We’ve been experiencing a recession for years, and we’re wondering when it will be over. “It’s only the beginning,” I reply.
In the past, high interest rates brought on by loose money policies have been the root cause of recessions. When people start saving money, paying off their debts, and making more sensible purchases, recovery takes place—but not right now. Consumer debt has not declined, and credit regulations have never been so lenient for such a long time. It is mostly the result of immoral monetary policy rather than Americans, even though it is still rising.
A loan application used to be deemed safe by banks if the debt to income ratio (debt divided by gross income) was 36% or below. This % is a tried-and-true measure of someone’s financial health. Our banks are willing to lend money to applicants with a 56% debt to income ratio because the economy is currently at its lowest point in 20 years and shows no signs of improving. What has changed? Are banks giving more now? Not in my view. It is reasonable to ask, “Why are banks willing to accept the additional risk?” But the real question is, “Where is this money coming from?”
Americans are unaware that the events of 1929 will return because so few of them understand the underlying nature of our banking system. Additionally, they have no idea that it was done intentionally both then and now.
One of the most dishonest institutions in human history is the Federal Reserve. Interest has been paid on every dollar as if it were borrowed since its founding in 1913.
This debt has resulted in a nightmare of debt that cannot be eradicated without destroying the currency itself. Currently, over $360 billion in interest is paid each year, which accounts for half of the nation’s personal income tax. Because of this, America needs to generate $7 billion daily in order to cover the $1 billion in interest that the Federal Reserve System mandates. This involves the general public.
The Federal Reserve’s bankers have to find out how to spend $6 billion per day without creating inflation.
Throughout the 1990s, real estate and the stock market were utilized. Almost all of it is now invested in real estate. How in the world do so many mortgage companies offer loans for hundreds of thousands or millions of dollars with high applicant debt ratios that only require interest and don’t require a down payment?
Here’s an example of what may happen: Your mortgage banker informs you that if your debt ratio is 56%, you can buy a $300,000 home with no down payment. You will pay $1432 a month for the loan at 4%.
After a few years, you lose your work for three months. In addition to an extra $5k for credit cards, cars, and other expenses, as well as late and legal fees, the total amount of past payments is $4296. You can’t keep up, so you’ll try to refinance, but interest rates have gone up to 7%. A $310,000 loan now costs $2062 per month, which is more than you can afford. You are no longer qualified for the home you currently own, though, because banks will have tightened lending standards back to 36%. You now qualify for an incredible $360 each month after subtracting any other debt. You won’t be able to leave because of the new bankruptcy legislation they pushed for.
You would be in major trouble if there were any problems, such as unemployment, a drop in your income, an increase in interest rates, a change in your debt ratio, a damaged credit score, or a drop in the value of your home. Every financial metric and one accident works against you. All of a sudden, your worst adversary has become your financial savior. From the Federal Reserve System and the worldwide depression it recently caused, greetings.
If you were to enter the housing market from scratch, you would find that you are now only qualified for a $55k home, in addition to the market of buyers you were hoping to sell your balloon home to.
You are personally responsible for the possibly huge difference when the bank forecloses and puts it up for auction. Unfortunately, the only person who will be held accountable for the upcoming bankruptcy is you. The game is done when the Federal Reserve turns you into a slave to debt.
I would suggest that you attain the maximum degree of financial security. We are in a much worse position mathematically than we were during the Great Depression. No matter how generous these bankers appear, cut monthly spending to 36% D/I or less. Put aside three to six months’ worth of home payments in case you lose your job. Make sure you can withstand the storm.
As we get closer to the moment in American society where it’s either them or us, mass awareness is critical to our survival. Though most people believe it to be a part of the government, the Federal Reserve is just a name. Financial panics, stock market collapses, political manipulation, and ultimately widespread poverty and hunger riots are all part of the Fed’s turbulent history as a private corporation established for personal gain. Our struggle is not new; since the country’s establishment, the private sector has taken over currency management eight times. At last, the people must take back control of their money.
Our political leaders have never protected you from financial catastrophe, so you can’t expect them to do so. You must arm yourself ethically. Don’t be convinced that the system is designed to benefit everyone. The Federal Reserve System was never intended to be an egalitarian institution. If we have a lot of debt, they believe we are not a threat to them. Let’s show the reverse.
Currency reform is currently the biggest problem facing Americans. How things work out will determine whether you and your children eat, if you have a place to live, and even whether you have a great future. Just Google “Jackson Bank Veto” to confirm the greatest moral dilemma in history. Anyone who criticizes the Fed will be ridiculed by the mainstream media.
The Federal Reserve System must be dismantled if America is to regain control over its economy and government. For a brief history of global monetary policy and its impact on international events, see Moral Armor. Then share this information with your friends. Send an email with this article to every person in your address book, and return often for updates. By working together, we can change the system and bring about a more promising future for humanity.