- 1 Public Debt - Classification Types of Public Debt Borrowing
- 2 Global Debt Is MORE THAN TWICE AS BIG As the Entire World Economy … What Does It Mean?
- 3 what does it mean to redeem long term debt
- 4 What does it mean to be redeemed? – Redemption – Part 3
Public Debt - Classification Types of Public Debt Borrowing
Public debt or public borrowing is considered to be an important source of income to the government. If revenue collected through taxes & other sources is not adequate to cover government expenditure government may resort to borrowing. Such borrowings become necessary more in times of financial crises & emergencies like war, droughts, etc.
Public debt may be raised internally or externally. Internal debt refers to public debt floated within the country; While external debt refers loans floated outside the country.
The instrument of public debt take the form of government bonds or securities of various kinds. Such securities are drawn as a contract between the government & the lenders. By issuing securities the government raises a public loan & incurs a liability to repay both the principal & interest amount as per contract. In India, government issues treasury bills, post office savings certificates, National Saving Certificates as instrument of Public borrowings.
Classification / Types of Public Debt U&5;
Government loans are of different kinds, they may differ in respect of time of repayment, the purpose, conditions of repayment, method of covering liability. Thus the debt may be classified into following types.
Public debt is said to be productive when it is raised for productive purposes and is used to add to the productive capacity of the economy.
As Dalton puts, productive debts are those which are fully covered by assets of equal or greater value.
If the borrowed money is invested in the construction of railways, irrigation projects, power generations, etc. It adds to the productive capacity of the economy and also provides a continuous flow of income to the government. The interest and principal amount is generally paid out of income earned by the government from these projects.
Productive loans are self liquidating. Generally, such loans should be repaid within the lifetime of property. Thus, such loans does not cause any net burden on the
Unproductive debts are those which do not add to the productive capacity of the economy.
Unproductive debts are not necessarily self liquidating. The interest and the principal amount may have to be paid from other sources of revenue, generally from taxation, and therefore, such debts are a burden on the community.
Public debt used for war, famine relief, social services, etc. is considered as unproductive debt.
However, such expenditures are not always bad because they may lead to well being of the community. But such loans are a net burden on the community since they are repaid generally through additional taxes.
2. Voluntary and Compulsory Debt U&5;
These loans are provided by the members of the public on voluntary basis. Most of the loans obtained by the government are voluntary in nature. The voluntary debt may be obtained in the form of market loans, bonds, etc.
The Government makes an announcement in the media to obtain such loans. The rate of interest is normally higher than that of compulsory debt, in order to induce the people to provide loans to the government.
A compulsory debt is a rare phenomenon in modern public finance unless there are some special circumstances like war or crisis. The rate of interest on such loans may be low. Considering the compulsion aspect; these loans are similar to tax, the only difference is that loans are rapid but tax is not.
In India, compulsory deposit scheme is an example of compulsory debt.
3. Internal and External Debt U&5;
The government borrows funds from internal and external sources. Internal debt refers to the funds borrowed by the government from various sources within the country.
Over the years, the internal debt of the Central Government of India has increased from Rs.1.54 lakh crore in 1990-91 to Rs.13.4 lakh crore in 2005-06.
The various internal sources from which the government borrows include individuals, banks, business firms, and others. The various instruments of internal debt include market loans, bonds, treasury bills, ways and means advances, etc.
Internal debt is repayable only in domestic currency. It imply a redistribution of income and wealth within the country & therefore it has no direct money burden.
External loans are raised from foreign countries or international institutions. These loans are repayable in foreign currencies. External loans help to take up various developmental programmes in developing and underdeveloped countries. These loans are usually voluntary.
An external loan involves, initially a transfer of resources from foreign countries to the domestic country but when interest and principal amount are being repaid a transfer of resources takes place in the reverse direction.
4. Short-Term, Medium-Term & Long-Term Debts U&5;
Short term debt matures within a duration of 3 to 9 months. Generally, rate of interest is low. For instance, in India, Treasury Bills of 91 days and 182 days are examples of short term debts incurred to cover temporary shortages of funds. The treasury bills of government of India, which usually have a maturity period of 90 days, are the best examples of short term loans. Interest rates are generally low on such loans.
Long term debt has a maturity period of ten years or more. Generally the rate of interest is high. Such loans are raised for developmental programmes and to meet other long term needs of public authorities.
The Government may borrow funds for medium term needs. These funds can be used for development and non development activities. The period of medium term debt is normally for a period above one year and up to 5 years. One of the main forms of medium term debt is by way of market loans.
