1 But now thus saith the Lord that created thee, O Jacob, and He that formed thee, O Israel, Fear not: for I have redeemed thee, I have called thee by thy name; thou art mine.
It is God who called Israel.
2 When thou pass through the waters, I will be with thee; and through the rivers, they shall not overflow thee; when thou walk through the fire, thou shalt not be burned; neither shall the flame kindle upon thee.
Though God's people still had to pass through the fire, God protected them from damage.
3 For I am the Lord thy God, the Holy One of Israel, thy Savior: I gave Egypt for thy ransom, Ethiopia and Seba for thee.
These other nations will be destroyed in place of Israel/Judah.
4 Since thou was precious in My sight, thou have been honorable, and I have loved thee: therefore will I give men for thee, and people for thy life.
God obviously knows something we don’t because “honorable” doesn’t describe the Israel in the Bible.
Actually it is likely that, though the Bible tells us all Israel’s faults, it simply doesn’t go into detail about the very much worse faults of their neighbors.
5 Fear not: for I am with thee: I will bring thy seed from the east, and gather thee from the west;
Though the Jews would be scattered to many other nations, God will bring them back to their homeland.
6 I will say to the north, ‘Give up;’ and to the south, ‘Keep not back: bring my sons from far and my daughters from the ends of the earth;’
7 Even every one that is called by My Name: for I have created him for My glory, I have formed him; yea, I have made him.
It is not the Jew’s righteousness that is the reason for God's favor. It is to demonstrate through their history who God is; His love for those who choose to serve Him.
8 Bring forth the blind people that have eyes, and the deaf that have ears.
Though the Jews choose to not understand what God is telling them when He says to repent, He will restore them from the Babylonian captivity (remember, this was written after Assyria destroyed the Northern Kingdom, Israel, but before the Babylonians conquered the Southern Kingdom, Judah.)
9 Let all the nations be gathered together, and let the people be assembled: who among them can declare this, and shew us former things? Let them bring forth their witnesses, that they may be justified: or let them hear, and say, “It is truth.”
“All those I have told these things to before need to come forward and declare it so they can get credit as prophets and I can get credit as God when they happen.”
10 Ye are My witnesses, says the Lord, and My servant whom I have chosen: that ye may know and believe Me, and understand that I am He: before Me there was no God formed, neither shall there be after Me.
“I am all there is.”
11 I, even I, am the Lord; and beside Me there is no Savior.
12 I have declared, and have saved, and I have shown, when there was no strange god among you: therefore ye are My witnesses, says the Lord, that I am God.
This was one of the jobs God called Israel for; to witness that there really is one true God.
13 Yea, before the day was, I am He; and there is none that can deliver out of My hand: I will work, and who shall let it?
Before daytime was even invented, God was there.
14 Thus says the Lord, your Redeemer, the Holy One of Israel; For your sake I have sent to Babylon, and have brought down all their nobles, and the Chaldeans, whose cry is in the ships.
Babylon was the capital city for the Chaldeans. God destroyed them for the benefit of Israel.
15 I am the Lord, your Holy One, the Creator of Israel, your King.
16 Thus says the Lord, which makes a way in the sea, and a path in the mighty waters;
“I am the God that parted the Red Sea.”
17 Which brings forth the chariot and the horse, the army and the power; they shall lie down together, they shall not rise: they are extinct, they are quenched as tow.
The mightiest of armies is weak and powerless before God.
18 Remember ye not the former things, neither consider the things of old.
19 Behold, I will do a new thing; now it shall spring forth; shall ye not know it? I will even make a way in the wilderness, and rivers in the desert.
"Don't be concerned with what has happened in the past. I am changing everything around. wild lands will be settled and dry lands will be watered."
20 The beast of the field shall honor Me, the dragons and the owls: because I give waters in the wilderness, and rivers in the desert, to give drink to My people, My chosen.
All dragon legends from around the world portray them as very scary creatures, and indeed, dinosaur fossils support that. God says even the scariest wild animals will praise Him.
21 This people have I formed for Myself; they shall shew forth My praise.
God created the nation Israel for the purpose of demonstrating to the world His power.
22 But thou hast not called upon Me, O Jacob; but thou hast been weary of Me, O Israel.
Even with all the miracles that God preformed for them, Israel got bored with Him.
23 Thou hast not brought Me the small cattle of thy burnt offerings; neither hast thou honored Me with thy sacrifices. I have not caused thee to serve with an offering, nor wearied thee with incense.
The Jews had been neglecting God; taking Him for granted, even though He didn't demand very much from them.
24 Thou hast bought Me no sweet cane with money, neither hast thou filled Me with the fat of thy sacrifices: but thou hast made Me to serve with thy sins, thou has wearied Me with thine iniquities.
“You’ve worn Me out with all your nonsense.”
25 I, even I, am He that blots out thy transgressions for Mine Own sake, and will not remember thy sins.
God chooses to forget our sins because He loves us. He is by no means obligated to do so. It is entirely because He wants to.
26 Put Me in remembrance: let us plead together: declare thou, that thou may be justified.
27 Thy first father hath sinned, and thy teachers have transgressed against Me.
28 Therefore I have profaned the princes of the sanctuary, and have given Jacob to the curse, and Israel to reproaches.