So you admit that GOD deals with people through Covenants.
It is not the covenant/replacement crowd. Consider what GOD through the Apostle Paul tells us in the following Scripture:
Peter tells us what really happened:
1Pe 2:4-10
(4) To whom coming, as unto a living stone, disallowed indeed of men, but chosen of God, and precious,
(5) Ye also, as lively stones, are built up a spiritual house, an holy priesthood, to offer up spiritual sacrifices, acceptable to God by Jesus Christ.
(6) Wherefore also it is contained in the scripture, Behold, I lay in Sion a chief corner stone, elect, precious: and he that believeth on him shall not be confounded.
(7) Unto you therefore which believe he is precious: but unto them which be disobedient, the stone which the builders disallowed, the same is made the head of the corner,
(8) And a stone of stumbling, and a rock of offence, even to them which stumble at the word, being disobedient: whereunto also they were appointed.
(9) But ye are a chosen generation, a royal priesthood, an holy nation, a peculiar people; that ye should shew forth the praises of him who hath called you out of darkness into his marvellous light:
(10) Which in time past were not a people, but are now the people of God: which had not obtained mercy, but now have obtained mercy.
God chose a people called Israel. They were the elect of God. The entire passage revolves around the "Stone."
In verses 7-8 Peter quotes from Psalm 118:22. Christ is precious to those that believe. But those who have
rejected Christ, the Stone, stumble because of their disobedience. This is a reference to the chief priests and Pharisees. Jesus had referred to this same Psalm in Mat.21:42.
Peter also quotes from Isa.8:14 in the second part of 2:8. Rejection of Christ is fatal. To disobey the message is to reject it. Because of sin all disobedient unbelievers are destined for a "stumbling" which will lead to eternal condemnation.
In verses 9-10 Peter reminds his readers that they are the elect of God, called to holiness. This is in contrast with the disobedient destined for destruction. They were a chosen people. This is an OT phrase used in Isa.43:20 and applied only to Israel. Now it is used of those who are called out as a nation in the NT--those in Christ.
See the contrast:
1Pe 2:9 But ye are a chosen generation, a royal priesthood, an holy nation, a peculiar people; that ye should shew forth the praises of him who hath called you out of darkness into his marvellous light:
Believers in Christ are now a chosen generation, a royal priesthood, a holy nation. This was the status of the Jews in the OT.
The Jews are still a nation. But these blessings are now in Christ. The churches are composed of both Jews and Gentiles that have come to Christ. They are one in Christ, and they make up a nation called out of God.
The nation of Israel, unbelieving Jews, still exists.