5. Redeemable and Irredeemable Debts U&5;
The debt which the government promises to pay off at some future date are called redeemable debts. Most of the debt is redeemable in nature. There is certain maturity period of the debt. The government has to make arrangement to repay the principal & the interest on the due date.
Such debt has no maturity period. In this case, the government may pay the interest regularly, but the repayment date of the principal amount is not fixed. Irredeemable debt is also called as perpetual debt. Normally, the government does not resort to such borrowings.
6. Funded and Unfunded Debts U&5;
Funded debt is repayable after a long period of time. The period may be 30 years or more. Funded debt has an obligation to pay fixed sum of interest subject to an option to the government to repay the principal. The government may repay it even before the maturity if market conditions are favourable. Funded debt is Undertaken for meeting more permanent needs, say building up economic & industrial infrastructure. The government usually establishes a separate fund to repay this debt. Money is credited by the government into this fund & debt is repaid on maturity out of this fund.
Unfunded debts are incurred to meet temporary needs of the governments. In such debts duration is comparatively short say a year. The rate of interest on unfunded debt is very low. Unfunded debt has an obligation to pay at due date with interest.
Global Debt Is MORE THAN TWICE AS BIG As the Entire World Economy … What Does It Mean?
The Guardian reports that global debt has grown by $57 trillion dollars – to $199 trillion dollars – since the 2008 financial crisis.
How much is that? It’s a big number … but what does it actually mean?
The Guardian notes that global debt is now more than twice the size of the entire global economy:
Total debt as a share of GDP stood at 286% in the second quarter of 2014 compared with 269% in the fourth quarter of 2007.
(That’s more than 2.8 times the size of the world economy).
And it will only keep getting worse:
Government debt-to-GDP ratios will to continue to rise over the next five years in a number of countries including Japan, the US and most European countries ….
While the mainstream press talks about “deleveraging”, the fact is that many households are going deeper into debt:
Household debt is “reaching new peaks”. Only in Ireland, Spain, the UK and the US have households deleveraged. According to the study, not only have household debt-to-income ratios continued to rise, they now actually exceed the peak levels in the crisis countries before 2008 in some cases, including advanced economies such Australia, Canada and Denmark.
It has been known for a very long time that debt grows exponentially, while economies only grow in an s-curve. As such, debt will always overtake prosperity unless measures are taken to reduce it.
In 2008, the most prestigious financial agency in the world – the Bank for International Settlements (BIS), often described as the “central bank for central banks” – said that failing to force companies to write off bad debts “will only make things worse”.
Contrary to widely held beliefs, the world has not yet begun to de-lever and the global debt to GDP ratio is still growing, breaking new highs.
And as the Telegraph put it last year:
On a global level, growth is being steadily drowned under a rising tide of debt, threatening renewed financial crisis, a continued squeeze to living standards, and eventual mass default.
Arni Pall Arnason, 44, Iceland’s minister of economic affairs, says the decision to make debt holders share the pain saved the country’s future.
Even the IMF points to Iceland as a model for debt write-offs as a way out of its economic slump.
And – despite the fact that mainstream “neoclassical” economists don’t believe that debt even “exists” as a force that acts on the economy – many economists note that high levels of private debt cause depressions.
Well-known economist Michael Hudson agrees (starting around 4:00 into video):
If the problem that is grinding the economy to a halt is too much debt, and if no one in the government – in either party – is looking at solving the debt problem, then … we’re going to go into a depression as far as the eye can see.
And high levels of debt lead to war. For example, Martin Armstrong argued that war plans against Syria are really about debt and spending:
The Syrian mess seems to have people lining up on Capital Hill when sources there say the phone calls coming in are overwhelmingly against any action. The politicians are ignoring the people entirely. This suggests there is indeed a secret agenda to achieve a goal outside the discussion box. That is most like the debt problem and a war is necessary to relieve the pressure to curtail spending.
Billionaire investor Jim Rogers agrees:
“Add debt , the situation gets worse, and eventually it just collapses. Then everybody is looking for scapegoats. Politicians blame foreigners, and we’re in World War II or World War whatever.”
The central banks’ central bank warned in 2008 that bailouts of the big banks would create sovereign debt crises. That is exactly what has happened.
Remember, it is not the people or Main Street who are getting bailed out … it is the giant banks.
A study of 124 banking crises by the International Monetary Fund found that propping up banks which are only pretending to be solvent – instead of forcing them to write off their bad debt – often leads to austerity:
Existing empirical research has shown that providing assistance to banks and their borrowers can be counterproductive, resulting in increased losses to banks, which often abuse forbearance to take unproductive risks at government expense. The typical result of forbearance is a deeper hole in the net worth of banks, crippling tax burdens to finance bank bailouts, and even more severe credit supply contraction and economic decline than would have occurred in the absence of forbearance.
