Figures of speech are easy to recognize, symbols are harder. Types and allegories are not obvious in the least. So if we are following the rule of literalism, we are never going to find out types or allegories. This is simply because when types and allegories are used, the literal sense makes sense. And we are told in this case to seek no farther! Figures of speech can be spotted easily. Types and allegories must be revealed to us by the Holy Spirit. Once this is done, they can be analyzed and lessons drawn from them. But if you never seek them, you just won't get it. And thereby you will miss out on much of what the bible has to say, because, as we read in Hosea 12 above, He speaks to us in similitudes or typology. So we may consider typology to be a key of knowledge since it leads to greater understanding of what God is saying. By eliminating or de-emphasizing typology, literalism takes away one of the Keys of Knowledge.
Now that's enough examples of reasons offered for literalism. The main problem is literalism itself. Let's look back at the basic rule of literalism and see how well it holds up.
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