This article appeared in the Mises.org daily and is right on all points.
By Douglas French
The foreclosure crisis has crawled on for going on four years now with no end in sight. The S&P/Case-Shiller index for August fell 3.8 percent from a year ago. The index includes home prices for 20 US cities.
“Continued house price declines could lead to even more defaults, foreclosures and distress sales, undermining wealth, confidence and spending,” William Dudley, president of the Federal Reserve Bank of New York said. “Breaking this vicious cycle is one of the most pressing issues facing policy makers.”
Every one of the Republican presidential candidates is being asked how they would handle the slow-motion housing wreck. Long shot Newt Gingrich says he would rewrite the rules to make it profitable for banks to renegotiate loan principal amounts.
“He disagrees with his Republican colleagues that the free market will find a fair way to let the banks and homeowners work things out,” writes Karoun Demirjian for the Las Vegas Sun.
President Obama has jumped in to adjust Fannie Mae and Freddie Mac rules to allow refinances for loans exceeding 125 percent loan to value.
The president says this will save underwater homeowners thousands of dollars a year.
Princeton professor Alan Blinder penned an op-ed for the Wall Street Journal proposing forced principal reductions with the cost to be shared by banks and taxpayers — with the proviso that government be given an equity kicker when housing prices go back up.
Blinder also thinks the Federal Reserve and Treasury should provide cheap financing to developers who will use the money to buy up properties with the intention of renting the properties out.
Harvard’s Martin Feldstein put in his two cents’ worth on the issue for the New York Times. Feldstein points out that home values have dropped 40 percent. The result, he writes, is “less consumer spending, leading to less business production and fewer jobs.”
Feldstein claims the government can stop the fall in house prices by slicing off any mortgage principal amount owed exceeding 110 percent loan to value. He says this policy would cost $350 billion or less and would modify 11 million of the 15 million “underwater” homes in America. The banks and the government would split the cost, and in the case of mortgages held by Fannie and Freddie, “the government would just be paying itself,” he writes, presumably with a straight face.
In exchange for having their lender take a haircut over 110 percent, borrowers would accept full recourse on the modified loan.
“I cannot agree with those who say we should just let house prices continue to fall until they stop by themselves,” writes Feldstein. “Although some forest fires are allowed to burn out naturally, no one lets those fires continue to burn when they threaten residential neighborhoods.”
“Recovering the 31 percent plunge in home prices from their 2006 peak will probably be years in the making as foreclosures throw more properties on the market and sales flag,” writes Shobhana Chandra for Bloomberg.
Despite the obvious, policymakers and wonks think trimming mortgage principal down to just 10 percent underwater or that lowering borrowers’ financing costs for those 25 percent (or more) underwater will somehow halt the slide in home values and spur consumer spending.
The belief is that if homeowners are just kinda, sorta underwater then they will keep on faithfully paying Fannie, Freddie, BoA, Wells, Morgan, and the rest. Never mind that it will still take years of steady payments to ever see the faintest ray of equity light shine through the crack between what’s owed and the home’s value.
We can see how this works out for a hypothetical couple created by Brent T. White in his Arizona Legal Studies discussion paper.[1] The young couple buys a 1,380-square-foot home in Salinas, California, for $585,000 in January 2006. The couple purchased the home with no money down with a 30-year, fully amortizing loan at 6.5 percent interest. The payment including insurance and taxes is $4,300 a month.
Now the home is only worth $187,000. An Obama refinance of the $560,000 that they still owe on the note will lower their payment by $900. But the couple will never really own any of the home.
Under the Martin Feldstein plan, the note holder and taxpayers would eat $354,300, leaving the young couple with a mortgage of $205,700. Given the ultralow current mortgage rates of 4.5 percent, a 30-year fully amortizing deal including taxes and insurance would be a payment in the neighborhood of $1,250.
If we closed the deal this month, assuming home prices don’t fall any further in Salinas, our young couple will see some equity in December 2016.
Meanwhile the same home can be rented for $1,000 a month. Instead of paying $1,250 a month to have equity of $168 in 61 months, saving the extra $250 a month and earning no interest on it equals $15,250 in the same amount of time.
Of course home prices in central California might rise 2 percent a year, so after five years the home would be worth $206,500, but then half of any equity belongs to Uncle Sam under the Blinder plan.
All of these ideas to save the housing market and supposedly to increase consumer spending do exactly the opposite. These plans keep people chained to underwater mortgages, keeping them from moving to where there are more and better job opportunities.
