C-O-D-E-1: the rationale and mission of living lies

C is for Credit

O is for Oil

D is for Drugs

E is for Education

1 is for what should be our first priority

PART I: Credit, Commerce and Currency

A lot of people have asked why a website that professes to tell the truth is called livinglies. Many more have sought out my political views and even encouraged and offered to back me in a run for public office. I have no doubt that I would enjoy a political campaign and very little doubt that I would win. But I have no intention to run for office and no willingness to serve in that capacity. Instead I consider myself as running for my country rather than a narrow political office. So here are my reasons for writing this blog. It is bound to offend ideologues from all parts of the political spectrum. The simple answer is we live with lies. We accept those lies because it is easier to accept them than to fight them.

I came up with CODE-1 several years ago starting with the “c” for credit. Since the late 1970’s when unions went into their death spiral caused by cheating and lying to their own membership, stealing dues and using the strength and wealth of the union was applied as political favors, median wages have gone down. The living wage with opportunities for advancement was replaced with credit. instead of having money to buy things without further consequence, consumers were encouraged to borrow the money at high interest rates that assured that they would never be able to pay it back. This is like a private tax imposed by a collaboration of government and business. The party who seeks “no higher taxes” also support no higher wages. Thus he or she is imposing a taxon consumers in the form of credit options from which the consumer will never emerge. Some call it economic slavery in the”land of the free”.

When the prime rate went over 20% around 1980, credit card companies asked for a variance so that they could charge interest rates at market level. But when interest rates went down, the credit card fees and interest rates went through the roof. Gradually every form of credit and permutations of credit convinced people that they were still OK as long as the credit kept coming — until it took more credit to pay old credit. And we developed an idiotic credit scoring system that rewarded people for borrowing and paying on time. They were rewarded not with cash but with more credit and maybe a slight decrease in the interest rate. We have grown so accustomed to this idiotic system that we value our credit score more than our savings. The person who buys for cash and never uses credit, even for large purchases, is punished with a low credit score.

The truth about most credit purchases, is that if the consumer delayed the purchase for a month or two, they could probably save up enough money to buy the item for cash, or would change their minds about buying something they don’t really need. This is “bad for the economy,” according to Wall Street economists. That is another lie. Any economy that relies on impulse purchases of stuff the buyer doesn’t really want or need is absurd. Imagine what Johnathan Swift would say about it Gulliver’s travels.

In other words we replaced independence and personal responsibility with a dependence on institutional and non-institutional credit culminating in payday loans where the annual interest rate was, along with credit card debt, far above the limits allowed by law. It was called usury and usury was in many states a crime for which the perpetrator could go to jail. Usury limits varied from 8% to 12% generally. Now some credit cards charge as much as 35% and some payday loans work out to about 400%.

The long and short of it is that the American worker has no bargaining powers, no collective bargaining powers because with the destruction of the unions the share of profits enjoyed by workers who could buy things and pay taxes with discretionary cash has plummeted and gone straight to the top of most commercial enterprises. The executives of those enterprises now make 400 times the average worker in their company. The fundamental lie here is that workers are not stakeholders. They might not be stockholders (although that is not true in many large corporations) but as workers they have a stake in the ultimate success of the business. If the business they work for is choking off the last opportunity for real sales that won’t produce defaults on a large scale, then their prospects for continued employment and advancement will disappear.

It is a going out of business strategy and it worked. We are out of business compared to the years when unions were strong. And corporate profits have soared based on the savings attributable to payroll costs. But common people, with less and less money and relying on credit that took even more out of their meager earnings in the form of minimum monthly payments are now without earnings, credit or savings to pay for higher priced items so the corporations have started selling crap made in foreign countries contributing to the gross unemployment found in this country. And now people are buying cheaper food, clothing and other things that won’t last. So the cost and quality of items goes down and so do profit margins. The effects are showing up at McDonalds, WallMart and other companies that have put the small shop out of business thus undermining the American creed of self reliance and innovation.

Small wonder we are the envy of nobody. The strength of the US’s economy is a lie although it does have some strong points. GDP for goods and services has shrunk from 80% of GDP to around 50%. Would you invest in a company like that? The other half is the trading of fictitious paper allegedly based on the actual commerce that has declined in half. We have delegated the control of our economy to those who are rich and are getting richer. The government imperative to provide for the common welfare is virtually gone.

Yes raising the minimum wage from the dark ages to the Age of Enlightenment will help, but that is not all. Too few people are alive today to remember the fact that when Unions were strong, everyone had higher wages and companies were still making healthy profits and growing. Then the bean counters took over and the short-term benefits of paying less than a living wage to workers was outweighed by giving Wall Street immediate satisfaction of higher reported earnings per share.

