The Great Depression Online

Great Depression Online Archive Issue:

Americans Are Failing to Keep Up With Their Mortgage Payments

Bonus 3

Inside Bonus 3 You Will Discover…

*** Americans Are Failing to Keep Up With Their Mortgage Payments
*** Dollars Created Out of This Air
*** The Art of the Bailout
*** And More!

Americans Are Failing to Keep Up With Their Mortgage Payments

As reported in the August 12, 2007 edition of the AP

U.S. Homeowner Woes Felt Around World” By Matt Moore, AP Business Writer

“More Americans are failing to keep up with their home mortgage payments, and there are concerns that this could ripple around the globe because much of the debt from mortgages has been packaged into securities sold to pension funds, banks and other investors who were hungry for high returns on investments.

“The same mortgage securities in the U.S. that are crumbling in value are a part of bigger holdings that banks from Japan to Germany bought into because of low U.S. interest rates and good returns.  That is, until the mortgage holders started defaulting.”

Oops! we exclaim.

And continuing with the AP…

“With cash reserves running low, the interest rates that banks charge each other for overnight loans rose so steeply that central banks in the U.S., Europe an Asia poured tens of billions of dollars into the market to make sure enough cash was available to meet demand.”

Translation: The U.S. Federal Reserve, the European Central Bank, and the Bank of Japan created dollars, euros, and yen “out of thin air” and gave them to their respective nation’s banks to keep them from going belly up.

The U.S. Federal Reserve put up a reported $38 billion – dollars borrowed into existence.  And as we learned in Day 2 and Bonus 1, the whole inflated housing bubble was created by too much liquidity, courtesy of the U.S. Federal Reserve, in the first place.  So won’t more liquidity just make the situation worse?

You got it!

And that is the very art of the bailout.  To postpone the inevitable -- by puffing more air into the already over inflated economy – through the fraud of central banking.

But if the U.S. Federal Reserve can just inject $38 billion – of dollars created out of thin air – into the economy, what does that do to the dollars that show up in your paycheck?  You got it…  It dilutes their value.  It makes them weaker.  So that they buy less and less.

This inflation of the money supply, as we’ve been exploring, seems to be happening over and over again.  And the final results will be disastrous.

To find out how to survive the coming hyperinflationary depression go to:


M.N. Gordon
Great Depression Online

P.S.  Many Americans, with inflated mortgage payments, may be having trouble sleeping at night.  If you suffer from insomnia, my friend Bob Bly can help you.  To learn more about how Bob overcame insomnia without seeing a shrink or taking dangerous sleeping pills or other prescription drugs click here:


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