Unemployed heavy-equipment operator Charles Mills wanted to leave North Las Vegas for Oklahoma and a job, but he is $200,000 underwater on a home he bought at the peak of the housing market in 2006. The plans mentioned by Blinder and Feldstein would relieve Mills of roughly $190,000 of the debt, but the principal reduction won’t put him back to work. Plus, the odds of a quick turnaround in North Las Vegas home values are about the same as for the Kansas City Royals to win the 2012 World Series.
The idea that the too-big-to-fail banks will cover half the cost of these plans is laughable. The hit to their capital would be considerable, sending the banks right back to Washington’s door with a tin cup.
And how much bureaucracy would be required to manage the implementation of these plans and determination of equity splits when homes are sold?
All of these plans are not really aid to underwater homeowners as much as another bailout for the banks — not to mention Fannie and Freddie.
Any business dominated by entities only in business because of the good graces of the government cannot be considered part of the free market. The reason the housing market is not clearing is that the government stands in the way by propping up the large mortgage holders.
No reasonable person sees Fannie Mae and sister entity Freddie Mac, which were seized by the government in September 2008, as the product of spontaneous order. To stay in business, the two firms together have needed about $169 billion in taxpayer bailout funds, with no end in sight.
Changes to FASB rules 157, 115, and 124, which allowed banks greater discretion in determining at what price to carry certain types of securities on their balance sheets and recognition of other-than-temporary impairments have made the big banks wards of the state as well.
The real help for underwater homeowners will only arrive when Fannie, Freddie, and the rest are allowed to fail. The equivalent of a chapter 7 bankruptcy filing (liquidation) would put these underwater loans out for bid in the market place. Would our mythical mortgage in Salinas, secured by a house worth $187,000, trade for $205,700? Not hardly.
No one can get a loan for a 110 percent of value in this market, let alone 125 percent, or 100 percent for that matter. Those looking for mortgages should expect to put 20 percent down. Values in a bankruptcy sale would reflect this reality and then some. Based on the liquidation prices received by the FDIC and other distressed debt sellers, this mortgage paper would likely be scooped up for half or a third of the home’s value.
Buyers of the paper would immediately negotiate with borrowers to create loans that are conforming (80 percent LTV) and performing.
For instance, Selene Residential Mortgage Opportunity Fund purchased the mortgage secured by the home of Anna and Charlie Reynolds in St. George, Utah, for a deep discount, the Wall Street Journal reported in a front-page story. The Reynolds were struggling with a $3,464 monthly payment and the value of their home had plummeted.
Selene, run by Wall Street legend Lewis Ranieri,
buys loans to make a profit on them, not as a public service, but company officials say it is often more profitable to keep the borrower in the home than to foreclose. If a delinquent loan can be turned into a “performing” loan, with the borrower making regular payments, the value of that loan rises, and Selene can turn around and either refinance it or sell it at a profit.
Home values in St. George had plummeted in similar fashion to that of Las Vegas, only a two-hour drive away. Selene slashed the principle balance of the loan due from $421,731 to $243,182 and lowered the interest rate, reducing the Reynolds’ monthly payment to $1,573.
“Around 90% of Selene’s loan modifications involve reducing the principal,” James R. Hagerty wrote in the WSJ, “compared to less than 2% of the modifications done by federally regulated banks in the first quarter.”
And while many upside-down borrowers can’t even find a human to talk to about their loan, let alone sit down and renegotiate terms that will benefit both parties, Selene immediately tries to contact the borrowers on the notes they have purchased, “sometimes sending a FedEx package with a gift card that can be activated only if the borrower calls a Selene debt-workout specialist.”
It’s hard to imagine Fannie and Freddie being so proactive.
Ludwig von Mises explained that one government intervention leads to an endless succession of interventions to deal with the effects of the first and subsequent interventions. Ultimately, it comes down to two choices. “Either capitalism or socialism: there exists no middle way,” Mises wrote.
Likewise, there is no middle way to solve the housing crisis. For capitalism to work its magic and set underwater homeowners free, mortgage holders must be allowed to fail.
Douglas French is president of the Mises Institute and author of Early Speculative Bubbles & Increases in the Money Supply and Walk Away: The Rise and Fall of the Home-Ownership Myth.
___________________________________
[1] Brent T. White, “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis,” Arizona Legal Studies Discussion Paper No. 09-35.
How to fix the housing market?
