Unforgiving Debtor: Silver Breaks Predatory Feudalism of Rent-to-Own Schemes

another Sunday Silver Sermon

In this newsletter, I often reflect on a cherished story from my mother or father, honoring their wisdom and the family memories that shape who I am.

These references to my upbringing honor the lessons from my parents, a shared experience that many of us can relate to, reminding us of the enduring bonds of family and the timeless wisdom passed down through generations.

Whenever a “Rent to Own” ad popped up, my dad would offer harsh criticism, explaining that he believed this business model exploited people's financial vulnerabilities and was not ethical. His strong stance on this issue was a reflection of his values and it left a lasting impression on me.

Rent-to-own businesses often use predatory pricing schemes that can be extremely costly for consumers, especially those with limited financial means. Here are some examples of how these pricing structures work and why they are considered exploitative:

Typical Rent-to-Own Pricing Examples

Microwave
A basic microwave that retails for $100-$150 might be offered at $15-$20 per week for 52 weeks. This results in a total cost of $780-$1040, 5-7 times the retail price.

Couch
A couch with a retail value of $800 could be priced at $30-$40 per week for 78 weeks. The total cost would be $2340-$3120, nearly 3-4 times the original price.

Computer
A $500 laptop might be offered at $35 per week for 52 weeks, totaling $1820 - more than 3.5 times the retail cost.

Washer and Dryer Set
A washer/dryer set retailing for $1200 could be priced at $50 per week for 104 weeks. This results in a staggering total of $5200, over 4 times the retail price.

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How These Schemes Prey on Consumers

1. These businesses often market to low-income individuals who may have limited access to credit or savings

2. By focusing on small weekly amounts, the total cost is obscured.

3. No credit checks appeals to those with poor credit but often leads to higher overall costs.

4. Customers can take home items immediately, which can be tempting for those in urgent need.

5. Late fees, processing fees, and other hidden charges can significantly increase the total cost.

6. Extended payment periods result in much higher total costs.

7. Missed payments can lead to repossession, potentially losing both the item and all money paid.

8. The items are often marked up significantly before the rent-to-own pricing is even applied.

These practices take advantage of people's immediate needs and financial constraints, often trapping them in cycles of debt and overpayment for basic household items. The extreme markups mean consumers end up paying several times the retail value for products, making it an expensive and often financially damaging way to acquire goods.

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the Parable of the Unforgiving Debtor

Here is Matthew 18:21-35 from the King James Version (KJV):

21 Then came Peter to him, and said, Lord, how oft shall my brother sin against me, and I forgive him? till seven times?
22 Jesus saith unto him, I say not unto thee, Until seven times: but, Until seventy times seven.
23 Therefore is the kingdom of heaven likened unto a certain king, which would take account of his servants.
24 And when he had begun to reckon, one was brought unto him, which owed him ten thousand talents.
25 But forasmuch as he had not to pay, his lord commanded him to be sold, and his wife, and children, and all that he had, and payment to be made.
26 The servant therefore fell down, and worshipped him, saying, Lord, have patience with me, and I will pay thee all.
27 Then the lord of that servant was moved with compassion, and loosed him, and forgave him the debt.
28 But the same servant went out, and found one of his fellow servants, which owed him an hundred pence: and he laid hands on him, and took him by the throat, saying, Pay me that thou owest.
29 And his fellow servant fell down at his feet, and besought him, saying, Have patience with me, and I will pay thee all.
30 And he would not: but went and cast him into prison, till he should pay the debt.
31 So when his fellow servants saw what was done, they were very sorry, and came and told unto their lord all that was done.
32 Then his lord, after that he had called him, said unto him, O thou wicked servant, I forgave thee all that debt, because thou desiredst me:
33 Shouldest not thou also have had compassion on thy fellow servant, even as I had pity on thee?
34 And his lord was wroth, and delivered him to the tormentors, till he should pay all that was due unto him.
35 So likewise shall my heavenly Father do also unto you, if ye from your hearts forgive not every one his brother their trespasses.

This parable teaches several important lessons about forgiveness, mercy, and how we should treat others.

In this parable, a king forgives a servant who owes him an enormous debt - millions of dollars in today's currency. However, immediately after being forgiven, this same servant refuses to show mercy to a fellow servant who owes him a much smaller amount.

