Biggest Financial Scam in History?

Haha glancing down the recent posts, saw yours and thought gotta be flippin mortgages. They really are the scam of the century, a noose around your neck. Over here in the UK the scam is at full swing, property sale prices through the roof, young couples taking on massive debt just so they can pay off interest for the next 25 years and be left with a basic mundane semi.

a reply to: Jamie1

originally posted by: Jamie1

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?

No, it isn't right.

With a mortgage, the bank is willing to lend you the money because there is a real asset (The house) that helps mitigate their risk. If you fail to pay them back, they can foreclose on the home and hopefully recoup their money. However, in most cases, the bank loses their shirt in a foreclosure.

I think you are over thinking things. Yes, our system is complex. Yes, money gets created out of thin air (there are constraints though). Your money at the bank is just numbers on a screen. This provides liquidity to the market and helps the economy grow with investments and allocation of capital. There is systematic risk that has to be managed.

Will it topple? Who knows. If it does, I just hope you can get to your bug out location.

+1 to the few people who called it-
currency itself is the biggest scam in history.

Let's make the figures more manageable. Say the Federal reserve prints $1000 and that's it, all the money they print. They being the good fellows they are loan it to you at 5%. Now you're into the feds for $1050. You see what's happening here? You really can't spend the money, if you do where are you going to get the money to pay them back? Then you have the interest to consider. So unless you start printing real money backed by a real commodity you will always be in debt at minimum for the interest. Our goberment thinks the way to handle it is to borrow more, hence the 18 trillion dollars debt. Forgot where I was going with my reply, a friend I haven't talked to in five years started texting me so I got sidetracked. My apologies. Hope this clears up where the interest comes from.

Hey Crayzeed, as to your question, we pay it to The Thirteen Families who own everything, That's who. Do your own research, read up on the Treaty of Paris (which ended The Revolutionary War), that'll give you an idea as to who owns what and what their Official Titles are, it's quite enlightening Peace, Arjunanda. a reply to: crayzeed

a reply to: Jamie1

Did I miss anything?

Yes you did. In the future Oncle Sam will demand that you cover Your debt With Your property. So that if you cant pay Your intrest, Oncle Sams bank can sell it to someone else. If you loan is larger than what the Bank can sell Your house for, you will be responsible for covering the Banks losses.

originally posted by: Jamie1

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.....

That is the holy grail of questions right there. I asked it twice myself only with 1 less zero. Never got a straight answer. My guess is inflation has to raise the value of goods and investments in order to just keep ahead of the interest.

If the buck ever stopped and all the loans were called in, there would not be enough money to pay back the debts. Nobody has ever refuted that to me, personally.

This system of banking was instituted when the population had a 1% literacy rate. The central banking act would not pass any parliament or congress today. I think they just ratify it automatically since the entire globe would collapse in it's absence.

originally posted by: Edumakated


With a mortgage, the bank is willing to lend you the money because there is a real asset (The house) that helps mitigate their risk. If you fail to pay them back, they can foreclose on the home and hopefully recoup their money. However, in most cases, the bank loses their shirt in a foreclosure.

Sadly, this is no longer true. Thanks to Congress, Banks no longer have a risk. None. Zip. Zero. Nada. You and I now have that risk. Banks today will "originate" the mortgage, then sell the note. Prior to the meltdown in 2008, the notes were broken up into "mortgage backed securities" which were sold to private investors -- removing any and all risk of borrower default from the bank. However, usually the bank continued to "service" the mortgage, collecting payments, etc., so the borrower usually had no way of even knowing their mortgage note was sold/transferred, much less knowing who actually owns their mortgage. Since the 2008 meltdown, virtually all mortgages -- both new and existing -- have been bought by Fannie Mae or Freddie Mac via QE3 purchases of these mortgages backed securities. The servicing bank now actually makes even more money by foreclosing on homes, because any and all reported foreclosure costs are now reimbursed by the Fed govt -- i.e., you and me -- who both owns the mortgage notes and guarantees the mortgage.

Here are a couple links for anyone who wants to find out who owns their mortgage, with a couple informative comments at the second link:


How Do I Find Out Who Holds My Mortgage? Here's how to find out who owns your mortgage and who services it.

Who Really Owns My Mortgage?

originally posted by: MALBOSIA

originally posted by: Jamie1

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.....

That is the holy grail of questions right there. I asked it twice myself only with 1 less zero. Never got a straight answer. My guess is inflation has to raise the value of goods and investments in order to just keep ahead of the interest.

If the buck ever stopped and all the loans were called in, there would not be enough money to pay back the debts. Nobody has ever refuted that to me, personally.

This system of banking was instituted when the population had a 1% literacy rate. The central banking act would not pass any parliament or congress today. I think they just ratify it automatically since the entire globe would collapse in it's absence.

Inflating asset values still doesn't produce more dollar bills to repay the principal and the interest.

That money has to come from somewhere.

Let's make it REALLY simple.

Suppose it's day one of the Fed printing money. They print $1 and loan it to you. They tell you to pay in back tomorrow plus $0.01 interest.

Where do you get the penny to pay the interest?

originally posted by: Jamie1

originally posted by: MALBOSIA

originally posted by: Jamie1

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.....

That is the holy grail of questions right there. I asked it twice myself only with 1 less zero. Never got a straight answer. My guess is inflation has to raise the value of goods and investments in order to just keep ahead of the interest.