Best way I think is not to try to fix it but let it take its natural course. Once house prices reach a certain level, housing will become affordable for younger people again. And those who issued loans that are unable to be serviced, well, they should go bankrupt; that is the nature of things and we should not try to fight nature.
More reasons for the Austrian Theory for a free market and not Keynesian/BIG government intervention through the FED. Free markets correct wrong decisions and investments more efficiently. Housing prices will correct about 30% more downward from where there are now. Read Harry S. Dent’s theories of demographics and the fact that Baby Boomers are not spending now and are saving instead.
Every solution about each and every situation requires the taxpayers involvement. There is simply not enough income to cover the losses.
To “283 Calahan Rd.”
Dear Sir. You are an idiot.
“There is not enough income to cover the losses” Of course not. That is why they are what they are, “LOSSES”. The Government wonks think they can steal enough extra money from the taxpayer (“milch cow”) to “cover” their friends “losses” – so that they do not have to admit to having “lost” – which, for a banker, is the greatest sin, the exposure of total incompetance. (Banks are supposed to be PRUDENT, a favourite word of that reckless lying ex-Prime Minister Gordon Brown)
Of course, by “solution” you may mean , “myth that keeps the politicos reputation for being very clever, capable, and virtuous INTACT”: yes, that needs an awful lot of taxpayers. But why volunteer ? Stop paying income tax.
Now, Chris, be nice.
Another wealth transfer really ??? Leave the turtle alone please,, Some environmentalist decided to save a turtle that had ventured out onto the beach from a seagull, they saved it only to realize other baby turtles were watching it and they came out of hiding and were eaten by a huge group of seagulls waiting to pounce .. Let nature take her course ..Don’t save the turle , dont let the others learn the wrong lesson..
Excellent article. It is becoming clear to me in many areas Government tries to determine what the price level ought to be (housing, interst rates, wages, energy, etc.) and in the process they create shortages, surplusus, and incentives to direct resources in a way other then would be determined by free market bidding. When Government is involved “feelings” come more in to play than facts. The facts of life are clear there are more needs than can ever be supplied so how do you allocate scarce resources? Free market bidding appears to be the most democratic and effecient. It doesn’t mean there won’t be booms and busts or unfullfilled needs, it means that scarce goods and services will be allocated to the highest and best use. Sadly I feel the majority of Americans do not understand this. As a result they elect Governements to play Santa Claus and act like there are not limits to what wants can be fullfilled.
The taxpayers win because the housing prices are firmed and tax revenue increases without a rate increase.With millions of homeowners safely in their shelters,confidence will be restored,new lending and jobs. Sec’t Treasury-We won’t know how much money will will lose till the housing prices are stabilized.
STOP FORECLOSURES AND SHORT SALES.
Let them stay in their homes,
Let them be able to afford it,
Let them be able to manage it.
No cost to the taxpayers.100% including interest is paid back.
THIS IS THE REAL AMERICAN DREAM.
SHELTER THAT COULD BE AFFORDABLE!
Turn this challenge into a greater good for all.Re-establishing “CREDARE” .Faith in the American people and home values.
This is a fast and great solution to the problem and it allows for time
to fix the blame and to do what is necessary for future prevention.
We simply must get off the idea that we should only help “the good” people and leave the “reckless” ones to their own ends. Whether the foreclosed house next to you was owned by a good guy or a reckless flipper doesn’t matter.. your home value goes down either way due to the foreclosure.
PLEASE,
PLEASE,
Change it,
Challenge it
or
Endorse It
It is easier to replace something if you have already chosen its replacement:
END THE FEDERAL RESERVE; BEGIN THE FEDERAL BANK OF AMERICA,RESTORE MONETARY POWER BACK TO THE PEOPLE !
As Thomas Jefferson said,”I believe that banking institutions are more dangerous to our liberties than standing armies.If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around (these banks) will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power (of currency) should be taken from the banks and restored to the people,to whom it properly belongs,”
“THE ALL INCLUSIVE SOLUTION. THE FEDERAL BANK OF AMERICA” (www.justaluckyfool.wordpress.com)
HOW DO YOU EAT A 80 TRILLION CALORIE SANDWICH?
ANSWER:ONE BITE AT A TIME.
**Please this is a little lengthy,but worth one bite at a time**
THE SANDWICH :
“We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”
This is our Preamble to the US Constitution and it is being challenged .
If it were possible to sum up the single greatest flaw to the American form of its democratic capitalism ,it would it be :It allows for the “most powerful force in the universe”… to quote Einstein,” compound interest” to be used against that democracy.
