Of Depressions and Government Rescues

The government is running out of things to do. I am referring to the economy and with reference to improving the economy. A successful government program to recover from the financial crisis and recession that the government caused is turning out to be much harder than presidential candidate Barack Obama promised.

All prolonged recessions and depressions are caused by governments. The recent financial crisis occurred, first, because the elaborate house of cards of government promises and guarantees that dominated the mortgage and housing markets was flattened by a puff of the wind of reality. With government reinforcement and in fact much prodding, builders were encouraged to build more houses bigger and faster than people could use them, realtors were rewarded for selling them, mortgage brokers were drawn to get mortgages for people who could not afford them, and investors were lured into thinking that there was no risk in pumping their money into funding these mortgages. Reality eventually took over, as it always does.

All of this would have caused a major recession, but former Treasury Secretary Hank Paulson ensured that the recession would turn into a full blown financial panic. Nearly every Sunday in the fall of 2008 Paulson was on national camera, little hiding his deer-in-the-headlights expression, announcing the latest desperate and ill-conceived Federal financial rescue program. Remember that the disastrous $700 billion Troubled Asset Relief Program (that was not used to purchase assets after all) was Paulson’s idea. The markets were spooked by it. Markets tanked when Congress defeated it and tanked again when Congress passed it about a week later (sweetened with enough pork to buy needed votes). Investors went on strike.

President Obama has been unsuccessful, coming up on three years, in ending the strike. In fact, each time investors have shown some interest in coming back some new government plan or program has renewed enough uncertainty to drive investors back to the sidelines. For example, in early 2009 bank stocks were starting to recover until the Administration decided to impose stress tests to see how banks would fair if the Obama recovery plan failed. Investors returned to their seats to watch, and even the regulators’ findings that the banks could weather continued recession did not bring more than a tepid response from bank investors. The Obama Administration’s plan to restructure the entire banking and financial system—realized in the Dodd-Frank Act—has served to warn investors against taking new investment risks until they could see how it would all play out. It now seems clear that the financial crisis has been replaced by a regulatory crisis, with the regulators already falling way behind the mandates of the last Congress to write hundreds of new rules and no bank able to make any business plans extending much beyond a few months.

The housing markets remain at depression levels. New Dodd-Frank rules are making it much harder for families to get, lenders to offer, and investors to fund new mortgages for new houses. Is an economic recovery even conceivable with housing and mortgage markets mired in depression?

Our government has tried pulling its other levers. The United States has never, ever, witnessed the amount of government spending intended to stimulate the economy artificially. The Federal Reserve has expanded the money supply by trillions of dollars. Most of that Federal Reserve money has gone into funding government deficits, driving down the value of the dollar, and stimulating the prices of gold, silver, oil, and other commodities. The government takeover of the healthcare system, it was argued, was the only way to control medical costs that were said to be harming the economy.

Of course, there are more government actions waiting in the wings. The Administration wants to raise taxes dramatically, especially on investors and businesses—the energy business, the banking industry, investment firms, anyone who uses carbon (one of the elements necessary to life and essential to breathing), “rich” people, and small businesses that would be caught in the definition of “rich people.”

And yet the economy remains in the doldrums. Nothing seems to work. It conjures up memories of the Great Depression, that economic recession that Franklin Roosevelt was eager to take over. Through the whole decade of the 1930s FDR tried one thing after another to restore economic recovery, but nothing worked. Instead, FDR helped weaken world faith in representative government, greatly encouraging the willingness of desperate people to embrace the desperate measures of the dictators in Italy, Germany, Japan, and the Soviet Union who gave us World War II.

The Obama Administration has tried everything that government can do. Why not now try getting government out of the way and letting the people solve this one as they always have? Investors still have plenty of money ready to invest, if they were only confident that the rules would not change and that their investments would not be taxed away. Businessmen would be eager to hire new employees if they only knew how much the employees would cost and that some new government program would not impose new costs and burdens on their business. Banks would love to lend to businesses and provide mortgages if the regulators would stop changing the rules and discouraging banks from making loans to anyone other than to the government.

