For years we've suffered under recession, prompting us to ask, When will it end? My answer is, "It's only the beginning."
Historically, recessions are the result of high interest rates, pushed up as the result of loose money policies. Recovery comes when citizens begin to spend more wisely, save money and pay off their debts, but not this time. Never before have credit policies been so loose for so long, and there has been no decrease in consumer debt. It's still on the rise, but Americans are NOT fundamentally to blame; immoral monetary policy is.
Banks used to consider a safe loan applicant to have a 36% or less Debt to Income Ratio (debt divided by gross income). This percentage is a time-proven figure indicating the financial health of an individual. Now, during the worst economy in twenty years and with no signs of recovery, our banks gladly loan to applicants with a 56% Debt to Income. What has changed? Are banks suddenly more generous? I don't think so. One good question to ask is, Why are banks willing to accept the additional risk? But the real question to ask is, Where is this money coming from?
Not one in a thousand Americans knows the true nature of our banking system, so they have no idea that what happened in 1929 is about to happen again. Nor do they know that it was done deliberately then, and is being done deliberately now.
We have in this country one of the most corrupt institutions known to Man, and I refer to the Federal Reserve. Since it's inception in 1913, every dollar created has interest being paid on it as if it were borrowed. This debt cannot be extinguished without destroying the currency itself, and has spawned a nightmare of debt that presently amounts to over $360 Billion in interest paid per year, accounting for half the personal income tax of the nation. Due to this, America is forced to create $7 Billion daily to cover the $1 Billion it pays in interest daily due to the Federal Reserve System. This is where the public comes in.
Federal Reserve bankers have to find a way to spend $6 Billion every day while masking the inflation it causes. Throughout the nineties it was done through real estate and the stock market. Now it is almost exclusively being put into real estate. How on Earth could so many mortgage companies be offering interest only, no money down, multi-hundred thousand or million dollar loans with high applicant debt ratios?
Here is a hypothetical example of what's going to happen: Your mortgage banker tells you that with a 56% debt ratio, you can afford a $300,000 home, no money down. You secure the loan at 4%, costing $1432 per month. A few years later, you're thrown out of work for three months. Back payments amount to $4296 plus late fees, legal fees, etc., and another $5k on cars, credit cards and everything else. Unable to catch up, you'll try to refinance, but interest rates have moved up to 7%. A $310,000 loan now costs $2062 per month-more than you can afford, but banks will have tightened lending policies back to 36% and you no longer qualify for the home you own anyway. Accounting for all other debt, you now qualify for a shocking $360 per month. You are trapped, and the new bankruptcy laws they pushed for will never let you walk away.
You owned this home in a perfect numbers scenario, but any complications-unemployment, salary reduction, interest rate increase, debt ratio change, bruised credit rating, depressed home values--and you're cooked. One mishap and every financial measure works against you. Your financial angel has suddenly become your greatest enemy. Welcome to the Federal Reserve System and their freshly engineered worldwide depression.
If you were to approach the housing market fresh, you would find that you only qualify for a $55k house now, along with the market of buyers you were hoping to unload your balloon-house on. The bank forecloses, auctions it off and you're personally responsible for the difference, which could be massive. Bankruptcy is right around the corner, and deplorably, you are the only one who will be held accountable. You will then be a debt slave as the Federal Reserve intends, and game over.
My advice is to get as financially stable as you can. Mathematically, our situation is much worse than that of the Great Depression. No matter how generous these bankers appear, pare down monthly outlays to 36% D/I or less. Set aside three to six months of mortgage payments in case you become unemployed. Make sure you can ride out the storm.
We are coming to a point in American society to where it's either them or us, and mass awareness is the key to our survival. Most believe the Federal Reserve is a part of the government, but it's just a name. The Fed is a private corporation set up for private gain, with a dark history of stock market crashes, financial panics, political manipulation and ultimately, mass poverty and hunger riots. Our struggle is not new: currency control has switched from public to private hands EIGHT times since our country's inception, and needs to be reclaimed by the people, one last time.
Don't think you can play helpless and expect our political leaders to protect you from financial calamity; they never have. You must become Morally Armed on your own. Don't be coaxed into believing the system is optimized for the good of all. The Federal Reserve System is not an equitable institution, and it was never intended to be. They believe if they have us strung out on debt, we are no threat to them. Let us prove otherwise.
Currency reform is the most important issue facing Americans today. How it plays out will determine whether you and your children eat or not, whether you have a place to live or even a future to look forward to. The major media will ridicule anyone speaking against the Fed, so to validate history's greatest moral dilemma for yourself, just google "Jackson bank veto."
