Christ is the mediator, and He is the mediator of a new covenant. The old covenant has been superseded. The reason why the old was superseded was that it did not enable anyone to receive the eternal promises. The Bible is full of promises of the blessings of God, it speaks of a truly wonderful life, yet Israel never experienced this. True she had periods of blessing, but these were short-lived, and never actually reached anywhere near the full blessing of God. The full blessing of God is a life that is completely devoted to Him, lived in perfect fellowship with Him, knowing Him completely. The old covenant could not provide this because of our sin, just as Paul argues that the Law could not make anyone righteous.
Now this does not mean the Law failed. It is not a case of God trying one method, the Law, this failing, so He tries something else. The Law fulfilled the function for which it was sent. It reveals much of the heart of God, restrained Israel to a degree, showed our inherent sinfulness, and pointed towards the new covenant, to Christ.
Christ died as a ransom, and so we have been set free from our sins. We are no longer enemies of God under judgement. We have been justified.
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