Cap, Your theory is correct. In the late 60's and early 70's I sold real estate part time. At that time the same thing was done with FHA approved mortgages. The builder and lender were in bed together. The only thing different was the amount of money was significantly less and the houses smaller. In Maryland we have an now obsolete way to reduce the buyers cost, it's called ground rent. You don't own the ground but rent it, fixed at 6% a year. Payable forever. The builder and the bank would get together and set an inflated price for the land. In turn the bank got to collect the ground rent. Mortgage was through the same bank but sold to the marketplace with the FHA guarantee. Bank kept the ground rent, which has superior collection rights than an mortgage. My first house was bought from a couple that needed out because they had to move. The builder gave them cash money for the down payment with a wink. He didn't care that they couldn't afford it he would soon have his money, same with the bank.
The total USA national debt is something like half a million dollars for each citizen! Staggering, how could it possibly ever be repaid. The wealth transfer is just like T. Booth Pickens is saying. Just look at the construction going on in the middle east. Half of the world's construction cranes are in the oil rich countries. In the United Arab Emirates
http://en.wikipedia.org/wiki/United_Arab_Emirates they have a strategic plan for when the oil runs out. High tech is their future. They are going to building an electronics semiconductor industry from scratch. No longer will the largest semiconductor manufacturing plant be in Taiwan, ROC it will be in Dhabi. Today a semiconductor manufacturing plant costs $2-3 billion. It's usually obsolete within 5 years. They are so expensive that electronic companies that are usually competitors form alliances to to build and share them. UAE is not only building the manufacturing plants they are building a technical university system to educate the engineers how to design the integrated circuits that will be manufactured in them. The professors that will staff their Universities are being hired at huge salaries from all around the world. Look at any professional society journal and you will see ads for high level positions from UAE and other oil rich countries. They have a plan, where's ours?
I shutter to think what will happen in a generation when our money spent on their oil will be used to develop their version of the GPS terrain mapping missile guidance system to be used against us. Wake up citizens this is a developing crisis. Get educated on the problem. Get involved in congressional elections. Go to:
http://www.pickensplan.comJoin and FAX your petition to Congress.