Maybe there is the worry that government will not get credit for the recovery if there is no new government program to point to, no government guarantee to praise, no stimulus spending to trumpet. Maybe that would be O.K. But I would be ready to vote for the government leaders who removed the obstructions to investment, lowered tax rates, lifted regulatory burdens, and dispelled the clouds of regulations and barriers to growth that are gathering on the horizon.

Of Mountebanks and the Second Coming of Christ

I have been wanting to write this for months, but I have been reluctant. I have been wanting to write this ever since I heard the bizarre claim on the radio by false prophets that they knew the exact date of the second coming of Christ. I have been reluctant, because I did not want to help draw attention to these con artists and inadvertently stimulate the curiosity of an unwary reader that could bring him within their grasp. We are close enough, now, to the day when their deception will be revealed, so the chance of there being further victims is small.

Today is May 20, 2011, and I am still here. I will still be here tomorrow, the date that the diabolical deceivers have given out as the day that Jesus Christ would return to the earth in glory. These mockers of the Savior are correct that tomorrow will fulfill prophecy, for as it comes and goes they will have demonstrated the fulfillment of Christ’s warning given to His disciples shortly before His crucifixion. As the Savior sat on the Mount of Olives, overlooking the Temple, Christ prophesied of His return to the earth in the latter days. Jesus warned,

Then if any man shall say unto you, Lo, here is Christ, or there; believe it not. . . . if they shall say unto you, Behold, he is in the desert; go not forth: behold, he is in the secret chambers; believe it not. (Matthew 24:23, 26)

The Savior then explained, that when He returns to the earth, no one will need to tell you, for all will see and know. It will be just as obvious and apparent as the sunrise:

For as the lightning cometh out of the east, and shineth even unto the west; so shall also the coming of the Son of man be. . . .
And then shall appear the sign of the Son of man in heaven: and then shall all the tribes of the earth mourn, and they shall see the Son of man coming in the clouds of heaven with power and great glory. (Matthew 24:27, 30)

Tomorrow will be the end of just one more in a long line of frauds. Unholy mountebanks, avaricious men and women in pursuit of power, wealth, sport, or personal aggrandizement, have played and will continue to play upon the emotions and fancies of those who mix their longing—and lack of patience—for the return of the Savior with a spiritual gullibility, unilluminated by an allegiance to the guidance of Christ and His prophets. These sheep, unwilling to rely upon the Savior’s promises on His own timetable and in His own ways, line up to be unmercifully shorn.

For us and for them it could be otherwise. Jesus Christ Himself gave an ironclad safeguard against these deceivers, a foolproof test that has protected believers for almost 2,000 years. If anyone tells you the day or time when the Savior will return, do not believe him:

But of that day and hour knoweth no man, no, not the angels of heaven, but my Father only. (Matthew 24:36)

I consider it unwise to lay claims to more knowledge than the angels or to follow any mortal who makes such claims.

So tomorrow will come, and tomorrow will go. I will be here, and you will be here, but the leaders of the latest unholy fraud will likely be gone, long gone, probably along with much of the funds of their followers. But do not look for them in heaven; I recommend seeking them in some more earthly paradise, with swaying palm trees and drinks served with little umbrellas.

Of the Dodd-Frank Act and Preparing for the Next Crisis

Last year Congress passed and President Obama signed into law the Dodd-Frank Act. As advertised, the Dodd-Frank Act was to restructure the entire financial system of the nation to ensure that we do not have another melt down of the economy, at least not one related to the financial system. With that promise, the Dodd-Frank Act set in motion an extensive program of federal government control of the banking and investment industries. Ever after, financial firms would be more responsible to bureaucracies in Washington than they would be to their own customers, but everything financial would be “safer.”

The Dodd-Frank Act is failing. In fact, judged by the most demanding measures possible, those set out by its framers in the Administration, it is an abject failure. And it is getting worse, not better, and it is making financial things worse, not better. A repeat of the troubles of 2007 through 2009 is becoming more likely rather than more remote.

