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Nov. 10, 2025 - Ron Paul Liberty Report
29:27
Do You Really Want A 50 Year Home Mortgage

President Trump has touted a solution to the housing affordability crisis: 50 year home mortgages, but is this just effectively a "you'll own nothing and be happy" strategy? Also today: Russia considering Venezuela's offer for assistance as the US continues its military show of force.

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Time Text
Savings and Loan Scheme 00:14:53
Hello, everybody, and thank you for tuning into the Liberty Report.
With us today, we have Daniel McAdams, our co-host.
Daniel, good to see you.
Happy Monday, Dr. Paul.
How are you today?
Very well.
Thank you.
A bit chilly this morning, huh?
Winter's coming.
Yeah.
Yeah, we're worrying about how cold it is.
It went down to 40 degrees.
But it'll get worse.
So anyway, it'd be better.
I think the government could probably have more success if they took care of the weather than they do by taking care of the budget.
But there's a scheme floating around.
This comes from our president, and he always has good ideas.
Some people, you know, want to pay attention to.
But this is another idea that I'm cautious with because I have not endorsed it.
I thought, hey, this sounds really good.
Why don't we housing markets down?
And we had that, you know, that same thing happened in the early part of this century.
We had a housing bubble, and it was a predictable bubble.
And now they're worrying about the housing industry.
So what Trump is proposing, or at least the administration is proposing, is a 50-year mortgage proposal.
And lower the cost, more customers.
There's going to be a housing boom.
And if they get this far along, then we can say there will be a housing bust.
And 50 years is a long time to pay for a house.
One thing for sure is about 90% of them won't be living in 50 years from now that might end up buying this, but it'll lower the rates.
It'll save the economy, all that nonsense.
And I think that the American people deserve better.
And compare this to my memories about my parents telling me about their first house.
And I remember the house because I lived in it, but they built it during the Depression.
And the house was a four-room house, but it was a nice house and a nice lot.
But they paid cash for it, even during the Depression.
But it was not that expensive, you know, compared to what they do now.
But back then, they paid cash for cars and houses.
They would borrow some of that, but it wasn't like a mortgage.
You might go and get a tide over at the bank or something like that.
But right now, they must be in trouble because they're just sort of flailing away.
What can we do to boost the housing industry?
Because it's such a good industry.
Just think how many spin-offs there'll be.
And so this is a proposal.
And of course, we've already seen people make a little criticisms of it.
And our friends in the economic system know a little bit better and understand a little bit about Austrian economics.
It didn't take them long to figure this out.
This is not a good idea.
Yeah.
Well, there's an affordability crisis in housing.
There's no question about it, you know.
And I don't know, you probably saw this over the weekend.
This new statistics came out saying the average age where the first home buyer buys his first home is 40 years old, his or her first home, 40 years old.
40 years old is the average age.
If you think about it, and actually Aleister Crook, who's a great analyst, he was on with the judge this morning, and he makes a good point that how devastating that is for families.
Say a woman wants to settle down and get married.
The man can't buy a house until he's 40.
She's already 40 years old when she's starting a family.
It's just absolutely terrible.
I mean, you think about when your folks grew up in the, you know, got their home in the Depression.
I mean, I grew up in the 1970s.
My dad was 25 years old.
He was a blue-collar.
He worked as a truck driver and he bought his first home at age 25.
My mother didn't work.
She stayed at home.
And we lived a perfectly normal life.
Imagine that compared to today.
I mean, I thought it was, I thought people were just complaining about how bad things were.
But looking back, it's absolutely true.
Well, here is what we're one of the things that we're using to guide today's show.
This is a portfolio armor substack had a piece that Zero Hedge picked up, and they're talking about when President Trump's new federal housing finance agency director, Bill Pulte, floated the idea of a 50-year mortgage over the weekend, and Trump amplified it on social media.
The proposal sounded to some like a clever way to make homes more, quote, affordable.
Lower monthly payments, easier access, more buyers.
But stretching mortgage to a half century isn't affordability, Portfolio Armour argues.
