U.S. Housing Slump Has ‘Just Begun. Do you agree?

thinker70 answered 9 months ago …

I agree that the "resets" beginning in Apr. 09 have the potential to launch another tusanami of falling dominoes in the housing market! Blame has been attached to many different people and institutions and sectors of the economy, but mostly they are representative of mere symptoms, and yes, there are discernible cycles as others have noted.

The problem is that ALL of the supposed culprits and proposed solutions as in the various "bailout" pians: IGNORE the fundamentals, they deal only with SYMPTOMS, not the underlying STRUCTURAL problems! For this reason I am going to focus on your statement of: "How did we get into this mess?"

It started in 1913 with the passage of the Ponzi scheme known as the Federal Reserve Act which effectively made the government and all its citizens DEBT SLAVES! Why you ask, because it gave PRIVATE BANKERS a monopoly (supposedly illegal) to create our money supply out of thin air and loan it out at INTEREST! This is actually un-constitutional as this power was to be exercised by CONGRESS, not private bankers

If you doubt that it is a monopoly as charged, try printing some numbers on pretty paper and calling it MONEY and see how long it takes until hard nosed people in uniforms and drawn guns show up at your door and put you behind bars.

Now look up "fiat currency" in the dictionary and you will see that our legal tender laws have substituted worthless paper I.O.U.'s that FORCE people to use these creations of private bankers in place of a specific weight and purity of gold and silver (HONEST MONEY with intrinsic value) as specified in the constitution based on the biblical laws of having "JUST" weights and measures so nobody is defrauded.

Fiat currency as created by our fractional reserve banking system IS a FRAUD because "each bank loan is a new creation of money, and when it is paid back it ceases to exist", Graham Towers former Governor of the Bank of Canada!
The key here is that since mortgages (French meaning DEATH GAMBLE) usually have a 25 year amortization requiring the borrower to pay back almost DOUBLE the original principal borrowed, (depending on interest rate) and this means that on a progressive basis, since the interest is never created by this iniquitous system, TWICE the amount originally created is REMOVED from the economy.

Now look up the definition of a Ponzi scheme in the dictionary and you will realize if you can add 2 + 2 and come up with 4, that the fractional reserve banking system requires an exponentially increasing number of NEW LOANS to maintain adequate specie in circulation to run a stable economy just as ANY pyramid operates!

As the scheme progressed and got into trouble as the DEBT PYRAMID expanded,various "patch jobs" were used to revive the economy, including taking us off the gold standard (Nixon, 1971) which was the one thing that kept the excesses somewhat in check. As the limits of the DEBT PYRAMID re-emerged in ever more tightening cycles, exotic new products were added to keep the Ponzi scheme going for another round, with ever more sophisticated elements not understood by the masses including but not limited too, credit cards, CDO,s, derivatives etc. Even the creators of derivatives have no idea what the ultimate consequences will be WHEN, not if, that deck of cards collapses, No wonder as sophisticated an investor as Warren Buffet calls them "financial weapons of mass destruction."

Back in the days when we had at least a semblance of honest money most people were thrifty and SAVED a good portion of their income and put it in the bank where they magically became "RESERVES" allowing the banks to progressively create as much as 20-X in NEW DOLLARS for every one on deposit with them! It is a complete MYTH, (no lets call it what it is, an outright LIE designed to deceive the masses) that banks loan out their depositors money!

THINK, how can a bank loan out a LIABILITY, after all it is your money that you are able to withdraw at will unless you have made a term deposit! IT is all the overreaching, the creation of new DEBT instruments piled layer on layer to keep this Ponzi scheme going that is at the foundation of the present crisis, and it is only being made WORSE by the government in CREATING MORE DEBT that dilutes the value of every existing dollar. This is WHY the present dollar is worth about 4c in PURCHASING POWER compared to the 1913 dollar before the Federal Reserve was enacted!

In contrast, an ounce of gold will still buy the best suit in town, just as it did at the turn of the century!
People talk about inflation, but they don't understand HOW it is created, in a word, "INTEREST" so no wonder the government tries to HIDE the real rate of inflation which numerous experts estimate to be at LEAST DOUBLE the governments official statistics.

The bottom line on all of this is quite simple, we have been SEDUCED by easy credit, instead of saving, (which would finance business expansion or provide the down payment for a home) we are encouraged to "get it now"whether buying on credit cards at teaser rates as low as 1.9% or interest only mortgages, liar loans, sub-prime etc. all in a DESPERATE attempt to keep a FAILED fiat currency system on life support! Th U.S. is technically bankrupt and IF interest rates rise back to traditional levels the level of debt after the bailouts, will make interest payments untenable so we can view the present low interest rtes not as a gift, but the death throes of a flawed system, a failed experiment that must be acknowledged and CHANGED before the system collapses of its own weight as pyramids always do!

The bottom line is that UNTIL enough Americans listen to Ron Paul and put pressure on their elected representatives for positive changes, the situation will only continue to get worse in ever more destructive downward spirals. Ron Paul has introduced a Bill in Congress to abolish the Federal Reserve,the Income tax and the IRS!

EDUCATE YOURSELF on the subject by plugging the following into the Google search engine; America: from Freedom to Fascism a video that will make your hair stand on end if this subject is new too you!

I would also recommend reading the book The Creature from Jekyl Island by G. Griffin and there are many more where you can apply common sense and reason when you see FACTS that PROVE you have been hoodwinked by bankster propaganda. Instead of being a patsy to the International Bankers scheme to enslave you, learn HOW you can at least partially avoid their enslavement and propaganda by avoiding their hidden tax of inflation and debasement of the currency