Archive for the ‘Provident Living’ Category

Healthcare and faith: Can we afford to be our brothers keeper?

Tuesday, August 4th, 2009

From Examiner.com

Unless you have the good fortune to be on another planet you have no doubt heard nothing but news of the health care debate for the past several weeks. One side says that the    Obama plan will bankrupt this country and send us all to the poor house, the other side says we must insure the millions of people who have no health care coverage and we can do this by increasing the tax burden on the wealthiest of our citizens and as of this date,  Tim (Turbo Tax ) Geithner,  the Treasury Secretary , has come out and said that we may have raise taxes to pay for this behemoth of a program. So much for the “95 percent of you will get a tax cut” pledge.

This should come as no surprise to anyone who has a rudimentary grasp of mathematics. This plan by the government’s own estimates will cost TRILLIONS of dollars. Had you ever heard of a “trillion” previous to the last four or five years? What comes after that, a gazillion?  Any time you hear someone from the government start throwing out numbers, run them on your own.  Two things will usually be obvious. First, the numbers are usually wrong. Second, if you analyze any government program that has been in place for a  few years, look at what the initial estimated cost was going to be, and look at the actual cost. Most of the time it is grossly underestimated.  Then we have politicians who stand up and say to us that we must spend or go bankrupt. Just how does that work?  Not well for the average citizen who doesn’t have a few trillion laying around in a savings account.

In an article done for the Memphis Medical News, Holli W. Haynie states that according to 2005 data approximately 10% of the population of Shelby county is uninsured. This equates to about 90,000 people without health care coverage. These people often wind up going to emergency rooms to be treated for what is in essence a chronic condition. This ties up emergency centers and hinders them from treating real life threatening events

Putting aside the debate from a political perspective, how are people of faith expected to deal with this issue? Most faith traditions have admonitions about caring for the sick and elderly.  Proverbs 29:7 (New International Version)7 The righteous care about justice for the poor, but the wicked have no such concern.  Leviticus 23:22 (New International Version)
22 ” ‘When you reap the harvest of your land, do not reap to the very edges of your field or gather the gleanings of your harvest. Leave them for the poor and the alien. I am the LORD your God.’ ” The Holy Quran says:  # 2:184 (Asad) [fasting] during a certain number of days. [155] But whoever of you is ill, or on a journey, [shall fast instead for the same] number of other days; and [in such cases] it is incumbent upon those who can afford it to make sacrifice by feeding a needy person. The Book of Mormon: Alma 34
1. [28] And now behold, my beloved brethren, I say unto you, do not suppose that this is all; for after ye have done all these things, if ye turn away the needy, and the naked, and visit not the sick and afflicted, and impart of your substance, if ye have, to those who stand in need — I say unto you, if ye do not any of these things, behold, your prayer is vain, and availeth you nothing, and ye are as hypocrites who do deny the faith.

As can be seen we as people of faith are expected to care for those who cannot care for themselves.  Most of us don’t have a problem with this and would gladly help those who are genuinely in need, but how many of the millions that the government claims are uninsured are actually in  that category?  Once you extrapolate those who are uninsured for other reasons such as young people who feel like they are not in need of insurance right now, wealthy people who can afford to pay their medical bills themselves, people who have savings accounts set up for medical emergencies, and so forth, just how many people are not covered because they cannot afford to pay for it?

Cont.

Mormon tradition stands out in hard times

Sunday, March 29th, 2009

From The Charlotte Observer:

Clarence Brown (foreground) leads prayer before lunch for volunteers at the Bishops’ Storehouse in Greensboro. JOHN D. SIMMONS – jsimmons@charlotteobserver.com

GREENSBORO The sign out front – “The Church of Jesus Christ of Latter-day Saints” – is the first clue that the brown brick building is a little different than the other warehouses that dot Triad Industrial Park.

Inside, pictures of Jesus helping have-nots hang above shelves packed with boxes of cereal, lasagna, turkey and Huggies. Cans of beef stew and tomato sauce bear stamps that say: made by Mormons in Utah. The workers, busy bagging, boxing and loading onto trucks everything from chicken to eggs, are volunteers and address each other as “brother” and “sister.”

From this Bishops’ Storehouse, food and other necessities are transported across North Carolina to aid fellow Mormons and occasionally others.

“We all need help sometimes in our lives – especially now,” says Greensboro accountant Keith Hiatt, a lifelong Mormon who assists with storehouse operations. “We want to give.”

Houses of worship of all stripes are pitching in as their flocks try to survive this severe economic squeeze. Few were as ready and are as practiced as the fast-growing Church of Jesus Christ of Latter-day Saints, also known as the Mormons. The Church’s first storehouse opened in the 1840s in the Ohio home of Bishop Newell Whitney. During the Great Depression, the Salt Lake City-based church launched its Welfare Services system, with regional pantries, as well as church-owned farmland to grow most of the food and church-owned trucks to deliver it.

Today, there are 140 bishops’ storehouses. Besides Greensboro, sites include Columbia, Knoxville, Tenn., and Richmond, Va.

Mormons, who number 71,737 in North Carolina and 36,141 in South Carolina, trace their tradition of giving to their founder, Joseph Smith. They say he was instructed by God in 1831 to keep goods “in my storehouse to administer to the poor and needy.”

These days, those on the receiving end are increasingly the suddenly unemployed.

Last year, the storehouse got 5,482 orders – each number representing a family. At the pace orders are coming in this year, “we’re going to go well over 7,000,” says storehouse manager Bob Hahn. “That’s a real sign of the times.”

Fast Offerings

It’s also a testament to how the downturn is hurting even members of a church that prizes self-reliance as one of its core principles.

Mormon families are encouraged to save as much money as they can and store large amounts of food at home – a three-month supply of what they normally eat and a year’s worth of long-term stocks such as wheat, rice and nuts. Many Mormons also can their own food, and the Greensboro storehouse includes a cannery that stays busy.

Bishops’ storehouses are funded by members of the church, who are asked to fast for two meals, usually on the first Sunday of the month. They then send the money they would have spent on those meals – their “Fast Offering” – to the church.

And the name Bishops’ Storehouse?

In the Mormon tradition, it’s the bishop – an unpaid layman appointed to head a “ward” (congregation) – who assesses each request for assistance and, if it’s granted, sends an order to the storehouse.

“Storehouse” can also be a figurative term, referring to the members of his flock who are specialists willing to offer their services for free. The bishop could assign an accountant to a family with budget problems or dispatch a mechanic to help somebody with little money whose car breaks down.

In assessing who needs help, the bishop’s job is to “sustain life, not lifestyle,” says Bishop Randy Rummage, who heads the Pineville, 1st Ward, a 500-member congregation. “If they are still wanting to keep their season tickets to the Bobcats and still want to stay in the country club, then we’re going to have to talk and reach an agreement that those are not necessities.”