This “most powerful force is being used only for the enrichment of a few and the servitude of all others.
When money is acquired thru interest ,it is not new money, it is merely a redistribution. A lender of any amount could lend 100% with an interest of 7.2% over a period of 10 times, and actually double its money. The lender becomes the owner of the money and based upon the act of compounding at any rate within a long period of time become the sole owners of all the money.
The present system has to change . Private banks are lenders to the taxpayers who become borrowers. They are allowed to charge interest to taxpayers for the use of their own money.
They are allowed to “create money” by fractionation of money on hand and use that
newly created money to gain more money. A cycle that commands total money control or it must bust. The real kicker is that the borrower by today’s system guarantees the lender they will not lose there money by covering any of their losses. The taxpayers are guarantors of their own servitude !
The solution;The Federal Bank of America,the melting pot for Fed Res.,FDIC,FHFA,GSE’s.
Adam Smith’s “Invisible Hand” guided by Sheila Blair (FDIC)and Edward DeMarco (FHFA) can restore the American financial system,and put America on the road to prosperity.As a settlement to the legal actions brought against banks,when both the FDIC and FHFA can agreed to the banks insolvency ,they would place these banks receivership! (11-01-11. This could read JPM Chase,or both BAC and JPMC.OR ANY AND ALL BANKS ,as all banks should be placed in receivership that are insolvent. ) THE BANKS IN RECEIVERSHIP are to be placed along with Freddie,Frannie, Ginnie and Sallie,along with the FDIC, and FHFA, and the Federal Reserve into one new agency; “The Federal Bank of America”(FB of A).The Federal Reserve will no longer be needed as its mandate will be passed on to THE FEDERAL BANK OF AMERICA. Also the FDIC and FHFA as their mandates will no longer be required. Private banks will have to get their own insurance .
THE FEDERAL BANK OF AMERICA (FB OF A) will be a fully taxpayer owned bank. It will be operated by the people,of the people and for the people.
THE FEDERAL BANK OF AMERICA will be the source for the American borrower to acquire funds and the interest paid shall be revenue income for the funding of their government.
The first order of business will be securing of all deposits as allowed by the FDIC and the selling of these deposits along with all assets with the exception of any and all loans. All loans are to be retained by FB of A , as well as all offices and buildings as they will provide the brick and mortar for the new agency.
The shortfall,the amount of money needed to restore the loans to Fair Market Value could exceed $10 trillion. This includes the most recent transactions in derivatives and other market ventures,which an audit may show that are in an amount of over $80 trillion (That’s only Bank of America’s portion)(Worldwide it is said to be more than $800 trillion).
THE FEDERAL BANK OF AMERICA
The Federal Bank of America will be the maker of all loans,not guarantee them for others, they will be the maker of these loans and will retain all profits. Profits which by law will be turned over to the US Treasury,as funds for Congress for government expensive’s.
The Federal Bank of America:
-Will no longer allow the paying of interest for the use of its own money.
-Will not take deposits from anyone other then the US Treasury.
-Will not be involved in any financial investment services.
The Federal Bank of America will be the sole lender of legal tender. Any financial institution that wishes to loan American Dollars must acquire any legal tender that it may need from the Federal Bank of America,as all loans must be backed with a 100% reserve (Either dollars on hand or borrowed from the FB of A)
The Federal Bank of America may raise or lower rates of interest to insure the quality and quantity of the American Dollar.
The Federal Bank of America shall be funded by the US Treasury which shall as mandated by Congress request the US Mint to produce a platinum “coin” with a DOLLAR VALUE of $100 TRILLION.This value will be electronically deposited to the account of the American people into the Federal Bank of America. The actual “coin” will be placed on display next to the US CONSTITUTION.
The board of directors shall be selected by a non-partisan vote.
THE SOLUTION:THE FEDERAL BANK OF AMERICA .
FB of A will purchase ALL residential and commercial loans outstanding at Fair Market Value. Any private lender may retain any loan it has by simply showing 100% reserve. The American people will be the lenders and no longer will they be the victims of private greed.No longer will they allow the banks that they have entrusted with their money to use that money to make profits for themselves .Profits will be made by the people,of the people, for the people. Taxpayers bailout for Taxpayers by Taxpayers paying compounded interest to Taxpayers . These loans would provide trillions of dollars as TAXPAYER PROFIT (REVENUE)! Compound interest will cause any amount to double over a certain period of time.(Rule of 72). A 4% compound yearly interest rate will double the base amount in 18 years. The taxpayers will be the direct lender and make the profit (interest).This doubling alone will provide an enormous income stream. If loans are made for $100 trillion,the incoming payments would exceed $5 trillion a year. What a magnificent way to fund a government. Pay off all old debt and never need to go in debt again because we the people would demand that there be a reserve.