A few days following enactment of Dodd-Frank, Treasury Secretary Timothy Geithner gave a speech at New York University’s Stern School of business in which he outlined six principles that would guide implementation of the new law. It is altogether fitting and proper that we should judge the success of the implementation by those six principles. Secretary Geithner challenged us to do so. He said, “You should hold us accountable for honoring them.” In a few days it will be ten months since President Obama signed the law in a formal White House ceremony. Let us examine progress of the last ten months by the standard of the six principles.

Principle One: Speed, moving as quickly as possible to bring clarity to the new rules of finance. The Dodd-Frank Act mandated an unprecedented program of new regulations that are so numerous and complex that describing them defies hyperbole. Estimates range between 250 and 500 new regulations to be promulgated. One of Washington’s prestigious financial law firms, Davis-Polk, noted by way of illustration that one of the agencies tasked with writing new regulations, the Commodity Futures Trading Commission (CFTC), normally has at most four regulations that it is working on at a time. At the end of December the CFTC had 31 regulations under work.

But starting regulations is not completing them. The Davis-Polk study noted that the law required 26 regulations to be completed in April 2011, but not a single deadline was met. Some 40 Dodd-Frank regulations are now behind schedule. That is not to criticize the regulators, who are cutting as many corners as possible to meet the deadlines. It illustrates how impossible it is to implement Dodd-Frank as mandated.

Principle Two: Full transparency and disclosure, with the regulatory agencies consulting broadly as they write new rules. Compliance with this principle is even worse than the speed test. In fact, in a vain effort to meet the unrealistic deadlines of the Dodd-Frank Act, regulators are shortening comment periods, consulting with each other as little as possible, and in general trusting to their own hasty judgment far too much. One agency head remarked to a banker group that the agency leadership did not need to have long discussions with the public; they have been thinking about the issues and already know what they want to do.

Principle Three: Avoid layering of new rules on top of old, outdated ones, eliminating rules that do not work, and wherever possible streamlining and simplifying. Barbara Rehm, a financial reporter with the independent trade newspaper American Banker, recently observed, “None of the numerous people interviewed could name a single rule that has been repealed or simplified.”

Principle Four: Avoid risking killing freedom of innovation, striving to achieve a careful balance, safeguarding freedom and competition. Since enactment of the Dodd-Frank Act there has been no innovation in the financial services industry, as businessmen do not know what they will be allowed to do and what will be banned once the Act is implemented. Actually, it is worse. The best minds in financial firms have been focused on how to meet the needs of the regulators rather than on how to meet the needs of their customers, and the only competition is among the regulators over who can be “tougher” on the financial industry.

Principle Five: Make sure that we have a more level playing field, both between banks and non-banks as well as with regard to America’s foreign competitors. In this category the talk and promises are extensive and good. So far there are no results. In fact, foreign regulators are quietly backing away from copying the regulatory excesses of the Dodd-Frank Act, positioning American firms to surrender the global financial leadership that they have built up over the last 100 years.

Principle Six: Actually, Secretary Geithner provided a bonus, squeezing two parts into this last standard. Part One: Have more order and coordination in the regulatory process so that regulatory agencies are working together, not against each other. Coordination among the regulators is haphazard at best, with plenty of agency competition in evidence. The new Orwellian Bureau of Consumer Financial Protection has not even been set up, and the other regulators are already competing with it to show who can be more punitive on financial firms in the name of helping their customers. Even the States are joining in, with various state attorneys general pressuring banks to cough up $20 billion to some kind of fund to be used by officers of the Obama Administration to help the fortunate troubled homeowners of their choice.

Principle Six, Part Two: Conduct a careful assessment of costs and benefits of the burdens involved with the regulations. Cost/benefit analyses have been cursory at best but more often non-existent. The inspector general of the CFTC recently chastised his agency for ignoring meaningful inquiry into the cost of its proposed regulations. Ten Republican legislators, troubled by this neglect, sent a letter to all the financial regulators asking for their cost/benefit analyses. There has been no reply.