We need to bring the unions back (and regulate them) and we need to educate our children in a way that other countries have already figured out — their most precious human resource they have is their children. But we live in a country where for ideological reasons the quality and quantity of education of our children is constantly undermined. It is another going out of business strategy and it is also working.So instead of well rounded, inventive creative children, we get children who can neither write nor read with any clarity. They can’t add or multiply with any accuracy. The briefs filed in appellate courts are frequently unreadable because it is impossible to know what the writer is meaning to convey.

We rank below some developing countries in the quality of our education, the development of thinking process, the application of judgment based upon facts, and decisions that are designed to help everyone not just the person or committee that makes the decision. Our workers are mostly unprepared for the competition that keeps mounting. And parents, stretched out on credit and working two jobs to pay the credit that will NEVER get paid off, are uninvolved with their kids education — a sure message that kids are on their own despite the poor choices they make and the need for intensive guidance.

It is no surprise that the mortgage meltdown occurred. Whereas people would carefully consider their options before taking on a huge amount of debt, they have been sold on the idea that credit is like currency — only better. The problem is that credit is so redundant throughout our lives that we think we understand it until we find ourselves in bankruptcy. That is when we find out we borrowed multiple times on the same transaction. That is where we realize how much of our income is devoted to paying off debt. So when presented with 450 different loan products, people thought they understood when they did not. AND lenders freely ignored the requirements of Federal law (TILA) that required full and simple disclosure of the people and essential terms and the overall cost of the loan. Those lenders left out the most important disclosure — that this loan will never work and is not meant to work because we are betting it will fail and we are making a ton of money just by getting you to sign.

More to come

22 Responses

  1. Below under “Fighting MERs in CA” someone stated.
    3) Any assignment of the Deed of Trust & Note from MERS to a successor is void and fraudulent.
    I live in Maryland and I have a Deed of Trust that MER’s assigned to successor. Can someone tell me if this is a true statement.? Do I now have a fraudulent document. Would someone be willing to send me their email address so I could scan and send to them, so they can let me know in fact this is a fraudulent document. My email address is jsmith5915@msn.com 443 677 2799. James

  2. Cease and Desist Order against Citi and Wells Fargo.
    There is currently a Cease and Desist Order against Citi Mortgage. Below is the complaint that I sent to Office of Comptroller and Currency.

    There is currently a Cease and Desist Order by the Office of the Comptroller of the Currency against Mortgage Electronic Registration System. I am writing because I want something done about the Banks and MERS, because they continue to perform illegal transactions. I recently had a document that was posted to County Public Records by Citi Mortgage and MERS. It was a Deed of Trust for a transaction that was done back in 2005. Something was not right about them just now posting this document after so many years. I goggled the person that signed the document, Geraldine Ann Belinksi, Vice President. I found another Deed of Trust online that had the same person’s name on it, but this time it stated that she is the Assistant Secretary. I immediately got on the phone and called the office that was listed on the document, Citi Mortgage, 1000 Technology Drive, O’Fallon, Mo. I located the office where this individual worked and discovered that she is a mere processor. This has gotten out of hand and I am very skeptical that any of the transactions and documents that I have through Citi Mortgage are legal and binding. Why are they allowed to continue Robo Signing documents? I can be reached at 443-677-2799. Thanks James A. Smith

    I did not call MERS to verify that she worked there. I call Citi and they stated that she was a processor. This is response that I received from Citi regarding the complaint

    “Our records indicate Geraldine A. Belinski is a Certified Appointed signor for Mortgage Electroic Registration Systems Inc.”

    My question is, does MERS have employees that work in Citi facilities? I do not believe this. I called and verified that she worked there and they stated she was a processor. How can I verify that they are lying, because Im sure that OCC will believe what Citi’s response was.
    James Smith 443-677-2799.

  3. In a one person, one vote society, maybe it’s actually illegal to publicly announce as a group that a group is supporting only one candidate or only one party. Than add in the exchange of promises for the block voting, and maybe that too is actually illegal as well.

  4. Mr Machi

    No argument there.

    Its the tactics Unions use to maintain membership that troubles me Coercion at any level is tyranny of the “little people.”

  5. Jim, the Unions biggest mistake was voting as a voting block. This creates intense pandering their demands which most likely led to downstream unrealistic pension promises for their vote in the next election.

  6. Mr. Garfield

    Terrific post

    Except for the call for Unions. The concept of collective bargaining was originally good but compulsion to join unions just to keep a job is not something I will ever agree with Just another form of servitude IMHO.

