When a citizen goes to a Banker to borrow $60,000 to purchase a home or a farm, the Bank clerk has the borrower agree to pay back the loan plus interest. At 14% interest for 30 years, the Borrower must agree to pay $710.92 per month for a total of $255,931 .20. The clerk then requires the citizen to assign to the Banker the right of ownership of the property if the Borrower does not make the required payments. The Bank clerk then gives the Borrower a $60,000 check or a $60,000 deposit slip crediting the Borrower's checking account with $60,000. The Borrower then writes checks to the builder, subcontractors, etc., who in turn write checks. $60,000 of new “checkbook” money is thereby added to “money in circulation.”

However, and this is the fatal flaw in a usury system, the only new money created and put into circulation is the amount of the loan, $60,000. The money to pay the interest is NOT created, and therefore was NOT added to “money in circulation.”

Even so, this Borrower (and those who follow him in ownership of the property) must earn and TAKE OUT OF CIRCULATION $255,931, almost $200,000 MORE than he put IN CIRCULATION when he borrowed the original $60,000! (By the way, it is this interest which cheats all families out of nicer homes. It is not that they can't afford them; it is because the Bankers' usury forces them to pay for FOUR homes to get ONE!) Every new loan puts the same process in operation. Each borrower adds a small sum to the total money supply when he borrows, but the payments on the loan (because of interest) then deduct a much LARGER sum from the total money supply.

There is therefore no way all debtors can pay off the money-lenders. As they pay the principal and interest, the money in circulation disappears. All they can do is struggle against each other, borrowing more and more from the money-lenders each generation. The money-lenders (Bankers), who produce nothing of value slowly, then more rapidly, gain a death grip on the land, building, and the present and future earnings of the whole working population. Proverbs 22:7 has come to pass in America. The borrowers have become the servants of the lenders. No wonder God Almighty forbids interest on loans.

Data generated with https://www.calculator.net/loan-calculator.html and chart designed using https://www.csvplot.com/ ↩

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0 replies \ @supratic OP 23 Jul

🇳🇪🇽🇹 #619188 Small Loans Do The Same Thing

0 replies \ @supratic OP 23 Jul

🇵🇷🇪🇻🇮🇴🇺🇸 #618250 THE INTEREST AMOUNT IS NEVER CREATED

0 replies \ @supratic OP 25 Jul

This is a chapter of the book

Billions for Bankers & Debts for the People

The Real Story of the Money-Control Over America - by Pastor Sheldon Emry

Give it a read! Start from the...

🇮🇳🇩🇪🇽 #622479

64 sats \ 8 replies \ @OT 23 Jul

Who takes on a 14% PA loan over 30 years?

Another thing to consider is how much your salary will be in 10/20 years. If fiat starts to hyperinflate, $300k might buy you steak or a case of beer.

21 sats \ 7 replies \ @supratic OP 23 Jul

Who takes on a 14% PA loan over 30 years?

This is a scenario from the 80s in the US. has been an extreme case, at some stage interest were at 18%, but that's not the point, it does not it matter. Nor does inflation or CPI. It's the concept behind that make the difference in the long term, not how much you can gain from it. But yeah, one can continue to strategize and try to play with the system to get something out.

21 sats \ 6 replies \ @OT 23 Jul

I remember hearing stories about that. The incentive was to pay it off as soon as possible cause of the high interest rates. Average house prices to income were much lower than these days though.

0 sats \ 0 replies \ @supratic OP 23 Jul

That's why at some stage, many lenders started imposing early repayment fees to protect their interest income. I think it still happening!

0 sats \ 4 replies \ @jp305 23 Jul

Houses are a luxury, it makes no sense to have these multiples we have today but hey, everyone wants nice things.

0 sats \ 3 replies \ @supratic OP 23 Jul

Wrong, housing is expensive, but access to shelter is a fundamental human right (many are deprived of) for many reasons.

21 sats \ 0 replies \ @jp305 23 Jul

You can rent

21 sats \ 1 reply \ @Enemy_of_the_state 23 Jul

No, housing is not a right. Healthcare is not a right. Food isn’t a right. You have a right to property….thats it. The right to acquire and keep property…be that your own body or the fruits of your labor. Anything else is Marxist poison.

0 sats \ 0 replies \ @supratic OP 23 Jul

When I say it's a right, I mean it's a right to have, to own, to use...

Healthcare, it's everyone personal responsibility, not business or any other entity... or for sale for someone else benefits

Nor, I'll be expecting healthcare and housing from someone else that isn't myself.

BTW: when signing this kind of contracts:

are you sure are bilateral contracts and not unilateral agreement?
are you sure the signer is owner of the property? or is he just buying the right to use it (and maintain it)?
do people get the certificate of title when loan payments are fulfilled?

42 sats \ 3 replies \ @DawnoftheDead 23 Jul

If you have the income to support such a loan, then you also had the income to save the money up yourself :)? So why borrow it. Impatience? Or necessity? Or something else

0 sats \ 2 replies \ @supratic OP 23 Jul

You nail it! It's about having a long time preference, proof of work, and the virtues and values that enable us to reach the goals we put in place for our and our community future benefit.

