Psalm 106:40, "Therefore Yahweh burned with anger against his people. He abhorred his inheritance," is a stark statement reflecting a deep sense of divine displeasure. To understand it, we need to consider the context of the entire psalm and its historical backdrop.

Here's a breakdown of the verse's meaning:

"Therefore Yahweh burned with anger against his people":
"Therefore": This links the verse to the preceding verses, which detail a history of Israel's repeated rebellions, idolatry, and disobedience towards God.
"Yahweh": This is the covenant name of God, emphasizing his faithful and loving relationship with Israel. The fact that Yahweh is angry is significant because it shows that even covenant love has limits when repeatedly disregarded.
"Burned with anger": This is a strong expression of divine wrath. It conveys the intensity and righteousness of God's anger in response to the severity and persistence of Israel's sins. It's not a petty or capricious anger but a just response to broken trust and violated covenant.
"His people": This phrase highlights the intimate relationship God had with Israel. He had chosen them, delivered them, and entered into a special covenant with them. Their rebellion was therefore a profound betrayal.

"He abhorred his inheritance":
"Abhorred": This word signifies a deep feeling of disgust and revulsion. It goes beyond simple displeasure; it indicates a strong rejection and a feeling of being repulsed.
"His inheritance": This refers to the nation of Israel, which God considered his special possession and treasure. They were the people He had chosen and set apart for Himself. The idea of God "abhorring" his own inheritance is a painful and shocking expression of the depth of their fall and the severity of his judgment.

In summary, the verse means:

Because the Israelites repeatedly and persistently rebelled against God, engaging in idolatry and disobedience despite His covenant with them, God was intensely angry. He was so disgusted and repulsed by their actions that He deeply regretted His choice of them as His special people, His "inheritance."

Context and Interpretation:

Historical Background: Psalm 106 recounts Israel's history from the Exodus to their settlement in the Promised Land, emphasizing their constant failures and unfaithfulness despite God's repeated acts of deliverance and mercy. This verse is a culmination of that historical review.
Purpose of the Psalm: While the psalm acknowledges God's judgment, it also serves as a confession of national sin and a plea for God's continued mercy. It reminds the people of their past failures so that they might learn from them and turn back to God.
Theological Implications:
God's Holiness and Justice: The verse highlights God's holiness and his commitment to justice. He cannot simply overlook sin, even among His chosen people.
Consequences of Disobedience: It demonstrates the serious consequences of breaking covenant with God and choosing to disobey His commands.
Importance of Repentance: Despite the severity of God's anger, the psalm also implies the possibility of repentance and restoration. The psalm ends with a plea for God to gather His people and to remember His covenant.
New Testament Perspective: While this verse describes God's anger toward Israel in the Old Testament, the New Testament reveals that God's ultimate solution for sin is found in Jesus Christ. Through faith in Jesus, people can be reconciled to God and experience his forgiveness and grace. However, even under the New Covenant, disobedience still has consequences, and believers are called to live lives of obedience and faithfulness.

In conclusion, Psalm 106:40 is a powerful verse that underscores the severity of Israel's sin and God's righteous anger, while also implicitly pointing to the need for repentance and God's enduring mercy.