That's great news April. Widely available loans the GSE's Fannie and Freddie artificially making and backing loans and the interest rate deduction are nothing that help us in the long run unless making money from inflation is a way of living. Homes would be much more affordable if the government got rid of the interest rate deduction and stopped sponsoring loans and help stop fueling the inflationary spiral and the boom bust cycle. The interest rate deduction is an outrageous Trojan horse gift probably one of the most destructive devices the private bankers have to coerce you into getting the biggest loan you can afford. If you really think about what it says it codifies into law that you must either give up a huge part of your income to the government or give it to the banks in interest. The Federal reserve is privately owed so how does the government have the right to coerce you into choice A the IRS which feeds the private for profit banks through government force or choice B which says if you give the Private banks profit by paying them interest them we won't take a portion of your income at gunpoint. Now most of us don't want to call the government's bluff and get dragged to jail at gunpoint for not paying either the IRS or massive amounts of interest to the bank but sure as can be that is indeed. The whole system keeps us trapped in debt slavery cradle to grave either directly or through our dependents. What's ironic about that is that historically low or even no tax Federal governments run surpluses or mild deficits. Mathematically that would seem to make no sense as we imagine that the more money we give the government the more they have to spend and the less they less they have as if taxes were simple matter of addition and subtraction. Well taxes really don't work that way for many reasons one obvious reason is the more you tax the less people have to invest so you get a diminishing return, another obvious one we seem to forget every time the government creates a panic and cry's wolf about millions of people starving and losing jobs if they don't get an emergency infusion of funds though taxes and bonds is that the more you give them the more they figure out how to spend. Thomas Jefferson got rid of taxes completely and cut the deficit in half at the same time. How did this work because the unbridled economy created so much more wealth that the tariffs’ and foreign trade income created more revenue. The biggest single reason though that taxes create a deficit is that in a fractional reserve system where debt is money backed by taxation and gunpoint the more you spend the more debt you create. The stimulus package is really a stealulus package the debt needs to be financed by the banks forcing us further into debt slavery. The banks and government policy can artificially bump up the economy and make it appear as if the system is working for a while but in the end debt will always be debt and savings will always be savings. The new system we need is the old system, hard money that doesn't inflate and children staying at home until they can pay cash for home or make a substantial down payment and a short simple interest rate loan, or similar owner or parent financing.
Here's an excerpt from a JBS article please read the whole article with an an open mind and realize as addicted to debt as we are and act like it's oxygen vital to life, the truth is in the long run it's more like a carcinogen facilitating social cancer.
The ideal long range stable economy would probably be no interest at all in my opinion. Ron Paul is realist and knows it would be impossible to transition from the Fed/IRS to a zero interest pure hard money currency overnight he has been working on ideas for personal, business and government self- sufficiency and sustainability for decades.
http://www.jbs.org/index.php/evinces-a-design/3823 This article by Jim Capo was orginally posted on the old JBS.org website on August 7, 2007 under the title: Notes From Ron Paul's Bible: Usury — A Sure Bet Why Sharia Law Is a Threat to Western Civilization. It did not make the transition to the new JBS.org site launched this last summer. However, with the "interest in interest" created by Taking Interest in Money series, we have decided to repost this article to further the discussion on usury. (Note: On the May 2, 2008 visit of Dr. Paul to North Carolina, I did confirm with a member of his staff who was personally lobbying for the importance of addressing usury in our financial debates, that Dr. Paul currently sees no problem with charging interest. He accepts that the charging interest is validated under "time preference" and "time value of money" arguments made by most Austrian School economists.) [He that] Hath given forth upon usury, and hath taken increase: shall he then live? he shall not live: he hath done all these abominations; he shall surely die; his blood shall be upon him.
This proscription against the grave sin of usury might sound like something out of the Koran to a contemporary American but it is actually the prophet Ezekiel speaking in the Bible.