The United States housing market – and real estate system – is a very efficient machine. What it is not “efficient” at doing is providing affordable housing to the broadest number of Americans (the stated agenda). What it is efficient at doing is blowing-up massive asset-bubbles, and burying Americans under mountains of unpayable debt (the real agenda).

We can establish the true agenda of the U.S. government in the housing market (and the banksters who pull its strings) by simply examining any/all “innovations” in this market which banksters and political shills alike agree make the U.S. housing market “better” than that of other Western nations.

The obvious starting point is the mortgage-interest tax deduction. Here, the Big Lie is that mortgage-interest deductibility makes U.S. housing “more affordable” – by slightly reducing the financial burden of the debt. This is more of the infamous “static analysis” in which the propaganda machine specializes. To illustrate this requires defining that concept for readers not familiar with this term.

Analysis comes in two forms: “static” and “dynamic”. The difference between static and dynamic analysis is literally as stark/extreme as the difference between a two- and three-dimensional image. Exactly as with the two-dimensional image, static analysis lacks depth – the “depth” of time.

In an ever-changing world, static analysis is a still-photograph. It (attempts to) “analyze” some phenomenon with the unstated (but ever-present) premise that nothing changes in the world around us. Remarkably, even the direct change taking place (over time) in the phenomenon being examined is ignored.

It is analysis which is simplistic by definition, and as with most simplistic thinking it is usually seriously flawed. The ultimate example of (simplistic) static analysis is Keynesian economics, otherwise known as our credit-based economic system. The premise of Keynesian economics is the epitome of simplicity.

There are economic advantages (in terms of a “stimulus effect”) from introducing debt/credit into any economic system. Thus Keynes (and his modern-day Disciples) tell us that since taking on debt once (and only in a small amount) is advantageous, that we should do it all the time; forever. It is the ‘logic’ of the cocaine-addict...

 

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Wall Street Invents New Form Of Mortgage-Rape