Those who do get help are asked to perform some tasks in return – say, clean the church every weekend.

“The church doesn’t need the work,” says Tom Cheney, president of Charlotte’s South “Stake,” a group of nine congregations. “But the people do. They need to feel they have worth.”

From bad to worse

For years, life was good for a Fort Mill, S.C., couple we’ll call Wayne and Marie (they asked the Observer not to use their real names). Mormon converts and transplants from the Midwest, they both had good jobs and had even managed to store up enough canned goods in their home to last a year.

But in 2008, Marie lost her job as a flight attendant when ATA Airlines shut down. And before long, the nosedive in the economy choked off Wayne’s business selling credit card processing machines.

Then the couple got the worst news: She was diagnosed with breast cancer.

A counselor to Bishop Rummage approached Wayne and Marie to offer some help. With hospital and other bills mounting and little revenue coming in, they eventually said yes.

“We held out until we had to turn to the church for help,” says Wayne, 55. “We were at a point where it was very difficult …to pay the bills.”

Inside and outside the faith

Rummage talked to the couple. He then had the church help pay their COBRA health insurance premiums and supply them – from the storehouse in Greensboro – such perishables as milk, bread, fruit, vegetables, cheese and meat.

“We had been cutting into our own (canned goods),” Marie, 51, says, “but the church has been generous in providing the necessities.” The food is delivered every other Wednesday.

Rummage says he gets two to three aid requests a month. After investigation and prayer, he sometimes says yes, sometimes no, and sometimes hooks people up with a government program.

Occasionally, he says, the call for help will come from a non-Mormon who walks in off the street. The Church of Jesus Christ of Latter-day Saints has a history of helping people outside the faith, particularly victims of natural disasters. One example in recent years: The church sent waves of tractor-trailers filled with food and emergency supplies to New Orleans after Hurricane Katrina.

‘It’s in my heart’

Deciding to help Wayne and Marie, who are members of his congregation and regular attendees at church, was not difficult, says Rummage.

“We rely heavily on the influence of the Spirit and on knowing our sheep,” he says. “This was an easy call, with this family. These are obedient children of a loving heavenly father. The hard calls involve those we worry about spiritually. The only time I see them is when they come for help.”

Besides the groceries and financial aid from the church, Wayne and Marie have gotten help from the congregation in the form of rides to the doctor, casseroles, tips on possible jobs, and classes on networking and resume-writing.

“I want to get to the point where I can return the favors,” says Marie. “Not because of obligation, but because it’s in my heart. The sisters and brothers have become like literal sisters and brothers.”

Spreading kindness

Sunday, March 1st, 2009

From The Bangkok Post

(hat tip to Cougarfan.com)

ROYAL VISIT: HM Queen Sirikit and HRH Princess Chulabhorn in Salt Lake City

About 1.5 kilometres west of central Salt Lake City is a large piece of land owned by the Church of Jesus Christ of Latter-day Saints (also known as the Mormon Church). On the land are a cannery, a milk processing plant, a storehouse, an employment centre and silos where wheat and other grains are stored.

Known as Welfare Square, all its facilities are designed to help people help themselves, based on the Mormon Church’s principle of self-reliance.

The programme has been in operation since 1938 and is run almost entirely by volunteers, says manager Jim Goodrich.

The system is supported by the generous “fast offering” donations of 13 million church members around the world. Mormons fast, or skip two meals each month, and give the money they would have spent on the food (and often much more) to their local bishop. The money they give is called a “fast offering”. The bishop then uses these funds to help members of his congregation, and others, who are in need.

But it is not a handout. The bishop gives the needy individual or family assignments to work for the assistance they receive. The work might include cleaning a church building or using their skills to help someone else in need. Fulfilling these assignments helps those receiving assistance to maintain their dignity and self-respect and provides a way for them to give back.

“Welfare Square gives people hope and a place where they can feel good about themselves and others and it opens up opportunities for people to have a better future,” says Mr Goodrich.

The church welfare system has three purposes: To care for the poor and needy, to help people become self-reliant and to create opportunities for service. The church has established welfare centres and “bishop’s storehouses” to help with the most basic needs.

There are 138 bishop’s storehouses around the world in areas where there are a significant concentration of church members. These storehouses, funded by the donations of individual members of the church, meet the needs of many individual congregations. In areas where a bishop’s storehouse is not available, bishops may use the funds collected from fast offerings to purchase food and other needed commodities for individuals in need.

One of the largest storehouses is in Salt Lake City. While larger than most, it functions in the same fashion as the others. A bishop gives an individual or family in need an “order” for food after he meets them to discuss their needs and what they can do to provide assistance in return for the what they receive. They then take the order to the storehouse, and volunteers help the individual obtain the goods needed. As part of the process, the bishop works with the member on a plan to return to full self-reliance.  (cont.)

Read more here

How Does this Recession Compare?

Friday, February 20th, 2009

Chart courtesy of Calculated Risk:

A recession of biblical proportions

Monday, February 2nd, 2009

From Fortune Magazine:

Ever since Joseph decoded Pharaoh’s dream about fat cows and thin ones and delivered his policy response - save in the fat years to survive in the lean times - consumers have followed that model.

In booms we put away some of the abundance because we know we’ll need it in busts to come. Then, when the bad times hit, we spend some of what we’ve saved. But no more: Our recent bizarre behavior helps explain how we got into this economic mess. It may also hold clues to how we climb out of what will soon be the longest recession in 75 years.

For the first time since Genesis, consumers are doing everything backward. During the expansion from 2002 through 2007, our savings rate fell rather than rose. In mid-2005 it even went negative, and it mostly stayed below 1% until late last year. Then, as the recession really took hold, we again did the opposite: We increased our saving. As the economy shrinks, our savings rate has climbed to almost 3%.

That is the reverse of how consumers behaved in the Great Depression, for example. The personal savings rate declined after the 1929 market crash, and in the Depression’s two worst years, 1932 and 1933, the rate went negative - we spent more than we earned. As the economy improved, our savings rate (the percentage of disposable income we save) was back up to 6% by 1937, but when the economy turned down in 1938, the rate dropped to 2%; the next year it rose. It was all a textbook illustration of logical consumer behavior.

This pattern that began with Pharaoh’s dream moderates business cycles. It stabilizes the economy by damping down spending during expansions and fueling it during recessions. Today, however, we’re in a bind. We really do need to save more, but to get out of the recession we also need to spend more, and we can’t do both at the same time, especially with jobs disappearing in huge numbers. It’s a double whammy: Not only do we lack savings to dig into and spend during this downturn, but we’re also spending a smaller proportion of our incomes (which are themselves stagnating, so maybe it’s a triple whammy). Put it all together, and it’s clear why this recession is dragging on.

