swaps

What's Ahead for Real Estate: Doing the Math

In the middle ages property was sold on contract at no interest and if a buyer defaulted midway through, a new buyer stepped in and paid off the remainder of the contract to the original owner. Then the new owner made annual or whatever payments to the original buyer so recovered the equity he had in the property to the point of default.

This is described in War Cycles, Peace Cycles.

No complete wipe out. Unless the property was trashed by the original buyer, I guess.

The problem with our usury banking system is that the money supply has to be continually expanding otherwise interest payments would quickly cannabilize and gobble up the money supply and put it in the hands of the lenders. The flow of money would congeal.


No tree grows to the sky, no republic lasts forever, and this current Fed Bank post 1913 artificial money bubble, despite occasional deflations, has kept on growing and growing. But it can't go on for ever. The Fed and the powers behind it are playing God, ignoring the Biblical year of jubilee that is periodically required.

Clearly our culture, especially our media and business reporters and editors, look to The Fed to bestow blessings and favor and growth, and then shriek out in fear when god Fed begins running up interest rates like a vengeful tribal God, as Greenspan and Bernanke did.


But these are only pushy, tribal men. Clearly not gods, much less the deity we dare not speak of.