Education Central, 2nd Quarter 2022 Edition by theouttop

Second Qtr. 2022

EDUCATION CENTRAL (Getting to Know What Happened in America's World of Business, History, and Religion)

Message from the editor...

In this edition, we focus on leadership from those who led and those who speak to others of it. I am currently reading Marcus Warner and Jim Wilder's book Rare Leadership in which they point out that "we need more mature leaders." Indeed we do! It is my desire and hope that today's generations will turn out leaders who positively shake this world! Our book review is on John Maxwell's Change Your World - read the review, then read the book. Then make that positive difference in the world!

George Washington Takes The Reins The delegates "were perplexed with no part of the plan so much as with the mode of choosing the President." James Wilson, Pennsylvania delegate to Constitutional Convention, 1787 During the Constitutional Convention in 1787, the delegates struggled in coming to a resolution on how to install the President of the United States - in the years to come the most powerful leader in the world. The delegates overwhelmingly voted against Gouverneur Morris from Pennsylvania, a 35-year-old lawyer, who suggested that the people vote to elect the president. There were all sorts of other suggestions. There were no national conventions with all the fanfare of selecting a candidate. And on top of things there was the concern as to how long a person could serve as president, what to do if the president was corrupt, and what title would he be given. The Founding Fathers would, after wrangling with each other on the issue of electing the president, compromise giving the states the power to appoint "electors" who would vote for the presidency. The Expectant Choice Most people conceded the fact that George Washington would be the country's first President. Edward J. Larson pointed out in his book The Return of George Washington that Washington was "Already first in war, he was now first in peace and clearly first in the hearts of his countrymen. He had no rivals."

On page 4 is a question and answer segment on the issues that came before, during, and after the Great Recession of 2008. While it's always a good time to learn more about the deeds of others that initiated the financial debacle, many economists draw lines connecting the Panic of 1907 with that of 2008. Which brings to George Santayana's famous line "Those who cannot remember the past are condemned to repeat it." Let's learn today! Enjoy the reads! Stay safe!

The Latest Economic Projections Oh, what times we live in: The Gross Domestic Product (GDP) projections according to the Fed- For 2022, the GDP has been LOWERED from 4.0 percent to 2.8 percent. - For 2023, the GDP is projected to be 2.2 percent. - For 2024, the GDP is projected to be 2.0 percent. The GDP represents the total value of goods manufactured and services provided over a given time period. Source: DICamillo, N. "The Fed lowered its US economic growth forecast in the face of war and inflation." Quartz.

Political Term

Republican Party - the party came into existence in 1854 when the Whig party fractured primarily due to the issue of slavery. In June of 1854, it was publishing magnate, But Washington wasn't exactly sure if the presidency was what he wanted. He didn't shy Horace Greeley, who suggested the use of the term away from telling others while commanding the American forces in 1775 that he wanted to "Republican" to call the party that was once labeled retire. And, on December 23, 1783, following the conclusion of the Revolutionary War, he "Whig." The anti-slavery party, the Republicans, would announced to Congress that he was, in fact, retiring. But America, on its maiden freedom control the House of Representatives in 1855. The Republicans had their first nominating convention on June voyage, needed the strength, will, and intellect to overcome the birth pains as a new 17, 1856. nation. While he expressed reluctance in becoming President, Morris, Alexander Hamilton and others convinced him that "no other Man can fill that Office." Hamilton wrote The first Republican elected President of the United States to Washington in November 1788 telling him that "no other man can sufficiently unite the was Abraham Lincoln in 1860. The party, which believed in public opinion or can give the requisite weight to the office in the commencement of the smaller government at one time, would take on a more government." moderate position regarding social issues. The Republicans still maintain sizeable power in the U.S. (continued on page 2)

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IT'S ALL ABOUT THE

The Panic of 1907 President George Washington "considered one's public and private character to be inseparable, and that they should both reflect the highest standards."1

WHAT WAS GOING ON BEFORE THE PANIC OF 1907? MONEY, MONEY, MONEY! The Gilded Age (late 1860s to 1900) - considered by some to be "the most laissez-faire era in U.S. history," the period introduced change to America. The Digital History article "Overview of the Gilded Age" points out that this was "modern America's formative period." Following the previous years of wasteful spending by Congress, the country turned toward the private sector for innovation during which time Americans were introduced to the telephone, radio, electricity, and the automobile. The San Francisco Earthquake - occurred in April 1906; registered 8.3 on the Richter scale.

