were their ‘Little Jeffrey’.  God Bless.


Jeffrey Brandon Lee