The central mystery: Why did we go into hock in the fat years? One argument is that we were behaving rationally. As our homes increased in value, they were doing our saving for us, so we didn’t have to save out of current income. The trouble is that after home values turned down in mid-2006 and started making us poorer rather than richer, our savings rate kept right on falling.

Nor was our borrowing binge focused only on mortgages; we were going heavily into most other types of debt as well. In fact, we were spending record proportions of our incomes just to service our personal debt - even with interest rates near historical lows.

Maybe it was just a mania, focused not on tulip bulbs but on the simple joy of buying, reinforced by a belief that bad times were no longer inevitable. We hadn’t seen a severe recession in 25 years; maybe we had advanced past such things. Or maybe some critical mass of people had never known real privation; if you’ve never missed a meal in your life, why would you worry about thin cows?

We can take several steps to move forward. In the near term we need spending, and that probably requires home-price stability - either government action to fend off foreclosures and spur buying, or the market bottoming on its own. Longer term we need saving, which could be encouraged in many ways. Washington could raise or remove the ceiling on tax-free IRA contributions. Companies can make 401(k) plans the default option for new employees rather than something they have to choose. Harvard Business School professor Peter Tufano advocates innovative ideas such as prize-linked savings vehicles, in which giant interest payments are awarded lottery-style; such programs have boosted savings for decades in other countries.

Whatever happens, don’t expect miracles. Spending and saving behavior evolves slowly, and our current mess is in some ways the culmination of a long journey. We may not suddenly start behaving with biblical wisdom. But at least let’s try not to forget how bad things can be when we get spending and saving backward.  (cont.)

Link to article

LDS Church initiates hiring freeze

Wednesday, January 7th, 2009

From Standard-Journal (ID):

SALT LAKE CITY — The Church of Jesus Christ of Latter-day Saints initiated a church-wide hiring freeze on Dec. 19, according Brigham Young University-Idaho University Relations.

The hiring freeze is throughout the LDS Church, affecting at least LDS Employment Services, LDS Family Services and church-owned universities such as BYU-I.

According to spokeswomen Kim Farah, Deseret Industries has not been affected by the hiring freeze because it is a humanitarian operation.

The church has released this statement:

“In response to the recent economic downturn, The Church of Jesus Christ of Latter-day Saints is currently not hiring new employees. This temporary action, which has been taken before during previous periods of economic uncertainty, is consistent with the principles of thrift and fiscal responsibility that the church has long encouraged its members to practice.”

While local LDS entities declined to comment, the university released this statement:

“In these challenging economic times, BYU-Idaho is very grateful to be divinely led and supported by modern prophets who are simultaneously committed to preserving the financial integrity of the church and the mission of the university. We will be working with our board to implement this directive.”
Link to article

Shops without cash registers: Mormon theology softens hard times with safety net.

Saturday, January 3rd, 2009

From Columbiatribune.com (MO):

SALT LAKE CITY (AP) - Bishop’s Storehouse looks like any other grocery store at first glance: The shelves are neatly lined with canned goods, and the smell of fresh bread wafts through the aisles.

But there are no cash registers. The fruits and vegetables, just-made cheeses and milk are free - a safety net for those in need provided by the 13 million members of the Church of Jesus Christ of Latter-day Saints.

“We like to call it the best food money can’t buy,” said Jim Goodrich, who oversees the storehouse and other facilities on the church’s 13-plus-acre Welfare Square.

Mormons might be among the country’s best-prepared to weather the current economic hard times.

Since the Great Depression, Mormon church leaders have preached a doctrine of self-reliance and selflessness, calling on members to plan for their own future while tending to the needs of others.

“It’s a critical component of our theology,” said Bishop David Burton, a senior church administrator who oversees the faith’s worldwide welfare and humanitarian services programs.

Members are encouraged to squirrel away a few months’ worth of living expenses and stock a one-year supply of emergency food.

Mormon church handouts, classes and a Web site describe how to prepare, store and cook with emergency food supplies so nothing will go to waste.

Each month, members skip two meals and give the money they would have spent on food to church welfare programs, paying for the commodities, clothing, job training and other services made available to the needy.

The church also works in partnership with other faith traditions and local social service agencies to share surplus commodities and support services.

Welfare Square is the heart of the program.

Founded in the 1930s, the square is home to a cannery, milk and cheese processing facility; a 16-million pound grain elevator; and a bakery, storehouse, thrift store and employment center, all of which are run mostly by volunteers serving church missions.

Over the years, the safety net has extended worldwide to include farms, orchards, dairies and cattle ranches that provide the raw material for the commodities harvested, processed and packaged at church facilities.

Each product carries the “Deseret” label - a Book of Mormon word that is a synonym for honeybee and a metaphor for the industriousness of church members.

“What we see today is the product of 60 years of inspired leadership and a lot of hard work,” Burton said. “I can’t tell you the cumulative investment, but it’s minor in terms of the cumulative effort on the part of thousands and thousands.”

Church members seek out their local congregation leader, called a bishop, to access the system.

Bishops - there are 27,000 worldwide - also have a pool of cash to pay for housing, medical needs or keep the utilities on, although the church prefers to provide commodities first, Burton said.

Assistance comes with the expectation of reciprocal service, whether it’s a few hours of volunteer work stocking shelves or some other form of service.

Jennifer Williams was hesitant to accept help. Fresh out of college and in the middle of a difficult divorce, she was struggling to find a career that matched her skills - fluency in Russian and a political science education.

“One of the things that makes it so hard is that you think it’s just for people who don’t have a job, not for someone like me, working, middle-class and educated,” said Williams, 29, now of Washington, D.C. “But, you know, needing help is OK.”

Without money to buy a gallon of milk, she temporarily stocked her pantry with church commodities and used the training she got in an executive job search program to land a position with a defense contractor.

It’s unclear how many individuals and families need church assistance each year.

Church statistics from 2007 show some 210,000 people used employment centers and training to find jobs.

But church officials declined to provide a demographic snapshot of the average welfare recipient, the amount of time most recipients use the programs and an average value for the commodities provided.

Without that information, it is difficult to assess the effect the church programs have on the community, said Glenn Bailey, director of Crossroads Urban Center, an advocacy and direct services agency for the poor in Salt Lake City that annually receives a share of church commodities for its own emergency food bank.

“I think they play a critical role, it’s just that there’s no way to tell the size of the gap they fill,” Bailey said. “Obviously they are doing a lot of work and helping a lot of people who would go without or seek assistance elsewhere.”

