Foreclosures & a Fix

Let us give all the Working Class People a Raise and Stop all these Foreclosures.
Yes it can be done without even causing a problem for the business people.
Are you ready to listen? Then please read all of the following as there is much to follow.
The Paperless Money System of the Future.
It will need to be accomplished with the use of an Internet system (web site) and can be wired system or wireless system .
Each person or family will need its individual bookkeeping system (Quick Books?).
It will be a common bookkeeping system of credit and debt .
It will be held in an electronic storage facility (Banks?).
Just how would we or should we set-up this personal bookkeeping system paperless? Our dealings will be electronic transfers (via Banks) and all done in trust of one another.
Personal credit rating will be tracked, much as it is today?
It seems to me anyone wishing to give you credit could ask for a copy of your balance records which with today's electronic system will be readily available.
In the USA all 51 states will be working under a Banking System much as it is today.
A great many of our purchases will be accomplished through the internet system.
Debit Bank Cards will be used to make local and internet purchases.
When electronic marketing goes world wide, we will all be eventually using the similar system. As I view all of the above this tells me that formal education must be available to all people world wide.
Just how can this be accomplished? Understanding is accomplished though Education.
Due to our natural human curiosity we will do just that If the Internet is kept freely available to all people. The internet system has developed in to a excellent self educating tool.
Just watched the youth today always on the Internet, talking to one another all over the world. Ideas are exchanged and news is readily available.
Is all the conversation and the news reports that they listened to or read always truthful, of course not. Here is where education, reasoning and our intelligent must come into play, a large part of this can be acquired through formal education. know in my own life my formal education (Mechanical Engineering) was so important and the one on one attention given me by my mentor’s has changed my life for the better. This gave me a self respect and a respect for others, and to work hard to learn and to be productive.

