This is not a joke.
When you borrow money for a house, where does the money come from?
If you haven't already learned that bankers create the money they lend you out of thin air (tied to their reserves) you can take my word for it and move on or come back later when you've caught up.
Let's say you're interested in a fairly nice house in Stockton, California for $100K. According to some random lending website you can finance just such an investment for a mere $1150 a month over thirty years. That seems pretty high to me.
Creating money out of thin air against your good credit is one thing. How else do you create money except out of thin air? It doesn't grow on trees. You can't dig it out of the ground. You can scrounge stuff together and trade it in for money but in the end it's just stuff. Stuff isn't money, it's stuff.
Money measures the value of stuff. At least that's the theory. Stuff has value in a free market.
When the bank creates $100K and you give it to the seller of the house, you don't owe the seller anymore but you owe the bank something like $1150 a month for thirty years. You have a mortgage.
“Mort gage” is pseudo French for “death wager.”
As soon as the ink in your signature dries, the bank creates one hundred thousand dollars that never existed before you had the nerve to ask for it. It was created entirely (almost) out of your good credit.
The bank lends you money it doesn't have based on your ability to repay it. Then they charge interest.
Let that sink in. Banks charge interest on money they never earned. Plus, they keep the money.
What has backed the value of our money since Richard M. Nixon took us off the Gold Standard in 1971? Since 97% of money is now created by banks in the form of loans, our money is supposedly backed by the value of the collateral backing those loans.
The trouble is, the banks just keep all of the money they receive as loan payments. They keep it and spend it. All that money you give to repay your loans is never destroyed. Great Grandpa's house that fell down still has all of the money created to build it in circulation. Nothing backs that money.
Money created must be destroyed.
If you've followed along so far, I'm sure you understand why the world is bankrupt. Such massive cheating can only end badly. Only the richness of the natural world has disguised this madness so far. As long as material wealth could be extracted somewhere and somehow, it made up for most of the cheaters skimming all the wealth. You've seen how extravagantly the elite live. A few feast while the rest starve.
Shall we let people loan our own credit to us at interest knowing that their usury is the reason the world is bankrupt? The notion is preposterous to me. I can't imagine a legitimate government allowing such theft. American money was supposed to be controlled by Congress and Congress supposed to be controlled by the people themselves. Constitutional arguments might not be enough against psychos.
Or we can let it lie. Lay there and take it. That's just the way it is. You can't beat City Hall.
Face up to it. You're being cheated. The banks are stealing your money. They are feeding you table scraps when you should be feasting from your efforts.
The funny thing here of course, is that if the world outlawed interest everyone's standard of living would go up – including bankers – by a factor of ten. Without usury, a man is left to invest in Enterprise.