  7. NG – thumbs up on your post.

  8. Waiting for my two condos back. housing is short in New York and I am living in a REIT. From what I have experienced living in two different garden developments,they look okay but both ,managements , emulate slum lords.

    and naturally they don’t want anyone opening up their mouth so I am not their favorite tenant here.

  9. namepant fraud reporter, I am sorry you are going through this.

    I hate to say that most of us are here, because we have seen or have had the same thing done to us. Read all that you can and educate those around you, these banks are not there to help you.
    Best wishes Jaime
    Foster mom of 30+ kids, we also lost our home. It was heartbreaking to tell each one of my children they needed to find a new family.

  10. Carie, I saw the video with Russell Brand. He comes from a poor unprivileged background. I am sure this is scary for certain people up at the top of the pile of krap that is our present state of civilization. Go Russell!!

  11. http://www.newstatesman.com/politics/2013/10/russell-brand-on-revolution

    “…But we are far from apathetic, we are far from impotent. I take great courage from the groaning effort required to keep us down, the institutions that have to be fastidiously kept in place to maintain this duplicitous order. Propaganda, police, media, lies. Now is the time to continue the great legacy of the left, in harmony with its implicit spiritual principles. Time may only be a human concept and therefore ultimately unreal, but what is irrefutably real is that this is the time for us to wake up.

    The revolution of consciousness is a decision, decisions take a moment. In my mind the revolution has already begun.”

  12. Change is in the wind. It is coming, and there is nothing that can stop it. The Great Wheel is turning, and the giant corporations, including the banks, will come to an end. We, the people of Earth, are changing, too. People are finally waking up to the fact that our government is a lie and in violation of the Constitution. We need a Constitutional Convention and start going back to the rule of law. We have all the right parts, all we have to do is ACT!

  13. Thank You Neil you have helped my family, rethink our lives.

    * We are no longer spending our hard earned money on countless things not needed.
    * We are paying off all credit cards and no longer use them.
    * We are rethinking Christmas and holidays and make home made items we can make together.
    * We are saving money to pay cash for our next property and will not buy one that does not have a clean long term record.
    * We have started a garden to help feed our family.
    * We eat out only on special occasions.
    * We changed from using a large bank to a small unknown credit union.
    * We vote carefully.
    * We speak out everywhere, and are influencing family & friends.

    We have rethought our lives, I was uninformed and now I am informed. Guess what to the big corporation’s, change is coming.
    Best wishes to all of you on this sight keep up the good fight and educating the public.

    Thank you Neil.

  14. RE: Those lenders left out the most important disclosure — that this loan will never work and is not meant to work because we are betting it will fail and we are making a ton of money just by getting you to sign.

    So if these loans were to remain performing ……
    The taxpayers get to pay all the losses!!

    So our Gov decided to let these greedy fools to push us to the edge of insanity…

  15. Wise and inspiring words Mr Garfield. Thank you for not running.

  16. We were approved for Trial Plan Payment for three months by this crooked bank. We made three Trial Plan Payment and then called the bank for documents for permanent modification. This rogue bank then said that we had to apply for Trial Plan Payment ! This is like an employer telling you that after working for them for three months you need to work for them to get paid ! What a grand fraud scheme ! This is utter gross non-sense, meaninglessness to commit extortion and fraud on people. How can they get away by telling outright lies to people spewed through their teeth? I’m trembling now when I write this gross answer we got from the bank. Why can’t the government seize this bank which found to be involved in fraud?

  17. We were approved for Trial Plan Payment for three months by this crooked bank. We made three Trial Plan Payment and then called the bank for documents for permanent modification. This rogue bank then said that we had to apply for Trial Plan Payment. This is like an employer telling you that after working for them for three months you need to work for them to get paid ! What a grand fraud scheme ! This is utter gross non-sense, meaninglessness to commit extortion and fraud on people. How can they get away by telling there outright lies to people spew through their teeth?

  18. May G-d give you strength and health

  19. I never tire of reading your blog! They are always very informative and more and more of my lightbulbs are going off. So thank you!

  20. Your article is spot on as to why I started http://www.facebook.com/debtsuspensionrights

    Sure is hard getting likes however, only have 20 so far. Debt Suspension Rights for consumers, where are they? Is intent on exposing how the courts have bent over backwards to reward strategic defaulters vs involuntary defaulters, exposing how reverse mortgages are ripping off the elderly, and exposing the lie of the 2% monthly minimum payment.

  21. I appreciate your guidance, Neil. I appreciate your blogging as well as all the others that come here for help, or are here to help others.

  22. Great post NG. It’s Time for a total RESET.

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