Link to article

Mormon church helps those in need

Thursday, December 11th, 2008

From The Gilroy Dispatch (CA):

Our country is certainly going through tough economic times now. Every day seems to bring news of layoffs, bailouts, foreclosures and government cutbacks. In this context, it is inspiring to note that The Church of Jesus Christ of Latter-day Saints operates a welfare system that helps meet the needs of both Mormons and their neighbors in communities across the country.

The LDS Church has a tradition of hardy self-reliance, dating back to the days of settling the Utah wilderness.

Today Mormons are taught that “each person’s spiritual and temporal well-being rests first upon himself, second upon his family and third upon the church.”

This principle leads to a willingness to cultivate vegetable gardens and store supplies for use in emergencies. It is also reflected in members’ avoidance of alcohol and tobacco, accounting for health statistics above the national average.

But circumstances can change, making people unable to support themselves; anyone can fall victim to unemployment, serious illness or death in the family. This is when the LDS church demonstrates its ability to help members help themselves.

The church is divided into geographic congregations called “wards,” each of which is presided over by a bishop. In addition to spiritual duties, this self-supporting leader has the responsibility of ministering to the material needs of the members of his ward.

A bishop seeks to keep informed about the spiritual and temporal condition of his congregation. Each family has assigned “home” and “visiting” teachers, men and women who contact them monthly to discuss faith issues and report back to the bishop whenever help seems warranted.

Bishops have many resources to meet members’ needs. Temporary financial help is available through special “fast offerings.” These funds are available to the bishop; they are donated monthly by members when they skip two consecutive meals and donate the money saved plus a generous additional amount for this purpose.

Also, across the country the Church operates enterprises that provide items for “bishops’ storehouses.”

For example, at farms in Utah, volunteers this summer picked more than a million pounds of peaches that were then canned and sent to bishops’ storehouses and public agencies in several states. Food, clothing and other necessities are stored in these warehouses until bishops requisition them for people in need.

These items then become tangible symbols of the “time, effort and love generously contributed for the common good.” The Church also operates a thrift store (Deseret Industries) that collects unwanted household goods, sells them inexpensively and provides training and employment.

Two principles seem to make the LDS welfare program a success. First, nearly everyone involved donates time and talent, eliminating expensive bureaucracy. And bishops offer recipients the opportunity to work in return for assistance, helping preserve their dignity and self-respect.

South County abounds with examples of people receiving help:

- Matt Deakin of Morgan Hill’s First Ward tells of an elderly woman who lived in a mobile home that had fallen into serious disrepair. Through the course of several weeks volunteer members tore out and replaced worn carpet and damaged flooring, providing her a much better living environment.

- Bishop Carl Woodland of the Second Ward in Morgan Hill recounts the story of an octogenarian, a proud Army veteran, whose house’s roof badly needed repairing. Again, volunteers joined in to replace the roof and provide him a dry home for the winter.

In addition to helping its local members, the Church of Jesus Christ of Latter-day Saints also sponsors humanitarian relief and development projects that benefit the general public. Recent emergency relief assistance in times of disaster include the California wildfires and Hurricane Ike in Texas.

Link to article

How Bad is it Going to Get? A conversation about economics with 'Black Swan' Author Nassim Taleb

Monday, December 8th, 2008

From CharlieRose.com:

LDS Church welfare farms increase production to help fill growing need

Tuesday, December 2nd, 2008

From The Tooele Transcript Bulletin:

Jason Heward, manager of the Erda Utah Crops project, climbs a grainery where wheat is stored in Erda on Friday. The Erda project is part of The Church of Jesus Christ of Latter-day Saints’ extensive welfare system.  Photography / Maegan Burr

Times are tough. High food prices have taken a toll on many families’ finances. But at least one farm and one ranch in Tooele County are doing their part to provide food to those who need it.

The ranch, in Vernon, and farm, in Erda, are part of The Church of Jesus Christ of Latter-day Saints’ welfare system, which includes canneries, farms, and factories. The system is designed to care for the needy while enabling them to become self-reliant.

According to church officials, because of the downturn in the economy, demand on the church’s welfare system has significantly increased. Both operations in Tooele County have increased their yield and production levels to keep up with the demand.

Brent Chugg, manager of production for the LDS Church Welfare Services, said the Vernon ranch raises beef while the Erda farm grows corn for livestock and wheat for storage.

The ranch, called Vernon Utah Livestock, which began in the 1950s, currently consists of about 700 head of mother cows, according to Scott Livingston, manager of the operation. The operation was a dairy for a couple of years, but went back to being a cow-calf operation.

“The way it works is the calves don’t leave the church system,” he said. “We ship the calves to a church feed lot, then to church meat-packing plant, then to the poor. Everything we do is with volunteers.”

The LDS Church Welfare Services is a vast network stretching across the globe. According to data from the church, that network includes 138 storehouses, 55 production projects, 24 processing facilities, and 37 storage and distribution facilities. In 2007, the system produced 88 million pounds of wheat and dry beans; 34 million pounds of row crops (vegetables); 27,000 tons of animal feed; 5 million pounds of fruit; 4,100 head of cattle; 1.3 million pounds of turkey; and 81 million pounds of raw milk.

The entire network runs on the donated labor of volunteers. The system is also supported by fast offerings, which are donations from Church members who fast two meals a month and donate the money they would’ve spent on those meals.

When Livingston needs help at the ranch, he calls a woman in Tooele whose calling in the Tooele South Stake is to find volunteers. He said volunteers don’t have to be members of the church and don’t necessarily have to have expertise in ranching operations.

For example, last Friday he needed people to help check cows to see if they were pregnant. Sixteen volunteers came out, including from the Tooele Valley area and other parts of the state.

The all-volunteer operation helps keep operating costs, and thus prices, down, according to Livingston.

Only he and an assistant manager are paid.

Livingston said production on the ranch within the past year has increased dramatically.

“This year it jumped very large numbers just because the need is out there right now,” he said. “They’re wanting more and more now just wanting to fill the gaps.”

The LDS Church has two other welfare ranches in the country like the one in Vernon — one in Nephi and another in Ely, Nev.

The feed lot where the cattle are sent is located in Elberta, in Utah County. It is here where the calves are fattened until they reach about 1,800 pounds. Then they go to a church meat-packing plant in Spanish Fork. From there, the meat goes to Welfare Square — a facility in Salt Lake City that includes a milk-processing plant, cannery, a bishops’ storehouse, thrift store, employment center and silos where wheat and other grains are stored.

Products can then be transported on trucks to wherever they are needed, including other bishop’s storehouses. There are 138 bishops’ storehouses around the world.

According to Cody Craynor, spokesman for the LDS Church, the services provided at the bishops’ storehouses are made available by bishop referral, which can include members as well as non-members.

