ironman77: "Last, won't things like marginal utility be a hindrance to deciding the value of property. Escrow bids seem to me to likely be very fluid, and unpredictable.
Since we are talking about escrowed money in the context of marginal utility, I have to assume you mean the marginal utility of capital that frequently finds greater utility in uses other than property assessing escrow accounts which return only the long term average of the short term Treasury rate (modern portfolio theory's "risk free interest rate").
To that I have two perspectives that mitigate the problem of marginal utility:
1) Due to the subsistence exemption, the ownership of these escrow accounts will tend to take the place of savings accounts -- the very liquidity of which is a desirable feature.
2) Since government can place bids -- disciplined by the market -- this ultimately determines the very creation of money: Monetary policy itself. Here, again, liquidity is the sine qua non hence a desirable feature.
Does this address the issue you were raising or did I misunderstand you?
If you read nothing else, read this: A Contract Between Americans
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