re: Younger Americans Hardest Hit by Shifts in Homeownership and Housing Costs

peter palms — Mon, 19 Nov 2012 19:16:15 GMT

For the celebration of the 17th Anniversary of the Million Man March, the Honorable Minister Louis Farrakhan gave two monumental classes on economics, where he pointed out in very clear terms what the Federal Reserve System has done and will do to the American people. He sent a warning to both political candidates for the presidency of the United States, saying: “If Obama and Romney — and Congress — don’t want to deal effectively with the debt, they will keep kicking the can down the road. These children won’t have a future, because debt is another form of slavery.” To highlight the point, he sang “America (My Country, ‘Tis of Thee)” but substituted the words “sweet land of slavery” for “sweet land of liberty.” December 2013 will be the 100th anniversary of the Federal Reserve System. The Minister pointed out that the Federal Reserve System, known simply as the Fed, is not owned by the American government. It is a privately owned set of banking institutions that keep their ownership a secret from the American people. We do know that the form of this “beast” was crafted in 1910 by seven of the most powerful men of American finance on the appropriately named Jekyll Island, located off the coast of Georgia. When the Fed hatched in December of 1913, the U.S. debt was at about one billion dollars; however, in just 100 years that debt has grown to over $16 trillion and counting. We also know that Congress surrendered to the Fed its Constitutional right and responsibility to print the nation’s currency. Now every time the government needs money, it has to borrow it from the Fed and pay interest on that debt. So the American government is under the control of the 12 private banks of the Federal Reserve System. Minister Farrakhan then went on to expose the present plot of the Fed to deflate the value of the dollar and swallow up all the real estate in America that has an outstanding mortgage. On September 13, 2012, while the American people were being distracted by events in Libya and the Middle East, the Federal Reserve announced the extension and modification of “Operation Twist,” a so-called stimulus move that was launched in September of 2011. The policy involved selling $400 billion in short-term Treasuries in exchange for the same amount of longer-term bonds, starting in October 2011 and ending in June 2012. This move was to push down interest rates while supposedly not increasing the money supply, an action many economists did not support. Even within the Fed three regional bank presidents dissented against the decision, believing that the move could increase the risk of inflation without enticing potential borrowers to take on more debt. The stimulus did not reduce the unemployment rate enough, so Ben Bernanke, head of the Federal Reserve, announced on September 13, 2012, that the Fed would buy $40 billion of mortgage-backed securities indefinitely each month until he felt that the economy was picking up steam. The banks from whom the Fed buys those securities would then turn around and purchase U.S. Treasury notes. These $40 billion worth of Treasury notes (U.S. debt) will be held on the banks’ balance sheets as assets, enabling them to lend or invest an additional $400 billion, thereby increasing the money supply by $400 billion by issuing more debt instruments each time the Fed buys $40 billion of mortgage-backed securities. Immediately after the Fed announced this move, the Dow Jones industrial average jumped by over 200 points. When you print more money not backed by gold, silver or any tangible commodity, the value of the dollars in circulation goes down. This will make America’s exports cheaper, but it will decrease the spending power of Americans, who now purchase many goods from China. The American public will then blame China for inflating prices instead of the Fed for dumping more money in the system. China will then have to reduce the price of her goods sold to America or suffer reduced profitability for her manufacturers and reduced wages for her workers. This could cause great economic problems inside China, ultimately pushing America and China into a confrontation. On the domestic front this new scheme by the Fed can put all of the real-estate property in the hands of the Federal Reserve, which then could sell it to the highest bidders like China, which desperately needs more agricultural land to feed her billions. Essentially, as the Fed buys the mortgage-backed securities, the central bankers would own all those properties that were bundled and securitized. The experts are still trying to figure out how many homes, small businesses, small farms and other lands were mixed up in this Ponzi scheme. The actual total numbers of victimized Americans are continuing to rise and are currently unknown. Bernanke is not interested in the payments that the debtors will be giving the Fed to keep their property. It is the physical property that interests the central bankers. This is a massive land-grab, the likes of which have never been attempted in the U.S. Through the mortgage-backed securities, the central bankers will literally own most of the domestic U.S. Food prices are already rising and the value of the best farmland in America in states like Iowa has risen from under $2,000 per acre in 2000 to almost $7,000 per acre in 2011. There was a 32 percent jump in farmland prices from 2010 to 2011 alone, according to the annual Farmland Value Survey sponsored by Iowa State University. As China and other foreign holders of U.S. currency dump their dollars to buy farmland, the prices of farmland will be so high that the aging farm population will sell their land and go into retirement. The younger farmers will not have enough money to purchase that land and the needed equipment, chemicals, seeds and fuel to operate that land, so much of this land will be held by speculators sitting idle while food prices continue to skyrocket. The Honorable Elijah Muhammad warned us that there would come a time when hyperinflation would swallow up America’s wealth. He said to us: “One day, you will see the rich lighting their cigars with $1,000 bills because the currency will have no more value.” That day is near. And when the American people finally wake up and realize that they have been sold out and are on the verge of starvation, they will not be able to attack the bankers, because the bankers will have an army. Within the Patriot Act of 2001 was the creation of a private police force for all of the Federal Reserve Banks. According to Section 364, titled Uniform Protection Authority for Federal Reserve Facilities, these private police officers “…are authorized while on duty to carry firearms and make arrests without warrants for any offense against the United States committed in their presence …” whether in uniform or on a plain-clothes assignment. Again, the Federal Reserve is privately owned, but its police will have the right to determine what an “offense against the United States” is and arrest American citizens without a warrant. Why would the Federal Reserve seek such protection in 2001? What did they know in 2001 right after the destruction of the World Trade Center towers and the Pentagon? When the American people finally understand the implications of the Fed’s moves on September 13, 2012, we may then know what the Fed knew about September 11, 2001. In the meantime it appears that only the Honorable Minister Louis Farrakhan has the knowledge, love and courage to tell us, the American people, the truth. The Federal Reserve prints money and gives that money to its banker friends, while the rest of us must give our labor for the meager money we receive. The Federal Reserve is pushing America and her people further in debt to it—and “debt is another form of slavery.”

