Today on MoneyLife

Crown has been helping people for 32 years learn, apply, and teach God’s financial principles. Today, we'll take a look back at Crown's late Co-Founder Larry Burkett and his warning of a coming economic earthquake. Larry wrote about this in 1991.

One of the things he expected was a government bailout like the one we’ve seen this year. Larry anted Christians to be aware and get their houses in order. Many of the things he said then are just as true today because they are based on God's financial principles.

We're still on the same course of borrowing and racking up debt. Today we'll listen to Larry talking about the earthquake back in 1991.

Chuck says his fast is going well, God is strengthening him, and he's excited so many have joined this season of prayer and fasting for healing of our nation.

In the second segment, Chuck says Larry spoke in 1991 about the state of the economy following the release of his book The Coming Economic Earthquake. The first phase of the earthquake, Larry said, would be a banking crisis in which many banks would fail.

Larry said there are three elements in any economy: consumers, sellers, and government. Since the New Deal, the government has played an ever greater role in the economy, based on Keynsian Economics.

Larry said he had confidence in two sectors of the economy, consumers and sellers. However, when consumers borrow too much, they must cut back on spending and work on reducing their debt.

As consumers paid back debt, the economy slide into recession. The business sector reacted accordingly. The sector that hasn't responded to market forces is the government sector.

In Larry's opinion, we had only 4 or 5 years to correct the problem back in 1991. He praised Ronald Reagan's tax cuts, but says the spending spree that government went on was bad for our long range outlook.

After the first audio segment with Larry, Chuck says consumer debt is at an all-time high. Consumer drives the economy. For us to pull out of a recession, government knows the consumer has to start borrowing and spending. Politicians are also trying to increase government spending just as it did with the New Deal. Chuck is encouraged by Larry’s view of a recession as an opportunity to pay down debt and shares Larry's concern about the government taking on a larger role in the economy.

Larry’s analysis was the economic problem was a combination of consumer debt, business debt, and government debt. He thought the response would be to raise taxes, borrow money, or print money. Government is about to do all those things and it will be a burden for everyone.

Larry was asked, "What can we do about this?" Larry said the first question should be, "What can I do?" The role of the Church has shifted dramatically since the Great Depression. Prior to that, the Church as looked up as the entity that would provide for people in a time of need. The government took that over, and the Church backed out. We must take that role back.

You must also get out of debt, consumer debt, credit card debt, etc. Then work on your mortgage. We've shifted from total ownership to total indebtedness.

Accept responsibility. We are the wealthiest nation on earth, but we're plunging ourselves into debt. Larry says 80% of Americans accept some form of government money. Refuse to take handouts, whether in the form of welfare or student loans. Again, this was Larry's opinion.

Chuck says that Larry spent his entire life calling people to take responsibility for their actions. It’s so simple, but so few do it. Get out of debt, eliminate consumer debt, school loans, and your mortgage. Chuck says he wants listeners to take action to get their personal finances in order.

In the final segment, Chuck says Larry never considered himself a prophet but he looked at the economic data and applied biblical principles to form his opinions. Chuck says he's doing the same thing.

Seeing the government respond just as Larry predicted, by increasing taxes, borrowing, and printing paper money will create the largest economic bubble the world has ever seen.

One day the burden of debt will collapse the economy. We'll go through a period of time when it looks like the crisis is over before that day comes, but we can’t borrow forever. There will be a day of reckoning.

Take action and heed God’s Word now. Become completely debt-free and get your finances in order.

Borrowing: A Biblical Perspective

Although many Christians believe that the Bible forbids borrowing, it does not. However, it does greatly discourage borrowing.

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The Consequences of Borrowing

Debt itself is not a sin, but it is a symptom of a more serious problem. Once you know the real cause, getting out of debt becomes easier.

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Majoring in Credit Card Debt: Minoring in Money

With so many outlets for creditors to reach students and few restrictions, credit card use among college students has steadily increased.

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Types of Savings

Along with discipline and maintaining a budget, saving is the best way to prevent being encumbered by debt.

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Other Resources:

• ABCs of Money Package
• Career Direct
• God's Principles for Operating a Business
• Business By the Book
• Crown Mvelopes