Ten months into the implementation process, how must we judge the Dodd-Frank Act? Holding Secretary Geithner and the Obama Administration to their own standards, it is hard to avoid a conclusion of complete failure. This is no surprise to those of us who criticized the whole premise of the Dodd-Frank Act, that the government failures that brought on the financial crisis could be resolved by increasing the role of government. So far government is failing in the regulatory implementation crisis created by the Dodd-Frank Act. Do not look to government to be ready to respond to the next financial crisis when that arrives, especially if the confusion of the Dodd-Frank Act helps to hasten that day.

Of Dishonest Money and a Poorer Future

Interest rates in the United States are low, far lower than they would normally be. The Federal Reserve has been pumping hundreds of billions of dollars into the economy to keep them low. Is that a good thing? For the federal government it might be—in the short run—but for savers it is bad. One percent back on your savings is pretty low. The persistent, artificially low interest rate policy of the Federal Reserve Board has become a major transfer of wealth from private savers to the federal government. Low interest paid by the Treasury means low interest earned by savers. Measured against inflation, you may be letting the federal government use your money for less than nothing.

Perhaps even worse, the low interest rate policy of the Federal Reserve is supporting the colossal spending binge of the federal government. The federal government can spend trillions of dollars it does not have, because the cost of government borrowing is so cheap.

It is not naturally cheap. Normal markets would not support the continued massive deficits from Washington. When the government spends more than it takes in it has to borrow from you and me, or more particularly from our pension plans and insurance programs, as well as from banks (and foreigners, a subject for another day). Savers and banks do not, however, have an unlimited appetite for lending to the government, especially at the low rates that the government offers. In past decades, persistent federal deficits would result in rising interest rates, as investors would demand a higher return to keep them willing to buy more government bonds.

Some months ago, when the ballooning federal deficit showed no signs of easing, the Federal Reserve stepped in and started buying up hundreds of billions of dollars of government debt just as investors were backing away. Interest rates on government borrowing would have gone up, but the Federal Reserve bought up the oversupply of debt and pushed interest rates down. Interest rates on government borrowing today remain at historically low levels, six-month Treasury securities going for about one-tenth of one percent. That is way below the rising rate of inflation, which lately is at about 2.5% and going north. That means that many investors in government debt are actually losing money, the return on their government debt falling behind the rate of inflation, the government paying back the money it borrowed with dollars that buy less than the ones that they took in. Federal Reserve policies are helping this go on.

Speaking of inflation, the Federal Reserve announced this past week that it is O.K. with inflation of 2.5%, that in fact the Federal Reserve sees inflation trending toward 3% for the coming years. Some of us who remember back to the Jimmy Carter days when inflation approached closer to 20% than 10% might be tempted to think that 3% inflation sounds pretty good. Keep in mind, though, what inflation means.

Remember what money is. Money is an exchange of promises. I promise that I will give you, say, $100 worth of value, whether my goods, my time, or my services, in exchange for which you give me a certificate—money—that can be exchanged for $100 worth of goods, time, or services with someone else. Money lets me take that promise and put it in my pocket and carry it around to where I think that it will be of most use to me. Money is enormously efficient. I do not work for the grocery store. I work at my job and get paid and then take my money to the grocery store and exchange it for groceries. The store exchanges that money, in turn, for more goods, as well as to pay the salaries of the people who work there. They in turn take that money and use it for what they want.

Inflation makes all of that dishonest. I get paid the $100. If I wait a year to spend it, and there is a 3% inflation rate, that $100 dollars will then only by me what about $97 would have bought when I got paid. Of course, that is an even bigger deal if the inflation rate is 10%, my $100 only being worth some $90 of goods and services in my example. But even 3% can be a very big deal, a far bigger deal than the Federal Reserve seemed to acknowledge this past week.