Various products can be shipped all over the world for humanitarian efforts, including disaster relief. From 1985 to 2007, the church gave aid in 185 major disaster assistance efforts, according to church records.

The Erda Utah Crops project, run by manager Jason Heward, operates in much the same way as the Vernon ranch.

There are a total of more than 1,000 acres on three parcels of land in Erda where corn and wheat are planted — roughly a 50-50 split. The parcels are on Sheep Lane, Erda Way and off SR-36. Heward said the Erda project has been operational since the 1950s. At one time, there was also a dairy. The crops grown used to be hay and wheat, but about three years ago the hay crop was switched to corn.

The corn goes to Elberta for the feed lot and dairy there. The wheat, which is stored in granaries, can be distributed to where there is need.

Heward said yields in recent years have gone up as demand has gone up.

With just three paid employees — Heward, an assistant manager and an office manager — the work of volunteers is imperative to the success of the operation.

The Stansbury Park Utah South Stake has a stake coordinator and ward coordinator who Heward can contact when he needs volunteers. In addition, Heward said there is no restriction on who can help, including non-members. Volunteers run tractors, mow stubble, weed whack, fix fence, repair things, paint, and conduct various maintenance on the farm.

He said volunteers put in between 3,000 to 5,000 hours each year at the farm. The help of volunteers is especially needed at harvest time.

Other church farms in Utah are in Fielding, Corrine, Layton, West Point, Nephi, Saratoga and Riverton.

Heward said the farms are crucial during tough times.

“It’s nice to know people can get help when they need it,” he said. “That’s why I like this job.”

Link to article

Technorati Profile

Mormons have the goods to care for their own

Sunday, November 30th, 2008

From The Tennesseean:

When it comes to taking care of needy church members, Mormons don’t mess around.

So on the shelves of the Bishop’s Storehouse, a Mormon-run food pantry in Hendersonville, there’s everything a struggling family needs to get by, from spaghetti sauce and canned veggies to diapers and dishwashing liquid.

Even Mormon grits.

And almost everything carries the Deseret brand. That means it was produced on farms and in factories run by the Church of Jesus Christ of Latter-day Saints.

“These pears right here, they are Deseret brand,” said Brent Ostermiller, chairman of the volunteer committee that oversees the for-Mormons-only storehouse. “Somewhere in the church there is an orchard where they grow pears, and nearby is a cannery where they can them.”

The bishop’s storehouse in Hendersonville is one of 138 run by Mormons. They are part of a sophisticated church welfare system, which includes food distribution, along with thrift stores, disaster relief and employment centers that help members find jobs.

The system is founded on the teachings of Jesus, said Kathleen Flake, associate professor of American religious history at The Divinity School at Vanderbilt University.

“The common, basic Christian ethic is to care for those who are poor and needy,” said Flake, a member of the Mormon ward, or congregation, that meets in Green Hills.

The Hendersonville store house, which feeds about 200 families a month, is run by Nashville-area volunteers, drawn from a pool of about 25,000 local Mormons.

It’s run at a relatively low cost. The storehouse building was constructed debt-free about 30 years ago, so the only out-of-pocket cost is for utilities. A volunteer committee, along with a full-time volunteer missionary couple, manages the operation.

Most of the food comes from a regional storehouse in Atlanta and is trucked in once a month.

“It’s a pretty good day’s work to get that truck unloaded and have everything put up on the shelves,” said Ostermiller, who is also president of the Madison Stake, the Mormon equivalent of a diocese.

Fasting funds system

The Mormon welfare system is funded by fast offerings and donations from church members.

“On the first Sunday of each month, we encourage our members to fast for two meals and to contribute the cost for those meals to the fast offering,” Ostermiller said. “It’s through those fast offering funds that most of the welfare work of the church is done.”

Those offerings go into a general pool at Latter-day Saints headquarters in Salt Lake City. Those funds are used to run the church’s food program.

Some of the food is grown and canned by volunteers. Ostermiller, for example, volunteered on a church-run potato farm in Idaho while growing up.

“We did everything from planting potatoes to picking rocks,” he said.

Flake said that because most church members contribute to the program — by donations or volunteer labor — accepting help is easier when they find themselves needing it.

“We all take turns at giving and receiving,” said Flake, who has fond memories of picking cherries and canning grapefruit while growing up in the church.

Bishop’s orders increase

To qualify for food relief from the storehouse, Mormon church members must have what’s known as a bishop’s order. Those orders are signed by a local bishop, who is the volunteer lay leader of a ward. The forms, which include a two-week menu plan, are often filled out by members of the ward’s relief society, run by women in the church.

Clark Johnson, bishop of the Hendersonville ward, has been signing more orders than usual this fall.

“Lately, every week we’ve had people going to the storehouse,” he said. “We’ve seen a big increase, since the economy has gotten into trouble.”

Johnson meets with families who need assistance, then sends a relief society member for a follow-up.

“She’ll sit, usually with the wife, and go over what they need,” he said. “When times are tough, we want to be able to make sure people are able to eat.”

The storehouse opens on Tuesdays during the day to fill the bishop’s orders. That means on Monday evening, Ostermiller and other volunteers restock the shelves and get everything in order.

Other volunteers come on Tuesday to fill orders, and to set out fresh produce and dairy products bought from local supplies.

Neolina “Laurie” Cooper, 75, has been volunteering at the storehouse for about a year and is a former relief society president at the ward in Goodlettsville. She and her husband, Bill, sort produce on Tuesday mornings, before the storehouse opens, and stay most of the day.

On a busy day, she said, “We get there about 9 and stay until 4.”

Cooper, a Hawaii native who has lived in the Nashville area since the early 1990s, said that volunteering has always been part of her faith. She knows that everyone who comes into the storehouse will be feeding a family.

“There are a lot of people who need help,” she said. “When we see their faces light up, because they’ve gotten food, it makes us feel happy.”

Couple assist job hunts

The Hendersonville store house also is home to an employment center and a family home storage center. Each Mormon family is encouraged to have at least a three months’ supply of food on hand in its home. Families can buy commodities such as sugar, flour, rice and macaroni at the center, and use a canning machine to prepare them for storage.

Myron and Jeanne Shepherd, volunteer missionaries from Henderson, Nev., run the employment center. They’ve been in the Nashville area for four months, as part of an 18-month assignment.

The Shepherds organize seminars on topics like resume writing and interviewing skills, and put out a weekly job posting list that goes to about 12,000 church members. Job hunting has become a challenge given current economic conditions, making their work vital, Shepherd said.

“It’s a tough time right now,” Myron Shepherd said. (cont.)

