The Great RESET For the People.

 

The Great RESET

For the People.

Not for the big wigs, not for the fat cats, not for the uber rich, who, no matter where they are at, they have the skill and talent to pull themselves out of any hole that the govt might dig for them. (and if they don’t, they didn’t deserve to be there in the first place)

Sure, they’ll scream and shout, as they should, its part of human nature. 

We warn Society, the banks, ‘this is going to happen, you have no ability to stop it, the human race needs this to happen.

All credit cards are frozen. you can pay them down, but you can’t buy anything on them any more. No more personal credit. Its strangling society, it’s been strangling us since we invented it. Borrow tomorrow's money to buy stuff today. Steal from your tomorrow, and hope you have no ‘needs’ then? HA!

Next, we spin a wheel, of the top 5 banks. one takes the hit. everyone in that bank loses their jobs, all the money in that bank pays off the credit cards. clean slate. if its not enough, the next bank in the list does it, then the next, until eventually all debt is wiped out, and all the big money lenders are destroyed. All the debt those banks have? are distributed to the other banks : You get to survive? well sure, but you have to take on the debts of the one that died.

Let that stew for a month, then we start looking at the rest.

Car loans: If you car earns you money, that is a good investment. If not. repo, you do not want average Joe spending money he doesn’t have on a car he doesn’t ‘Need’. If he wants it, he buys it, no loans. save up. 

There are a few million university papers on why this is better, why saving for items, decreases the prices. people will willingly spend someone else’s money (including their own future self) on something they want, but will be reticent to spend their own money, now, unless they need it.

So the manufacturers will bring down their prices in order to sell their goods.

Then also, people will want goods that last longer, get their moneys worth.

So the manufacturers will ensure the goods have a longer shelf life.

Its a vicious cycle we’ve gotten into, ‘free money’ = poor decisions = cheap quality goods = throw away goods = new appliances every 2 years = constant trap of paying down debt from having to rebuy all your household appliances every 2 years, because nothing lasts anymore.

I still have a 1979 Westinghouse fridge that works. nothing past 1990 still works. It all dies, on purpose. we know they do this on purpose. They can sell everyone a new fridge every 5 years, even though we have the technology to make fridges last 50 years.

Do you see how we spiral the drain? How we need to correct?

The Last one is the Mortgage.

In Australia, housing prices have gotten far out of control, the rest of the world is up there, I don’t understand how Australia has it the worst other than this:

At some point in the late 90s and early 00s, we convinced ALL kids they needed a university education. Looking at the American system, we can see why this is a very bad idea. The lack of Trades people, with skill, is hurting.

If all our ‘smart’ kids go off to be office workers, and we leave the trades jobs for people who a) didn’t fit the schooling system (square pegs in round holes) b) didn’t have the socio economic ability to attend Uni, and chose not to, or rarer c) were not smart enough. They entered the trades.

Because of the negative connotation of being a tradesperson, the smart ones had to ‘dumb themselves down’ to fit in or move on to other jobs.

So the lack of skilled and smart tradespeople is rare.

Housing requires trades people, poorly skilled ones take more time to do the job, and make mistakes, which cost money. So, the building industry starting costing more. people demanded better skills, so the builders' unions started certifications. which cost money. lots of money.

Housing prices reflect the costs of building.

But, since prices were starting to go up in the 80s, people started doing their own work. this meant shoddy workmanship, which mean accidents which meant insurance costs, so those insurance guys got together with those unions, and now its illegal to do your own work in many areas.

So you HAVE to have licensed contractors, under a properly qualified builder. and the demand for that increases as more work needs to be done, and less qualified people to do it. 

Low supply, high demand = higher prices.

Long story short, trying to find builders to do your house in 2 years? = premium prices = everyone is doing it = higher prices.

For 1000s of years, people could build their own house to live in, staked out some unused land, built it over 3 months, more if you had friends & family. cost you 500 man hours. 

You used that shelter to survive and built a better house over the next year or two, 2000 man hours. 

