How does money leading work, by the book?
Mature content advisory: biblical references, math, infrequent coarse language.
The calculations in this post were performed in Python on SUSE Linux.
If my numbers are wrong, blame Guido.
Unfair and debilitating debt is a bad thing; most people agree, even without reading ancient texts.
By the Torah, there is a Jubilee year, every 50th year. On the 50th year, all debt is cancelled, among other pleasant things. This leads to jubilation, “A feeling of great happiness and triumph.” The Jubilee is not respected by many people, as far as I can tell. I’m not religious, but I can see it’s a good thing.
Anyway, from my reading about debt, I wrote this panacea in five easy dot-points:
- Cancel all excess debt. The max. total repayment is 4x the principal: “doubled and redoubled”.
- Outlaw usurious interest rates. 2.8% is the max. for compound interest, 6% for simple interest.
- At every ISO turn of the century, and at every half-century, there is a Jubilee. All debt is cancelled.
- If lenders continue to charge usurious interest, after a warning, only the principal is repaid.
- It would also be nice to allocate land fairly, pass it down, and avoid home loans. We may dream.
I worked out the percentages, so that a debt cannot quite quadruple over the 50 years from one Jubilee to the next. For compound interest,
pow(4, 1.0 / 50) - 1 gives us the 2.8% limit. For simple interest,
3.0/50 gives us the 6% limit. That is the only novel bit in my post, the rest is by the book. Thank-you Python, for your assistance.
Regardless of religion, I hope you can agree: it would be nice to limit how badly the banks, other usurers, and corrupt governments can fuck over everyone else. It would be nice to cut the syphons of blood, from the workers and the nations, to the money-lenders. The most obese usurers can have a disability pension.
“Hey Mr. Candidate, I’ll pay you $1 million to help your campaign – no strings attached! When you’re in office, please remember your favourite creditor. A few billion, to help our nation. Pay me back later!”
“Hey Old Woman, I’ll buy your house for top dollar! Your kids can be rich.”
“Hey Young Man, I’ll give you a house. Don’t pay now, pay later! Just two-figure interest rates!”
The prohibition on buying and selling land, it really makes sense. If you keep homes in the extended family, and have a sensible number of kids, you don’t have to spend 30 years working for the bank.
As a man of little faith, I’ll be surprised if we could legislate this stuff in a secular country.
People tend to reject, what they don’t accept.
It’s only 2012. The creditors still have 37.5 years to get their money back, so it’s no great trouble for them.