Link to article

Phentermine No Prescription Neded
2nd Day Fedex Phentermine
Does The Drug Phentermine
Buy Phentermine Href Online
Ups Cod Phentermine
Generic Phentermine Buy Cheap
Hcl Mg Phentermine
Phentermine Ingredient
Phentermine With
Online Phentermine Cod Overnight Delivery
Cost Low Phentermine
Icbs Forums View Profile Order Phentermine
Phentermine And Heart
Phentermine 37.5 Refill
Buy Cheap Gm Phentermine Site
Phentermine Cause Bleeding
Cheapest Price Phentermine Online Pharmacy
Phentermine Rx Without
Purchase Phentermine 37.5 Mg
Cheap Phentermine Cash On Delivery
Phentermine In Jonesboro Arkansas
Buy Phentermine 37 5mg
Phentermine With Wellbrutrin
Phentermine Diet Pill No Prescription
Is Phentramine The Same As Phentermine
Diet Information Phentermine Pill
Phentermine Capsule Pills
Meridia Better Phentermine
Eon Labs Product Liability On Phentermine
Phentermine Lab
Phentermine How Does It Work
Phentermine Or Ionamin
Ultram Home Gym Phentermine Online
Cheapest Phentermine In Usa
Phentermine Not Working
Phentermine In Spain
Phentermine India
Phentermine Hcl Online Dr
Phentermine Drug Interactions
Order Phentermine Mastercard
Webresults Buy Phentermine
Cardizem Cd Phentermine Claritin
Phentermine No Priscription
Phentermine Fedex Overnight Shipping
Search Results Adipex Phentermine Vs
Discount Pharmacy Phentermine
Phentermine And Fast Shipping
Phentermine 37.5 Online
Buy Phentermine In Kentucky
Phentermine Zararlari
Phentermine And Ups
Phentermine Pills Break In Half
Buy Phentermine For $150
Viagra Cialis Phentermine Soma
Cheapest Phentermine Fed X Overnight Purephentermine
Phentermine 37.5 C O D
Best Phentermine Alternatives
Appetite Suppressant Phentermine
Phentermine Sales Get It Online
First Approved Phentermine
Cheap Phentermine 32
Phentermine For Sale Phentermine
Phentermine No Presciption Or Fees
Pakistanian Phentermine
Phentermine Canada Meds
Phentermine And Shots
Phentermine Next Day Guarantee Cheapest California
Phentermine Weight Loss Stories
Better Phentermine Or Adipex
Phentermine Priority Mail
Phentermine 90 37.5
Phentermine And Leg Cramps
Phentermine Generic Overnight 90 Days
Phentermine Reviews
Diet Phentermine Phentermine
Phentermine C O D
Is Phentermine Addictive
Phentermine Pills Phentramine
Dietpills Phentermine Dieting Pills Dieters Pills
Cheap Phentermine Using Paypal
90 Cod Count Day Phentermine
Phentermine Prescription Purchase Without
Drug Information Phentermine
Buy Phentermine Online Us Licensed Pharmacies
Buy Phentermine In Missouri
Phentermine Pay With M Aster Card
Diet Discount Phentermine Pill
Phentermine Nasonex Altace
Find Phentermine Overnight Cod Count Purephentermine
Buy Phentermine Cheap Usa Pharmacy
Phentermine Online From Canada
Phentermine Without Prescriptions Cheap
Phentermine Blood Life
Phentermine Blue White 30mg Side Effects
Phentermine Aciphex Phentermine Cvs Pharmacy Miami
Phentermine Suspended
Phentermine Cheap Ambien Cod
Taking Phentermine With Trazodone
Phentermine Online Prescription Online Pharmacy
Phentermine Message Board
Phentermine No Doctor Info
Buy Phentermine Without Script
Pay Pal Buy Phentermine
30 Ml Phentermine No Script
Buy Adipex P Phentermine Online
Phentermine Online Overnight Prescription
Online Phentermine Sales Ohio
Buy Phentermine Without Scrip
Phentermine Customhrt
Phentermine Cheapest Price
Phentermine Phentramine Overnight
Phentermine And Methamphetamine
Does Cyp3a4 Metalize Phentermine
Phentermine Diet Pills To Purchase
Depression Herb Phentermine Diet Pill
Buy Phentermine To Loose Ten Pounds
1 Loss Phentermine Pill Weight
Office Pill Phentermine
Phentermine Hcl Prescription Diet Pills
Overnight Delivery And Phentermine
Phentermine Pharmacy Online
Phentermine Weight Loss Expetency
Dr Phentermine
Buy Phentermine Online With Paypal
Phentermine W O Perscription
Buy Phentermine Online C O D
37.5 Cheap Mg Phentermine
Free No Phentermine Prescription Shipping
Phentermine Pharmacys Online
Phentermine Order By 3pm
Phentermine Overnight Cod Accepted
Buy Phentermine Phentermine Buy Phentermine Online
Phentermine Shipped
Phentermine Canadian Pharmacy
Phentermine Schedule Drug
Phentermine Blue Capsule 30mg
Buy Phentermine Online Sale
Phentermine Best Prices No Prescription Needed
Phentermine Without A Doctor’s Order
Buy Phentermine Online W O Perscription
Pravachol Protonix Phentermine Skelaxin
Phentermine No Prescription Phentramine Phentremine
Phentermine On Ine Without Prescription
Best Price Phentermine Prescriptions
Phentermine Hcl Prescription Diet
Discount Online Phentermine Without Doctor
Phentermine Smartmeds
Inside Us Phentermine
Phentermine Weight Loss Pharmacy Online
Miami Online Phentermine
Phentermine In The Uk
Phentermine Fever
Direct Order Phentermine
Does Phentermine Cause Acne
Best Drugs Phentermine
Get Phentermine 30mg With Online Physician
Phentermine Mp273 Tablets
Cardinal Health Phentermine Diet Pill
Phentermine Cheapest Price No Prescription
Phentermine Shipped To La Cheap
Buy Phentermine Blue White Capsules Online
Buy Phentermine From Online Doctor
Phentermine Csript
Other Uses Of Phentermine 37.5
What Makes Phentermine Work
Online Doctor Consultant To Buy Phentermine
Phentermine For Sale
Foradil Phentermine Evista
Phentermine 37.5 Mg Tab 90
Guaranteed Overnight Phentermine Without Rx
Phentermine With No Prescription Of Physician
By Phentermine
Phentermine Average Weight Loss
Phentermine Shortage
Luxury Hotel Rome Discount Phentermine
Buy Phentermine Prozac
Gupta Internal Medicine Vitamin B Phentermine
What Is Phentermine Hci
Phentermine 37.5 Pills
Overnight Phentermine 37 5mg
Phentermine Prescriptions Online Physician Online
Phentermine From Germany
Actos Foradil Phentermine Actos Pharmacy Nassau
Phentermine No Perscriptions
Phentermine Od
Customhrt Phentermine Order
Phentermine Hcl 30mg Blue
Overnighrt No Prescription Phentermine
Phentermine Education
Tricuspid Regurgitation And Phentermine
Lysergic Acid Diethylamide Phentermine Imitrex
Phentermine Meds
Meridia Better Than Phentermine
Phentermine Buy Phentermine Online
Phentermine Delays
Buy Onlinecom Phentermine Viagra
Phentermine 37.5 180ct
Adipex Drug Phentermine Vs
Phentermine Free Doctor Consultation
Cheap Phentermine Mg Phentermine Pills
Phentermine Adipex Online Doctor
Cheapest Phentermine Tablets
Phentermine Weight Loss Shipped
Pancreatitis Phentermine
Phentermine For Weight Loss
Buy Cheapest Cod Phentermine Site
Phentermine Cod Overnight Delivery
Phentermine 37.5mg 90 Pills
30mg Capsule Phentermine
Phentermine For Sale Us Physicians
Phentermine Diet Pills Online Pharmacy
Phentermine Overnight Federal Express
Apipex Diet Phentermine Pill
Phentermine 2007
Phentermine Saturday Cod
Hydrocodone 10 650 Phentermine
Drug Information For Phentermine
Phentermine W Br
Phentermine Blue Clear
No Prescription Pharmacy Phentermine
Phentermine 3.75
Buy Phentermine Rx Without
Information About Danger Of Taking Phentermine
180 37.5 Mg Phentermine Tablet
90 Pills Phentermine Under 100.00
Buy Cheap Phentermine No Prescription Phentermine
Leagle Phentermine
By Cod Phentermine
Compare Prices On Phentermine Mg Tablets
Phentermine Cod No Rx Needed
Phentermine By C O D
Cheapest Phentermine Pharmacies
Phentermine Heart Problem
Phentermine Blue 30mg 30 Caps
Bontril Vs Phentermine
Danger Phentermine
Phentermine Doctors In Nashville Tn
Phentermine Purchase Mastercard
Phentermine Join Edu
Phentermine Cheap Diet Pills
Forums Order Phentermine
Phentermine No Prescription Required Phentramine
Phentermine To Ky
Can Phentermine Cause A Heat Attack
Buy Phentermine 37.5mg With Mastercard
Phentermine Desperate
Buy 30mg Phentermine Online Physician Consultation
Cheap Phentermine Diet Pil L
Chepa Phentermine
Order Phentermine Hcl Online Cod
Oline Phentermine
Phentermine On Line Medipharm
Phentermine No Prescription Us Pharmacy Cheap
37.5mg Diet Phentermine Pill
Buy Online Phentermine Snap
Phentermine Delivered On Saturday Florida
Phentermine For 100
Diet Hoodia Phentermine Pill Review
Phentermine Shipped Overnight
Hypotension Phentermine Withdrawal
Cheap Phentermines No Membership
30mg Blue Clear Phentermine Without Perscription
Online Phentermine Cod Prices
Order Cheap Phentermine No Prescrip Tion
Phentermine 37.5mg No Rx
Bariatric Clinic Phentermine Greensboro Nc
No Prescription Phentermine Online
Order Online Phentermine
Buy Buy Phentermine
Buy Phentermine Without Perscriptions
Purchase Phentermine Online Pharmacy
Amaryl Phentermine Nasonex Altace
Phentermine 37 5mg Pay By Cod
Meridia And Phentermine Combination
Phentermine And Celexa
Buy Phentermine Cheap Without Prescription
Buy Phentermine In Usa
Purchase Phentermine No Tx
Overnight Shipping Phentermine Without A Prescription
Lipitor Phentermine Remeron Lotensin Xalatan Aricept
Combining Effexor And Phentermine
Phentermine 37.5 Mg Side Effects
Phentermine Drug Facts
Cheap Refill On Phentermine 30 Mg
Cheapest Phentermine Online Us Licensed Pharmacies
Hard To Find Phentermine
Phentermine Hcl Drug Interactions
Cheap Phentermine Best Online Pharmacy
Keyword Phentermine Online
Florida In Phentermine
Phentermine And Sibutramine Be Combined
Adipex Loss Phentermine Weight
Adipex P Phentermine Adipex P Phentermine
Phentermine Heart Damage
Phentermine For Adhd
Prescription Phentermine
Best Order Phentermine Place Umaxppc
Phentermine 37 5 Physician
Buy Phentermine Cheap No Script
Buy Phentermines Online

