Working Poor Dream

GameStop Part II

Gamestop:
52 week low:   $  2.57
52 week high:  $ 483 (2/27/21)
last Tuesday close: $ 90 (2/2/21)
this Tuesday close: $ 60 (2/9/21)

In the lead up to last week’s discussion on GameStop, I had this dream the morning of 2/2.

I was on a train looking out over city neighborhoods – could have been the outskirts of Chicago, or maybe NYC. As the train went by, I could clearly see families in multi-family homes, sitting out on their porches, gathered in their homes. The height of the buildings were 3 stories. It was row houses – not much land. It was a simple scene – nothing fancy. People were outside BBQing and hanging out with extended family. Densely populated neighborhoods. These folk didn’t have much, but they had a simple life and they had family together, friends and each other. Sense was that many ethnicities were represented, as well as many recent immigrants.

When I woke up from the dream, I felt the Holy Spirit was saying – the point about GameStop is that I care about the working poor and the working class (bottom 20%). These are the ones who matter. The Redditors vs. Wall Street Establishment is not the fight that matters. Itch for another fight. The fight for survival of the weak and the downtrodden – help train and equip the poor. Young ones, old ones, look to Your Maker. Instead of rallying to beat the man, rally to help the helpless, the downtrodden, the weak and infirmed, the heavy laden, those who need the most help. Invest in them. That’s the game. That’s the democratization of the economy.

“The righteous consider the cause of the poor” – Psalm 29:7

“The wealth of the sinner [finds its way eventually] into the hands of the righteous, for whom it was laid up” – Proverbs 13:22

“One who increases his wealth by interest of any kind, collects it for one who is gracious to the poor.” – Proverbs 28:8

“Cast your bread upon the waters, For you will find it after many days. Give a serving to seven, and also to eight, For you do not know what evil will be on the earth.” Ecclesiastes 11:1‭-‬2

Exploration:

• Let us explore together with creativity what this might look like
• Imagineering

Questions that follow:

• How could banking profit or remain solvent if they are helping the poor?
• Would it work? Wouldn’t people just squat in houses and attempt to get free cars and other stuff?
• How can the Church help? Not just in charitable donations, but in discipling people in a New Breed of thinking, in a new way of being – in Christ? To be entrepreneurial. To show people how to plant, cultivate and grow apple trees, not just hand out the apples.

Try me in these things, says God in His word.

You are the New Breed!

Roundtable Discussion: GameStop

52 week low:   $     2.57
52 week high:  $ 483.00 (last Wednesday)
Monday close: $ 225.00
Tuesday close:$   90.00 (down 60%)

What is going on with GameStop’s stock? And how have Robinhood, Reddit and WallStreetBets become such a big deal in the midst? Is this truly “Main Street” (the 99%) finally getting revenge on “Wall Street” (the 1%)?

We discuss what happened and the implications.

Part I: What exactly happened?

Let’s break down the market and regulatory mechanics, separating fact from fiction…

• Who are the players: “Robinhood”, “Reddit”, “wallstreetbets”, and the “Shorts”
• Secondary roles of Michael Burry/Scion, Steve Cohen/Point72, Citadel, Melvin Capital, Ryan Cohen/Chewy
• Regulation surrounding retail trading, margin requirements, options
• Role of clearinghouses such as the DTC and depository reserve requirements
• Math of exponential customer and trading volume growth
• How has “democratization” of trading changed the game? How has it not?  
• What is the “gamification” of investing?
• Is “shorting” stock good or bad for the market?
• Definition of market manipulation – is it illegal?
• Is a short-squeeze illegal?
• What is “pump and dump”?
• Role of Fed Reserve easing, easy money chasing returns, Fed buying bonds of all stripes

Part II: Sensationalism of the Story

• Is this truly a modern day David vs. Goliath? Robinhood? With righteous intent?
• A “Storming of the Bastille” moment? Proletariat take down of the Bourgeoisie? A revolution?
• Are the “Wall Street” fat cats reaping what they have sown?
• Or is this just another form of greed with different actors?
• Bernie Sanders keeps saying Wall Street is rigged. Is it?
• Are Wall Street insiders innocent of these charges?
• “Occupy Wall Street” redux?
• Is it all a sign of a “market top”? Are we in a bubble, that’s about to burst? Again?