Your kids used that shelter to ‘live’ and build a better house, but still was only 2000 man hours. 

Now, the average house requires a person 60,000 man hours. not because it ‘needs’ that much, but a 30 year mortgage is a lot of office work.

This is a hard pill to swallow. trying to reverse the whole mortgage industry is near impossible. people need a place to live to be able to go to work. they need running water, gas, electricity, on top of shelter from weather, and enclosed for warmth.

Halting Mortgages, forcing people to 'save' will take years, and the suffering for people to attempt this would create massive unrest and riots. Its not tenable. there is no replacement, Halting Car Loans means more people catching the bus until they save, reducing the bus 'costs per person' and increasing employment of transport workers, people can use the alternative. But halting New homes? where will the next generation live? with their parents? Who will be able to save enough to buy? and when?

Banks also, pay interest on accounts, based on money they earn on business loans and mortgages. Without mortgages, the pinch will be so much, storing money in a bank will be practically useless, and since now we've become so reliant on electronic banking,  how could we even consider this.

The Only Solution I see is recreating the building industry, allowing people to do courses, for free, online, so they can build their own house, for themselves. They can't sell it, they can't insure it, but they should not be blocked from building it. If you can build a decent house, following the rules, inspected to be sound, you can insure it and sell it. You can spend 20 years, adding, refining, tweaking, and making sure its compliant. it'll cost you man hours, and not much more.

People in Europe are building their own houses, properly, filming it on youtube, making enough money to help pay for the house, yet still build a house for $50k. You can't even get a single room renovation for $50k in Australia. I've had my bathroom, laundry, toilet and kitchen quotes to be renovated in a proper style, not cheap IKEA crap, (which by the way, an IKEA kitchen which will fall apart in 10 years, costs $10k) a Proper kitchen for $55k, a proper bathroom for $45k. Yet in France, my friend did an even bigger kitchen in the same style for $5k. wtf!?

So, once we can 'build' a 50k home, on (sadly this wont likely go down) $200k property on the edges of the nearby towns of a capital, the demand on those million dollar places will go down, then maybe in 50 years, things will settle to a more realistic 3x income prices.. 

Eh, maybe I'm dreaming. of the old days, after the WWII reset

Don't Ever Sell - Housing

 Caveat: I used to sort out mortgages for people, as a jog. Mortgage refinancer. I saw hundreds upon hundreds of applications. Interviewed people, talked to them about their finances, what they wanted, what they did. Now.. 20 years later, those thoughts have bubbled up, and I have some insights.

The Argument to not Sell.

Regardless of how the rich get richer, which I'm sure enough people have vlogged and blogged enough about, these are my thoughts on just logic and math and loans and life.

You: 1950s, have a job, a decent enough income to apply for a loan. You've gone through all the hoops, saved 20% and bought a house. Your Income is $3000 a year, and houses cost $9k (I'm averaging from across multiple sources, and rounding off for readable math). So since the advised payment was $1k a year (one third to one quarter of your income, but for simple math we'll go a third) you'd have paid it off in 15 years, dependant on you getting pay rises, interest rates, investing a little into your loan or not, and other small issues.

Lets say 15years. Its now the early 1970s, your income has climbed to $4000, and houses cost $16k. you're house is paid off, but it cost you $12k to buy it. consider.. don't compare the $16k you can sell it for, compare the $9k price tag (and the $225 stamp duty, and another $25 in bank fees)

You paid $12,250, for a $9k house. In 1970s terms, your $16k house cost you $21,700.  

You 'can' sell, you'll probably get $16k for your house, and be looking to upgrade to a $20k house, only needing a $4k loan. That may only take 5 years to pay off, but you might have paid stamp duty on the new house of $500, capital gains tax on the $16k for $2k, So, this new house is costing you $100 a year in interest, for a total 'upgrade cost' of $7k. BUT remember, you've "paid" $21700 to own this house, you're $5k equity in the hole, now with the new $7k, you're equity is $12k backwards.

How is it possible to ever make money on a house?

