What do you think about interest payments from bank loans? Or, what do you really know about interests payments from bank loans? If you never got a loan, it's where you borrow money, and then you have to pay back more than what you borrowed. A simplified version is let's say you borrow $100 at 15% interest. That means you have to pay back $115. It gets more complicated with different types of interest, but forget about all that for this explanation.
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Is there anything wrong with this? Is it completely "above board" and legit?
There have been pictures floating around in recent years about people's financial woes. Especially since the 2008 financial crisis hit. Many people were offered loans that they couldn't afford, packages as high-grade loan packages for investors to buy the debt and make money off of the interest. But these people couldn't pay back the loans, and the investors who purchased the debt ended up holding a bag of shit.
This happens with loan sharks and gangsters in movies, where they sell someone's debt to another bad guy, and someone becomes their debt-slave to pay them back. For some reason is not allowed int he black market of gambling and borrowing money, but when it's done in the "legal" world, everything is ok.
Here is an image I had saved 2 years ago, of someone who exemplifies how they are getting screwed by interest rates, to pay back debt that keeps climbing from interest rates they can't pay back in full or on time. Their house is worth $91,000, and they have already paid $125,869 of the mortgage. They are losing their house to the bank now because they still owe the bank $355,692.91.
Imagine that? You borrow money and you already paid back more than your house is worth, yet you still owe more than 2x what you already paid, and more than 3x what the house is worth! Then the bank gets to take your house when you already paid the value of the house.
This is how interest on loans fuck people over.
The scam is worse than that though, because you need to understand how banks get the money for the loan and then charge you interest for it. Here is a big con of our times.
When a bank gives you a loan, they aren't giving you money from their pockets, from their account, or from anyone's deposit or savings account. No one's accounts drops in value with all the loans a bank makes. They money is still there for everyone to see and potentially take out. The bank plays a ledger magic trick to give you the loan, and essentially invents money that didn't exist. They create money out of thin air by your promise to pay them back in the future.
They create a negative book entry for a loan, and it gets deposited into your bank account. The money didn't come from anywhere really, it was invented and put into your account as digital numbers than you can then take out as cash. So you have to pay back money that they don't even take form somewhere else to give you. That's one thing.
The next thing is they charge you interest on money they didn't even take from their own profits, from their own deposit or savings accounts for their customers. They only have a liability to the debt if you fail to pay, but lucky for them, you put some collateral on the line, like your house. You have to pay them back based on the promise you are going to pay them. And when you do in full, then their negative ledger entry balances out, as if nothing ever happened. They don't make money from the bank loan itself, that is just $100,000 out, and $100,000 back in at some point in the future. The interest is where they make the money. If interest rate go up, then people get screwed and can't pay their monthly requirements.
They don't give you any money that they have, and you have to pay it back, plus interest which is the profit for them. And if you don't pay them back, they get to confiscate your property that actually has value and they can sell it to balance their books again.
And then, even if you paid $90,000 of the $100,000 loan, plus all the interest over years that is maybe $33,000 more, you don't get extra time to pay off your house. Basically, you were just paying rent on your house, $90,000 of rent. And because you hit hard times, with a job loss or whatever, they decide too bad, we're taking your house from you because you don't actually own it. You can be almost there, but need some time to pay it back fully, but they don't care, and they will take your house, even if you already paid 90% of it. It's crazy! Plus, you already gave them 1/3 of the house value in interest payments, so you paid over $120,000 for you $100,000 mortgage, and they still don't give a shit.
This is the society we live in. An institution can loan you money they don't have by creating it out of thin air as a negative book entry with your promise to pay it back to balance out the book entry. And meanwhile, they make a profit from you paying them interest on the money they didn't even take from anywhere. It's not even their money. They just have this magical power to do what we can't and invent money that isn't taken from anywhere.
Why can't we do the same? Put a negative book entry, invent money, and pay ourselves back in 10-20 years, and have no interest to pay on top of that? It would save everyone a lot of money, and banks would not be in business.
And then the banks get bailed out with "legally" stolen money called taxes in order to keep them afloat when they fail. Yet, the tax payers don't get the same break of getting bailed out when they fail. That's justice.
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We are enslaved to the banking cartel. Look into the so-called "Federal" Reserve Bank to see how much you're being enslaved if you live in the USA. The book "The Creature from Jekyll Island" is a good source.
Thank you for your time and attention. Peace.
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