The monetary policy of the United States - tightened following the San Francisco earthquake as the gold supply in the U.S. dwindled; the ratio of capital and surplus to liabilities declined at banks.

DURING THE PANIC, OR WAS THERE A CRISIS FIRST? Which comes first, the crisis or the panic? Should there have been a panic?

10% Cash reserve in commercial banks and trust companies

Shortly after the Panic of 1907, an American economist, Joseph French Johnson, dissected the events that led up to the panic. In his paper, written in 1908, he separates the economic crisis that occurred in 1907 with that of the subsequent panic.

The crisis of 1907, according to Johnson, was brewing for the following reasons: - the stock market was in a decline throughout much of 1907. - the banks (commercial and trust-company) issues; total bank reserves fell to 11.3 percent in 1907 resulting in curtailed lending. - risk-averse speculators; sought to get rich quick; government's money policies were too loose. Others attribute the panic to the failure by certain individuals to corner the market of United Copper in October 1907. On October 21, 1907, the panic set in. There were bank runs; the Knickerbocker Trust Company closed its doors. On October 23, 1907, the market was down 38.3 percent for the year. J. P. Morgan, with the financial assistance of other bankers, rescued the New York Stock Exchange. His company, U.S. Steel, bought out the Tennessee Coal, Iron, and Railroad Company (TC&I) after a large brokerage house had borrowed extensively using TC&I as collateral.

1897 1907

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1907 Weaknesses in the Banking Sector

Trust Companies They sprung up during the second half of the 1800s. Trust companies were not regulated; they fell outside the scope of governance imposed on commercial banks. There was supposed concern about trust companies in 1874. Unlike commercial banks that had to maintain a reserve of 25 percent of their deposits in cash, trust companies were not mandated to do so. Trust companies offered anywhere from two to five percent interest on deposits. After 1900, trust companies' portfolios were made up of more riskier investments. Scott Nations, in his book A History of the United States in Five Crashes, compares trust companies to that of "two modern day financial institutions: the savings and loan banks and the hedge funds."

George Washington Takes the Reins (cont. from page 1) AFTER THE PANIC OF 1907 The Panic of 1907 would result in greater government intervention as well as increase public responsibility for bailouts. The Aldrich-Vreeland Act was a driver of both. Enacted on May 30, 1908, it did two things: Allowed additional currency to be issued in emergencies. The Act created the "National Currency Associations" that was comprised of a minimum of ten financially well-positioned banks to be issuers of such currency. Created the National Monetary Commission whose research would lead to the creation of the Federal Reserve (established in 1913).

References

The Parallels Between the Panic of 1907 and the Great Recession of 2008 The economies before both crises were booming. Loose monetary policies were in place. The suspension of Knickerbocker Trust in 1907 and collapse of Lehman Brothers in 2008 came at the beginning of each of the financial crises. Both Knickerbocker Trust and Lehman Brothers were each unable to secure a loan from a lender of last resort.

Boyle, M. J. "Bank Panic of 1907." (2021) Investopedia. Folsom, B. W. "The Fall and Rise of Laissez-Faire in the United States, 1789-1900.: (2019) The Independent Review. Johnson, J. F. "The Crisis and Panic of 1907." (1908) Academy of Political Science Moen, J. and Tallman, E. "The Panic of 1907." www.federalreservehistory.org Nations, S. A History of the United States in Five Crashes. (2017) Harper Collins Publisher, New York, NY. Tucker, A. "The Financial Panic of 1907: Running from History." (2008) Smithsonian Magazine

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Larson noted that throughout 1788 Washington continued to talk about a dynamic federal government. He put forth three main objectives for America that came under the Constitution: - The country should be respected abroad - There should be prosperity at home - America should be further developed westward In 1789, the United States was on the precipice of installing its first leader. Everyone knew Washington and his accomplishments. Early into the new year, Washington stopped protesting. At the urging of others to be President, acknowledging that "Providence guided his destiny" as well as that of the new land, Washington readied himself to become America's first leader. But could he unite his country? Henry Sage, in his article "The New Republic: The United States, 1789-1800," succinctly puts it this way "the new government was an experiment, and no one could be sure how it was going to turn out, or indeed, if it was even going to succeed." We know how it turned out......

