Biggest Financial Scam in History?

Is the mortgage payment deduction, promoted to help the middle class, one of the biggest financial scams in history?

It works like this:

Our Uncle Sam first says, "Hey kid... I need to take part of your paper route money every month. I need it more than you. Like it or lump it."

Next, Uncle Sam says this, "I know it's a lot of money... but you do understand it's your patriotic duty, right? So here's what we'll do. If you borrow money from my banker friend, you don't have to give me as much money. You cool with that?"

Of course we're cool with that! We get to give Uncle Sam's banker friend "interest" every month instead of paying it to Uncle Sam, who we really don't like that much anyway. And we get to "own" a house and give Uncle Sam's other friends some of our money because now we own "property."

Uncle Sam's banker friend gets to live off of the interest we pay him on money Uncle Sam told him he could create out of thin air. He gets his money back, and extra money he calls "interest" which he never printed. (Not sure where that money is supposed to come from though...)

And of course, Uncle Sam's banker friend uses some of that money to pay nice guys like Bill, and George, and Barack to to go work for Uncle Sam in Washington D.C. These guys make sure Uncle Sam's banker friend gets the rest of the money, directly from Uncle Sam, just in case we don't pay back the money his banker friend gave us. Uncle Sam promises his banker friend if we don't have the money, he'll just get it from our kids, and maybe their kids if he has to.

Did I miss anything?

a reply to: Jamie1
Uncle Sam still continues to tax you.
If you don't pay your taxes , he takes your house.

I think Social Security is an even bigger scam.

My mortgage is through a credit union. The members make up the Capitol, not Uncle Sam. The interest i pay goes to the members of the credit union.

a reply to: Jamie1

You shouldn't be talking like that, you are supposed to not see this and be happy with contributing your hard earned money that you have not yet made to the continued growth of the economy. Maybe you should start eating more junk foods, the doping chemistry will help to blind you. If that doesn't work, they have pills that will take away your insight and make you into an ordinary ignorant American.

Woops, maybe I shouldn't be saying these things, soon they will be knocking on my door and saying I need to eat "Meals on Wheels". They are already telling all my friends they need Statin drugs but neglect to stress the known side effects they can cause, like depletion of Q10 and the doping effect I see in the friends that are taking them. Now, I suppose that enjoying life is what it is all about, but doping up people too much causes many health problems. But that is acceptable, as long as we do not challenge what we are told is real by the companies pushing this chemistry on us.

How come I get so off topic all the time? I always try to show people possible reasons why we believe this deception. I need to quit that, that is an OCD trait.

a reply to: Jamie1

Did I miss anything?

Yes, utilities, maintenance, repair, furnishings, landscaping and Insurance.

originally posted by: intrptr
a reply to: Jamie1

Did I miss anything?

Yes, utilities, maintenance, repair, furnishings, landscaping and Insurance.

How exactly is furniture a scam?

Hi Jamie1, I think the two little bits you missed out on are:
You don't actually buy a House, you buy a Mortgage and They get The Money from The Federal Reserve at Near Zero Cost (Who Creates it out of thin air, Quantative Easing). Just my 2 cents, Peace Arjunanda. a reply to: Jamie1

originally posted by: Hoosierdaddy71
My mortgage is through a credit union. The members make up the Capitol, not Uncle Sam. The interest i pay goes to the members of the credit union.

Is the credit union completely funded by depositors, like the Bailey Savings and Loan? Cool....

originally posted by: arjunanda
Hi Jamie1, I think the two little bits you missed out on are:
You don't actually buy a House, you buy a Mortgage and They get The Money from The Federal Reserve at Near Zero Cost (Who Creates it out of thin air, Quantative Easing). Just my 2 cents, Peace

Arjunanda. a reply to: Jamie1

Yeah, you're right.

I still haven't figured out where the money comes from to pay interest.

If they loan out $1 million, and charge 5% interest, and the entire $1,050,000 must be paid pack, where does the extra $50,000 come from?

Is this one of those questions we're not supposed to ask? This is why I always got in trouble in school.....

a reply to: Jamie1


Yes,,, and insured by the Ncua, thats government backing but not funding.

a reply to: Jamie1


Interest is the money you pay to borrow somebody else's money. Why would they give you a million dollars and only get a million back?

originally posted by: Hoosierdaddy71
a reply to: Jamie1


Yes,,, and insured by the Ncua, thats government backing but not funding.

Wow, that's cool. Do they do fractional lending?

originally posted by: Hoosierdaddy71

originally posted by: intrptr
a reply to: Jamie1

Did I miss anything?

