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RE: How a currency's exchange rate is determined | An analysis of the history of money & how currencies are priced
You're right. People don't want to think about this a lot so they end making up all kinds of myths in their heads that are based on logic and some stuff they've heard before
It's amazing. I paid off my first house when I was 28 and the interest rate was 11% (I bought a really cheap, busted-up house in the 1980s). My dad said, why don't you take longer so you can deduct your mortgage interest payment from your taxes? I said, well, a mortgage deduction is subtracted from my gross income, not my final tax bill. And at my tax rate, that's only saves me 20%, at most, of what I would be paying to the bank. Why would I want to pay the bank more, just to reduce what goes to the government? He did the math and paid off his house within 2 months. The value of a home mortgage interest deduction is so embedded in myth that people don't even question it.