As Einstein said,“Make it simple.”
TERMINATE THE STUPID PRACTICE OF PAYING INTEREST ON OUR OWN MONEY TO PRIVATE BANKS .A PRACTICE THAT CAN ONLY END WITH A FINANCIAL BUST,AND SERVITUDE !
State Banks are taxpayer owned and are for taxpayers to make and retain any profit. The Federal Reserve Bank as it stands now is a bank that is owned (shareholders) by other banks. This is the greatest banker fraud of all,and we know how Freddie and Fannie turned out.No more GSE’s. And because the Federal Reserve Bank is the bankers bank,they are using taxpayers dollars to HELP THEIR BANKS more than to help people. When the banks made federal guaranteed loans,the FEDS guaranteed the loans with taxpayer dollars. Now they are supplying the banks with almost free money. This is exactly what we the people should do-become the owners of our money,the owners of the fruits of our labors.
The next wave of stuff that will hit the fan may be the “CRISIS in the derivatives market” if you think stuff was “too big to fail” before,join me in sleepless nights knowing the derivatives market is more than $800 trillion ! ! That’s $800,000,000,000,000 !
Read: “Web of Debt” written by Ellen Brown ( Ellen Brown ,she turns her skills to an analysis of the Federal Reserve and “the money trust.” She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back).
Read: A state owned bank,The Bank of North Dakota makes and retains profit for its owners-the taxpayers of the state. The State Bank of ND’s Return on Investment to taxpayers was 19% this year.(Google “State owned bank THE BANK OF NORTH DAKOTA)
Could you imagine the profit (read income revenue) The Federal Bank of the United States of America would make? Taxpayers paying interest as revenue income for the taxpayers government.
Put the insolvent banks in receivership.
The next set of banks that are to go into receivership by the FDIC are to have all assets that are not loans sold off.(read just in case Bank of America is “too big to fail” or read just in case JPMC and CITI refuse to sell them out.).FDIC will sell all assets ( minus loans) and keep the offices and all its branches.The renamed bank will be called “THE FEDERAL BANK OF AMERICA . It will be funded by the US TREASURY.
The Federal Bank of AMERICA will replace the Federal Reserve and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
Just like that ,we the people may just have solved our financial crisis , housing crisis,monetary crisis and started on to the path to a greater prosperity.
SOLUTION TO FINANCIAL,HOUSING, MONETARY CRISIS AND CREATION OF MILLIONS OF JOBS IMMEDIATELY AT NO COST TO THE TAXPAYERS;RATHER AT A PROFIT (READ INCOME) TO THE TAXPAYERS.
THE FEDERAL BANK OF AMERICA would be the only legal tender provider for all residential and commercial real estate loans,private personal and business loans.It would have branches in every state and territory.The FB of A shall control the money supply by setting terms and conditions for the loans,thereby fulfilling their mandate to control inflation,deflation,and stagnation. .Affordable loans at low rates and longer terms ( 2011 Private loans would be at 4% for 40 years as rates will be changed depending upon economic conditions .2011 Business loans would be at 2% for 6 (six) years with no payments for the first year.)This would create at least 4 million jobs immediately and may even reduce the unemployment to under 4% within that year by creating the jobs and homes and products needed for this new prosperity that would be a result of this new monetary policy.
The Federal Bank of AMERICA will replace the Federal Reserve and will be mandated to preserve the quantity and quality of the US Dollar and to provide Congress with funding for the general welfare,life,liberty and the pursuit of happiness
AMERICAN GOLD.
The American Dollar will be based upon THE AMERICAN TREASURE (“ITS GOLD”) !
That is the full faith and credit of the American people backed up by the US Constitution and all assets physical and intellectual. Americans shall and will pay all debts,foreign and domestic. The American people have tremendously more assets then the worlds gold. Why would we limit our future to only a single metal ?We have all the elements as assets that are greater and in more abundance than gold and intellectual assets that are limitless,why trade them for such a finite amount of gold,gold that is already owned by others?
We the people will create millions of jobs with commercial loans that will insure positive growth and employment.
We the people will have special terms and conditions for student loans that will insure the educational growth of all Americans .Extremely low rates, only used to cover losses. (read Ellen Brown”QE4- Jubelee”’ ).
