We Are All Amerindians Now
"They made us many promises. More than I can remember. But they only kept one. They promised to take our land, and they took it." - Red Cloud, Chief of the Sioux.
As I go door to door on the campaign trail, I meet people who are losing their homes or worried about losing them. The media spin about a "housing recovery" is not what it seems. It turns out that the gains in housing sales are not from people looking for a primary residence, but rather institutional investors who are buying up mortgages in bulk.
And where are these institutions getting the money? From the Federal Reserve's ZIRP and QE policies. That's right. The Federal Reserve is creating money out of thin air, which it says is a debt that we owe, and using it to buy (at above-market prices) the big bank's mistakes. These are in the form of Mortgage Backed Securities (which are largely made up of mortgages that are not paying). Those big banks are then using all the easy money which they (but not us) have access to in order to scoop up depressed homes around the nation.
Main Street is starving for capital, but the biggest players on Wall Street have been given access to trillions of dollars of basically interest free cash so they can buy up what is left of our assets at bargain prices. What has happened is that the banks got bailed out, we didn't. Because we didn't, many of us are losing our homes and losing them to agents of the very banks that got bailed out. They wind up with the money for the home, and they get the home too.
The real cost for this will fall on not only those who lost their homes, but even those of us who kept them- because all that debt created to allow the banks to do this is, under our present fraudulent financial system, "our" debt. When its time to pay for it the ruling class won't come after the poor to get money to back that debt- they don't have any money. They will come after what is left of the middle and upper middle class. The "barely rich" will be looted the most.
I can see the day coming when almost no Americans own property. We will be like so many third world countries with a few super rich and a vast population of landless and impoverished serfs. Even the children of many who consider themselves "winners" at present will be among the latter.
Our present financial system is fraudulent It's criminal. It is designed to systematically loot Americans of their wealth and it is accomplishing that goal. And if it is not altered it will, as Thomas Jefferson predicted, end in the destruction of our Republic.