Psalm 126 is another Psalm of Degrees. It phrases God's deliverance of His people from bondage. It may very well have been written by Ezra on their return from bondage from Babylon. Though Babylon is not mentioned here, the bondage described was typical of the extreme nature of Babylon. Their redemption was typical of the redemption we have in Christ Jesus.
In the Psalm, those who have been returned out of captivity are here called upon to be thankful while those who still remained in captivity were prayed for. This most certainly applies to the believer in Christ, we are called upon to be thankful and to pray for the unbeliever. It is easy in the reading of this Psalm to make that application.
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