Part III: Implications for Believers

What Would Jesus Do?

“Come out of her, My people, so that you will not share in her sins, so that you will not receive any of her plagues” – Rev 18:4

“So he called ten of his servants… and said to them, ‘Do business till I come.'” – Luke 19:13

“As long as it is day, we must do the works of Him who sent me. Night is coming, when no one can work.” – John 9:4

“Do not conform any longer to the pattern of this world, but be transformed by the renewing of your mind.” – Romans 12:2

“Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time.” – Proverbs 13:11 NLT

“Now listen, you who say, “Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money.” Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, “If it is the Lord’s will, we will live and do this or that.” As it is, you boast in your arrogant schemes. All such boasting is evil. If anyone, then, knows the good they ought to do and doesn’t do it, it is sin for them.” – James 4:13-17

“But mark this: There will be terrible times in the last days. People will be lovers of themselves, lovers of money, boastful, proud, abusive, disobedient to their parents, ungrateful, unholy, without love, unforgiving, slanderous, without self-control, brutal, not lovers of the good, treacherous, rash, conceited, lovers of pleasure rather than lovers of God— having a form of godliness but denying its power. Have nothing to do with such people. – 2 Tim 3:1-5

“As it was in the days of Noah, so it will be at the coming of the Son of Man.” – Matt 25:37… eating, drinking, giving in marriage – i.e., business as usual, ignorant of the times

“However, when the Son of Man comes, will he find faith on the earth?” – Luke 18:8… persistent prayer, proclaiming the gospel in the end-times, trusting in God not lifting our soul to another

Even so, come, Lord Jesus! – John the Revelator

Discussion Topic: Socialism

Dave Warn suggested we dedicate this next discussion to specifically review socialism (since most of our discussion last time focused on capitalism).

Discussion Questions:

1. How has socialism become so popular in the USA again? With the Democratic Party turning hard to the left (and the emergence of Bernie Sanders as a young person’s populist). Especially with the next generation, under the kindler friendlier guise of “Democratic Socialism”?
2. So, what is Democratic Socialism, how does it differ from historical socialism, communism, and marxism?
3. Is there “socialism” in the bible? We examine “they held all things in common” in the early church and the book of Acts (Acts 2:44 & 4:32).
4. Why is secular humanism (even atheism) so closely tied with socialism? And why has the Democratic party moving away from God (yet trying to retain some mentioning of God in the general elections). Witness the democratic conventions past several cycles.

Since we used Milton Friedman as somewhat of a foil as a “villain” in our discussion of capitalism, let’s now turn to him as a foil discussing socialism as a “sage”. As I mentioned last time, while I disagree with Friedman’s puritan Adam Smith philosophy, I I actually think Friedman was a brilliant mind (and debater) who had some great points especially about freedom. Here is one of them:

A society that puts equality—in the sense of equality of outcome—ahead of freedom will end up with neither equality nor freedom. The use of force to achieve equality will destroy freedom, and the force, introduced for good purposes, will end up in the hands of people who use it to promote their own interests.

Milton Friedman

Finally, how do we deal with socialism’s valid criticisms of the current capitalistic system? The wealthiest 1% vs. the 99%? The greed and corruption? The crony capitalism? The abuse of the poor?

If these are valid issues (sin in God’s sight), do we need to repent and course correct in the USA / Western Church?

And how does all this relate to God’s people being commanded to “come out of Babylon” in Revelation 18:4?

Roundtable Discussion:
Comparing Types of Economy

We discuss the differences between Capitalism and Socialism, and then examine Biblical Economy as it differs from both according to scripture. We also get into the prejudices of each and how each has become woven into a type of “sacred cow” system politically in the US in the form of Conservative Republican Crony Capitalism vs. Progressive Democratic Socialism (which is like Socialism riding the back of Crony Capitalism’s profits), which each has its partial truths, but then gets it twisted together with sin/falsehoods, especially the greed, fear and idolatry of money.

