The word mortgage comes from the old French and quite literally means you have made a pledge that lasts until you are dead. Too bad for us that mortgages are fraudulent.
I do not think our governments will be here in their present form much longer. Things could get worse. The Bankers are trying to turn student loans into pledges unto death. But it is also possible for us to construct a better world after the Dollar Dies. In that case, one of the things we will have to do is to drastically change the way mortgages are created.
The mortgage is the last step in the process of buying a home. Imagine yourself going to work each day and noticing a sign announcing that new homes will be under construction.
In the first stage the plumbers have to connect the future homes to the existing county water and sewer mains. Ditto for the electricians and the electrical grid. Then you might see men pouring concrete for the foundations. Then come the carpenters and the main frame of the house. And the roofers. And then the men adding shingles on the roof. And as the carpenters finish the walls, you might catch sight of the glaziers installing windows. The plumbers and the electricians come back to do the interior wiring and plumbing. Then you have the landscapers doing the outside and painters and interior decorators making the inside presentable to the prospective owners.
Of all the people involved in the process of home building who makes the most money and who has the easiest job?
You might guess that the plumbers and the electricians make the most money. You would be wrong.
You might think the architects has the easiest job. But you’d be wrong. He has to deal with the contractor.
The easiest job is the Banker who writes the loan. OK. But surely he can’t make the most money? Wrong again.
The Banker works inside an air conditioned office. And he makes more than the contractor and all the workers combined.
What is it that he does that rewards him well above all others?
He expands the money supply or inflates the currency.
Suppose you want a $200,000 loan. He increases the checking account supply of money by entering your mortgage on his ledgers as an asset to be balanced by the credit he entered for $100,000 for the home developer. You have made a pledge unto death to pay him the principal plus interest. A 30 year $200,000 loan at 3.92% obligates you to pay him $340, 416. The Banker did not loan you Mrs Jones’ life savings. He increased the money supply which decreases the value of our wages and pensions so we bore the sacrifice. He gave nothing of value. And yet he makes $140, 416.
Mortgages can be more expensive than $200,000 where you live so just multiply the numbers above by 2, 3 or even 4.
As William Paterson told the English parliament in 1694, “The Bank of England hath the benefit of interest on money it creates out of nothing.”
If we do get control of the government after the Dollar, the Pound, the Yen and the Euro die, then we will have to do away with the fiction of government debt.
Arrest the Bankers and seize their assets to pay for Debt Cancellation. Issue a non-interest bearing currency like Lincoln’s Greenbacks. Repeal fractional reserve banking. And make government debt illegal.
Under the present system, when the Treasury wants to borrow $100 billion including $5 billion in cash, they call up the FED and ask for $95 billion in checking account money. The FED creates a bookkeeping entry at its NY branch in the Treasury”s account and we owe the Federal Reserve $95 billion plus interest. For the FED to deliver $5 billion in cash, they call the Treasury’s Bureau of Engraving ordering $5 billion in Federal Reserve Notes. When the Treasury’s Engraving Bureau delivers the cash, the FED pays them an average of 3 1/2 cents on the dollar which is $175 million in this case. But you are obligated as a taxpayer to pay the whole 100% of the face value of $5 billion plus interest.
And as for mortgages, if we seized the government and the Federal Reserve, we could create enough checking account money to rewrite all existing home mortgages for those who own one home. For example, Bank XYZ has $100 billion in home loans to rewrite. We create that money and give the bank thr needed amount at 1/4 of 1% interest. They then charge everyone $100 to rewrite their outstanding balances due at 1.25% interest. The hme owners payments drops dramatically enabling them to boost the economy and to save for their retirement.
The goal of the new government should be to allow the working and middle classes to own homes and to fund their retirement as opposed to the present system which prefers Debt Slavery to freedom and self-determination.