An Open Letter to Senator Cornyn (R-TX)

Wednesday, November 19th, 2008

Dear Senator Cornyn–

Before the TARP vote, I wrote to you urging that you not support this $700 billion bailout program.  My letter to you, in part, stated:

This proposal ignores moral hazard and rewards banks and other financial institutions for their reckless behavior.  I do not think it is appropriate in any way to use taxpayer money in such an ill conceived and unregulated scheme.   Giving Sec. Paulson unfettered power to spend $700 billion of taxpayer money seems reckless and irresponsible.

In spite of opposition to this bill by a majority of your constituents, you decided to ignore our wishes and vote in favor of the TARP bailout.

On October 22, 2008, you sent me an email explaining the reasons for your vote.  In that email you wrote:

Any actions by the federal government must be temporary and limited.  Furthermore, any taxpayer money that is used to support our troubled economy must be subject to strict oversight and be repaid—in full—to the American people.

We are now hearing that, in fact, there has been almost no oversight of this program.  Last Friday, The San Antonio Express News wrote:

So far, Paulson has spent $290 billion of the bailout package. How have those TARP funds been used? No one really knows other than him.

You see, Congress was supposed to create a five-member congressional oversight panel — but hasn’t. And the White House was supposed to nominate — and the Senate was supposed to confirm — a special inspector general to audit and investigate where the funds are going. After six weeks, President Bush hasn’t made a nomination.

If lots of money in Washington and little oversight sounds alarming, it should. It’s the same toxic combination that helped create the current financial crisis. Now the Troubled Asset Relief Program is becoming a huge cookie jar into which politicians are reaching for

I would appreciate an explanation of why your assurance of “strict oversight” of the TARP program (that you voted for) has not happened, and why you have allowed $290 Billion of taxpayer money to be spent with virtually no accountability.

Sincerely,

Your constitutent

Romney’s Rejection of Detroit Bailout

Wednesday, November 19th, 2008

From The New York Times:

Mitt Romney, the former Republican presidential candidate, created a bit of a stir today by writing an op-ed in The New York Times that featured the provocative headline: “Let Detroit Go Bankrupt.”

