Tuesday, April 14, 2015

Bad Math

I will try to address as briefly as possible interest and the effects of time on loaned money. I'm sure that all of us tense up a bit when confronted with something as uninteresting as "interest". The idea of paying back more than you were loaned is considered usury in the Islamic tradition. A reasonable fee up front is all that is necessary to assume a loan, but after that, the money paid back is only what was originally loaned. It is my firm belief that any friction between Islamic culture could be water under the bridge if we admitted that their system for loaning money is better than ours and dispense with a class of moneylenders exacting carnage on our economic health and walking away with the lion's share of the wealth.

Case in point, I have never been late on a payment in over twelve years. I tried to renegotiate my loans as soon as the bail out occurred, because I could see that the writing was on the wall and we would have an anemic recovery at best giving more money to billionaires. The bank was steadfast in their denials, for over six years, then, after we had tried repeatedly to get them to "help" us, they called maybe six months later, "We think we can help you reduce your payments." they said. What changed? I'm not sure, but they lowered our payments about a year ago, but it kicked me back to the first payment of a thirty year note which means that both months one and two, your interest is greater than your previous payment. That is where the real money lies. We need to reveal the disgorging of our communities of whatever wealth remains.

I saw a cartoon that represented things pretty well. A well-heeled man, who looks like the Daddy Warbucks character from the Monopoly game, is trying to drive a horse, hitched to his lavish cart, heavy laden with heaps of wealth. In one hand, he holds the whip, which is not getting the desired results. Nor, is the carrot on a stick that he holds in his other hand. The horse has expired, it's scrawny flesh barely covers protruding bones and the poor animal has "X"s over his eyes. The bit remains in the mouth set which is set in a dehydrated scream. The caption is the words of the overlord. "I'm not sure why, it always worked before."

We have been set upon by vultures, but we were alive. Our communities were thriving. The guts were ripped out when we decided that shipping money off to people far away could ever produce wealth, except for them, our "owners". It is for "them" that we wage slave. Can you truly say now that interest does not interest you? I still have not missed a payment, but the "relief" the bank was willing to negotiate, will save me a couple hundred dollars each month, but over ten more years of payments, they will make an extra $94,000 in payments. That is close to what I make in four years, so they get me to be their slave for an extra four years for the "favor" of renegotiating my loan. There seems to be no justice, but this is what is going on for millions of victims of this predatory scheme.

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