Cross-country analysis to date also shows that accommodative policy measures (such as substantial liquidity support, explicit government guarantee on financial institutions’ liabilities and forbearance from prudential regulations) tend to be fiscally costly and that these particular policies do not necessarily accelerate the speed of economic recovery.
All too often, central banks privilege stability over cost in the heat of the containment phase: if so, they may too liberally extend loans to an illiquid bank which is almost certain to prove insolvent anyway. Also, closure of a nonviable bank is often delayed for too long, even when there are clear signs of insolvency (Lindgren, 2003). Since bank closures face many obstacles, there is a tendency to rely instead on blanket government guarantees which, if the government’s fiscal and political position makes them credible, can work albeit at the cost of placing the burden on the budget, typically squeezing future provision of needed public services.
In other words, the “stimulus” to the banks blows up the budget, “squeezing” public services through austerity.
But instead of throwing trillions at the big banks, we could provide stimulus to Main Street. It would work much better at stimulating the economy by wiping out some of the little guy’s debt.
Periodic debt forgiveness – or debt “jubilees” – were a basic part of the original Jewish, Christian, Babylonian and Sumerian cultures. Indeed, this tradition goes back over 4,000 years …
In fact, many of the major religions were founded on the concept of debt forgiveness.
And forgive us our debts, as we forgive our debtors.
Anthropologist David Graeber, author of “Debt: The First 5,000 Years”, says:
If you look at the history of world religions, of social movements what you find is for much of world history what is sacred is not debt, but the ability to make debt disappear to forgive it and that’s where concepts of redemption originally come from.
Reverend Howard Bess writes:
According to the Israelite tradition, their God, Yahweh, laid down strict rules about the land which was distributed by priests to the clans of Israel, but Yahweh retained the title to the land. Leviticus 25:23 states the principle: “The land shall not be sold in perpetuity; for the land is mine; with me, you are but aliens and tenants.”
The use of the land given to Israelites was conditioned. The tenant was obligated to care for the needs of priests, aliens, widows and orphans. Then every 50 years a great redistribution was to take place. All land was to be returned to the priests and reassigned to new tenants. At the same time, all debts were canceled and all slaves were set free.
There is no record that these provisions of Torah were ever practiced. After all, wealth and ownership are addicting; ownership becomes obsessive. Israelites forgot about the 50 th year distribution as well as their commitment to generosity.
Wealth grew and the poor became poorer and more desperate. According to the Gospel tradition (Luke 4:18), Jesus from the beginning of his teaching demanded/announced a reestablished year of Jubilee (a 50 th year redistribution). Only when these teachings of Jesus are put into the context of the Galilean rural poor of the first century CE, can the radical commitment of Jesus to this world be fully appreciated.
Freedom from debt is also the basis of liberty … After all, the first recorded word for “freedom” in any human language is the word for freedom from debt.
Both founding father Thomas Jefferson and the father of free market economics Adam Smith warned that every generation should pay off its own debts.
And this a very timely and current issue …
Respected economic writer Ambrose Evans-Pritchard wrote in 2009:
In the end, the only way out of all this global debt may prove to be a Biblical debt Jubilee.
Well-known economist Nouriel Roubini writes in the Financial Times:
Since this is a crisis of solvency as well as liquidity, orderly debt restructuring must begin. This means across the board reduction on the mortgage debt for the roughly half of America’s households that are underwater ….
“At the end of every seven years you shall grant a remission of debts.” Deuteronomy 15:1, which is the manner of remission where every creditor shall release what he has loaned to his neighbor.
Historically, society is destroyed by debt every time.
Absolutely no nation has ever survived a debt crisis.
So should we have a debt forgiveness every 7 years? Perhaps that prevents the crash and burn in the [business cycle]. Interesting correlation. Could this be an ancient mechanism to lower the volatility of the … business cycle? …. Interesting wisdom indeed.
As indicated in the chart below (originally produced at Zero Hedge) … Membership in the international Bankruptcy Club has soared to roughly 40 nations. Canada’s previous “debt crisis” would no longer even earn it a place in the world’s “top-40” of most-indebted nations today.
In collective terms, the unequivocal proof that these regimes must (immediately) declare Debt Jubilee comes in many forms. We start with the fact that none of the members of the Bankruptcy Club ever manage to improve their fiscal standing (i.e. lessen their level of obvious insolvency). While there may be occasional, annual “blips” in the economic self-destruction of these nations; examine the balance sheet of any member of the Bankruptcy Club over five-year increments, and their fiscal position is always worse.