Consider retirement. Not enough people do, but you should. Perhaps you are an average couple saving and investing and hoping to have a retirement income of say $80,000 per year. You have figured that you can live on that. With an inflation rate of 3%, you had better think again. Your $80,000 retirement income will only be able to buy what $40,000 or less buys today. Setting aside adequate money to save and invest for retirement is hard enough. Inflation makes it all much harder.

Massive government deficits are already driving the Federal Reserve to cheapen the return on your investments (in order to keep the federal deficit from snuffing out the weak recovery). The inflationary pressures that they are building up inside the federal volcano will undermine your retirement even further. The longer we wait to solve the deficit problem, and the interest rate and inflation dangers it spawns, the worse it all gets. Government may not be able to create wealth, but it can surely take it away.

Of the Authority of God and the Witness of Christ’s Resurrection

In May 1829, Jesus Christ sent John the Baptist—slain by command of Herod but resurrected by the will and power of Christ—to bestow on a new prophet, Joseph Smith, the same authority to baptize in the name of God that John the Baptist held during his own mortal ministry. Shortly afterward Christ similarly sent Peter, James, and John to confer on Joseph Smith the same authority from God that had been bestowed upon them under the Savior’s hands. When the Apostles of Christ were gone, their authority also was lost. In 1829 they returned that authority to the earth.

Every week, in congregations all around the world, that authority is exercised to channel the blessings of God to the modern day disciples of Jesus Christ. One of these priesthood blessings is the privilege of renewing promises made at baptism by remembering the suffering and resurrection of Jesus Christ. Acting under the direction and authority of Christ His authorized servants bless and administer the emblems of the body of Christ—broken and then resurrected—and of the blood of Christ shed for the sins of many. All who receive these emblems with sincerity of heart in remembrance of Jesus Christ receive forgiveness of sins and direct spiritual communion with God, and they exercise the same spiritual gifts that the faithful followers of Christ exercised in ancient days.

The thousands of men who administer those emblems to thousands of congregations did not take it upon themselves to act in the holy place of Jesus Christ, made sacred when He offered the bread and cup to His Apostles the night before His death. They had hands placed upon their heads and received authority from others, who in their turn had hands placed upon their heads by those who in turn in the same way received the authority of God, all the way back to those who received that authority under the hands of the Savior Himself. For us in these latter days, one pair of those hands belonged to Joseph Smith, who received the authority of Christ from the hands of those upon whose heads hands were placed shortly before they were nailed to the cross on Calvary.

Just as anciently, eye witnesses today are proclaiming once again to the world the living Christ who was slain and who was resurrected and lives to guide and bless all who will be guided by Him. These are not learned men preaching from their study of the scriptures—though they have made in depth study of the scriptures a daily practice of a lifetime. These are men who know the Christ, who speak from personal knowledge and association with the Savior, Jesus Christ, and who proclaim what they know as well as what they believe.

I will give two examples of many. Keep in mind that these examples are not theories or learned dissertations by the doctors of religion. These are direct, personal, and tangible revelations of God, the way that God has throughout the ages revealed Himself.

The first is from The Book of Mormon, a record written in an ancient era but revealed anew in modern times. Some time after the resurrection of Jesus Christ and His ascension into heaven, a large group of ancient Americans were gathered near their Temple in a place that in their language they called Bountiful.

. . . and behold, they saw a Man descending out of heaven; . . . and he came down and stood in the midst of them. . . .
And . . . he stretched forth his hand and spake unto the people, saying:
Behold, I am Jesus Christ, whom the prophets testified shall come into the world.
. . . I am the light and the life of the world; and I have drunk out of that bitter cup which the Father hath given me, and have glorified the Father in taking upon me the sins of the world . . . .
Arise and come forth unto me, that you may thrust your hands into my side, and also that ye may feel the prints of the nails in my hands and in my feet, that ye may know that I am the God of Israel, and the God of the whole earth, and have been slain for the sins of the world.
And . . . the multitude went forth, and thrust their hands into his side, and did feel the prints of the nails . . .; going forth one by one . . . , and did see with their eyes and did feel with their hands, and did know of a surety . . . , that it was he, of whom it was written by the prophets, that should come.
. . . And they were in number about two thousand and five hundred souls; and they did consist of men, women, and children. (3 Nephi 11:8-11, 14, 15; 17:25)