The key lessons from this parable include:

1. The importance of forgiveness: Jesus emphasizes that we should forgive others repeatedly, even "seventy times seven" times.

2. God's mercy towards us: The king in the parable represents God, who forgives us our enormous spiritual debt.

3. Our responsibility to extend mercy: Having received such great forgiveness from God, we are expected to show mercy and forgiveness to others.

4. The consequences of unforgiveness: The unforgiving servant ultimately faces severe punishment for his lack of mercy.

5. The principle of proportionality: The contrast between the huge debt forgiven by the king and the small debt the servant refused to forgive highlights the disproportionate nature of our unforgiveness towards others.

This parable teaches us that as recipients of God's immense mercy and forgiveness, we have a moral obligation to extend the same grace to others. It warns against hypocrisy and hardheartedness, especially when we have been shown great kindness ourselves.

In a broader context, this parable can be applied to various situations, including financial dealings, personal relationships, and even societal structures. It encourages us to treat others with the same compassion and understanding that we hope to receive, reflecting the mercy we've been shown by God.

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The Modern Feudalism of Financial Predation

In today's financialized economy, we're witnessing a sophisticated form of predatory capitalism that bears a striking resemblance to the exploitative rent-to-own model, but on a grand scale. This system, which we might call "modern feudalism," traps individuals and entire nations in cycles of debt and economic servitude.

At the heart of this system lies the Cantillon effect, where those closest to the source of newly created money benefit disproportionately. As central banks print money, ostensibly to stimulate the economy, the wealthy and well-connected reap the rewards while the average citizen bears the brunt of the resulting inflation - a hidden tax that erodes purchasing power and savings.

Just as rent-to-own schemes prey on the financially vulnerable with exorbitant interest rates, our current economic structure saddles consumers with skyrocketing credit card fees and oppressive banking charges. These financial burdens, coupled with stagnant wages that fail to keep pace with inflation, create a perfect storm of economic hardship for the majority.

Governments, too, fall victim to this predatory system. Developing nations, lured by promises of economic growth, find themselves ensnared in debt traps orchestrated by powerful financial institutions and wealthy nations. The resulting structural adjustments and austerity measures often cripple these economies, perpetuating a cycle of dependency and exploitation.

Meanwhile, the average citizen faces an uphill battle against over-taxation, further diminishing their ability to build wealth or escape financial precarity. This modern feudalism ensures that the vast majority remain economic serfs, toiling to enrich a small financial elite.

The parallels to the rent-to-own model are clear: both systems offer the illusion of ownership and prosperity while extracting maximum value from those who can least afford it. Just as a rented couch might end up costing several times its retail value, our financialized economy extracts a premium from every aspect of our lives, from housing to education to healthcare.

To break free from this cycle, we need a fundamental restructuring of our economic system. This includes reining in predatory financial practices, implementing progressive taxation, and investing in real economic growth that benefits all members of society, not just the financial elite. Only then can we hope to dismantle this modern feudalism and create an economy that truly serves the many, not just the few.

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Silver Fixes This

A return to sound money, anchored by gold and silver, could indeed address many of the systemic issues plaguing our financialized economy. By constraining the monetary system, we can keep both bankers and politicians in check, preventing the rampant inflation and wealth inequality driven by unchecked money printing. A non-fractional banking system backed by tangible assets like silver would restore confidence in deposits and financial institutions.

Moreover, embracing peer-to-peer transactions and rejecting the consumerist culture propagated by aggressive marketing could lead to a simpler, more fulfilling lifestyle. Silver-backed transactions could foster financial integrity and stability, encouraging responsible spending and saving. This shift towards sound money and mindful consumption could pave the way for a more equitable and sustainable economic system, free from the predatory practices that characterize modern financial feudalism.

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I know a place

this week I am traveling to a place where silver is the basis for a growing number of locals and will be sharing more insights on how this community based model can be applied anywhere on our planet.

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Disclaimer: This newsletter embraces all faiths, cultures, creatures, and nations equally. We do not promote any religion as superior, but unite diverse perspectives in our shared mission to challenge and reform the debt-based economic system.

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Our opinions are not our sponsors opinions.

The views expressed on TheSilverIndustry.substack.com are not necessarily those of the Silver Academy.