Religion

The Book of Judges - Chapter 2 What is a common phrase used in Physics 101? "For every action, there is a reaction." Perhaps you've heard a parent say that "there are consequences for your actions." Yes consequences can be good or bad. Regardless, there comes a point in time when we are either rewarded or punished for the actions we took. Whichever you've experienced - good or bad - the Israelites are fixing to find out what lies in store for them for the actions they took. When we finished reading chapter 1 of Judges we saw that the Israelites didn't do exactly what the Lord commanded them to. They were not to associate themselves with the Canaanites. (See box below for more information on the Canaanites.) In chapter 2 of Judges we read about the disobedience of the Israelites. Actually it began at the end of chapter 1 in which the Israelites disobeyed God by not driving out the Canaanites from the Promised Land. God had directed the Israelites to remove the Canaanites as they represented a threat to the morality of the people of Israel. Note: the Canaanites were an idolatrous group of men and women. They were not only polytheistic, but also committed child sacrifice. All of which are abominations to God. We are first introduced to the Canaanites by way of the group's forefather, Canaan. In Genesis 9:22 we are told that Ham, a son of Noah, was the father of Canaan. When Ham discovered the improprieties of his father, he disclosed it to his brothers, Shem and Japheth. He should have, instead, covered up his father's improper doings. Upon knowing this, Noah stated in Genesis 9:25, "Cursed be Canaan; a servant of servants he shall be to his brethren." Later on, in Leviticus 18:3, God expresses His displeasure with the Canaanites for their sinful ways, instructing the Israelites not to follow.

At the beginning of chapter 2, God's displeasure with His people is made known. In verses 1 through 3 the Israelites are reminded of the mercy and goodness God has bestowed on them. He is a faithful God, stating in verse 1 "I led you up from Egypt and brought you to the land of which I swore to your fathers; What is the covenant and I said 'I will that God mentioned in never break My verse 1? It is the covenant (see commitment He made discussion on with His people to lead covenant to the them out of bondage in right) with you.'" Egypt, to take them to the Promised Land, But promising them that He accountability would "not leave you must enter the fray. God tells the nor forsake you." people that they Joshua tells the Israelites in Joshua have been disobedient and 23:5 "So you shall possess their land, as there will be consequences. In the LORD your God verse 3 God says promised you." Joshua goes further in verse "I will not drive 10, telling the people them out before "for the LORD your you; but they shall be thorns in God is He who fights for you, as He your side, and promised you." King their gods shall Solomon would, be a snare to approximately four you." Do you hundred years later, think the tell the assembly of Israelites expected a pass Israel "Blessed be the from God for their LORD, who has given rest to His people transgressions? Isn't that what a Israel, according to all lot of people think that he promised." forgetting or not realizing that God is all-knowing? He knows everything. (continued on page 5)

Major Prophets (And A Very Important One*) Isaiah - a very cultured man; he prophesied the Redeemer

605-536 BC

627-586 BC

962-852 BC

START

Ezekiel - was both a priest and a prophet

593-571 BC

740-700 BC

*Elijah - the first prophet of God's emissaries

Jeremiah - known as "the Weeping Prophet"; considered the author of Lamentations (written following the destruction of the Holy City and the temple)

Daniel - taken captive to Babylon, he is acclaimed for his wisdom and intelligence

END

The Minor Prophets Series Amos The book before Amos: Joel The book after Amos: Obadiah