Debt Jubilee is a long-standing economic “tradition” of our species, as financial mismanagement (at the national level) is an endemic problem of our species, irrespective of the historical era, or the system of government. Arithmetic is arithmetic. Continuing to (attempt to) “sustain” the unsustainable is at best economic suicide, at worst economic treason.
Moreover, our own sovereign debts are fraudulent, on several different levels. Wiping away these gargantuan debts, and restoring solvency to the Western world is not only economically necessary and morally imperative, it is legally justifiable. The “legal remedy” for fraud is a very simple one: the fraudulent transactions (i.e. our debts and accumulated interest) are instantly rendered null-and-void. For injured parties with “clean hands”; they can seek restitution for any losses through the branch of law known as Equity. Needless to say there would not be any bankers standing in that line.
Clearly if Western governments were ‘merely’ drowning in debt-to-GDP ratios of roughly 100%, then they could still argue that attempting to manage these debt-loads was legitimate rather than treasonous. However, Germany’s government (debt-to-GDP of 188%) can no longer make that claim. Nor can:
Canada’s government (221%),
Austria’s government (225%),
the U.S. government (233%),
Finland’s government (238%),
Norway’s government (244%),
the UK government (252%),
Italy’s government (259%),
France’s government (280%),
Sweden’s government (290%),
Denmark’s government (302%),
Spain’s government (313%),
the Netherlands’ government (325%),
Belgium’s government (327%),
Portugal’s government (358%),
or Ireland’s government (390%).
When Western debt-levels began soaring past the point-of-no-return at the beginning of this millennium; it suggested that the West (and thus the whole global economy) was due for the latest Debt Jubilee. When these already-excessive debt levels exploded to a ludicrous level, following the so-called “bail-outs” (to these same bankers) from the Crash of ’08; this required an immediate Debt Jubilee. However, the insane/treasonous numbers in the previous, current chart shout out an even simpler message: we demand Debt Jubilee.
If a debt jubilee is not voluntarily granted, people may very well repudiate their debts … which would lead to chaos.
I’ll meet you at the Jubilee
And if that Jubilee don’t come
Maybe I’ll meet you
When they come to take you down
When they bring that wagon around
When they come to call on you
And drag your poor body down
The explosion of debt originally through the United States manipulation of global debt from WW1 to now 2015, only pausing for WW1, as been to create so much debt that WW111 is to be worst world war death and destruction ever known. If you will look at all the financial trading instruments coming by way of the United States Wall Street, especially from Goldman Sachs since the end of the post WW11 war boom, now a global derivative trading corporation, they all steal. That is their main function, to steal and pay traders billions, the banks that manage global theft, trillions.But the intent s not simple. Actual greed is not the point at all. You do not kill the cow, throw away all wealth, burn your house and fields sewing salt in them, and expect to survive.The intent is, as it was with Hitler, as to change the human species using genocide through poverty after ethnic removals are global through ‘civil’ wars, homelands destroyed by drone bombings or erased so returning is impossible except to die there. The United States is desperate for another world war. Desperately insane.
Awesome work, GW; thank you. I just shared this with
2,000 Advanced Placement Economics teachers with link to this article:
The macro forest: global debt almost 3x entire global economy
Global debt-to-GDP ratio is approaching 300%; total now at $199 trillion dollars. Among the macroeconomics trees we teach, this massive number is the macro forest (well, unless we count just the US top nine banks gambling in the derivatives market with over $200 trillion – again here’s the awesome infographic that my students demand to see more of this artist’s work).
Article and analysis here.
UK Guardian report and the McKinsey findings on global debt here.
And please recall: McKinsey’s former Chief Economist found that our global .01% have
$30 trillion stored in shell company off-shore “banks” as tax havens. Video here.
Some historical analysis of what this means:
“All the perplexities, confusions, and distresses in America arise, not from defects in their constitution or confederation, not from a want of honor or virtue, so much as from downright ignorance of the nature of coin, credit, and circulation.” – John Adams, letter to Thomas Jefferson (1787-08-25), The Works of John Adams
“If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. We are completely dependent on the commercial Banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the Banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless position is almost incredible, but there it is. It is the most important subject intelligent persons can investigate and reflect upon.”
– Robert H. Hemphill, Credit Manager of the Federal Reserve Bank of Atlanta, 1934 foreword to 100% Money, by Irving Fisher. Fisher was a Yale economist whose proposal for monetary reform lost to Keynes’ deficit spending plan during the Great Depression.