It's adding leverage, the kind of bad financial engineering that has inflated every housing bubble since Fannie Mae and Freddie Mac became the government's favorite credit machines.
You had a little bit to say about that in the last housing bubble we had.
Well, that's that's for sure.
You know, the debt system is a big problem.
But here we're talking about the housing industry again.
And it's sort of ironic.
And I've made this point before.
How do they want to solve the problem?
That is print more money.
Because where are they going to?
They don't have it's the old days.
I don't even know if they exist anymore, savings and loans.
I don't think they exist.
People saved in the savings and loan and they provided the mortgages.
You know, it was a specialty, but I don't think that is likely.
But you know, another term that they use that sort of bugs me is they say it's, you know, the national debt.
Everybody has a handle of, oh, yeah, it's bad.
It's going up, but we have to work on that.
It's $38 trillion.
Yeah, that's a little bit of chicken feed.
But they come along and say, but they call that a funded debt, national debt is funded.
But then they talk about, well, if you add up everything which is unfunded, and I got to thinking, well, what's the difference between funded and unfunded?
And my question to myself is: why isn't everything unfunded?
You know, but the Social Security, you know, you put the money in the bank, and the bank is our banker to take care of it, save our money so that we can retire on it.
So, and they do treasury bills.
Well, we put the money in this account.
You can't touch it.
You can't save it or you can't do anything with it.
But it's funded because we draw up official treasury bills and we put it with the Fed and they hold it.
So that's funded.
But then if you add the unfunded, and that's all the extra stuff stuck on there, that nobody knows what it is.
They come up with this idea that some people add this on, and it's like $162 trillion if you do it.
But I don't think any of it's funded.
I mean, why should you feel safer?
And I imagine if they do something silly like a 50-year mortgage, it won't be funded.
It isn't like somebody has a real mortgage and they have to pay for it like they did in the old days when the savings and loans existed.
So they do this and they do it with a straight face until somebody You guys are goofy.
I mean, this is crazy.
And so it's sort of like the alcoholic, you know, I'll feel better if you just give me one more drink and then I'll go home and I'm going to go, I'm going to start on my treatment tomorrow.
Yeah, tomorrow, tomorrow.
And I think the stalemate that's on in Washington is all over this same issue of underfunded.
Nothing's funded.
Everything's broke.
And then so this has been a long, long ordeal.
And it says, well, maybe it's breaking loose.
They voted yesterday.
It looks like they're going in another direction.
It's open up and open the government.
But how much money did we save when we didn't, you know, when we had the government closed?
Maybe it was done with a little more responsibility, but I doubt it.
You know, I think everybody will get paid.
Nobody's going to go back to work, I guess, until they get their back payment.
It's just a mess.
But I think the bottom line is that we're working on the assumption that the bankruptcy of this country is no big deal.
And all we need is another gimmick.
And just think, we're on our way.
A new idea, a 50-year mortgage for our houses, and that will solve our problems.
All the problems.
Well, here's a little bit more from the article: why longer mortgages don't make homes cheaper.
If we put that next one up, whenever policymakers make borrowing easier, home prices tend to rise to meet the new credit capacity.
Now, this is another fancy way of saying something that you've always said, Dr. Paul.
If you subsidize something, you'll get more of it.
In this case, they're subsidizing the cost of houses, and so you're going to get more cost of houses.
So extending mortgage terms increases the total amount a household can bid for a given property, which pushes prices upward rather than bringing them down.
This isn't rocket science.
Even someone like myself who doesn't understand a lot of this stuff gets it.
It's just like college, when they have college loans, college prices went up.
Remember, auto loans, they went from 48 months to 60 months to now God knows how much you pay for your auto loans.
The prices of autos go up.
I mean, this is not going to make housing more affordable for people.
You know, I heard a report in the family of somebody knowing somebody that had their truck stolen.
I thought, oh, that's terrible.
But, well, and they couldn't get the truck.
They could find it.
Well, they'll, you know, they'll get it taken care of by the insurance company.