The year is around 765 BC. A man is shepherding sheep in a field. An upstanding person, he is respected in the small town of Tekoa. On his land are fig I What is a dresser of trees? Well, trees of N when someone dresses a tree, which he also F it's almost like dressing oneself. takes care of. O The dresser of a sycamore tree shapes and prunes the trees so He is known they will produce more fruit. With B as the L sycamore trees, the fruit are "dresser" of O figs. such trees C Source: "Dresser of Sycamore (see INFO K Trees." BibleGateway, https:// BLOCK 1). 1 www.biblegateway.com/resources/ His name is encyclopedia-of-the-bible/DresserAmos. Tekoa Tekoa is located in the nation of Judah, near Bethlehem and just ten miles south of Jerusalem. It I The Mount of Olives is part of is not a N the mountainous ridge located metropolis, F east of the Old City of but a small O Jerusalem. Its first mention in city. In 2 the Bible is in 2 Samuel 15:30 Samuel 14 B where we read of King David we are L and his men marching introduced to O dejectedly up the Mount of Tekoa as C Olives after fleeing from his son, "Joab sent to K Absalom. Jesus enters Jerusalem the last week of His Tekoa and 2 life from the Mount of Olives brought from (see Matthew 21:1). The site there a wise where He prayed (see before woman." We being betrayed by Judas are told in 2 Iscariot (in the Garden of Chronicles Gethsemane) was an olive 11:5 that the orchard on the Mount of Olives son of Solomon, (continued on page 4)

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Amos (continued from page 3)

Book Review: Change Your World

Rehoboam, built many cities including Tekoa for defense purposes. Sitting approximately 2700 feet above sea level, the town provides a view of the Mount of Olives, a historical location mentioned several times in the Bible (see INFO BLOCK 2).

Author: John C. Maxwell and Rob Hoskins

Amos Prophesies

even more! Because it speaks to what’s needed today - how to be that leader who makes a

Uzziah was the king of Judah, the southern kingdom during this time. The king of the northern kingdom of Israel was Jeroboam. Both nations along with those countries on either side of them The Eight Nations committed atrocities. Indicted: Under King Jeroboam Israel was prosperous, but with such came pride, greed and idolatry. The rich got richer, while the poor were oppressed. Justice was not present in the land.

Damascus Tyre Gaza Edom Ammon

bring the message of effective leadership home, to either substantiate or favorably alter one’s insight on what it takes to lead a mission. His and Rob Hoskins’ book, Change Your World, does difference in the world. We live in unprecedented times today. However, through all the turmoils of the last couple of years, many have woken up to not just see the needs of people throughout the world. But to also realize we have a vacuum in leadership in various areas. For instance, the impact of the lockdowns on the youth today due to the coronavirus. Or the high cost of living impacting the ability of many to put food on their family’s dinner table. Or the plight of the elderly of whom many are dependent on not just their immediate family but that of the government as well. There are certainly more concerns than just these three examples

Moab

above. However, they give you an idea of what society shouldn’t be.

Judah

They represent a mere smidgen of the holes in the world that need to

Israel

be filled, need to be addressed with positive change. Early on in the

Does God care about justice? Absolutely! C. S. Lewis said this about "justice" in his book Mere Christianity: "It is the old name for everything we should now call 'fairness'; it includes honesty, give and take, truthfulness, keeping promises, and all that side of life." Moses states in Deuteronomy 16:19-20 "You shall not pervert justice; you shall not show partiality, not take a bribe, for a bribe blinds the eyes of the wise and twists the words of the righeous. You shall follow what is altogether just, that you live and inherit the land which the LORD your God is giving you." A system of justice is only as good as the people overseeing such justice. During the time of Isaiah, the prophet implores the people to "learn to do good; seek justice, rebuke the oppressor; defend the fatherless, plead for the widow." Years later, Amos, in condemning Israel's unethical religion, states "But let justice run down like water, and righteousness like a mighty stream." Amos prophesied against ten tribes, but none more harshly than against Israel. He was point blank in his criticism of Israel. While the other nations were guilty of abominations, Israel God's People - knew better. Several hundred years had passed since God, through Moses, had freed His people. Yet, here they were, in the eighth century, committing atrocities. Through Amos, God tells Israel "the virgin of Israel has fallen; she will rise no more. She lies foresaken on her land; there is no one to raise her up.' Our loving God eventually extends His mercy to His people. Keywords: Justice, Obedience, Accountability

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I’ve always pulled something beneficial out of John C. Maxwell’s leadership books. He’s able to

book, the authors shout out what many of us think “Somebody do (continues on page 6)