“Political parties exist to secure responsible government and to execute the will of the people. From these great tasks both of the old parties have turned aside. Instead of instruments to promote the general welfare they have become the tools of corrupt interests, which use them impartially to serve their selfish purposes. Behind the ostensible government sits enthroned an invisible government owing no allegiance and acknowledging no responsibility to the people. To destroy this invisible government, to dissolve the unholy alliance between corrupt business and corrupt politics, is the first task of the statesmanship of the day.”
– Theodore Roosevelt, “The Progressive Covenant With The People” speech (August, 1&12; one year before passage of the Federal Reserve Act)
what does it mean to redeem long term debt
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What does it mean to be redeemed? – Redemption – Part 3
Have you ever thought about what it means to be redeemed? Y’shua as our Kinsman redeemer, redeemed us. How did He do this? We have learned that He paid the redemption price by sacrificing His life. However, how do we reconcile this with the Torah that forbids human sacrifice (Lev 18:21; Deut 18:10-13)? We shall show you through this study how Y’shua atoned for us without being a literal human sacrifice. This is one of the points that anti-missionaries often use to trip believers up. It is therefore important for you to study this and share it with others. Without knowledge of the truth, we are easily deceived. “My people perish due to a lack of knowledge…”
We shall also look at who in need of redemption is, and why; as well as what we become when we are redeemed. This is important to know before we look at the future redemption of Israel.
How did Y’shua make atonement? Before we can answer that, we need to know what the word atonement means.
kapar (כָּפַר, 3722), “to ransom, atone, expiate, propitiate.” Kapar has an initial secular and non-theological range quite parallel to padah In addition, however, kapar became a technical term in Israel’s sacrificial rituals. On its most basic level of meaning, kapar denotes a material transaction or “ransom.” 1
Atonement is the paying of a ransom, an exchange takes place. What was this ransom that had to be paid?
45 “For even the Son of Man did not come to be served, but to serve, and to give His life a ransom for many.”
To get a better understanding of the word ransom, let’s look at the Greek. The word “lytron” is translated as ransom.
37.130 λύτρον, ου n; ἀντίλυτρον, ου n: the means or instrument by which release or deliverance is made possible—‘means of release, ransom.’λύτρον: δοῦναι τὴν ψυχὴν αὐτοῦ λύτρον ἀντὶ πολλῶν ‘to give his life as a ransom for many’ or ‘to die as a means of liberating many’ Mt 20:28. ‘To liberate many’ may be expressed in many languages as ‘to cause people to go free’ or, in a more idiomatic manner, ‘to untie many’ or ‘to unchain many.’ 2
We see from the above quote, that atonement is the act of dying as a means of liberating many. That is what Y’shua did, that is the means by which He made atonement for us. However, if we say that He sacrificed His life without being a sacrifice Himself, we seem to contradict ourselves. Let us compare Y’shua’s atonement with the Levitical sacrificial system, specifically the sin and guilt offerings. We are comparing these as Y’Shua gave Himself for our sins and guilt.
If we compare the Levitical sacrifices with Y’shua’s atonement, we actually see some resemblance, but not in all aspects. He was not slaughtered on an altar by a priest; His entrails were not removed; His blood not drained nor sprinkled on the altar. His body was not burned nor eaten by the priests. Instead, Y’shua, being righteous, voluntarily offered Himself, thereby making atonement for the unrighteous.
How are we to understand this?
The key lies in the fact that Y’shua is the High priest in the likeness of Melchezedek.
Y’shua is the High Priest in the likeness of Melchezedek
4 YHVH has sworn and will not change His mind, “You are a priest forever According to the order of Melchizedek.”
Ps 110 is a prophetic psalm about the Messiah. It is important to understand that Y’shua has always been the High Priest according to this order.
What Y’shua did is in line with the principle in Torah that the death of a righteous person can atone for the unrighteous. We find this principle in the book of Numbers. A person who committed manslaughter may flee to a city of refuge. He will be safe from the avenger of blood, as long as he remained there.
25 ‘The congregation shall deliver the manslayer from the hand of the blood avenger, and the congregation shall restore him to his city of refuge to which he fled; and he shall live in it until the death of the high priest who was anointed with the holy oil.
However, when the High Priest dies, the manslayer may return to the land of his possession. We see here how the death of the High Priest, the anointed one, atones for this person.
28 because he should have remained in his city of refuge until the death of the high priest. But after the death of the high priest the manslayer shall return to the land of his possession.