The second example of many was a modern event, in fulfillment of ancient prophecy. Near the very end of the Old Testament, this prophecy is recorded, from the Prophet Malachi:

Behold, I will send my messenger, and he shall prepare the way before me: and the Lord whom ye seek, shall suddenly come to his temple. . . (Malachi 3:1)

Who would build this latter-day Temple, and when would the Savior come to it? In their deepest poverty the modern-day followers of Christ, who had received baptism by those authorized by Christ Himself, were commanded by the Lord through the Prophet Joseph Smith to build a Temple in Kirtland, Ohio. One week after the Kirtland Temple was dedicated, Joseph Smith and his colleague, Oliver Cowdery, were praying in the Temple, on April 3, 1836. This is the second example I offer you of the Savior, Jesus Christ, revealing Himself to us in these latter days that we might know Him. This is from the personal testimony of Joseph and Oliver:

The veil was taken from our minds, and the eyes of our understanding were opened.
We saw the Lord standing upon the breastwork of the pulpit, before us; . . .
His eyes were as a flame of fire; the hair of his head was white like the pure snow; his countenance shown above the brightness of the sun; and his voice was as the sound of the rushing of great waters, even the voice of Jehovah, saying:
I am the first and the last; I am he who liveth, I am he who was slain; I am your advocate with the Father. (Doctrine & Covenants 110:1-4)

I have been to the Garden Tomb, in Jerusalem. I have looked in. It is empty. Jesus is not there. He is risen, as He said.

I have not seen Jesus Christ. Joseph Smith did, and he proclaimed the living Christ to the world. I have heard and received the testimony of Joseph Smith. By the gift of the Holy Ghost, bestowed upon me by the priesthood authority of Christ, I know that his testimony is true, by the same way that people anciently knew that the testimony of Paul, or Peter, or John was true. I too know, for myself, that Jesus Christ lives, that He suffered for me in my place, as He did for all who will receive Him. I know that Jesus Christ was resurrected.

Because of the resurrection of Christ, I will be resurrected, too, and so will you.

Of the Passover and the Knowledge of God

On the night before He was crucified, Jesus gathered His Apostles together to celebrate the Passover, that most sacred of Hebrew festivals, rich in symbolism of Christ and His atonement. The firstborn of every family would die, except for the sacrifice of a lamb, whose blood brought life and safety to Israel.

What were Jesus’ thoughts as He celebrated that Passover with those He loved best, on the very doorstep of when He was to fulfill the Passover ordinance and the prophecy embedded in its symbolism. What were Jesus’ thoughts when He Himself was about to be the Passover Lamb?

Many sacred things happened at that Passover. The Savior introduced the Sacrament of the Lord’s Supper, the broken bread symbolic of His body, soon to be broken and soon thereafter to be resurrected; the wine symbolic of his blood, in a few hours to be shed at Gethsemane and the next day under the whip and on the cross.

Jesus washed the feet of the Apostles, teaching them that priesthood is entirely about loving service to one another.

And Jesus prayed. What would it mean to you to hear the Savior pray to the Father for you?

Some of the words of that prayer are preserved in John 17, one of the most sacred chapters of all the scriptures. This is how it begins:

These words spake Jesus, and lifted up his eyes to heaven, and said, Father, the hour is come;

Indeed it had, the hour pointed to by all eternity, the very meridian of time.

glorify thy Son, that thy Son also may glorify thee:

It is curious to me that there are still some, who must not have read this and other passages of scripture, who say that Jesus Christ never claimed that He was the Son of God, the Messiah. Here is Jesus very plainly declaring His Sonship in prayer to the Father in the presence of His disciples.