Well, its super tricky, and likely you never will, but if YOUR house is worth $21,700, while the rest of the market is $16k, THEN you could break even on the sale. Likely though, to do that, you'd need to not just maintain the property, but invest in it to make improvements, BUT since that costs money, and we all know, you'll never truely make back what you put in, you'll be push a rock uphill. 

Pity we can't convince the govt, that capital gains tax, doesn't take inflation into consideration. 

Lets say, your grandpa did this in the 1950s, and you're sitting in the 2010s, inherited the house, and are thinking about selling. 

That house in 2014 is now worth 300k, your income is $55k, so even after paying inheritance tax, capital gains tax, and income tax, you're looking at a take home of 2 years paycheck.. Thats worth it right? 

well no, a) because of all those taxes, b) because that's your heritage, c) you're giving up the family wealth, that could support your family for generations, just so you can make some dumb purchases? (lets be real, unless your an avid investor or businessman, in which case you probably already know this, you're not going to spend it wisely)

Most rentals go for 5% of the property price, so over 20years you'll earn back your houses worth, again. Better yet, take out a loan ON that house to buy a 2nd house, rent that out, now you can deduct the interest from the house, from the taxable income. Make repairs, even improve the house, comes out of the taxable income (and might increase rent). Use some of THAT money for your dumb purchase.

Long Term

Consider, Had your grandpa been informed of this knowledge, in 1970, he's have bought a 2nd house, instead of selling.  

Your parents, instead of paying rent to some other person, could rent out this first house, and help pay off the mortgage. This likely means grandpa could have bought a 3rd house, 10 years later, just before retirement. If you have a uncle or aunt, they could have rented that one.

By the 1990s, your family would own 3 houses, instead of paying $5k a year in rent, it'd have been invested in the family houses. now, not needing to even GET a mortgage, your dad and uncle, could both, use the equity in the houses to get an extra house each (though, in the 90s interest was so bad, maybe they would have held off) but lets say, split the difference, they bought 1 extra house, put both  their 1/4th incomes into it.. 7years and it'd be owned (even at 15% interest as it was)

by 2000, you are born, and you already own a house to move into when you're in your 20s. in the gap between then and now, your dad and uncle have bought two more houses, renovated the other four for wifi, cable, aircon, insulation, etc. and had enough left over for yearly holidays.

Your grandpa, likely passed on (god rest his soul, sorry for your loss) created a legacy for your family, you don't pay rent, but instead contribute 1/4th your income to the family (trust?) to build a healthy portfolio of property for your kids. your family owns 8 houses, lives in 4 of them and rents out 4 of them to also contribute to the trust.

This.. by the way, is what I referred to at the top, about how rich families exist. When grandpa passed, all houses, re-evaluated at worth, passed on to the family trust, pay no capital gains (because you don't sell) nor inheritance (you didn't inherit) you don't pay mortgages or rent, ever, and your trust borrows money, spends it on new houses, and gives you all tax free bonuses (new cars? holidays?)

p.s. this is all just conjecture and opinion. be smart, talk to lawyers and accountants about setting this up for yourself. everyone has difference circumstances and life events to deal with.  

 

Welcome to CreditLine, where all your needs are fulfilled

CreditLine

[Fiction, rought draft, spllng misteaks]

Welcome to Creditline, This might be the alternative lifestyle you've been looking for.

CreditLine will ensure your future, comfort your life with all that you can desire, and fulfill your needs as soon as you need them, no money required, because we know your worth it.

CreditLine will undertake a specialized assessment of you and your life, based on what you have done so far, and the most likely outcome of your life, based on highly successful Quantum computing algorythmns, which can plan and map your life to a 99% degree of accuracy.

Whats that you say? Break it down for you? Sure.. lets look back at the past so we can understand the future.

Back in the 21st century, Man could apply for a loan of wealth from his bank, based on his credit history. They would issue a physical plastic card that needed to be carried around and used to identify his credit history. If lost, the man would need to go back to his institution, that's right, physically GO to the location of his money and ask for a replacement plastic card.