I said, no, because somebody with experience of this, they said the best you could get if your automobile is stolen is about half of it.
And I said, well, they'll have to work their way out.
But they said, you know, this was a good truck.
And I know you're not going to believe this, but if you're going to have a good truck, it could cost you, nah, this isn't true.
$100,000.
Oh, it's amazing.
Yeah.
Yeah.
And you're paying two grand a month for it.
Oh, boy.
Oh, this.
Yeah, it's crazy.
Well, here's what President Trump himself posted on his Truth Social over the weekend.
I don't know.
Maybe I've been around the block too long, but I don't remember Republicans comparing themselves favorably to FDR.
And here he is.
He posts, it says, great American presidents.
And on the left, it says, 30-year mortgage, President Roosevelt, as in FDR.
And on the right, 50-year mortgage, President Trump.
So he's actually bragging that he's even, I guess, more involved in the economy than FDR.
Now, here's Bill Poulti.
We mentioned earlier the guy in charge of housing financing for the federal government, which itself is a problem.
He says, thanks to President Trump, we are indeed working on the 50-year mortgage, a complete game changer.
Probably right, Dr. Paul, but not for the reasons that he intends.
Now, I looked up Pulte because the name sounds familiar.
He is from the massive, massive homebuilding family, the Pulte family, who they build half the homes in the country.
And so, not to blame this guy for his family's business, but it kind of makes you feel like you have the home construction companies here and their federal government here, and they're squeezing out the people who actually are buying the homes, the population.
It doesn't make any sense.
And they've made these mistakes before.
So, the mistakes of why the depression by the individual that helped create it and extend it and it became extreme.
A president that said, Well, who campaigned just goes?
He campaigned on balanced budget and a gold status.
This is what Roosevelt campaigned on.
So, he quickly did this.
And, oh, whoa, the people, you know, at the full length of maybe five years, they would go up.
But they eventually, they essentially didn't have long mortgages.
So, we'll solve the problem.
But if it never gets cheaper and the debt goes up, and right now, this is the whole thing about the interest rates.
This has been in the media, you know, the interest rate.
What they do is they compare it, you know, to how much we have to spend on militarism.
And they're in a race.
Who could spend the most?
Will it be the military or just paying the interest on the national debt?
So, that is not very encouraging to think that they're going to solve this problem because they refuse this whole mess in Washington.
I think it means they're in total denial, no matter what they claim, that they are denying, you know, in denial that this debt that we have and the payment for this and all these shenanigans going on is not that bad because you're a bunch of scaremonger.
You know, and if you become an individual to stand out and say, Hey, I'm waving this flag, I'm waving this flag.
You ought not to do this.
And you're a member of Congress, you know, you don't get promoted to the Ways and Means Committee chairmanship.
That's right.
That's right.
Well, here's a couple of charts I noticed on X over the weekend about this to really give you the visuals of what it means.
Now, put that first one up.
This is comparing a 30-year mortgage and a 50-year mortgage on a $410,000 house.
50-Year Mortgage Savings 00:02:18
So, with a 30-year mortgage, you got a 6.5% interest rates.
You got a $3,200 a month payment.
Total interest paid on the home when you pay it off, $470,639.
Time needed for 20% equity is 95 months on your home.
This assumes a 10% down payment.
Now, you move over to the same $410,000 house with a 50-year mortgage.
Now, you're going to get a 7% interest rate because of the extended period.
You're going to have a $3,088 a month.
So, you basically save $100 a month on your house.
Total interest paid, $963,138 on the home.
And the time needed for that 20% equity is instead of 95 months now, 260 months.
So, you save about $100 a month, Dr. Paul, but you pay Almost three times, two times the amount of the entire house just in interest.
And here's another example.
Go to the next one, this chart.
This is a monthly pay, principal and interest with the house price of $400,000.
Your loan amount is $380,000 because you put $20,000 down.
A total of 600 mortgage payments, $1,253,782.
That means you've paid $873,782 in interest alone on your $400,000 house, but you will pay off that loan by November of 2075.