Yes, utilities, maintenance, repair, furnishings, landscaping and Insurance.

How exactly is furniture a scam?

I said "furnishings". Bought any lately? Or do you live in a man cave?

originally posted by: intrptr

originally posted by: Hoosierdaddy71

originally posted by: intrptr
a reply to: Jamie1

Did I miss anything?

Yes, utilities, maintenance, repair, furnishings, landscaping and Insurance.

How exactly is furniture a scam?

I said "furnishings". Bought any lately? Or do you live in a man cave?

fur·nish·ing
ˈfərniSHiNG/
noun
plural noun: furnishings
1.
furniture, fittings, and other decorative accessories, such as curtains and carpets, for a house or room.
2.
the action of decorating a house or room and providing it with furniture and fittings.


My daughter slowly claimed my man cave and turned it into a hen house for preteen girls. And I own a business that make custom furniture and cabinets.
Not sure how carpet and a sofa are scams,
Banking fees I can understand.

a reply to: Jamie1
You think that's a big scam? Scramble your brains on this one. The national debt of the US and UK runs into the multi TRILLIONS. Now not withstanding there ain't that much loose money in the world, the question is "who are we borrowing it off and who are we paying the repayments to"?
Please posters do not sat the world bank because that answers gives the true scam as we own the world bank so if that's the case we are borrowing of ourselves and paying ourselves back. So technically there is no debt to pay.

I work in the mortgage business.

The logic behind the interest deduction is that generally homeownership benefits communities. The government wants to encourage ownership because homeowners tend to take care of their communities better than renters.

With that said, I don't like the mortgage deduction because I feel it is just one more giveaway. Both liberals and conservatives should be advocating for a simpler tax code. Our politicians use these types of tax credits and deductions to dole out favors to their lobbyist and special interest. With a flat tax, we can take away a lot of the power from career politicians.

Fractional banking isn't inherently bad. It provides liquidity to the market. However, the problem is government not controlling spending and using the Fed to just print money instead of living within it's means.

originally posted by: Hoosierdaddy71
a reply to: Jamie1


Interest is the money you pay to borrow somebody else's money. Why would they give you a million dollars and only get a million back?

Well yeah, but where does the money come from?

Do the math.

They create the money. All money is a debt instrument. They give out $1 million in loans from money they created from nothing. The money they expect to be paid back is $1,050,000.

Where do the borrowers get the extra $50,000 if only $1,000,000 was created to start with?

Extrapolate this across the entire financial system. All dollars are debt instruments created from nothing and must be paid back, with interest.

Where does the money to pay back the interest come from if only the principal amount is created by the banks?

originally posted by: crayzeed
a reply to: Jamie1
You think that's a big scam? Scramble your brains on this one. The national debt of the US and UK runs into the multi TRILLIONS. Now not withstanding there ain't that much loose money in the world, the question is "who are we borrowing it off and who are we paying the repayments to"?
Please posters do not sat the world bank because that answers gives the true scam as we own the world bank so if that's the case we are borrowing of ourselves and paying ourselves back. So technically there is no debt to pay.

Not true.

The Federal Reserve is a private bank. That's the institution that has the legal authority to create the money supply, and they loan the money to large broker/dealers.

The Federal Government then issues bonds, i.e., borrows the money in exchange for a contract to repay the money, plus interest, at some time in the future. That borrowing goes on the books as debt.

The entire system relies on future flow to keep it going. The U.S. is under contract to pay the bond holders. Bond buyers loan the money because of the taxing power of the U.S. They know that the U.S. can tax workers to raise money to pay the bond holders.

If we default, the bond holders are screwed. So are we, because we will no longer have capital flowing into the U.S. and the dollar will be worthless.

Back to the point of the OP, isn't the mortgage tax deduction kind of scammy since it's really saying, "Hey, pay us less, just make sure you pay our banker friends instead of us."

It's a massive transfer of wealth born of a simple tax code. Money flows from workers to banks. Workers get to "own" where they live, which means zero if the home value doesn't go up. The home is equivalent to the principal of the loan.

For the system to make sense, it MUST have built in inflation or the entire system would come to a halt.

Is that right?

Who is this uncle Sam I keep hearing about?

a reply to: Jamie1
Take it one step further. It is not money borrowed or paid back, it is illusory, it doesn't exist so it could be any figure you want to think of. The stock market works on this principle and it only falls down when took to the end where people want actual money for their investments.
You had this system in the US with Fanny Mae(or whatever the name was) everything was working fine with the illusory money til some one wanted their money and the money wasn't there because it was never there in the first place.