If the buck ever stopped and all the loans were called in, there would not be enough money to pay back the debts. Nobody has ever refuted that to me, personally.

This system of banking was instituted when the population had a 1% literacy rate. The central banking act would not pass any parliament or congress today. I think they just ratify it automatically since the entire globe would collapse in it's absence.

Inflating asset values still doesn't produce more dollar bills to repay the principal and the interest.

That money has to come from somewhere.

Let's make it REALLY simple.

Suppose it's day one of the Fed printing money. They print $1 and loan it to you. They tell you to pay in back tomorrow plus $0.01 interest.

Where do you get the penny to pay the interest?

If you took that dollar and purchased a house, the value of that house increases to 2 dollars. You now have 95 cents to pay your interest. Somebody else had to take a loan for 2 dollars in order to buy it and now it is up to that borrower to see the value of the purchase increase in order to cover the interest. I agree that it makes no sense but inflation seems to be the only way I see them keeping this illusion going. Being pinned down to a 2.5% inflation rate is why we never seem to have enough money. Any more than that and they raise interest rates.

The fed is the root of the problem,
but how many of you understand fractional reserve banking?

Yeah, we'd still be F'd in the end without it, but fractional reserve banking is what allowed this whole system to reach its point of collapse in about a hundred years from its implementation.

The few who understand the system, will either be so interested from it's profits or so dependent on it's favors, that there will be no opposition from that class.

They keep us dumb- so this more or less still holds true 150 some odd years later.
Only change? There's now a few of us who do understand it, but it's so far advanced that there's nothing we can do about it. Just try- soon they'll be rounding up the homeless (people who don't pay the mandatory taxes...) and putting them in our for-profit prisons.

I'm lost.

Is this thread about the US mortgage interest allowable tax deduction and whether or not it's a scam ?

Or is it about the feds/interest/currency/inflation and whether or not those are scams ?

originally posted by: butcherguy
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.

SS has to be the biggest ponzi scheme of all time.

originally posted by: MALBOSIA

originally posted by: Jamie1

originally posted by: MALBOSIA

originally posted by: Jamie1

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.....

That is the holy grail of questions right there. I asked it twice myself only with 1 less zero. Never got a straight answer. My guess is inflation has to raise the value of goods and investments in order to just keep ahead of the interest.

If the buck ever stopped and all the loans were called in, there would not be enough money to pay back the debts. Nobody has ever refuted that to me, personally.

This system of banking was instituted when the population had a 1% literacy rate. The central banking act would not pass any parliament or congress today. I think they just ratify it automatically since the entire globe would collapse in it's absence.

Inflating asset values still doesn't produce more dollar bills to repay the principal and the interest.

That money has to come from somewhere.

Let's make it REALLY simple.

Suppose it's day one of the Fed printing money. They print $1 and loan it to you. They tell you to pay in back tomorrow plus $0.01 interest.

Where do you get the penny to pay the interest?

If you took that dollar and purchased a house, the value of that house increases to 2 dollars. You now have 95 cents to pay your interest. Somebody else had to take a loan for 2 dollars in order to buy it and now it is up to that borrower to see the value of the purchase increase in order to cover the interest. I agree that it makes no sense but inflation seems to be the only way I see them keeping this illusion going. Being pinned down to a 2.5% inflation rate is why we never seem to have enough money. Any more than that and they raise interest rates.

Well no, the house couldn't be worth $2 because the Fed only created $1. Where would the other $1 come from?

The point is if the Fed loans you $1, and charges interest, there was never ANY money created to pay the interest.

The only way for there to be inflation would be for the Fed to create more dollars, and charge more interest, but there is never any money created to pay the interest since all the money created is loaned out as principal.

originally posted by: CranialSponge
I'm lost.

Is this thread about the US mortgage interest allowable tax deduction and whether or not it's a scam ?

Or is it about the feds/interest/currency/inflation and whether or not those are scams ?

Yes, they are directly related since all the money loaned for mortgages originates with the Fed creating money then loaning it to investment banks, who then loan it to home buyers.

The borrowers pay interest to the banks instead of taxes to the government because the government passed laws that said a) we'll take a portion of your income and b) unless you give it to the banks as interest payments.

a reply to: Jamie1

Actually, they're not connected at all.

You do realize that the USA and only one or two other countries on the planet actually have a "mortgage interest deduction", right ?

Every single country on the planet deals with currency, interest, inflation, central banking, etc etc... but pretty much only your country has this mortgage deduction thing.

So no, they are not directly related and are, in fact, two completely different subjects.


Hence the reason for my confusion as to what exactly this thread is actually about.

originally posted by: Jamie1

Where do you get the penny to pay the interest?

Simple, you don't. It's meant to be an invisible slave collar. As long as usury is allowed there will always be more debt than actual currency and the debtors will be enslaved to the lenders. You do work to give them money and they don't have to do a thing to earn it.

a reply to: arjunanda
No! Your believing the NWO propaganda. Now you do your own research and seriously read up on the IMF. It's as I said, we borrow off ourselves and pay ourselves back. It has nothing to do with families whether the British royal family or the Rothchilds.

Money is generally borrowed into existence and endogenous money allows for increasing money supply. Also, money is part of a much larger credit system.