The Great Recession of 2008 - Questions/Answers According to Taylor, what mistakes did the Federal Reserve make prior to the Great Recession and how did those mistakes contribute to the Great Recession? Taylor mentioned the following mistakes made by the Federal Reserve prior to the Great Recession: A) The Federal Reserve deviated from “conventional monetary policy.” B) Between 2003-2005, the Fed held the federal funds rate lower than that of the previous two decades which had experienced good economic performance. C) During the period of 2003-2005, the Fed also put forth “forward guidance,” inviting risk-taking by declaring that the federal funds rate would continue to remain low for the foreseeable future. D) Looser regulations on the banking industry. How did those mistakes contribute to the Great Recession? The lower interest rates would become a conundrum for the economy. With rates going

lower, so did the pricing of risk, resulting in a decline of risk spreads. As Taylor points out, such action brought on a torrent of risk-taking speculators looking for yield and excesses in the housing market. However, with such a loose monetary policy in place, banks were more likely to (and did) fund riskier home mortgages with consumers fueling the fire, so to speak, by borrowing more than they could afford. A breakdown in the regulatory process not forcing banks to maintain higher levels of capital might have contained the looming financial debacle as well. What mistakes does Taylor think the Federal Reserve made in the aftermath of the Great Recession and what did these mistakes cause? Taylor refers to the enlargement of the Fed’s balance sheet due to its purchase of large amounts of U.S. Treasury and mortgagebacked securities in 2009, financed by equally large increases in reserve balances. Such asset purchases continued long-after;

however, the Fed kept interest rates near zero during this time even though (continued on page 7)

The Transition

The Book of Judges - Chapter 2 (continued from page 3) Joshua, a man of God, was able to keep the Israelites for the most part faithful to and fearful of the Lord. Verse 7 tells us that "the people served the LORD all the days of Joshua." However, Joshua's death and a new generation of Israelites opened the door to sin that would not be tolerated by God. Sin Will Not Go Unpunished

"Therefore, having these The young "did evil in the sight of the promises, beloved, let us LORD." (Judges 2:11) Idolatry was rampant. cleanse outselves from The influence of the Canaanites, who God all filthiness of the flesh warned His people to not associate with, and spirit, perfecting had infiltrated the morals of the Israelites. It holiness in the fear of was getting harder to differentiate between God." God's people and their enemies. Warren 2 Corinthians 7:1 Wiersbe, in his commentary on the book of Judges, puts such coexistence this way: "But we do have the obligation before God to maintain a separate walk so we won't become defiled by those who disagree with us." Throughout history, many sadly seek the acceptance of the world instead of God's. Approximately eleven hundred years after the trangressions of the Israelites, the Apostle Paul told Christians in Romans 12:2 "do not be conformed to this world, but be transformed by the renewing of your mind, that you may prove what is that good and acceptable and perfect will of

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God." There should be on the part of those who believe in the Lord resistance to the ways of the world. It took consequences for their actions, at times extreme harshness, for them to see the errors in their actions. The Israelites became distressed. Had they forgotten what Joshua told them before he died and how they responded? "Thus says the LORD God of Israel: Then I took your father Abraham from the other side of the River, led him throughout all the land of Canaan, and multiplied his descendants and gave him Isaac. Then I brought your fathers out of Egypt...I have given you a land for which you did not labor, and cities which you did not build, and you dwell in them; you eat of the vineyards and olive groves which you did not plant...." The people responded that "we will serve the LORD!" Selective memory perhaps. Nevertheless, the Israelites failed to appreciate and understand what God had done for them. God having heard their moaning and groans "delivered them out of the hand of thier enemies." God is full of mercy and grace, and gave them judges who liberated the Israelites. When a judge died, the Israelites would circle back, bowing down to other Gods. At the end of chapter 2, God is frustrated and angy with the people's disobedience. Divine discipline comes the Israelites' way. As it comes our way today when we disobey God. We have a faithful God, a compassionate God who rightfully chastens us to learn God's lessons.

America's President Page: Teddy Roosevelt

Book Review: Change Your World (continued from page 4) Something!” We look to our right and left, hoping that person will be that

contributor, along with belief in one’s self, to make a positive difference.

somebody who helps a family with a meal, or visits an elderly person in a

But at what point does this happen? As many of us have been told, “the

nursing home.

most basic impetus for change is pain.” Is that what propels you? The

Let’s look at what Maxwell and Hoskins suggest in order to “change your world.”

authors say change will come when: •

To”

Change Your Thinking Using a quote from Rosamund Stone Zander and Benjamin Zander’s