re: Younger Americans Hardest Hit by Shifts in Homeownership and Housing Costs

peter palms — Mon, 19 Nov 2012 19:14:38 GMT

The U.S. Housing Bust has saddled the country with an "extraordinary" level of abandoned properties, inflicting heavy costs on the wider community which may warrant to ease the problem, a top US central banker said on Friday. "In order to see the robust economic recovery we all want, we need to deal effectively with the large volume of vacant and distressed properties throughout the country," said Federal Reserve Board Governor Elizabeth Duke. QE3 Now the banks OWN your house. When the dollar collapses the government will no longer have the collateral of these houses and the banks will have paid nothing for them. Here is what will come next. If you do not pay your real estate taxes on time you home will become the banks property. One of the first industries to feel the raw power of "emergency measures" was the home industry. During the early stages of inflation, people were applying their increasingly worthless dollars to pay down their mortgages. That was devastating to the lenders. They were being paid back in dollars that were worth only a fraction of the ones they had lent out. The banking crisis had caused the disappearance of savings and investment capital, so they were unable to issue new loans to replace the old. Besides, people were afraid to sell their homes under such chaotic times and, if they did, very few were willing to buy with interest rates that high. Old loans were being paid off, and new loans were not replacing them. The S&Ls, which in the 1980s had been in trouble because home prices were falling, now were going broke because prices were rising. Congress applied the expected political fix by bailing them out and taking them over. But that did not stop the losses. It merely transferred them to the taxpayers. To put an end to the losses, Congress passed the Housing Fairness and Reform Act (HFRA). It converted all Bancor-denominated contracts to a new unit of value—called the "Fairness Value"— which is determined by the National Average Price Index (NAPI) on Fridays of the preceding week. This has nothing to do with interest rates. It relates to Bancor values. For the purpose of illustration, let us convert Bancors back to dollars. A $50,000 loan on Friday became a $920,000 loan on Monday. Few people could afford the payments. Thousands of angry voters stormed the Capitol building in protest. While the mob shouted obscenities outside, Congress hastily voted to declare a moratorium on all mortgage payments. By the end of the day, no one had to pay anything! The people returned to their homes with satisfaction and gratitude for their wise and generous leaders. That was only an "emergency" measure to be handled on a more sound basis later on. Many months have now passed, and Congress has not dared to tamper with the arrangement. The voters would throw them out of office if they tried. Millions of people have been living in their homes at no cost, except for county taxes, which were also beyond the ability of anyone to pay. Following the lead of Congress, the counties also declared a moratorium on their taxes—but not until the federal government agreed to make up their losses under terms of the newly passed Aid to Local Governments Act (ALGA). Renters are now in the same position, because virtually all rental property has been nationalized, even that which had been totally paid for by their owners. Under HFRA, it is not "fair" for those who are buying their homes to have an advantage over those who are renting. Rent controls made it impossible for apartment owners to keep pace with the rising costs of maintenance and especially their rising taxes. Virtually all rental units have been seized by county governments for back taxes. And since the counties themselves are now dependent on the federal government for most of their revenue, their real estate has been transferred to federal agencies in return for federal aid. All of this was pleasing to the voters who were gratified that their leaders were "doing something" to solve their problems. It gradually became clear, however, that the federal government was now the owner of all their homes and apartments. The reality is that people are living in them only at the pleasure of the government. They can be relocated to other quarters if that is what the government wants.