Banking
Banking (Money) is the form we use today to barter.
Early in the year 2007, I tried to find out about the Federal Reserve and to understand just how it operated. Since I am acquainted with computers and the Internet, I began by using the search engine Google. I just typed in the words Federal Reserve and checking out the web sites listed I came across Money as Debt. Upon watching this movie I was drawn to really find out the truth. I soon learned that the Federal Reserve system started when Congress established the Central Banking System in 1913 as a private company of a very few financial men of the time. Many of whom I had never heard about. These men established a monetary system and a Central Banking system. Additional Banks are added to the system, each bank can give credit after acquiring dollars from the Central Bank. The Central Bank buys printed Money and coins from the US Treasury at a price established by the US Gov’t Federal Committee. The Central Bank pays from 5 to 2.5 cents for this Paper Dollars and any coins they need. With this purchase the Central Banks (there are nine Central Banks) adds eight (8) paperless credit-dollars. The Bank actually gets nine credit dollars for a percentage designated by congress ( 2.5 to 5 cents) It is a simple system of paperless credit-dollar. Now these Men knew that compound interest ( monthly payments calculated as interest against the unpaid balance) financing Home purchases and new Businesses would reap big profits for them as both are accentual to our lives The Banks gives paperless credit-dollars to the bower at a compound Interest rate. (The Banks do not add any value to our Dollars) This interest is paid to the bank. As you know your payment are for the most part all interest to the Bank. This interest allows the Bank to further increase credit (which can and does get out of control).
You actually have acquired very little if any equity in the item being purchased.
As an illustration I will use compound interest )
Loan amount $300,000.00
Term 30 years Interest rate: 6.250%
Monthly payment: $1,847.15
Total interest paid $364,975.7
Total amount paid equals $664,975.79 (364,975.70 plus 300,000.00)
Now, using the same figures at simple interest or in essence a service charge.
Loan amount: $300,000.00
Term: 30 years Interest rat 6.250%
Monthly payments: $ 1847.15
Banks portion of this would be $52.00 per month as their service charge for a simple ledger transaction.
Total Interest: $ 18,750.00
Total owed $300,000+$18,750.00= $318,750.00
This loan would be paid in 14.5 years ($318,750.00 divided by {$1847.15 x 12}) and not 30 years.
The Central Bank is the one that benefit from the system we have today and our present system gradually decreases the value of our Dollar. Since Central Bank make a large amount of money by issuing credit, they do this without much concern to how this affects our economy. As I see it a depression occurs because the workers pay does not keep up with rise of the credit supply as the dollar losses its value and causing depressions.
On June 22 2008, shows the dollar equivalent value to the listed countries currency.
Currency US Dollar
British Pound 1.97550 It takes $1.9755 US dollars to get one British Pound
Canadian Dollar 0.98580
Euro 1.56250
Now allowing the banks to charge compound interest on credit doesn't make much sense , since it simply deflates our dollar. A Dollar is nothing but an IOU, with a trust in one an other and a simple entry in the Banks Ledger.
Back in the 1940s when I first purchased groceries from the grocery store they allowed me credit with the idea that I would pay the bill at the time I received my wages. Sometimes there wasn't enough money from my wages to pay the total bill, they allowed me to continue to purchase groceries and charge them to my account. I was never asked to pay them interest. When I purchased my first home a Credit Union allowed me credit which I paid on a monthly basis and it was principal plus a small extra charge.
Now I don't see why this sort of system would not work today. Why not make it illegal to charge any form of interest. Banks are money handlers and should just make a charge for this service. Banks are already charging for some of their services. Interests as it is being paid today needs to be changed.
With the system I propose above would not even nor would it make products more expensive. The cost of the items would be based on the cost of producing those items, whether they are groceries, houses, automobiles, and other items.
I believe that this would permit having a paperless system.
It would permit having better budgets, better ways of imposing taxes for operation of the government. We would have a better way of establishing school systems and finance them locally. It would I believe eliminates a lot of our laws.
We must come up with a better monetary system than we have today.
(see footnotes)
We must stop encouraging people to live beyond their means as we do today.
There are ways of starting new businesses as our laws permit people to incorporate and to offer stock on the stock market. With our savings we could invest in these companies and this would increase the value of earnings. This of course depends upon whether or not the company is successful.
Now some will say, by Banks just getting a service charge for handling loans would not allow them to be offering further loans.
That is not true, Banks are allowed to buy printed money to which by law permits them to add eight more dollars which gives them nine dollar total.
The US Treasury that oversees the Banking system, could go to congress and ask that the law be changed to increase the eight phantom dollars to nine or ten dollars. This is a supply and demand problem and would need some solid proof that additional credit was warranted.
Now Congress could have true oversight control of our credit system.
We must make Banks a true service company for the exchange, storage/savings and time payments of money
Now here is how today we can give working people what is equivalent to a raise in pay.
Using the past illustration
Loan amount $300,000 Loan Term
30 years at Simple Interest of 6.25%
Monthly Payments will amount to: ($300,000 plus $18,750 divided by 360) equals monthly of payment $885.42 And not $1,847.15
There’s his raise $961.73 (With compound Interest, this $961.73 is the Bank actual average monthly earnings for a single Ledger transaction)
You say the banks won’t have enough money to keep operating, just who is it that is buying up the Banks that are in trouble it is other Banks because they have the dollars.
Will the Bank fight allowing this change be made, sure they will, they will lose their fat cow. Investors that manipulate the stock market will all so challenge this change. It will be a hard and deadly fight, they have the money to buy the advertising.

Foreclosures
Foreclosures hurt the Buyer and the Banks.
Here is where we could most easily start the System where Banks are only a means of exchanging dollars. On these foreclosures change the payments the bower has made on his loan as a principle plus a charge at the % percentages according to the present signed contract and for the same number of years. This way the bower will have more equity in his home and all new payments will be less then one half his original payments Let’s face it, it was the Banks that enticed the buyer into purchasing the Home in the first place. Now we have homes standing vacant and a poor real estate market.
Now how would this work in the real world?
To begin with we must realize that Housing prices are inflated by the manipulation of big time Speculators. I believe by offering interest free credit (only making a service charge) to home owners for their personal Home and to not-for-profit investors. These not-for-profit investors would in fact be using this as a means of saving for the future.
Not-for-profit Investor would need to be required long term as
specified by law, say five years minimum.
Assuming that these properties would be rental Home, a rent control system might be in order for this purpose.
Of course much fine tuning of the system would need to be done.