•

convincing case to discard such negative words as “can’t” or “shouldn’t.” You and I need to step outside the box we’ve been in, and believe that we can change our world. It should be pointed out that “our” world is relative to where our heart is tugging or pulling us. Regardless of where that may be, we need to have hope - belief in ourselves and a “healthy amount of positive discontent.” So does hope trigger change? The authors point out that it is a major

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“People Change When They See Enough That They Are Inspired To”

book, The Art of Possibility, “Let your thoughts and actions spring from a new framework and see what happens,” Maxwell and Hoskins make a

“People Change When They Hurt Enough That They Have

“People Change When They Learn Enough That They Want To”

•

“People Change When They Receive Enough That They Are Able To”

On page 23, we read “Leadership is influence - nothing more, nothing less. So if you influence just one other person, you are a leader.” I agree. However, it’s a rather broad statement. A leader of what? One’s (continues on page 8)

CROSSWORD PUZZLE

The Great Recession of 2008 - Questions/Answers (continued from page 4) indicators used in the 1980s and 1990s suggested otherwise. As a result, economic growth was anemic, below the Fed’s forecasted growth. Taylor as well as other economists have pointed out that economic growth in the U.S. following the recession was weaker than earlier U.S. recoveries from deep recessions. What course does Taylor think the Federal Reserve should take and what goals does Taylor think the Federal Reserve should have? Taylor states that monetary policy should be normalized or returned to a rules-based premise. One of Taylor’s suggested goals is the reduction in the size of asset holdings (primarily the mortgage-backed securities) on the balance sheet of the Fed. Another goal Taylor suggested is the Fed’s adherence to policy strategy that provides good guidance regarding the future funds rate changes. What does Taylor think FOMC should have to do concerning its strategy and why does he think this is important? Taylor believes that the Federal Open Market Committee (FOMC) should be mandated to adopt and explain its monetary strategy. Upon doing this, it should then compare such strategy with existing monetary policy rules in a transparent manner. He favorably discusses policy transparency contained in the Fed Oversight, Reform and Modernization Act (FORM), which addresses the need for monetary reform. In having a transparent strategy, including appropriate legislation, Taylor believes there would be more accountability. He mentions the range of monetary aggregates that were, prior to 2000, required to be reported. Deviations would have had to have been explained by the Fed, likely reducing the size of such. There would, thus, be a bridge between the Fed’s technical and actual policies. What is the Federal Reserve’s primary objection to the use of rules and how would Taylor or Kydland and Prescott respond to this objection?

in its report, states that “monetary rules do not take into account of broader risk considerations. However, deregulation, the repeal of the Glass-Steagall Act, and the passage of the Community Reinvestment Act all factored in to the risks incurred by banks. These financial institutions, whether coerced or not, increased risky lending with inadequate capital to absorb the losses associated with risky loans and investments. As some economists have pointed out, as well as this report, with rates (continued on page 8)

Advertisement The Federal Reserve’s primary objection is that the U.S. economy is a complex engine. Rules put forth do not capture this complexity. Taylor would disagree with this assertion as he believes loose monetary policy contributed to the Great Recession and subsequent actions following the recession taken by the Fed produced a weaker than anticipated economic recovery. As he points out in his Sound Monetary Policy testimony, the Fed should resume a “sound rules-based monetary policy” that history shows results in good economic performance. One additional objection of the Federal Reserve to the use of rules is measurement bias and measurement lag, Why is this a poor argument against rules? A sound rules-based monetary policy supports good economic growth. Taylor points out that the two decades prior to the Fed’s departure from conventional monetary policy in 2003-2005 experienced satisfactory economic performance. To fuel the housing market, the Fed kept the rates too low for too long, even though there was precedent. While the low rate was an impetus to the financial debacle that was to come in August 2007, the subprime crisis has been attributed to several issues, one of them being excessive risk-taking by banks. The Federal Reserve,

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Get to know the book of Genesis. Get to know God who shows from the beginning of time not just the love He has for you and me, but also the grace and mercy He extends to each of us. Get to know the men in the book of Genesis, whose faith and belief in God overcame the obstacles they faced. Order this book now at https://authorreputationpress.com/products/the-men-of-genesis.