And then bearing His solemn witness to the Father and to the Apostles around Him, the Savior declared in His holy prayer, announcing Himself, again, to be the Christ, the Messiah—

And this is life eternal, that they might know thee the only true God, and Jesus Christ, whom thou hast sent. (John 17:1, 3)

Before 1820, where was that knowledge of Jesus Christ to be found? How were people to know the Savior, the knowing by which they could obtain eternal life? The Prophet Amos foretold—

Behold, the days come, saith the Lord God, that I will send a famine in the land, not a famine of bread, nor a thirst for water, but of hearing the words of the Lord: And they shall wander from sea to sea, and from the north even to the east, they shall run to and fro to seek the word of the Lord, and shall not find it. (Amos 8:11, 12)

For centuries the famine had prevailed. What the churches of the day taught about Jesus Christ was all confusion and contradiction.

• Some said He was the Son of a God who had no body, parts or passions;


• or that He was the physical manifestation of a God who could never be seen;


• or that He was a Savior who only saved some and damned others, all regardless of what they did or believed;


• or that He saved everyone who believed no matter what they did;


• or that He saved some because of what they did no matter what they believed;


• or that He had done His work, gone to Heaven, and left men afterward to fend for themselves.

Yet there were many who sought to know the Christ, generations of people seeking the Lord and His saving power, and who could not find Him. Some of their names were Augustine, Thomas, Tyndale, Luther, Casiodoro de Reina, Charles Wesley, and others. Surely there were many more whose names we do not know. There were old and young, neither age nor youth an obstacle to wanting to know the Father and Jesus Christ, and gain the eternal life that They promised. One of these in 1820 was a young teenage boy with an ordinary name, Joseph Smith.

In 1820, the hour had come. In answer to one prayer, added to millions of prayers offered by other seekers over thousands of years, our Heavenly Father appeared to the young Joseph Smith, spoke his name and revealed to him Jesus Christ, His Son. To Joseph Smith the Father said, “This is My Beloved Son. Hear Him!” (JS-H 1:17) With those words, the first drops fell ending the spiritual drought of 1700 years.

What did the Savior say to Joseph? Jesus quoted scripture, a prophecy that He had given to the Prophet Isaiah:

they draw near to me with their lips, but their hearts are far from me, they teach for doctrines the commandments of men (JS-H 1:19).

We call that the First Vision, because many others followed, in which Jesus Christ revealed Himself to the Prophet Joseph Smith, and then to others, and by which others who knew Jesus in their mortal lives passed on to Joseph what the Savior had given to them. Joseph Smith passed on that knowledge and power to us, to all who will today receive Jesus Christ, and come to know Him and the Father, and obtain eternal life, in the way that those did, who observed the Passover with Jesus, in the way that many others have throughout history. The Savior’s Church was on the earth once again to bring hearts near to the Savior through the power of the doctrines of God.

Of Blood Sacrifice and the Sacrifice of the Savior

For some 4,000 years the ritual sacrifice of a first-born, unblemished lamb played an essential part in the worship of the God of Heaven. This was an ordinance that dates from Adam, was practiced by Abraham, and was given renewed emphasis through the prophet Moses to the children of Israel, only recently released from slavery and oppression.

Also since the days of Adam, blood sacrifice as prescribed by revelation has been copied and horribly distorted by followers of many other religions not authorized by God. The disciples of these other religions, and also many less understanding subscribers to the religion of Jehovah, have acted as if they believed that the blood sacrifice itself did something, accomplished something, in some way mattered.

In truth, in the whole history of the earth there has been and will be only one blood sacrifice that matters at all, from an eternal perspective. That was the blood sacrifice of the Son of God, Jesus Christ, the sacrificial Lamb of the Father. His sacrifice was the only one that in and of itself possessed any virtue, for that sacrifice made possible the forgiveness of the sins of men and women throughout time. All other sacrifices conducted under divine authority derived all of their virtue from that one sacrifice of the Savior.

