I have spoken before about house price going up almost entirely because people can borrow more money against it.
The 30 year mortgage was a very recent addition. And its only reason for existence is to drive the price of houses up. And thus, make the banks more money. It had nothing to do with allowing people to be able to afford more house with the same payment, but that is the way it was sold.
You see, they had to increase the amount people could borrow to keep this ponzi scheme going. The house prices have to go up, even if the actual house is deteriorating, and its price should be going down.
What really happens when you get a mortgage
You might be one of the people who still believes that the bank lends money to buy a house. And so think that a person would be unable to buy a house if the banks didn't exist. It is too big of a price tag for a person to handle without a loan.
The reality. The bank doesn't have any money to lend. The bank gets paid at least twice. The bank makes the house cost the buyer at least three times what it cost to build. Here is how things actually work
- The seller gives the house to the bank. (yes, you read that correctly)
- The bank, finding itself with a house on its balance sheet worth X, can now lend out X dollars.
- The bank creates money, X, and gives it to the seller.
- The buyer signs a promissory note with the bank.
- The bank sells the promissory note for X dollars.
- The buyer agrees to pay the bank every month.
- The bank collects money from the buyer every month.
Does any of this sound like what you were taught?
Does any of this sound like a fair exchange?
Did they bank actually offer anything to the buyer? You know that a contract needs each party to give up something. A contract cannot be one sided.
The bank gets money twice, and a house.
The seller gets money for selling the house.
The buyer ends up paying for the rest of his life (it is what a mortgage means)
The community gets higher house prices.
The community gets more inflation. (suddenly there is at least 2X more dollars floating around)
Basically, the community gets poorer.
The life sucking black hole of mortgages
It gets worse.
Now, people who have gotten enough money to buy more than one house (it is a magic number that allows a person to start really making investments) starts to buy properties that they are going to rent out.
They can borrow more, for less, so they do. And now that the house prices are so how, the people have to rent.
So, there the renter is, paying about 50% of the income on rent. (yes, the national average is 50% now) That 50% mostly goes to the bank because the landlord has to pay for the mortgage.
Thus we have created a 50% tax on the nation, that gets paid to the banks, almost solely because they exist. 50% of your labor goes into a bottomless pit, to a group of people that provides and provided, no value.
What is the worst, is that they do not need the money, they can just print as much as they want. They have just made a system where they steal half of your life.
Mortgage - a french word Morte = death Gage = a note/paper (IOU)
So, literally a "death note" - or, you will pay until you die. Or, you will pay with your life.
Our lives have been destroyed by a group of people who are the most evil and vile on this planet (they are also paedos, and own the govern-cements).
This is why Henry Ford made this quote:
Of course this group of people deserve death. Their own holy book said to never do this. (Except you can do it Goyim, because they are mere cattle.)
Fortunately, we are embarking on a new type of money. A trustless, world-wide currency that is protected by the power of many, many computers. And this new currency will allow us to ignore these banksters into oblivion.
But there is one thing we will need to learn. Usury.
We will learn soon enough that you cannot lend out bitcoin with interest attached.
There is no bitcoin to pay back the interest. So, when too many loans are made (with interest) bitcoin will suddenly lock up. No one will have the bitcoin to pay back the loans. It is simple mathematics.
However, we will also learn about deflationary money. That, when you lend out bitcoin (at 0%) it comes back to you more valuable. Not only did you get your bitcoin back, the world now has whatever that bitcoin was used to create (a house for example) There are more assets in the world, but still the same number of bitcoin.