Change Your World Book Review (cont. from page 6)

Maxwell and Hoskins go on to discuss the importance of having

viewpoint may not be in sync with society, so influence may not get one a “pat on “good values.” They are the drivers or principles behind the direction one takes in life. For the sustainability factor, which is the back.” Influence is good if the outcome desired is good. Let’s narrow the authors’ statement on influence. Philip E. Morrison and Hankuri

needed to make a lasting enduring positive change.

Tawus Gaya, authors of Influence: Leading Without Position, state in their

Regardless of where you are in life, today we need those who

devotional “Influence” that “to influence others as a Christian leader, you first

desire to make a positive difference in our world. As you embark

need to be influenced by God.” They go on to point out that “they must influence

on your journey, take time to pick up some great insight from

hearts, so their followers willingly change or act.”

Maxwell and Hoskins’ book Change Your World.

Toward the end of chapter 1, the question is asked of the reader “Are you willing to help others, add value to them, and invite them to experience the positive

The Bygone Days In our new section, we will highlight the past if only to show the advancements made, not one's age.

impact of good values and good choices?” If you said yes, move onto chapter 2, “Become a Catalyst for Change.” Change Begins With Caring: I Want to Make a Difference We’ve all heard someone say “go big or go home.” However, small steps are just as impactful. I can so relate to the authors pointing out that “we overestimate the importance of big events and underestimate the value of small actions taken to help others. Some of the greatest catalysts for change in the world took small steps that seemed insignificant at the time.” Find the people who share the same passion as you do in order to take the steps necessary. Chapter 3, We All Need One Another, states what other successful leaders of companies have pointed out, that “the odds of success in any

The Great Recession of 2008 - Questions/Answers (cont. from page 7)

being so low, the FOMC would have little maneuverability should the economy weaken. All of this counters the Federal Reserve’s has trouble trusting individuals, I found the authors’ suggestions of how to gather position against rules. those who should be brought into the conversation very helpful (see pages Taylor explicitly discusses the Federal Reserve’s “independence” 49-50). in his testimony. How do his comments address the concerns There is no time like the present. “There is no standing still when it comes to implicitly laid out in the Federal Reserve’s report? making a difference.” Keep moving ahead with the goal in mind to leave things Taylor believes that independence for the Fed would result from better than when you found them. The authors use true stories throughout the its choice of a clearly articulated strategy to address the book to reinforce their encouragement to the readers to change their world in a systematic quantitative adjustment of its policy instruments. positive way. Under monetary reform, the Fed would be able to make changes Let’s All Get on the Same Page or deviations to the strategy if circumstances warranted. Under the guise of transparency, however, such adjustments would be There are many movements across the world today. As the authors point out, understood or aware of prior to implementation. movements whether good or bad make the general public more aware of issues. endeavor increase dramatically when you team with other people.” As one who

Today, our world needs to come together, needs to be united. There are many issues. How should they be addressed? What is the first step? The authors quote Seth Godin, best-selling author, in speaking to this first step: “The easiest thing is

On the whole, which argument do you find more convincing, the one for or against the use of rules in determining monetary policy?

to react. The second easiest thing is to respond. But the hardest thing is to initiate.”

I am for the use of rules in determining monetary policy. In researching the causes that led up to the Great Recession and the world” and make it happen. the subsequent attempts to quell the repercussions from the fallout, the lack of discipline regarding monetary policy seems to Transformational Movements have played a major role. Although the authors of the book, I came across a book on transformational leadership in which the author speaks of Fragile by Design, are quick to point out the risk-taking of banks a transformational leader as one who “takes on the responsibility of the world leading up to the crisis, they (along with others) also discuss “the around them.” He or she is desiring to make positive changes at his/her company. development of markets for mortgage-backed securities and other financial derivatives,” the role of Fannie Mae and Freddie It is really no different with a non-profit organization. This view of transformation Mac, and the redistributive policies put forth during the Clinton leadership coincides with Maxwell and Hoskins’ description of transformation as that which starts at the top - “to have any chance of significant transformation, the Administration, each of which were factors. We came to understand the role private financial institutions played with the leaders must give their voice, approval, influence, and involvement to the derivative market as CDOs were bundled up with triple A and movement.” It starts at the top, but it’s exciting to read the authors’ stories of what triple B loans in Michael Lewis’ book The Big Short. happens to people who have been impacted by such leadership - “they rise up!” Initiate is to be begin something, to take that desire to “create positive change in