That was why the Lord was so strict about how those sacrifices were to be conducted, so that each one referred directly to the Savior’s sacrifice. All sacrifices not conducted in the manner prescribed by revelation from God and under His authority were solemn hoaxes, pointing away from the Savior, diverting attention away from the one sacrifice of Jesus Christ, and were diabolical at their root.

Consider the sacrifice offered by Cain. Rather than offer the blood sacrifice prescribed by God by revelation, tied to the sacrifice of Jesus Christ that would heal sins from Adam down to the last child born on earth, Cain offered a sacrifice of fruit. Cain acted as if there were some virtue in the sacrifice itself, rather than recognizing that a sacrifice could only derive virtue from the only sacrifice that could generate virtue, the sinless sacrifice of Christ. The Lord rejected the sacrifice and reminded Cain that he could not please the Lord without obeying the Lord (Genesis 4:3-7). Obedience to God was not part of the plan of Cain, who thereafter descended from his mocking sacrifice to the bloody murder of his own brother.

The sacrifice prescribed by revelation from God was rich in symbolism, the death of the unspotted firstborn lamb directly representative of the death of the firstborn and sinless Son of God. The actual death of the sacrifice was a powerful, real, tangible reminder for the disciples of Jehovah of the reality, the literalness, of the sacrificial death of the Messiah. The ordinance was intended to be impressive to the minds of the worshipers—the physical death not only representing the physical death to come of the Messiah but also driving home the point that matters of spiritual life and death were at stake.

These blood sacrifices were only temporary, however. For the people who lived before the sacrifice of Jesus Christ, they were intended to bring more reality to the promise of an event that had not yet happened. After His sacrifice and resurrection the Savior proclaimed an end to the ordinances.

And ye shall offer up unto me no more the shedding of blood; yea, your sacrifices and your burnt offerings shall be done away, for I will accept none of your sacrifices and your burnt offerings. (3 Nephi 9:19)

Modeled after the image of the Savior’s sacrifice, they were fulfilled when His atonement was accomplished. To continue the blood sacrifices after that would suggest that the Savior’s sacrifice was not sufficient, that somehow the Savior’s suffering for our sins was incomplete, that the sacrifice of an animal in and of itself could provide forgiveness. Remember, there never was any virtue in the sacrifices other than as they pointed to the future sacrifice of the Christ. Continuing the ordinances after Christ’s death and resurrection would actually be a denial of faith in Christ and His atonement rather than the expression of faith in Him that they were prior to His redemption.

Do we living after the resurrection of Jesus Christ have no need to be reminded of His atonement? Of course we do. In place of the blood sacrifice of old, the resurrected Savior called for a new sacrifice:

And ye shall offer for a sacrifice unto me a broken heart and a contrite spirit. And whoso cometh unto me with a broken heart and a contrite spirit, him will I baptize with fire and with the Holy Ghost . . . (3 Nephi 9:20)

This sacrifice is also connected to the Savior’s sacrifice, for that is how we receive the forgiveness of sins that His redemption made possible. That is how we are brought within the circle of the atonement whereby Christ’s suffering takes the place of our suffering. Our sacrifice is to receive Him and qualify for His sacrifice in our place.

But the Lord still draws upon physical ordinances to remind us of spiritual realities. The night before the crucifixion Jesus instituted the ordinance of partaking of ceremonial bread and wine to remind us of the union of His sacrifice and ours. The bread points to the body of Christ, that He gave up in death and reclaimed in resurrection. The wine points to the blood that He shed in Gethsemane and on the cross.

The promise is pronounced in the words of the prayer that the Savior prescribed to be offered. As His disciples partake of tangible symbols of even more powerful spiritual intangibles, they do so in witness “that they do always remember him, that they may have his Spirit to be with them.” (Moroni 5:2) The saints of ancient days and modern times are united by powerful and appropriate ordinances in their focus on the central event of history, the sacrifice and atonement of Jesus Christ.