Friday, February 11, 2011

Mortgage Reform set to benefit the Banks - a Jubilee Counter Proposal

The federal government is currently in the position to implement large scale mortgage jubilee, since it has nationalized the organizations that own all the mortgages.  Instead, they are going to modify the rules so that banks will be set for greater profits!  I guess we should not be surprised.  The bankers own the government, so of course they make rules to benefit themselves. See the story here
The one thing this article doesn't account for is the fact that, absent government guarantees, the demand for housing goes down, and therefore, the price goes down along with it.    Thus, while interest rates go up, real estate costs actually go down, if government stops subsidizing its purchase. 
Cheaper real estate benefits everyone!  Well, except the parasitic bankers who reap more interest payments on higher-value purchases.   If you have less or no rent/mortgage payment, you have more money to spend in the real economy for goods and services.  Our entire concept of mortgaging residential property needs to change.  The whole system is set up to keep people on a perpetual treadmill of debt enslavement. 
That is the secret reason why real estate is not being allowed to reach its natural equilibrium level, much lower than today.  Expensive real estate overwhelmingly benefits the parasitic banking class.  The last thing they want is for people to be able to buy land without mortgages.   How can the parasites suck their blood if people don't always have to finance everything? 
A good example of a deceptive program that is supposed to benefit the people but really benefits the parasites is the mortgage interest deduction.  It benefits banks to have people take out bigger mortgages!  The government subsidy in effect goes straight to the bank, in the form of higher purchase costs.  The tax payer is just a pass-through vehicle.
Of course, the interest deduction doesn't even kick in until you buy a high value house.  For someone with an affordable mortgage, the standard personal deduction is greater than the mortgage interest deduction.  In other words, the mortgage interest deduction disproportionately benefits the wealthy, with a sliding scale of more benefit the wealthier you are!
A mortgage itself is one of the biggest scams in history!  A typical mortgage pays the bank twice as much in interest as the amount of the original purchase price.   What a scam, huh?   And god forbid you have a downturn in your ability to pay... in the next 30 YEARS of your life....  because then they get the whole property back totally free and can "sell" it again, without having to pay you back a cent that you'd been putting in all those years!    95% of your payments in those first few years goes to interest payments...  95% interest sounds like illegal usury to me!    At least it was before the bankers got the anti-usury laws thrown out...
Non-Exploitative Housing Policy Makes Us All Richer:  Interest-Free Mortgages
The government, as representative of the people, should make their housing policy benefit the people, not the parasite classes. The right to exist on this earth without paying for the privilege is what separates free men from serfs.  Unfortunately, our government works continually for our enslavement, having been taken over by the parasite classes.       
Imagine you didn't have to pay interest payments on your house...   100K house, paying 1k a month... You would pay the thing off in 8.3 years!      If you wanted to pay off that same 100k house in the same 8.3 year period, under a mortgage of 10%, you would have to pay over $1,480 a month!  Even under a 5% mortgage, you would have to pay over $1,225 a month to pay it off in that period.  If you only had $1,000 a month to spend, you would end up paying it over 18 years under a 10% mortgage!    In other word, the bank would skim tens of thousands of dollars off of you. 
Here's the big mind-blowing question of the day: why doesn't government simply provide interest-free mortgages?    Would the country come crashing down if people weren't spending huge amounts of their earned cash on interest payments???  The same free market in housing would still apply, you could still only buy the house you could afford, you could still lose it if you didn't make payments... What would change???  Nothing! Except the parasites would be shut out of the equation!    People who sit around, doing nothing to improve the world or make anyone's life better, just pushing papers around, skimming off the hard work of others... in other words, economic parasites! 
Please tell me one reason why the government doesn't simply issue interest free mortgages???   Along with leaving you more money to spend on the real economy, the best thing about interest-free mortgages is that THEY WOULD KILL THE PARASITES!!!   Not being able to sit around and skim money off other people's accounts, they would actually have to go out and produce something!    Rather than being parasites, being forced to provide some good or service, they would be contributing to the common good, increasing our wealth, making our lives better!     Banking parasitism is not only a drain in and of itself, it is a huge lost opportunity cost.  Supporting parasites make us all poorer!
Other reforms are possible as well, such as a policy of keeping land costs low.  Land ownership statutes could include preventing land ownership concentration, or perhaps providing for homestead ownership as a right of citizenship, maybe actual land giveaways.   If the government represented the people, these are the types of reforms we'd be talking about, not more policies that serve the parasitic banks.   

No comments: