Washington, The Game Of Monopoly!

The problem with our economic woes is that Washington thinks that only people with economic doctorates can both solve and understand it's complexities. These "brain trusts" in our capitol have created more government than jobs, and are directly responsible for the current problems in our real estate market. Though backdoor government manipulation, the politicians have single handedly not only created this mess, but are taking our property, and have plans to continue. Let me explain....

Joe American blue collar worker decides the time is right to purchase his own home. The prices are right and the bank is not only offering terms he can deal with, but is lending money he can qualify for. Joe buys a modest home for $80,000.00. Joe is comfortable, and can afford the payments, life is good.

In steps the government, they decide not enough people own homes, and that home ownership is a "right" everyone should enjoy. Side note for our liberal friends here.....Home ownership is not a right, rights are endowed by our creator, not granted by government. Any right man grants can also be taken away by that same man. Home ownership is earned by responsible, hardworking people.... So the government pressures the banks to lower lending standards so more people can qualify for homes. They use their influence at Fanny Mae and Freddie Mac to recreate a thriving market, driving the market down. Everyone sees an opportunity to make money and the market id flooded with homes, as home prices are inflating, and mortgage rates are falling. Once again all caused by bi-partisan government interference in a stable and thriving market.

As a result Joe's $80,000.00 abode is now valued at $240,000.00. His property taxes have now risen from $800.00 per year to $2400.00 per year, creating an economic strain on Joe's budget. Mind you this artificial boon is still government sponsored. That's not the least of it.... Since Joe's property has risen in value three hundred percent, his homeowners insurance premium has tripled as well. Taking his affordable homeowners insurance from say $700.00 per year to $2100.00 per year. Joe's liability of overhead has now increased $3000.00 per year or an additional $250.00 per month.

Joe's fixed income has no room for the additional expense. He tries to refinance his loan, but alas the temporary inflated market created by the government interference has collapsed because there is a rush of foreclosures from people with the very same situation, creating a flood of inventory on the real estate market, driving prices back down below the price Joe purchased his home at. Joe has no choice but to go into foreclosure and back into the rental market. Repeat, repeat, repeat, repeat, repeat...ditto, ditto, ditto...you get the picture.

Now who owns 90% of the mortgages in our country? Government controlled Freddy Mac and Fannie Mae... Has Washington infringed upon our right to property? So it seems. I'm afraid I'm not quite done yet...Remember that "brain trust" I mentioned in the beginning of this debacle? Well in their wisdom they've decided to print money to stimulate the disaster they created. Since the more money you print results in the money citizens have capable of buying less, there is more trouble to come.

Government is going to print money to serve itself. As the initial holder of the newly printed money, it still has the same purchasing power as the money already in circulation. In other words it benefits them, and leaves Joe American as the loser. If the dollar you possess will buy a dollar's worth of goods today, then the Fed. prints twice as much money, the government gets a dollar worth of purchasing power when first spent by them. When you go to spend it, it'll only buy fifty cents worth of goods, because they've doubled the money in circulation. It'll take twice as much of the new dollar, to buy what the old one used to. This scenario is just down the road.....

Remember the game Monopoly? Wasn't it common they player who ran the bank, usually won the game? I'm just saying.........

God Bless!
Capt. Bill