What Does Your Mortgage Cost?
by Tom J. Kennedy
I was recently reading the September 2008 issue of Reader’s Digest. I draw your attention to page 168 where accordoing to RD Money, Manulife Bank of Canada released a survey in 2008 stating that: “70% of respondents either didn’t know or guessed less than the acrual cost when asked how much they might pay for a $200,000. mortgage at six percent, paid over 25 years.”
The corect answer is more than $385,000. or nearly double the original mortgage amount. If the “interest” or “usury” rate is more than 6% OR if the amortization period is extended beyond 25 years, the borrower is servant to the lender for an amount much more than double the original amount of the mortgage.
Does it seem reasonable that the bank - the risks absolutely nothing - gets the value of one or more houses while the home owner gets the value of one house after 25 years of monthly payments?
Remember that it is the debtor’s signature on the promissory note that authorizes the creditor (the bank) to create the initial amount of the mortgage to lend? Think about it! What does the bank risk?
If the debtor does not sign the promissory note, the bank will not create and lend the principal amount of the mortgage - or any other loan for that matter. The debtor risks losing the asset (the home) if s/he does not make the monthly payment of the principal plus the “interest” - which ought to be correclty defined as “usury.”
The bad news becomes worse when the debtor pursues a self-imposed course of re-education and learns the truth - that the creditor (the bank) never creates the “interest” or “usury” portion of any mortgage or loan. Since the “interest” or “usury” portion of any mortgage or loan is never created, this obviously causes a constant shortage of money in the orthodox, debt money system of economics.
If all debtors re-educated themselves to learn the truth about “money creation”, there would be a revolution tomorrow morning. Let us begin the re-education process now as a grassroots movement, because our institutions of formal education are not teaching our youth the truth about “money creation.”
Are you ready to be re-educated now? Will you take an active role in re-educating others? Is this simple economics lesson sifficient to motivate you to action?
You are invited to familiarize yourself with the ongoing work of the usuryfree creatives who are actively promoting the forthcoming “Fifth Annual UsuryFree Day and Week” scheduled from November 13th to 19th, 2009. You are likewise encouraged to plan an event in your local community to help us celebrate this Fifth Annual UsuryFree Day and Week. Simply show a DVD that exposes the truth about what is really going on in our world of usury-based, debt money and engage in a discussion about what to do now to improve the situation for the next seven generations.
Read more details at this website: http://usuryfree.blogspot.com/2009/08/fifth-annual-usuryfree-dayweek-nov-13th.html