Mortgage

- one of the most evil words on the planet.

Mortgage is a french word:
Mort - death
gage - note.

Or, you owe us until you are dead.

And, if that wasn't bad enough, making you a debt slave for life, those who signed a mortgage paid the bank twice and got nothing from the bank.

With fractional reserve lending, the bank just created the money out of thin air AFTER you gave them your house.
Actually, its worse than that. The money doesn't come out of thin air, it is actually sucked out of EVERYONE'S pocket. Everyone's dollars just got a little less valuable. The dollars no longer buy as much. (But since it is such a small amount each time, no one notices, accept over years)

1. The bank never had the money to lend.
2. The bank was flat broke.
3. Then, some stooge came along and gave them a house!
4. Now that they added a house to their balance sheet, they had a positive on their balance sheet meaning they could fractionally reserve lend. Or, create some money.
5. Then they got some sucker to sign an agreement to pay them forever (the agreement is worth the price of the house, which the bank then sold).
6. Then the bank paid the seller of the house, with the money that was created.
7. THEN!! the bank got that same sucker to pay them each and every month, even though they gave nothing in exchange.

What a horrifying system!

But that isn't the worst part. There is an even more devious, dastardly and purely evil scheme in this.

FORECLOSURE

Foreclosure isn't a thing where someone didn't budget well enough, it is a bank scheme to take houses.

Imagine you have to pay in these special Bank-Notes™
You owe 1000 B.N.™ per month
but you only get 995 B.N.™ per month.

How long until you cannot make the payment?
What if i told you this IS the system that we are currently in?

Federal Reserve Notes only come into existence through loans.
So, the first dollar is borrowed, but you owe $1.05 because of interest.
Where does that 5¢ come from? It literally doesn't exist.
You can never pay off that loan, so you get another loan to cover the interest, and thus begins a treadmill to destruction. How long can you keep it up?

Well, not long at all. The system eats the slowest runners. Not because they did anything wrong (although if you analyzed the people, you would find them not particularly good with money,... compared to the faster runners) but because that is the way the system works. There is not enough money out there for all the people to make all the payments.

Take your typical $100,000 house.
The mortgagee will pay $300,000 over the life of the loan.
That extra $200,000 came from other people's loans. (and then disappeared into nothing)

Or, in other words, if people stopped getting mortgages, then EVERYONE would soon have to default on their loans. They would go to the bank, where they would be told that there was no money. The banks are empty.

All images in this post are my own original creations.