Abbreviated and Paraphrased History of 3 economic models:

Capitalism

• Adam Smith generally considered the “Father of Capitalism”, though the term came later. He wrote about the “Invisible Hand” in and free market theory in Theory of Moral Sentiments 1759 and the Wealth of Nations in 1776 which focused on free markets (laissez-faire vs. planned economy) and unqualified benefits of “the self-interest”.
• He identified with the Age of Enlightenment 1700-1800s through mentor David Hume and others, where reason supplanted concepts of being under “superstition of the gods”, adopting the philosophy of Descartes “I think therefore I am”.
• Karl Marx birthed the term Capitalism in 1867 (see below)
• John Maynard Keynes comments on the volatility and irrationality of free markets using the term “Animal Spirits” in his 1936 work The General Theory of Employment, Interest, and Money, which describes the business cycle in a free market economy.
• Milton Friedman NYT article 1970 publishes the “Friedman Doctrine” further refining what modern capitalism is in its purest form
• Effectively separates corporate action “a corporation is not a person” from individual moral responsibility. There is no moral responsibility beyond “profit” as long as it is made “within the rules” (presumably of current law).

Socialism

• Marxism does not have a basis for law, only a critic of law at the time, which was common law
• Karl Marx and Friedrich Engles published the Communist Manifesto 1848, The Condition of the Working Class in England 1848, and Das Kapital 1867, highlighting injustices in the industrial revolution and exploitation of workers to justify an alternative economy
• Lenin implements Marxist ideas into Communism of the Soviet Union. China, Vietnam and other nations followed. Soviet Union collapses in 1989.
• Progressive movement forms in USA under Woodrow Wilson 1900s, FDR 1930s growing the role of government and the taxes to support it, moving towards socialism

Biblical Economy

“Stand at the crossroads and look; ask for the ancient paths, ask where the good way is, and walk in it, and you will find rest for your souls.” – Jeremiah 6:16

• Edenic Covenant (or Adamic Law) – Sabbath, permission (Tree of Life) and prohibition (Tree of Knowledge), etc.
• Noahic Covenant / Noahide laws (seven laws) – including no idolatry, courts of justice
• Abrahamic Covenant
• Mosaic laws – range of law including economic, moral and ethical; the power to produce wealth is to confirm covenant that God made with his people (Exodus 8)
• New Covenant in Jesus’ blood – sermon on the mount focusing on the heart, even before the act

Discussion Subject:

Debt vs. Equity part II

The matter of charging interest in scripture. And recourse. We look at the Pilgrims and 400 years later in America. We also look at the creation of the Federal Reserve and what was good or bad about it.

• What does the Bible have to say about charging interest to the poor? Profiting from the poor? And what does the scripture say about charging interest to “fellow Israelites”? Why? How is this in conflict with the very essence of our depersonalized financial system today? With fractional reserve “recourse lending” at “interest”? The “yield curve” of the debt market? And the lack of moral accountability behind “shareholder’s interests” and the relentless pursuit of “earnings per share” today?
• How does modern day bankruptcy differ from the biblical Shmita idea of forgiveness of debt? The Jubilee?

• We examine the “debt” and “equity” the Pilgrims took on 400 years ago with John Pierce and the London investors group known as the “Merchant Adventurers”. They, in turn, had made a land deal with the Virginia Company, having renegotiated it via the “Pierce Patent” circa 1621. 10 years later, the Pilgrims were able to settle their obligations through the “Bradford Patent”. We look at the potential Biblical parallel of Israel being enslaved for 400 years in Egypt. Toward the end it got so bad, Pharaoh required God’s people to “build bricks without straw”. Are we in a similar situation today with our utter dependency on the Fed and our financial markets?

• We look at the creation of the Federal Reserve via the Federal Reserve Act of 1913. It is often said, the Fed is neither owned by the Federal government, nor is actually required to carry any “reserves” by statute (as one traditionally thinks of reserves; gold for instance).

Good book on this is: The Creature from Jekyll Island; A Second Look at the Federal Reserve