America must abolish the Federal Reserve System to regain control over the economy and our government. For a concise history of world monetary policy and how it shapes world events, see Moral Armor. Then share this knowledge with your friends. Email this article to everyone in your address book and stay tuned for further developments. We'll change the system together and bring a brighter dawn to Mankind.
Copyright 2005 Ronald E Springer
Ronald E. Springer is the Author/Philosopher of Moral Armor, the world's first fully-integrated moral philosophy based on the nature of Man. Featured on The Mitch Albom Show, NBC and FOX News radio affiliates, Mr. Springer is available for interviews, speaking engagements, philosophy workshops and seminars. Please contact RonaldESpringer@MoralArmor.com or visit http://www.MoralArmor.com for details.
Is it just me or are you concerned that illegal... Read More
Well many have complained that the FBI and CIA dropped... Read More
After 9-11 insurance rates on Independent Truck Drivers and smaller... Read More
Three years ago I published a book of short stories... Read More
While many Pennsylvanians are struggling to figure out how they... Read More
Hitler received a legacy from his Rothschild relations in Vienna... Read More
The furore in the BJP camp in India, triggered by... Read More
Aren't you glad you purchased Alaska? You got a bargain,... Read More
The idea that the majority shows the will of the... Read More
The recent scathing remarks by High Court Judge Richard Mawrey... Read More
From the National Association of Realtors' Virtual Office Website policy,... Read More
Indian and Pakistan and nuclear war. What does the world... Read More
It appears the Feds are suing Elliot Spitzer over his... Read More
INTRODUCTIONThe aim of writing this article is to encourage the... Read More
President Bush and Secretary Powell should hang their heads in... Read More
Do you really want to get ahead in your life?... Read More
Why are we over regulating the franchising industry? What are... Read More
WE MUST PUT A STOP TO THE EVER-INCREASING PRICE OF... Read More
An American soldier is taken behind enemy lines and brainwashed... Read More
"Like humans void of soul or mind, they jeered and... Read More
We need more oversight and transparency in government. We need... Read More
The blogosphere has been jumping around the story like crazy... Read More
You have probably heard of the Sarbaines Oxley Law (SOX)... Read More
"Those who sacrifice essential liberty for temporary safety are not... Read More
Recently the Los Angeles Transit workers are on Strike and... Read More
US Steel prices have cost franchisees in my company and... Read More
The new law "Special Protective, Antidumping and Import Compensatory Measures"... Read More
In today's Rants from Lance session I address the question... Read More
With new environmental technologies and modern efficiency methods in mining... Read More
In Belarus parliament is going to struggle with degeneration of... Read More
The shouting is over and directions for the next four... Read More
What is the so-called "nuclear option" that Senator Bill Frist... Read More
Our government is set up like a modern day franchise.... Read More
I'm getting a little tired of being lectured by that... Read More
A coffee shop conversation about a Great Country in Historic... Read More
The American Dream is the promise to have it all... Read More
The US Homeland Security is worried about Hydrofoil or Skimmer... Read More
Having redundancies and today's technologies in transportation we have protected... Read More
The idea is to have all the important items with... Read More
Businesses advertising alcohol either in TV or non-broadcast format need... Read More
Large parts of the world today suffer from a severe... Read More
Mexico the country of Salsa, Tortillas and Corruption; I first... Read More
Is it just me or are you concerned that illegal... Read More
The European Court of Justice ("ECJ") ruled in Praktiker Bau-... Read More
Many parents might think it a bit farfetched to compare... Read More
Last year a Maryland State Legislator whom I presume never... Read More
Well many have complained that the FBI and CIA dropped... Read More
It is amazing we have so many men, who belong... Read More
The recent scathing remarks by High Court Judge Richard Mawrey... Read More
Airlines do not allow cell phones on board, but they... Read More
We see today a fierce unspoken competition between trucks and... Read More
The resignation from cabinet yesterday, Sunday, by the Israeli minister... Read More
PolicyFederal Fair Housing accessibility requirements for new multifamily buildings should... Read More
The notion that local governments should have almost total monopoly... Read More
We are told by out leadership that we risk loss... Read More
I always have to remember to take a deep breath... Read More
Rational, sober, logical citizens wonder what exactly the terrorists want.... Read More
Why are we over regulating the franchising industry? What are... Read More
Recently I met a man in a coffee shop, a... Read More
An irresponsible Chinese General made a very telling comment recently.... Read More
I'VE ALWAYS ARGUED THAT ECONOMIC ILLITERACY IS VERY COSTLY.This is... Read More
Entrepreneurs can clean up the environment if we would let... Read More
Legislation was introduced into Congress this week that would establish... Read More
The Carl Rove issue is definitely interesting and distracting. The... Read More
As we watch fewer Americans voting it is no wonder... Read More
Hitler received a legacy from his Rothschild relations in Vienna... Read More
Political |