So you've got that to look forward to.
Yeah, these are numbers to play games with because it's not going to last that long, you know.
And the one thing they don't calculate in there, because in real terms, with the depreciation of the dollars, even if they use those numbers, by that time of paying it off, instead of paying off $500,000, they're probably writing a check that's worth about $100,000.
It's all depreciation.
And that's how they take care of this.
And I think Trump is smart enough.
Numbers To Play Games With 00:03:08
He knows exactly what he's doing.
This is to lower because he was the first one.
I gave him a credit, he was a super Cajun because before, as soon as he got in office, get those rates down.
Well, he was thinking about the government and big business.
Get the rates down, get the rates down.
And this is really a mess that you just can't calculate on how massive it is.
That's why it's a bubble economy.
It can't loss.
Things they can't loss don't.
And I still see what's happening in DC.
Not that I think that if we just tinker around and change the Speaker of the House and change the leader of the Senate and move around and do some things, it's going to make a difference.
It isn't.
That doesn't mean they're not sincere.
I think some of them have good intentions, but not all of them, I can tell you that.
And they really believe, we don't have any chance.
You're right.
We shouldn't have done this.
But I always say, yeah, we shouldn't have done it.
We shouldn't have fought all these stupid wars into the trillions and trillions of dollars that we've spent in the last 50 years.
So they want more money, but they wouldn't think.
I mean, they can't even cut 10%, 5%, 1% of any of that.
And I mean, you are the worst kind of person if you ever voted against a military budget.
But they say, well, that's a defense budget.
We're defending our country.
Yeah.
With blowing up little baby boats down in Venezuela and killing people.
Oh, were there people in that boat?
We didn't know that.
The other thing I wonder about this is the psychological impact, you know, because this whole sort of Klaus Schwab thing, you'll own nothing and you'll be happy.
You know, that seems dehumanizing to people.
You won't have anything that you own.
Nothing is yours.
And even though, I mean, they're building a lot of houses down here where we are in Texas on the Gulf Coast.
But you see, for the first time I've ever seen housing complex after housing complex, they don't say for sale starting at X.
They say for lease, starting at $2,000 a month.
They're not even for sale anymore.
You don't even get the appearance of owning a house.
But, you know, the opposite happens.
You know, you won't own anything and you'll be happy because we're going to take care of you.
We're going to give you a job and all that nonsense.
And They say this, but I think the thing that brought the Soviet system down, I marvel at the strength of ideas and changes because I had the foreign policy of mutual destruction and being drafted in the military as a big deal.
Russia's Doorstep Threat 00:05:49
I was never on pins and needles because it didn't matter.
I was just very stoic about it, but I was still impressed how it dissipated it.
It dissipated.
And why does it dissipate it?
Was it because we had more nukes than they did?
No, because their system was a total failure.
And there were a few immigrants that came from Russia that I talked to.
And, you know, one of the things that they had fun with were the jokes.
Yeah, oh, yeah.
You might have even came across that when you were in the State Department.
They would just make fun of the government.
Once they started making fun of the government, and in a way, it's the way that COVID ended, mocking the people who were off for all this nonsense.
And they were creating total chaos and evil, too.
Absolutely.
So that's one sneaky way I'm a bit optimistic.
They'll self-destruct.
Unfortunately, not without a lot of people suffering.
Unfortunately, it's right.
Well, the other thing we're sort of watching, we'll just cover it real quickly, is put that next one up.
Now, Dave DeCamp, our good friend over at anti-war.com, wrote this up today.
Russia says it's considering Venezuela's request for assistance amid U.S. military buildup in the Caribbean.
Now, as we know, the USS Gerald Ford carrier group is heading in the direction of Venezuela.
There's already, I forget the number of warships that are in the vicinity, but there are quite a few of them there ready to strike.
Russian Foreign Ministry spokeswoman Maria Zakharova said on Friday that Moscow was prepared to respond appropriately to Venezuela's request for military assistance amid a U.S. military buildup in the Caribbean.
