Updated from my original OpEdNews.com article of October 28, 2008 -- Kent Welton
Todd Johnson, SeekingAlpha.com, August 25, 201 1
TREASURY DIRECT HOME LOANS - FIRE THE FED
"To suggest that there's a large place for private financing in the future of housing finance is unrealistic. Government is part of our future. We need a government balance sheet. To suggest that the private market come back in is simply impractical. It won't work."
Bill Gross, Pacific Investment Management
Recently, Bill Gross, who runs the world's biggest bond fund, said the U.S. should consider "full nationalization' of the mortgage-finance system. Clearly more people are realizing the predatory idiocy of "our" housing finance system cannot go on if we are to have a stable and fair consumer-based economy.
Given a non debt-money based lending direct from our own Treasury, provided via existing banks and credit unions whether public or private, we can once and for all escape the banksters system that has destroyed so many lives and the economy as a whole. The carnage in peoples lives resulting from the Wall Street home loan system is beyond description
With new legal tender laws to escape the "Federal Reserve" money and credit creation monopoly we avoid all the secondary market chaos and Wall Street criminality we see today and which has cost taxpayers billions in bail-outs to bankers - i.e., the very ones who abused and raped the system. With private debt-money, the social harm and costs spread to other markets and mean more banker bail-outs with yet more money which must be borrowed at interest from a private cartel that creates it out of thin air. Were a public home loan bank system in place, all the chaos could have been and will, in the future, be prevented with a stable low or no interest system of Treasury-direct home loans.
In practice a treasury direct system is simply a friendly local community bank writ large, and one funded not by debt-money but stable treasury direct, non debt-money, financing for the most important asset in our lives. It will be funded and managed thru local banks with greater penalties for fraud and abuse. Forget the taxpayer guarantees for a predatory, private, debt-money, home loan system. We have already seen how this approach has cost us trillions in debt and ruined lives.
If, for example, we adopted a regime of three percent fixed home loans - all funded thru local banks, savings and loans, and credit unions we could then have stable, low-interest, home loans with one big difference -- i.e., the source of funds.
Not only would we not be paying this low interest to and thru the debt-money bond dealers who own the Federal Reserve but the interest, if any, would be paid directly into our public Treasury. Such funds could then be used to make new loans or go to reduce our taxes or fund infrastructure -- all without debt-money chicanery and slavery to a private cartel.
Our problem to date is that we are not likely to hear of any such options because the corporate "free press" and our corporate-financed, bankster-driven, politicians dare not speak of such "radical" proposals or any such freedom from the iron grip of the "Fed" cartel - and this despite the clear constitutional "purse power" directive handed down to We, The People. These lackeys would cry "socialism" in order to keep you tied to the very banksters our Founding fathers fought to escape and keep future generations from becoming their victims. It is privatization that is bankrupting us and stealing our assets and even our ability to work as a truly free community, state, and nation.
Nothing is more indicative of the stone cold oligarchy within which we are trapped then the absence of any discussion of exactly such a program. Must we wait until the system collapses under the weight of forced debt-money, and the fascist parade beings in earnest, to hear a discussion of Treasury-direct home loans, nationalization, state banks, or a public central bank in this "free country" of ours? Must we eternally bow down before the money God, Goldman Sachs, a promethean too-big-to-fail entity wherein our Treasury Department appears be be nothing more than an in-house subsidiary?
Real home loan reform is not only possible today but absolutely necessary. First, however, something other than complete private bankster control must be broached and freely debated not only in Congress but in a media free of corporate control (see EditorFreedom.com). This is a tall order at present as the "weapons of mass distraction" are currently out of our hands -- despite the fact the public owns the airwaves we still have no say in editorship.