by Marvin J Ramirez
Marvin Ramirez
Most recent media headliners in the U.S. tell us that the Federal Reserve Bank (FRB) seeks to back the riskiest borrowers, already hit hard by the housing and credit crunches. This would seem like an honest and sincere gesture.
But when the FRB makes this gesture, it’s just to make the worst picture less obvious and to soften the impact that this foreclouse crisis is creating in the economy and causing to make people to panic – in time of war.
But knowing a little bit of the truth, that the whole banking industry is the biggest conspirator on this whole real estate scam that keeps defrauding the people, I don’t buy it. I don’t buy that the Federal Reserve has touched its heart and now is trying to aid honest home owners at times of despair.
I even think this it is only happening to soften public outcry. People are feeling it, and are starting to notice that something is just not right in the country.
From the seller to the property appraiser to the lender, it has existed a secret mafia that has artificially inflated home prices, which consequently has enslaved the people to the bankers, not letting them to ever really own their homes. No matter how hard your whole family works, even spending every extra penny that could go to buy food, the home will never be owned. At the end, after having paid a number of years, they bankers take it away with those ‘variable interest rates fraud tactics.’ It’s the same as the credit card scam.
“You evaluate it high, or I won’t contract your services next time,” the appraiser is usually told. It is a known phrase used among people who work in the real estate business. They create the price right there. I won’t generalize, because there are truly honest people out there who make a living selling real estate, and do it very sincerely and ethically. But this is what has been happening.
When a person signs a promissory note when buying a house, the has just paid the house off. The bank converted that note immediatelly into cash, but they make you (the home buyer) believe that they loan you money to buy the house. The price of the note becomes money in their books, automatically.
Title 12 of the United States Code, §1831n which requires all banks across the country to abide by Generally Accepted Accounting Principles. According to GAAP, 2003 edition, page 41 under the section Cash and Cash Equivalents it states that “ANYTHING ACCEPTED BY A BANK FOR DEPOSIT WOULD BE CONSIDERED AS CASH”. This includes promissory notes, same as Federal Reserve Notes (the same dollar bill you spend at the store).
A little complicated, isn’t it? Yeah, it is, so you and I won’t be able to understand. For more on how banks create money with your signature, visit: http://www.fdrs.org/money_creation.html.