Getting a house or car sooner I think enslave us and does not allow us to change our goals when and if needed or in a larger scale be in control of our lives. Once you sign, you literally f*ck.

But I get the point of what most citizens are about, at the en of the day what we want is being comfortable, and don't care about anything else.

0 sats \ 0 replies \ @BitcoinSearch 23 Jul

That's how you say it, the comfort zone, I think that nowadays it is more comfortable to rent, have bitcoin and wait, since you have your wealth in your hands to be able to make moves if necessary, debt is slavery.

0 sats \ 0 replies \ @DawnoftheDead 23 Jul

deleted by author

63 sats \ 9 replies \ @Bell_curve 23 Jul

Usury is defined as excessive or high interest.

All interest can’t be classified as usury. For example, if inflation is 4 times and the interest you are being charged is less than 4 percent, you are getting a great deal

21 sats \ 7 replies \ @supratic OP 23 Jul

Make sense, forgot about inflation rate, another tool of control?

In the other side, what defines if an interest rate above X% is usury or not? it's defined by the different legislations across the world? or there's a Y% defines as a global value?

42 sats \ 6 replies \ @Bell_curve 23 Jul

You can’t have a global value because of different currencies and rates of inflation

I would start with the 10 year treasury yield as a benchmark

If the yield curve is inverted then look at the 1 year or 90 day yield

Anything above can be considered usury except

If a borrower has terrible credit history then a lender has to raise borrowing rates to reflect credit risk

21 sats \ 5 replies \ @supratic OP 23 Jul

Thanks! This makes much more sense, I assume this approach on the calculation is applicable everywhere.

0 sats \ 4 replies \ @Bell_curve 23 Jul

Thanks

We tend to look at the borrower's perspective only or the lender's perspective only and we should look at both for a fair and balanced perspective

21 sats \ 3 replies \ @supratic OP 23 Jul

do you mean that credit history of the lender should be on the table in this type of situation?

0 sats \ 2 replies \ @Bell_curve 23 Jul

The borrower is asking and trying to persuade the lender to lend him money

The lender has to ascertain the credit risk of a borrower: high, low, medium, etc

Most lenders have certain criteria before they even consider a loan application

21 sats \ 1 reply \ @supratic OP 23 Jul

it's basically on us to make the due diligence and check before going out to the first entity to ask.

view replies

0 sats \ 0 replies \ @Bell_curve 23 Jul

typo

inflation is 4%

21 sats \ 1 reply \ @NRS 23 Jul

The system of interest (usury) is controversial in the modern financial system. Interest is used as a means for banks to profit at the expense of borrowers, leading to a significant accumulation of debt due to accrued interest. This imposes a heavy financial burden on individuals and families, hindering their ability to invest and achieve personal economic growth. Moreover, the interest system can exacerbate poverty and economic inequality, making it difficult for disadvantaged individuals to access financing due to high interest costs. Therefore, embracing such a system is not just madness; it's akin to suicide or granting banks a form of debtor slavery. Personally, I have experienced the challenges of this issue, especially with repeated interest rate hikes.

0 sats \ 0 replies \ @supratic OP 23 Jul

I wonder why we continue doing it, then? Why we continue supporting this system? Short time preference?

0 sats \ 0 replies \ @Coinsreporter 24 Jul

Aren't we taxed or paying interest on our own money? What pains me is that people are too much unaware! Anyways what I see in my country that people who are lining on rent think that they should shift in their houses and pay an installment to banks instead of paying it to a house owner.

0 sats \ 5 replies \ @Fabs 23 Jul

Well... Take the loan and vanish, you say? 😜

0 sats \ 4 replies \ @supratic OP 23 Jul

🤣 "they" gonna find you!

0 sats \ 3 replies \ @Fabs 23 Jul

Mwah..

0 sats \ 2 replies \ @supratic OP 23 Jul

You can take the loan, and there are other ways to null it. no need to vanish 😜

0 sats \ 1 reply \ @Fabs 23 Jul

Tell me more, friendly fella.

0 sats \ 0 replies \ @supratic OP 23 Jul

I'll let you the pleasure to DYOR and learn about it ;) There're no shortcuts on these manners

0 sats \ 2 replies \ @Satosora 23 Jul

Now, wouldnt it be interesting to take that 60k loan and put it in bitcoin? And see what happens? Over 30 years....do you think you would make a profit?

10 sats \ 1 reply \ @supratic OP 23 Jul

ask @pillar

0 sats \ 0 replies \ @Satosora 23 Jul

Hes the one that does the saylor project. Very interesting indeed.

21 sats \ 1 reply \ @5d586573ac 23 Jul outlawed

stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.

0 sats \ 1 reply \ @Andrea1 23 Jul outlawed

stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.

0 sats \ 1 reply \ @KISACV 23 Jul outlawed

stackers have outlawed this. turn on wild west mode in your /settings to see outlawed content.

IF $60,000 IS BORROWED - $255,931.20 MUST BE PAID BACK

Footnotes

Billions for Bankers & Debts for the People