This instruction is repeated in Josh 20:6. This is a pattern of how a righteous person atones through his death for the unrighteous.
Y’shua was not sacrificed like an animal by a priest, He being the High Priest of the order of Melchezedek, the Anointed One of YHVH, a righteous, sinless man offered Himself to atone for all. What He did was related to the sacrificial system, but also totally different in that He fulfilled both the role of High Priest and the atonement.
Why was Y’shua referred to as a guilt offering in Isaiah?
10 But YHVH was pleased To crush Him, putting Him to grief; If He would render Himself as a guilt offering, He will see His offspring, He will prolong His days, And the good pleasure of YHVH will prosper in His hand.
The word “asam” is translated as guilt offering in this passage. However, if you look at the primary meaning of the Hebrew word “asam” is means guilty. Y’shua rendered Himself guilty, thereby taking the punishment upon Himself whereby He became our atonement.
The Hebrew and Aramaic lexicon of the Old Testament renders “asam” as guilt, guilt offering, gift of atonement and compensation.
: אשׁם; asamUg . (Kellerman ZAW 76:31&ff); MHb., > JArm.tg אֲשָׁמָא; Arb. ʾaṯām debt, fine, < Hb. ?: אֲשָׁמוֹ, אֲשָׁמָיו: —1. guilt Gn 2610 Jr 515 Ps 6822 Pr 149 (:: רָצוֹן, → Gemser): —2. restitution Nu 57f; —3. guilt-offering Lv 56-25 610 71f.5.7.37 1412-28 1921f Nu 612 189 2K 1217 Ezk 4039 4213 4429 4620 cj. Ezr 1019 Sir 731 (לחם אש[מ]ים ?); —4. gift of atonement, compensation 5
The times when reference is made to Y’shua as a sacrifice, it is done so in a metaphorical way. It is a figure of speech to suggest a resemblance. Like a guiltless animal atoned for the sin of a person or nation, in the same way Y’shua, righteous and sinless as He was, rendered Himself guilty and took the punishment for the sin of all people for all time.
We have done a more in-depth study on Y’shua as a guilt offering. You may want to read it to understand why Y’shua specifically rendered Himself as a guilt offering. The article is titled “Y’shua in Prophecy – Part 4 – A guilt offering”
In the previous study about redemption, we have learned that Y’shua fulfilled the role of the Kinsman Redeemer. Does this, by implication mean that He was only a kinsman for His people, Israel?
Y’shua, Himself said that He was sent only to the lost sheep of Israel. You can read about it in Matthew 15:22-28. But this is not the whole story…
A Canaanite woman came to Y’shua and cried out to Him to help her demon-possessed daughter. He answered that He was only sent to the lost sheep of Israel.
24 But He answered and said, “I was sent only to the lost sheep of the house of Israel.”
It would by implication mean that Y’shua only came to Redeem His kin, Israel! However, do not despair, if we read further along in this passage, we see His great mercy.
25 But she came and began to bow down before Him, saying, “Master, help me!” 26 And He answered and said, “It is not good to take the children’s bread and throw it to the dogs.” 27 But she said, “Yes, Master; but even the dogs feed on the crumbs which fall from their masters’ table.” 28 Then Y’shua said to her, “O woman, your faith is great; it shall be done for you as you wish.” And her daughter was healed at once.
This is a picture of YHVH’s great mercy. This woman’s faith caused her daughter to be healed. This story resonates with what is written in the Tanakh about the Exodus out of Egypt as well as with the covenant YHVH made with Abraham and confirmed with Isaac and Jacob. When YHVH led Israel from slavery to freedom, those who chose to join with them became as native Israelites. It is the same way with those who choose to believe in the Elohim of Abraham, Isaac and Jacob. They become fellow heirs, children of Abraham.
6 Even so Abraham believed Elohim, and it was reckoned to him as righteousness. 7 Therefore, be sure that it is those who are of faith who are sons of Abraham. 8 The Scripture, foreseeing that Elohim would justify the Gentiles by faith, preached the gospel beforehand to Abraham, saying, “All the nations will be blessed in you.” 9 So then those who are of faith are blessed with Abraham, the believer.
Those who choose YHVH as their Elohim are His people. If we choose to follow and obey the Elohim of Israel, we become as native-born Israelites. They become grafted into the olive tree (Rom 11).
6 “Also the foreigners who join themselves to YHVH, To minister to Him, and to love the name of YHVH, To be His servants, every one who keeps from profaning the sabbath And holds fast My covenant; 7 Even those I will bring to My holy mountain And make them joyful in My house of prayer. Their burnt offerings and their sacrifices will be acceptable on My altar; For My house will be called a house of prayer for all the peoples.”