Ben Franklin,Thomas Jefferson,and many more used this method ,the lending of taxpayers money , to start the colonies on the road to financial success. Then the lender banks took it away from the people by having legislators replace the practice allowing them to make the loans (make our money) and keep the interest for themselves,and at the same time guarantee that they the lenders get paid. We the people will no longer pay interest for the use of our own money,or guarantee lenders that they will be paid interest on our money for making loans.
To insure the funding of this great society and insure prosperity there would be three streams of income.
THE FIRST INCOME STREAM:
1. REVENUE (INTEREST) FROM DOLLAR LOANS.
Lets use a start figure of $51 trillion in loans,that which is already in circulation.(guesstimate,hope it is more)It will go on the balance sheet as $51 trillion loan assets. This asset will double every 18 years….1 X 18 = 102 trillion,2 X 18 =204 trillion. Banks will be the only source for deposits and savings. Banks will no longer be allowed to do fractional banking . All loans will require 100% deposit backing. Banks may borrow from The Federal Bank of the United States of America and use that borrowed money for their own account for their own investing;at the prevailing rate and terms. NO MORE FREE RIDE !( Some say they may need over $200 trillion to unwind their derivatives.)
Good-bye income taxes as they are known today.
The Return on Investment could be $3 to $5 trillion a year. US TREASURY INCOME to be used to pay off debt,promote the general welfare .
Good-bye income taxes as they are known today.
THE SECOND INCOME STREAM:
2. A one line form, INCOME TAX :” 0-10-20 -25″ . Annual income of up to $75,000,pays 0% taxes .Annual income of $75,001 up to $750,000 pays 10% taxes .Annual income over $750,000 up to $2,000,000 pays 20%,and the last category ;annual income over $2,000,000 pays 25%.There will be no need for any value added tax or consumer or sales tax.
THE THIRD INCOME STREAM:
3. A business tax.The business tax is also a one line item; ALL profit over a deduction of $100,000 per employee is taxed at 20%.
THREE INCOME STREAMS:
1-FEDERAL BANK LOANS:Taxpayers people and “people”(read corporations) paying interest
2-PERSONAL INCOME TAX: 0-10-20-25
3-BUSINESS PROFIT TAX: Profit @ 20% minus employees X $100,000
THESE THREE WOULD AVERAGE OVER $5 TRILLION DOLLARS A YEAR.
We the people would demand the debt be paid off ,end the possible servitude of our heirs.
We the people would demand a balanced budget.
We the people would demand a real monetary reserve be left in THE FB of A.
We the people would demand the general welfare,life,liberty,pursuit of happiness
FOR ALL THE PEOPLE.
CAUTION: They will try FEAR tactics to keep US away from our rights. Remember ,”We have nothing to fear but fear itself”
They will use the fear producing words,”inflation, hyperinflation, stagnation”.
You can answer with the words,”I will not be enslaved by the most powerful force in the universe because we the people can use that most powerful force for the betterment of mankind and prosperity.”
“We the people will deal with the present possible economic sunami,one tidal wave at a time .
We will eat this crisis -ONE BITE AT A TIME”
PERHAPS,WE NEED A MILLION CITIZEN MARCH ON WASHINGTON ORGANIZED FOR JUNE 2012 .
-WE NEED:
TO CHANGE OUR ELECTED CHOICES!
TO GET OUR CANDIDATES IN OFFICE!
TO GET THOSE ELECTED TO OFFICE AGREE TO THE ONE MOST IMPORTANT ITEM OF CHANGE;THEY WILL ENDORSE THE FORMATION OF “THE FEDERAL BANK OF AMERICA”
May God continue to bless America,
justaluckyfool@aol “Anyone who attemps to predict the future is a fool;if correct justaluckyfool.”
What the hell was that and which god blessed America?
Should I take that repy as an endorsement.
Just leave the God (read god) part out?
Who would have thought that just an ordinary fool would be able to write this because he got curious and had this knowledge available from the click of a mouse.
How about the slogan “TAXPAYERS PAYING INTEREST ON THEIR OWN BORROWED MONEY,INSTEAD OF INCOME TAXES.”
An intended consequence of forming THE FEDERAL BANK OF AMERICA.”Break the glass window of the private banks and
use what was their profit from “the most powerful weapon
in the universe” to make a capitalistic democracy work.
PLEASE,if you in any way know or understand monetary theory,
Challenge “The All Inclusive Solution”
Make it better.
Anyone?
justaluckyfool@aol.com