Psalm 100:2 Serve the Lord with gladness! Come into his presence with singing!
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I would say that God recognizes the pain and grief that sin (in its many forms) has wrought and will continue to inflict (even upon believers) in this life and present world until the close of the age. That is why He made redemption from sin, as well as eternal life, possible through faith in Christ's atoning sacrifice. (Jesus Himself recognized the reality of such pain and grief in verses such as Matthew 5:4, where He said, "Blessed are those who mourn, for they shall be comforted.") At the same time, as noted in the verse cited in the question, as well as a multitude of other verses in both the Old and New Testaments, believers are reminded that this life and world (however much sadness they may cause or contain) are not the "final chapter". They are dwarfed by the EVERLASTING joy and peace that await them in eternity. Viewed in this proper perspective, believers have every reason to be happy (as well as for God to expect them to be so in gratitude to Him), even in the "worst of times". (Historical records note early Christians singing with joy as they entered the arena of wild beasts, knowing fully well what awaited them there.)
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