Low interest rates only serve one master: the bankers. So here’s what you really need to know before you buy a house.

Impact of Low Interest rate:

The banking system directly influences every aspect of the economy, yet they take no responsibility for the consequences.  It may seem like banking is a positive when they approve a mortgage or lower the interest rates reducing mortgage payments.

This is where the academics and the economists have pulled the wool over your eyes.  Low interest rates only serve one master, the bankers.  It might feel like life got easier when mortgages were refinanced and everyone started paying less but its only temporary.

The next time a house sells it will cost more because of the low interest rates, it winds up costing the same or more in the long run.   The percentage of income used to pay for housing has been going up for decades and that leaves less money for everything else. It is clear that growing house rate is impact low interest rates.



Home Prices Compared to Income

Low interest loans for mortgages as a one off is a very good thing for the individual.  However, considering that banks can offer an infinite number of mortgages the appeal evaporates.  Why?  The amount of housing is limited which will cause prices to go up until people cannot afford to pay more.

In order to buy a home, you have to place an offer on it and the seller if they are smart will look to receive multiple offers.  The value of the home is determined by the highest bidder.  The only benefit low interest loans have in the long run is for the bankers who get to loan out larger sums of money for the same asset.



Consolidation Eliminates Opportunity

This is why asset prices go up right along with low interest rates as a impact.  When one company acquires another company the interest rate will determine how much the company will sell for.  The seller will look for multiple bidders and sell at the highest price possible.

The highest price will be determined by the interest rate on the loan that pays for the the acquisition, it’s negative effects low interest rates.  This is great for the seller but very few people get to sell a business even once in a lifetime.  But there is more to the story, once again when you look at the big picture the merging of businesses is called consolidation.  Where there were once two businesses, there is now only one.  This means less competition, fewer employers and fewer employees.

Take the example of farms, once banks got access to greater and greater amounts of money to lend out, the number of farms dwindled.  Farms became so large that it became impossible for the small family farms to compete with the volume and scale of the mega farms.

The extinguishing of the family farm as a means to make a living was caused by the banking industry’s access to large amounts of capital to lend out.  Their are countless other business models that used to be small ‘family’ styled that are no longer viable, gone forever because banks have access to infinite money, to fund their loans.

The Spectra of Infinite Money


Nothing boggles the mind like infinity.  It is hard for the mind to contemplate the abyss of a black hole or a universe that has no boundary.  Infinity, a number so large that no quantity of zeros can define it.

This is the power the Federal Reserve and the bankers wield over our economy.  And since money is power it should be no surprise that such a great power would put a great toll on humanity when the sole purpose of that power is used for the motive of commercial bankers.

Omnipotence is a word used to describe a god, but the banking industry has been given access to infinite power that is used to undermine mankind and there is a word for that and eerily, it’s the word ‘evil’.


The aftermath of the Great Recession saw the Federal Reserve flex its muscle.   The amount of money used to save the banks was massive.  This was bigger then moving mountains.  It was greater then all of America’s Wars combined.  Greater then NASA putting people on the moon. All that money, all that power spent in an instant just to save the banks.  They wield this power every day but it is counter productive to mankind’s future.

People often see power as the government sending its military to war.  Or local police abusing their ability to use force on civilians.  However, there is a much scarier power.  It’s a power that can make people do just about anything.

This power is wielded over everyone from the day they are born to every single morning they wake up and go to work.  It is the power that the wealthy have over the poor.  As the poor go hungry the wealthy can dangle a little money in front of the poor and have them jumping through hoops just to eat.  Now multiply that power by infinity and that’s the power the Federal Reserve wields for the sole purpose of propping up commercial banks.


Humanity’s Great Adaptation

Pundits are saying that everything is fine, the world is getting wealthier and poverty is slowly but surely being minimized.  An honest look at our world shows massive advancement in technologies and very little improvement on anything else.  Mankind has the ability to survive extreme conditions and still proves it every day.

The jobs and opportunities people create for themselves everyday is testament to the strength and resilience of mankind.  BUT this is no excuse for letting the economic system run a-mock.  People’s ability to adapt to their environment is NOT an excuse to keep the status-quo going.  The power of the Federal Reserve MUST be harnessed for the good of people, not just the banks.


The pundits will say that consolidation is part of business as usual.  It’s been happening for decades and things are turning out fine.   There are still jobs to be found and ‘new’ ways for people to make a living.  People’s ability to innovate and fight for their survival is little reason to not be concerned with the overwhelming shadow that the banking industry has cast over humanity.   The scariest part of this story is that it’s not over, the effects of the banking system on humanity are still more pervasive and in the end pitted directly against mankind.

Part 1: The Privatized Economy

Part 2: The American Dream is for Bankers

Part 3: Automation is a Product of the Banking Industry

Part 4: Man Verses Machine

Part 5: The Technology Train