Daniel Nichols has posted a piece on the American Bishops’ failure to agree on a statement on the economy. One wishes that they had come out with a stern reminder of the Church’s perennial teaching against usury, and suggestions for overcoming it. Some Americans are attacking usury though; the eccentrics of the Occupy Wall Street movement. They have had a brilliant idea for saving some people from usurers:
OWS is going to start buying distressed debt (medical bills, student loans, etc.) in order to forgive it. As a test run, we spent $500, which bought $14,000 of distressed debt. We then ERASED THAT DEBT. (If you’re a debt broker, once you own someone’s debt you can do whatever you want with it — traditionally, you hound debtors to their grave trying to collect. We’re playing a different game. A MORE AWESOME GAME.)
The name “Rolling Jubilee” is explicitly taken from the Old Testament jubilee. As one commentator puts it “it … feels great to have the opportunity to be an anti-bank for once. There’s something very good about forgiveness.”
Meanwhile, Front Porch Republic reports on a method from a completely different part of the American political “spectrum” to help poor immigrants avoid getting into the hands of usurers in the first place:
Eleven years ago, Bruno Rivas left Mexico City to make a better living for his family in San Francisco. He landed a job at a restaurant and began making some money, but couldn’t figure out how to break out of a cash system into a marketplace driven by credit. [...] he was able to purchase items for daily provision, but without a means of building credit, he struggled to find a way to fund larger purchases or take bigger steps toward financial health. But then four years ago, Bruno learned about the Bay Area-based Mission Asset Fund (MAF)—an organization that has garnered nationwide recognition for its nontraditional approach to lending—and decided to join a peer lending circle, or “cesta populare” (“community basket” in Spanish). Joining a cesta meant that Rivas and the eight other members of his circle would contribute $100 every month to a communal pot. After drawing names to determine order, members would take turns collecting a loan that they could then put toward whatever they chose. When Rivas’ turn came around, he took the loan from the lending circle, combined it with savings from an Individual Development Account (IDA) that MAF had set up for him, and purchased equipment to start a screen printing business.
“Peer Lending Groups” are doing the same sort of thing as the montes pietatis.