Those who followed Mr. Romney closely during his unsuccessful run for the Republican nomination would be forgiven for doing a double-take.

Mr. Romney, after all, campaigned as a populist champion for the auto industry on his way to winning Michigan’s primary last year, excoriating Senator John McCain for declaring on the stump that some of the industry’s lost jobs were not coming back.

“I am not willing to accept defeat like that, that those jobs aren’t coming back,” Mr. Romney said on the stump at one point. “I will fight for every good job for Michigan and for America.”

Mr. McCain, who struggled to overcome his frank statement and accusations of economic pessimism, argued it was misleading to imply that all of those lost jobs could be returned to the state and all but accused Mr. Romney of pandering for votes.

During the Michigan primary battle, Mr. Romney played up heavily his personal ties to the state, arguing its problems were personal for him — his father George was chairman of American Motors and governor of Michigan.

Mr. Romney’s circumstances are dramatically different today, of course. He is free from the pressures of trolling for votes in a must-win primary, as Michigan was for him after he suffered grievous blows in the Iowa caucuses and the New Hampshire primary. There is also tremendous unease within his party’s conservative base about the government’s bailout of the financial industry and the one being considered now for the auto industry.

In his op-ed, Mr. Romney lays out his case against a cash infusion from the federal government for the automotive industry, contending that a bailout would simply perpetuate its problems, as opposed to a managed bankruptcy, which would force the industry to restructure to stay competitive.

He still portrays himself as a champion for the industry, saying “Detroit needs a turnaround, not a check.”

But back in Michigan, his piece is already drawing reaction. At least one major former Republican backer, L. Brooks Patterson, the Oakland County Executive, said to the Detroit Free Press: “I can’t believe those words tumbled out of his mouth. I think Mitt is way off base on this one. I’m disappointed because I’m a big fan of his.”

Update | 8:58 p.m. Eric Fehrnstrom, a spokesman for Mr. Romney, dismissed any notion that Mr. Romney has changed his tone toward the auto industry, pointing out that he had said before the Michigan primary that he opposed a bailout but supported a “workout,” calling for a $20 billion investment in research and development, just as he had in his op-ed. But Mr. Romney had also vowed to bring together automotive industry leaders in his first 100 days in office to develop a plan to rebuild the industry. Some conservatives had harshly criticized Mr. Romney back then for abandoning small-government principles and essentially calling for a bailout of the industry.

Link to article

The Biggest Threat to Our Economy 11/17

Monday, November 17th, 2008

From The Motley Fool:

In 2001, Alan Greenspan reminded us that he has “long argued that paying down the national debt is beneficial for the economy: It keeps interest rates lower than they otherwise would be and frees savings to finance increases in the capital stock, thereby boosting productivity and real incomes.”

D’oh! We didn’t listen. National debt was around $5.6 trillion when Greenspan gave his speech. Today it’s quickly hurtling toward $11 trillion.

But, hold on … maybe we did listen? Low interest rates … no, insanely low interest rates, were the norm from 2001 until around 2005. And, by golly, we sure didn’t have any problem financing increases in capital stock. Add in the windfall from real estate, and real incomes couldn’t find a ceiling. Labor productivity grew at its fastest rate in decades, too. Where’d the Maestro go wrong on this one?

Nowhere, really. Under normal economic conditions, he would have been spot-on. Interest rates would have surged. The cost of borrowing would have been prohibitively high. Real incomes would have plunged. Productivity would have wallowed. Alas, the sequence of events that fueled the past decade was anything but normal.

Cleanup on aisle “huh?”
Right now, things are ugly. General Motors (NYSE: GM) and Ford (NYSE: F) are staring the unimaginable in the face. Poor Starbucks (Nasdaq: SBUX) has shed two-thirds of its value since last spring. Circuit City called it quits last week. Consumer spending isn’t looking good for Santa this holiday season.

But none of that is directly related to subprime mortgages, CDOs, credit default swaps, or Tier 1 capital. It’s part of the “seismic shift” plaguing the economy that Best Buy (NYSE: BBY) warned of last week.

What are we shifting away from? A lot of things, but one of the biggies is a fierce economic cycle that fueled the past decade. It went something like this:

  • We needed ultra-low interest rates after 9/11.
  • Those low rates fed insatiable demand for housing (real estate was especially attractive, because investors’ fingers had just been burned by the dot-com bubble, so stocks were taboo).
  • Rising home values led to a surge in consumer spending — funded by debt, of course.
  • Spending sprees led to massive trade deficits.
  • Massive trade deficits led to massive capital inflows by foreign investors.
  • Massive capital inflows kept interest rates low.
  • Hey, hey … low interest rates? We’re back to square one!
  • Repeat cycle until wealthy.

That self-reinforcing behavior carried us through the highs of last year. And, man, wasn’t it good? Tiffany (NYSE: TIF) could hardly keep its display cases stocked. Homebuilders like Toll Brothers (NYSE: TOL) and Beazer (NYSE: BZH) could build without giving much thought about demand. Like any other bubble, people used phrases like “the new economy,” chalking it up as globalization at its finest. The world lent. We spent. No one complained. Provided each party did its fair share of lending and spending, there wasn’t much that could slow the cycle down.

That’s when we had our Minsky moment.

Have a seat, Dr. Minsky will see you in a moment
A Minsky moment is a phenomenon named after economist Hyman Minsky, which describes what happens when an economy simply can’t afford its debt anymore. Think of it in Wile E. Coyote terms: We reach the Minsky moment when, suspended in midair, we realize we’ve outrun our road, look down, and panic. The dangerous part isn’t just that debt becomes a pain in the rear, but that it’ll cause our half of the aforementioned cycle to grind to a halt.

That’s where it gets ugly. When we can’t come through on our half of the deal, things might start to spin in reverse. Events could go something like this:

  • Lower home and stock prices leads to less consumer spending.
  • Less consumer spending leads to smaller trade deficits.
  • Smaller trade deficits lead to less foreign capital inflows.
  • Less foreign capital inflows lead to higher interest rates.
  • Higher interest rates cause property and stock values to plunge.
  • Plunging values leads to less consumer spending.
  • Less consumer spending … haven’t we been here before?
  • Repeat cycle until broke.

That’s one of the biggest threats to our economy today: the possibility of being sucked into another self-reinforcing cycle like we were in the past last decade. Only this time, it’ll drive us unreasonably poorer, rather than unreasonably richer.

How bad will it get? No one knows, but when you think that the first cycle took trillions of dollars in leverage and nearly a decade to break, the thought of something as severe happening in reverse is pretty daunting.

Like Yogi Berra said, “The future ain’t what it used to be.” That’s kinda how I feel right now.

Link to article