Observation

"Pilate saith unto him, What is truth? And when he had said this, he went out again..."

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Location: Tampa, FL, United States

Tuesday, February 10, 2009

Debt Release -- Deuteronomy Style

Deuteronomy 15:1 “At the end of every seven years you shall grant a remission of debts. 2 “This is the manner of remission: every creditor shall release what he has loaned to his neighbor; he shall not exact it of his neighbor and his brother, because the LORD’S remission has been proclaimed."

While biblical scholars differ on the precise application these verses had for Israelites living in those days, it is interesting to note the brilliance of this economic law. If a creditor had to forgive his debtors for a year every 7th year, or more likely premanently, how careful would they be in making loans to fellow countrymen? Efficiency would be at its zenith. And how much harder would the Israelites work to be "self-sufficient" knowing the loans tendered would only cover their basic needs--Deut 1:8 "... but you shall freely open your hand to him, and shall generously lend him sufficient for his need in whatever he lacks." I doubt "whatever he lacks" would include much beyond, food, clothing and shelter. These periodic debt sabbaticals enabled longevity in financial markets, providing protection against runaway inflation and fiscal implosion. Contrast the protections against inefficiency in this model against that pitfalls aptly represented by the recent $78bil overpayment by the U.S. federal government for stocks and other assets of troubled financial institutions.

The political elite of America's welfare state has great hostility for God's wisdom in economic matters, inclusively, and as such promises great economic pain and suffering with each move it makes in providing for "our children's future."

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