We spend, on average, somewhere between 30% and 38% or our income on housing. This seems like a suitable number to spend on our biggest asset / most important expenditure after food. However, when you realize that all this money, all of our blood, sweat and tears, are just going to bank to be burnt, it has a different impact.
The banks didn't lend people that money, they created it out of thin air. We just keep paying because we are used to (programmed to) pay loans back. To pay off our debts.
But really, we are just sending money to the bank to pay off the money we already paid for.
The currency created out of thin air, and when it is paid back, it goes back into thin air.
So, basically, a third of our lives are being taken up by banks, (sucked out of us) for nothing.
Have you ever thought that a mortgage was just throwing your money away?
Well it is. And banksters don't want you to pay off your mortgage, but they do like you sending them money each month. But, they would like you to never pay off the mortgage, because then, their money goes poof. While you still "owe" them, they can use that money for whatever they want. But, when you pay it off, it goes away, and they are much poorer.
Rents are even worse. Better than 90% of your rent goes to the banksters. And most rental owners keep refinancing to pull the equity out of their buildings. So, when you are renting, not only are you getting no equity for your expenditures, but also, your money is going to the bank to be destroyed.
What a fabulous arrangement if what you want is a country filled with slaves who can never get out of their debt prison.
And in the end, the banksters end up owning everything on the lands your forefathers conquered.
What is worse is they never gave you anything. They never put any skill, labor or materials into your house. All they have done is manipulate the rules, and then charge you because they could. The banksters are a parasite on the economy with very little benefit.
The benefit being, that without them, there would be very little money to buy houses. Think of the average person's savings. That is how much a house would have to cost for it to sell, without a group making money up out of nothing. Any solid money tends to get hoarded away. And when hoarded away, there is very little movement of that money, so little that many towns had to make wooden nickels, during the depression, to have something to exchange back and forth. (fortunately bitcoin fixes this by being infinitely divisible) Without the banksters creating money out of nothing, there would never be large sums available for buying expensive homes.
So, you would have lumberjacks who made the boards for people to build houses, that would never be able to buy one of those houses. There just wasn't enough money circulating.
But, instead of fixing the actual problem, banksters made it so that the problem would be pushed off into the future. While they turned everyone into slaves.
Your mortgage is why food prices are so high
Creating money is what causes inflation.
More money chasing the same amount of goods means the price will be increased to balance things out.
And mortgages are where most of the money comes into existence. Not the Fed, not the govern-cement, but millions, billions of people around the world getting a mortgage. Banks, large and small, creating money out of thin air. This is where most of the circulating money has come from.
On the same note, this is why you should be terrified that there are so little mortgages being made right now. Home sales are petering out. No one can afford the super high prices and the higher interest rates. So, the amount of mortgages being created right now is at record lows. And this means there will be less money circulating into the economy.
So, less jobs, less investment, less everything, while the price of goods is going to keep going up.
The banksters never put anything into the pot
Currently the banksters get paid about 3-4x the price of the house in interest payments over the life of a mortgage. And they get this while they put nothing into building the house.
And now that we are off the gold standard, they don't put anything into it. Nothing at all. They make the money up out of thin air.
Actually, it is worse than that, they get the money by stealing a penny from every person who has a dollar in their pocket. (lowering the purchasing power of the dollar with each loan created)
So, the banksters make all the house prices skyrocket, because people can buy them with printed money, and they don't put anything into actually building the house, while robbing us of our future and turning us into slaves.
Not a very nice group.
I do not know if we would have as many houses as we do now without banks. We would probably be getting by with a lot smaller houses, but they would all be paid off.
However, the world we live in is a place where we spend 30-40% of our labor to appease the gods of money.
Add this onto the percentage we pay in taxes, and a great proportion of our labor goes to the great god of green paper.
This is why finance and money are not taught in schools. Because, after we learned what was truly happening, we would hang all the banksters from the nearest lampposts.
Fortunately for us, it looks like bitcoin / cryptos are just going to replace banks. Everything that a bank can do, will be done automatically on the blockchain. Especially storing your wealth.
And so, we don't have to get rid of banksters, we can just let them disappear on their own.
A broken system that keeps kicking the can down the road. Thank goodness that we now have an alternative system that in many ways can function well outside the broken system. I think it's quite intentional that money and finance wasn't taught in schools, especially the basic and fundamental aspects of it.
The big problem is we do not kow how to work with real money either.
We need to learn.
All the DeFi apps are charging, giving interest. Where does it come from?
Definitely, without the right knowledge, we're bound to repeat the same things, perhaps even make it worse.
I'm not sure really. Sometimes, I wonder how sustainable such models are. Value can't be created out of thin air, or can it??