The Card, and the institution, would assess his life in the past, and make an inaccurate prediction to determine if he could and would pay back the loan within a reasonable time. Often people did not. They did not have the computational access to have MULTIVAC make the calculations for them, instead they would guess, and this meant defaulting on loans, which led to homelessness, famine, war and death.

But, as we all know, Cryto-Currencies, and later Q-bits, allowed instantaneous money, doing away with the need for these 'loans' in the short term, yet people still wanted and in many cases needed to access the funds from their own futures, in order to improve their lifestyles today.

When Robots started taking over the transportation industry, and the Laws of Robot Ownership and Tax came in, to provide us all with Basic Universal Income, people begged the question, How long do I have to wait to buy an upgrade to my Robot? What if my robot breaks down before I have saved enough for its maintenence? especially if I have not paid my insurance? I'll have to downgrade to a cheaper robot, so my income will drop, if the bank could give me a loan, I could buy a more expensive robot, and earn more!

Since Banks had ceased to exist, and businesses cannot own robots, the only way to increase productivity, was to provide people with better robots today, and have their increased incomes reduced by the repayments of the robot labour.

That's where CreditLine came in. CreditLine, with the Q-bit setup and MULTIVAC access, could not predict the total worth of a man, and as such, predict how much a man could, in his lifetime, afford to borrow, and as a result, buy the highest most expensive robot that was in demand, and earning high dividends, could afford. As such, instead of a man saving his debits to buy a new robot later, to increase his debits, he could use his credits to buy a better robot today and pay back that credit faster since the better robot would earn more.

Moreso, CreditLines system would determine at what stage the robot would be paid off, predict the next robot to be upgraded to, to increase the income and borrow against that future, increasing the owners credit potential.

CreditLine, needs only know your needs, your lifestyle expenses, the less you need, the more creditline can lend you. If creditLine can determine that your lifestyle will be lavish, it will know you will have less to spend on robot upgrades and as such, less chance to upgrade. So CreditLine will encourage you to have a minimal lifestyle for your maximum benefit.

CreditLine also offers the ultimate package, Virtual Life. CreditLine will plug your mind into a computer, feed your body a protein slurry to keep it alive. You can be sailing the oceans of Jupiter or playing virtual D&D, while your robot undertakes its tasks at the highest possible rates, earning you the most debits, to afford the best robot workers in the years to come.

You'll be rich!

p.s. If you sign up for CreditLine - Child Creation and Care, we'll plug your kids in for line, multiplying your maximum income potential for their lives too!

How can you people LIVE?

Now there comes a time in every old mans life, when he gets on a bus, and asks himself the question.. where am I getting off? If I'm getting off in 1-2 stops.. I'll go stand by the door.. if I'm getting off in 3-5 stops, I'll sit by the door if there is room or stand close enough. If any longer, I'll take a seat. Then 2-3 stops before mine, I'll excuse myself from the seat, and move towards the door, letting each person quickly see that I'm going to go for the doors soon and get off, so they can politely move out of my way.

This kind of thinking is critical for living. Bills coming soon? bank the money for a few weeks in advance, although with the way banks are going, it'd be safer to bury it in your backyard. Then when the bill arrives, pay it.. up-front. Nice and easy.. Personally I buy some shares and sell them again to pay the bills, that way I earn a little of the difference in the three months.

But these kids today.. whats up with them, credit cards to buy stuff today and pay tommorrow, then more credit cards to pay off the other credit cards.. kids, don'tcha know, if you get a credit card, you're just giving 7% of your money to the banks? rising their profit margins? where will that money come from? every year 7% of all money is siphoned off by the banks, and it never goes back into the system.. that's why everything costs more, we're all chasing those gawd dang banks.. and losing... by 7%..

And it all starts with thinking ahead.. yes, thats right.. if you are the kind of person that needs to jump up and push past people to get off the bus, you're the problem with this world. Your attitude is whats bringing us all down into the pit.