Mesopotamian usury, Vedic accounting, American Jubilee: excavating the history of fiscal debt.

mk: "Now we owe our lives to the nation that formed us, pay interest in the form of taxes, and, when it comes time to defend the nation against its enemies, pay back the principal with our lives. This is a great trap of the twentieth century: On the one side is the logic of the market, which insists that we don’t owe one another anything. On the other is the logic of the state, which insists that we are born with a debt we can never truly pay. In fact, the dichotomy is false. States created markets, markets require states, and neither could continue without the other."

Really interesting piece.

I am amazed at how often I find people that believe that paying a mortgage on a house that costs more than they owe is a moral imperative, or simpy as 'the right thing to do'.

Why would you keep a promise to bank that would not do the same unto you? If you continue to pay on a house that is worth far less than your mortgage, you are giving the bank money to cover the mistake it made on you, while to a large extent, the bank has already been covered by tax dollars for that mistake. And, all the while, you are investing less in your retirement or other aspects of your life, making your total loss much larger than just the difference in your mortgage and the price of your house. Your mortgage was a deal made in a bubble. Both sides were wrong. Why should the banks get an out where homeowners don't? Walk away. Invest in your future.

posted by NotPhil: 2710 days ago