Let the Insanity Commence


Do you know what product the white and browngoods stores sell? (and Apple for that matter).

Debt.

The BSO’s (Bright Shiny Objects) are endlessly promoted in the media to enslave you to the banksters by promoting debt as the answer to your emotional need to conform to their portrayal of the ideal life. You ‘need’ a new car, holiday, cellphone, bigger house etc. How? by signing here and paying a percentage of your income to ‘us’ for the privilege of having the BSO’s now instead of later. Call it another tax.

The latest assault is from New Zealand – Westpac bank (Australian) has announced a 30 year ‘Interest only’ mortgage.

Effectively, you will ‘rent’ your house for 30 years. Given that the mortgage will mean $216,000 in repayments for a $100,000 loan (at 6%) plus about $165,000 in insurance, rates and maintenance. How kind of you to pay the upkeep on the bank’s asset!

So we have $265,000 in payments plus the original $100,000 (which can be pushed out for another 20 years) equalling $250 a week for a $100,000 home. Now, real homes cost $500,000 in New Zealand (In places where there is work, hospital, schools etc.), so that’s $1250 a week if you aim to pay it all off in 30 years or $850 a week if you pay only the interest. You can see the mug punter’s enthusiasm for the ‘Lower weekly payments system’ already, can’t you?

So, perpetual servitude to the banksters is their plan.

Renting will offer no relief as the landlords will have to recoup their costs from you.

In a country where the average wage is $57,000 a year, let’s assume 25% tax rate (We will ignore GST, Petrol and alcohol taxes for now), that equals $820 nett income per week. This leaves you $30 a week in the red.

Houses in New Zealand cost 12-15 times the annual income. The historic average, worldwide since records began is around 3. A friend of mine bought his first house for 1.5 times his annual salary. Average job, average greenfield suburb. 40 years ago, impossible today in any developed Western country.

The reality, of course, will be nothing like the Utopia above.

Interest rates will rise, perhaps double, to ‘compensate’ for the bank’s increased ‘risk’. Your wages will stagnate as the world demand for widgets is already stagnant and “We need to remain competitive in the World market” BS is spouted. Funny how you pay ‘Internationally competitive’ prices for milk and cars yet get paid local wages isn’t it?