That is who we are, Israel, and that is whom redemption is for, for us.
We have now determined that all who choose to believe in YHVH, will be redeemed. But, what is our alternative if we are not redeemed? What was Israel’s alternative? Their alternative would have been the continuation of slavery in Egypt! Oppression and forced labor under unreasonable task masters. They needed a redeemer; they could not free themselves from their desperate situation. It gives us a beautiful picture of our own situation and our need of redemption. Redemption from sin!
We know that the punishment for sin is death.
4 “Behold, all souls are Mine; the soul of the father as well as the soul of the son is Mine. The soul who sins will die.
In order to know if we are in bondage of sin, we need to define sin. Sin is transgression of the law. The law is the instructions or the Torah of YHVH. To sin is to be UNDER the law.
To give you an example: if you exceed the speed limit and are caught, you are under the law, but if you have a good reason for speeding like a medical emergency, you may receive a pardon, you are, then under grace. Will you now because you received grace continue and speed again, breaking the law? It is the same way with YHVH’s instructions. We received grace when Y’shua redeemed us from sin, should we now continue in sin?
4 Everyone who practices sin also practices lawlessness; and sin is lawlessness.
David Stern (The Complete Jewish Bible) has it as follows:
4 Everyone who keeps sinning is violating Torah—indeed, sin is violation of Torah.
To be living in sin can be compared to being in Egypt, in slavery. When we sin, we are also in the bondage of sin with an unreasonable taskmaster ha satan, who will not stop until we are totally under his power. He wants to use us for his purposes to the destruction of ourselves and others. His ways lead to shame and death. We need to be redeemed from this, but we cannot free ourselves. We need a Redeemer, Y’shua to redeem us unto righteousness and eternal life.
34 Y’shua answered them, “Truly, truly, I say to you, everyone who commits sin is the slave of sin. 35 “The slave does not remain in the house forever; the son does remain forever. 36 “So if the Son makes you free, you will be free indeed.
20 For when you were slaves of sin, you were free in regard to righteousness. 21 Therefore what benefit were you then deriving from the things of which you are now ashamed? For the outcome of those things is death. 22 But now having been freed from sin and enslaved to Elohim, you derive your benefit, resulting in sanctification, and the outcome, eternal life. 23 For the wages of sin is death, but the free gift of Elohim is eternal life in Messiah Y’shua our Master.
6:20-23. Paul once again stated that slavery to sin and to righteousness are mutually exclusive (cf. vv. 13, 16). But he went on to indicate the superiority of being enslaved to righteousness and God. The benefit (this Gr. word is usually trans. “fruit”) of enslavement to sin was that it produced things that a believer is now ashamed of. But even worse, “the end of those things is death” (lit. trans.).
Responding to the gospel by faith and accepting Y’shua Messiah completely reverses things for an individual. He is now … set free from sin (cf. v. 18) and has been enslaved to God with the result that he has the benefit of holiness (cf. v. 19), the subject of chapters 6-8. The sinful life gives no benefit (6:21), but salvation gives the benefit of a holy, clean life (v. 22). Whereas the “end” (telos) or result of sin is death (v. 21), the “end” of salvation is eternal life. 6
What are we to do when we realize that we are in need of a Redeemer?
9 If we confess our sins, He is faithful and righteous to forgive us our sins and to cleanse us from all unrighteousness.
We are to confess our sins! The Kingdom of Heaven is at hand! Time is running out.
1 My little children, I am writing these things to you so that you may not sin. And if anyone sins, we have an Advocate with the Father, Y’shua Messiah the righteous; 2 and He Himself is the propitiation for our sins; and not for ours only, but also for those of the whole world.
YHVH gave everything for us, even His Son, in order to save us from slavery to sin. When we believe in Y’shua and repent of our sins, we are redeemed.
To be redeemed gives us a special position in the Kingdom of YHVH. We become part of Israel, YHVH’s chosen people. This is explained to us throughout Scripture in many different ways. We shall show you in each instance, how a description of Israel becomes applicable to believers in Y’shua. However, do remember that we as believers in Y’shua, do not replace Israel, we become part of Israel.
- we become children of Elohim, His firstborn
- we become bond slaves forever
- a Royal priesthood
- the chosen or elect
- we become partakers in His Divine nature
We become children of the Most High, Israel, His firstborn son
When we are redeemed, we belong to Him, for He has bought us. We became “sons” or children of the Most High. Not only do we become His children, but also His firstborn. We have seen in the first part about the redemption of the firstborn that YHVH calls Israel His firstborn son.