Taxes
Another of our problems today is the way we let our Government Issues taxes. Companies that produce anything are charged a tax. What this means is that everything that goes into the manufacture of an automobile, a house, a computer is not only labour and material but also taxes. Things are taxed at every step of the way to the finished product. When and how is this done, the material that is dug or pumped out of the ground, the electric power used has some form of taxation and on and on it goes. Oh but we need those taxes, just how will we be able to operate the government? By applying the Tax at the time the finished produce is purchased by the consumer, and that will included all people including you and me. Call it a sales tax if you wish. There will be much less waste and the cost of collection of taxes will be much less.
All Businesses and Services are the ones that are required to collect our taxes today that is adding additional cost to doing business.
We now have in our present system multiple ways we now collect Taxes.
How can we expect to be competitive in the foreign market, the foreign purchaser in essence is paying our taxes.
Our manufactures can not be competitive. This is why our products are being produced overseas. We have destroyed the true value of our mass production ability. We know how labour saving devices out perform manual labour. Jobs will be available in helping to design and construct these devices here in the USA. Why do we handicap our selves with a very flawed monetary system and a bad tax system, we are smarter than that.
Yes and what we can accomplish is due to our Freedom and our Constitution. The web or the internet system we have today give us a communication system that is revolutionary though out the world. We now have an open society. Nothing or anybody has any place to hide,
Donald L Timmerman
(dtimmer7@gmail.com)

Stop Foreclosurest Group of Profit Plays

Foreclosures hurt the Buyer and the Banks.

Here is where we could start a System where Banks are only a means of exchanging dollars. On all these foreclosures change the payments the bower has made on his loan as a principle plus a charge at the % percentages according to the present signed contract and for the same number of years. This way the bower will have more equity in his home and all new payments will be less then one half his original payments, it was the Banks that enticed the buyer into purchasing the Home people could not afford. Now we have homes standing vacant and a poor real estate market.
Now how would this work in the real world?
To begin with we must realize that Housing prices are inflated by how the monthly payments are calculated (unpaid balance) and by the manipulation of Investors. The investors would in fact be using this as a means of saving for the future and will be able receive income from renters.
By making it illegal to charge any form of interest Banks will become money handlers and just receive a charge for this service. Banks are already charging for some of their services.
Products less expensive as the cost of the items would be based on the actual cost of producing the item, whether they are groceries, houses, automobiles, etc.
This will provide for a stable paperless system in use today.
It would permit having better budgets, better ways of imposing taxes for operation much smaller government. We would have a better way of establishing school systems and finance them locally. It will eliminates the need for a lot of our laws.
This will give us a better monetary system than we have today.
How can this stop so many foreclosures?
Start by taking all present personal mortgages and change any past payments made toward that mortgage and recalculate them as if they were payment in principle plus a service charge at the same agree terms.
As an illustration:
The loan amount is $500,000 at 6.25% for 30 years and monthly payment made were $3,078.59. That $3,078.59 has been paid for two years and three month or at total of 27 months. That amounts to $83,121.93 (27 times $3,078.59).
The calculations for that mortgage are as follows:
Monthly Payments will amount to $500,000 divided by 360 equals monthly payment $1,388.89 plus service charge $1,388.89 times 6.25% or $86.81
Buyers monthly payment will total $1,475.70
Mortgagee as paid the Bank $ 83,121.93 which amounts to $83,121,93 divided by $1,475,70 or 53.33 payments.
Mortgagee now has to make only 360 minus 53.33 payment to complete the purchase, for 25 1/2 year at the new $1,475.70 per month.
This saves the foreclosure and gives the Bank monthly income of $86.81 for the paperless digital transaction which today requires no personal intervention.