Wall Street's 'Innovation' for Mortgages

VANCOUVER ( Bullions Bull Canada) -- The United States housing market and real estate system is a very efficient machine.

It is not efficient at providing affordable housing to the broadest number of Americans. It is efficient at blowing up massive asset bubbles and burying Americans under mountains of unpayable debt.

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 and 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.

But first, a definition for readers not familiar with this term.

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

In an ever-changing world, static analysis is a still photograph. It attempts to "analyze" some phenomenon with the unstated 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 simplistic by definition, and as with most simplistic thinking it is usually seriously flawed. The ultimate example of 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, we should do it all the time, forever. It is the "logic" of the cocaine addict.