posted by richzubaty on Jun 15
[The Rude Guy Podcast #57 June 15, 2009]
This is Rich Zubaty, The Rude Guy. The Paul Harvey of podcasting. Bringing you…the Rest of the Story.
I’m still living in my car, because rent is way too high. If I pay rent I don’t have money for anything else, and in fact, I go deeper into credit card debt each month. Rent is an abomination. Rent is the way that rich people and banks, oppress poor people. And rent, these days, includes mortgages, which are really just rent of money…So how did we get here?
Long ago, in Europe and Asia and America, some man looked out over a thousand acres and said, “This is all mine”. The Indians, the local nomads, were baffled. They fell over laughing. But before long this entrepreneur had hired them, or other latecomers like himself, to “work” this land. Plowing it and raising cattle on it. Making it productive. The entrepreneur himself worked long and hard too, but he was the “owner”. He paid the others subsistence wages, corn and cows, and kept the rest for himself. And thus his wealth increased, by the capital, produced from the labor, of the local people. Labor IS capital.
Several generations later, the sons and daughters of this entrepreneur, still “owned” the land. But they had been to Harvard and Princeton, and had better things to do than raise pigs and soybeans. So they… “rented out” the land. To whom? To the grandsons and granddaughters of the very locals who had built up the capital wealth of the farm, in the first place. Overnight, the owners began renting the work of the local great grandfathers, to the local great grandchildren. What a system. This is what Proudhon meant when he said, quote, “property is theft.”
But pretty soon the renters wondered why they couldn’t be owners too? And after awhile, the heirs of the owners decided they needed ALL the capital, all the wealth, held in the farm, for other projects they were launching. So they decided to, “sell” the farm. To whom? The heirs of the very locals who had built it up. Now they were selling the work of the great grandfathers, to the great grandchildren. But the problem was, the locals didn’t have money to buy the farm.
“No problem,” said the heirs of the owners. “We’ll lend you the money, from our bank.” So the heirs of the owners made up money out of thin air, which is what banks are licensed, by the government, to do. Then they “lent” this money to the heirs of the people who had built the farm… so now the great grandchildren could “buy” the work of their great grandparents. And all they had to do was pay a little “interest”, in order to buy their great grandparents work back from the heirs of the owners.
Every wonder why there was a French Revolution? Why king’s and noblemen’s heads rolled in the streets? Why capitalism is despised over most of the globe? This is why. Rents and landlords.
An average payment on this rent of imaginary money, now called a “mortgage”, would be 90% towards interest, and 10% towards principal. It would take the better part of your lifetime, to pay off your purchase of your grandfather’s work. Grandpa’s work was stolen to begin with, and you have to buy it again. Ever wonder how rich people can afford racehorses and yachts?
And it gets worse.
For who would set the price of the farm? The renter? The owner? No, no, no, no. The “market” sets the price. What market is that? The “market” that is made up of 90% imaginary money, lent by other banks to other locals, who want to buy farms too. This is what’s meant, by growth. Growth is actually inflated value. The only way the banks can get back their imaginary money in real money, is if the economy keeps growing. Keeps inflating the value of everything, so that if you own lots of things, you get richer just for waking up in the morning. And if you don’t own anything, you get poorer sipping every morning’s coffee. But Rush Limbaugh and the Republican Party, and bastard, sell-out, right wing Democrats like Max Baucus, tell us that’s how the market works, so who are you to complain? You can buy all the work of your grandfathers for nine times more than it’s worth, plus interest. (with gravitas) The “market” says so.
Fine. You buy the farm. You make the payments. You have some good years. You have some bad years. The Banks, who have already made piles of money from you, by financing your purchase of the work of your grandfathers, the banks, lend you more money for machinery and seeds. The good years come back, but meanwhile the banks have also financed huge agribusinesses, farming hundreds of thousands of acres, which produce so much, food they drive commodity prices into the toilet. You can’t compete. You go bankrupt.
And now the banks, owned by the sons and daughters of the original “owner” of the farm, have your land back again. And they’ll even hire you to come work on it, at a subsistence wage. Just like your great great great great grandfathers did. Read the rest of this entry »