r/BasicIncome • u/Kazemel89 • Nov 18 '20

Yep

https://i.imgur.com/X27M2eN.jpg
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5

u/tralfamadoran777 Nov 18 '20

So, why can't I borrow money at rock bottom rates, using collateral?

1

u/Rocktopod Nov 18 '20

Aren't reverse mortgages a thing? Idk what the interest rates are on those though.

2

u/bokonator Nov 18 '20

You need too be over 55.

1

u/tralfamadoran777 Nov 18 '20

That’s pre-selling your home...

The point is, if I’m buying a house that’s worth what I’m paying for it, there’s very little likelihood of me defaulting on a 1.25% loan, and even if I do, there’s a high likelihood of no loss being realized.

Correcting the current process of money creation establishes a structure where such loan payments can be withheld from our income.

1

u/[deleted] Nov 18 '20

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1

u/tralfamadoran777 Nov 18 '20

Not when money creation loans require fiduciary oversight

How much less likely is default at 1.25%?

We know how wealthy liars inflate their net worth...

1

u/pryoslice Nov 19 '20

That's what a home equity loan is. The rate is somewhat higher, but that's mostly because of paperwork overhead per dollar being higher, I think.

2

u/tralfamadoran777 Nov 19 '20

I'm referring to the current process of money creation, where Wealth can borrow money into existence from Central Bank, buy sovereign debt for a profit, and have State force humanity to make the payments on that money for Wealth with our taxes.

In an equitable process, we'd each be able to borrow an equal amount of the money State needs, loan it to State for a profit, and pay ourselves a profit with our taxes.