22 “Then you shall say to Pharaoh, ‘Thus says YHVH, “Israel is My son, My firstborn.
22 But you have come to Mount Zion and to the city of the living Elohim, the heavenly Jerusalem, and to myriads of angels, 23 to the general assembly and assembly of the firstborn who are enrolled in heaven, and to Elohim, the Judge of all, and to the spirits of the righteous made perfect,
To quote a previous article about the special position of the firstborn:
“The firstborn had a special position within the family which entitled him to a double portion inheritance, his father’s blessing, a position of honor and leadership over his brothers. We also see throughout the Scriptures how YHVH departs from this tradition, choosing who He favors as firstborn.” 7
Being redeemed makes us YHVH’s firstborn, irrespective of who we were before. He is our Father and we are part of His household. Being part of His household gives us a certain authority and inheritance rights, but we are also to be obedient to the rules of His household. He is our loving Father and we are to be obedient to Him out of love. He said: “if you love me, keep My commandments!
Moses is referred to as the servant of Elohim five times (1Chronicles 6:49; 2Chronicles 24:9; Nehemiah 10:29; Daniel &:11; Revelation 15:3) and both James and Paul call themselves servants of YHVH (in Jam 1:1 and Titus 1:1 respectively).
We were once slaves to sin, but being redeemed by Him, we became His bond slaves. A bond slave belongs to his Master out of his own free will (Ex 21:5-6). By believing in Him, we chose to become a part of His household and remain in His service.
16 Act as free men, and do not use your freedom as a covering for evil, but use it as bondslaves of Elohim.
6 and you shall be to Me a kingdom of priests and a holy nation.’ These are the words that you shall speak to the sons of Israel.”
9 But you are a chosen race, a royal priesthood, a holy nation, a people for Elohim’s own possession, so that you may proclaim the excellencies of Him who has called you out of darkness into His marvelous light;
9 And they sang a new song, saying, “Worthy are You to take the book and to break its seals; for You were slain, and purchased for Elohim with Your blood men from every tribe and tongue and people and nation. 10 “You have made them to be a kingdom and priests to our Elohim; and they will reign upon the earth.”
Who is referred to here? We see here how Peter quoted the passage in Exodus. These quotes confirm that as believers in Y’shua we are part of the nation of Israel. We know from scripture that this doesn’t mean every person is a priest, but it refers to a nation with a priesthood: the Levitical priesthood. Our role is to proclaim the excellencies of Him who called us out of darkness. Take note, we are not priests and are therefor not to do the functions given to them to do. Our function is to be a light to the nations and to proclaim His name.
The chosen or elect
The words elect and chosen are used interchangeably when referring to the believers in the apostolic Scriptures. This term is also used for Israel. We have also learned from a previous study, “Choose your friends and teachers wisely, it could cost you your salvation” that we become part of Israel, His chosen or elect, when we believe in Him.
6 “For you are a holy people to YHVH your Elohim; YHVH your Elohim has chosen you to be a people for His own possession out of all the peoples who are on the face of the earth.
1 “But now listen, O Jacob, My servant, And Israel, whom I have chosen:
24 “For false Messiahs and false prophets will arise and will show great signs and wonders, so as to mislead, if possible, even the elect.
The sons of Israel were instructed to be set apart for YHVH is set apart.
2 “Speak to all the congregation of the sons of Israel and say to them, ‘You shall be holy, for I YHVH your Elohim am holy.
Our very nature is changed when we believe in YHVH, and we are further transformed into His likeness when we follow His commandments. His likeness is holiness or setapartness. To become partakers of His divine nature means to become like Him.
4 For by these He has granted to us His precious and magnificent promises, so that by them you may become partakers of the divine nature, having escaped the corruption that is in the world by lust.
When we are redeemed, we become a part of Israel, the children of Elohim, His chosen people. Furthermore, as we grow in obedience to Him, our nature changes to become more like His. We become more set apart in our behavior.
At the same time, we are bond slaves. Every one of these roles point in one direction, OBEDIENCE to His Word.
When we are redeemed, we become citizens of YHVH’s heavenly Kingdom. We become a part of His chosen people, Israel and whether we are called first born sons, chosen, elect, bond slaves or priests, we are to be obedient to the rules of our Father the King of the Universe.
We choose to do this as we have chosen to believe in Him, out of love. When we follow His commandments out of love, it is never a burden.
13 The conclusion, when all has been heard, is: fear Elohim and keep His commandments, because this applies to every person.