Now go to the next one, a report from the Washington Post reports that the U.S. believes Venezuela has recently asked Russia for assistance in restoring Russian-made Sukhoi Su-30MK2 fighter jets, overhauling engines and radar, also requesting 14 sets of what are believed to be Russian-made missiles.
So they're looking to Russia to help them amp up their missile, their defense systems in Venezuela in anticipation of a U.S. attack.
Now, people would say, hey, that's not fair.
They're not allowed to do that.
Well, what have we been doing for 10 years in Ukraine?
The exact same thing.
They say, well, this is on our doorstep.
Well, so is Ukraine on Russia's doorstep.
Maybe secretly they have a plan that the United States and Russia will go bankrupt together.
And then you say, well, who will replace them?
Well, somebody will replace them.
I understand they're working on their own currency right now.
And central banks are now buying gold again.
But it is utterly amazing, though, how much we as a nation have tolerated and put up with.
And especially what annoys me is like, I'm sure it annoys you, is the foreign policy on all the evil and the stupidity, the repetition, all the warnings.
And they still, if one person stands up and say you ought not to do that, the rules say that you're not even allowed to do it.
It's immoral.
It's illegal.
It's unconstitutional.
And you're going to war.
You're going to drop bombs.
This whole thing about the possibility of going into Venezuela.
You know, it was a close vote, but they could, people had to vote to say, oh, yes, we love our government.
And whether you're Democrat or Republican, whoever's president, and they come up with a scheme of a military adventurism, you can't say no.
You can.
It's just that they won't.
I don't understand why they won't do it.
Well, the last thing I'm going to show is kind of a bracing, jarring photo.
And this was taken by the U.S. Southern Command.
This is a U.S. B-52 bomber taken by another plane in the group.
This is by U.S. Stratcom Strategic Command.
You can see the coastline of Venezuela over there in the background.
That's how close they are.
And they've flown, I think, three or four at least.
Maybe I'm off, maybe it's more than that, of these missions just to try to intimidate, just to show that they have B-52s right in the area.
And the question is, of course, why are they doing this?
And what authority do they have to do it?
But that shows how close they are to Venezuela.
Very close to war.
Unfortunately, and then there's also the false flags.
There's also the accidents.
And there's also the stupidity of them.
And also, probably a big deal is their ultimate goal.
And they wouldn't consider it an accident whatsoever.
They have a plan.
And unfortunately, to erase all those mites that might happen is not likely to happen without some type of a confrontation.
If not with a fight between us militarily, but the destruction and the problems that we hear at home.
And that's what we're seeing.
We're seeing a lot of violence in this country.
And it has a lot to do with social order and the changes there.
But it's really down to the wire that it's the fact that people are getting poorer and you're not even allowed to talk about people getting poorer because you're unpatriotic.
Yeah, exactly.
Tipping Point of Unbearable Order 00:03:16
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Over you, Dr. Paul.
Very good.
I want to re-emphasize a point I was making earlier on, and that is the counting of what we owe, the deficits.
And some is a deficit they recognize, and others is unfunded.
And I think everything is unfunded.
Even if you have treasury bills behind it, it's not funded by real money or real efforts or integrity at all.
So I think that plus the interest rates, which are going to go up automatically, and all these calculations mean very little because of the real value of the dollar is always depreciating.
And that is a problem.
But even a change in the law, you know, people come up with these crazy schemes.
Oh, they're having trouble.
We'll lower the monthly payment five cents, but we'll let them pay for 100 years.
Oh, that sounds like a good idea.
I want to do that.
So I think it's, to me, a dishonesty on the way that produce it.
I still marvel at this.
Some of our debt is funded and some of it is unfunded liability.
Well, I think the whole mess in Washington is unfunded and it's all run by control by the deep state and the Federal Reserve and printing money and a bunch of lies that people are told.
They couldn't get away with any, hardly any of what is being done to the people if they were telling us the truth.
But we do know that empires need some good liars in order to convince the people.
And they're pretty good at it until it gets unbearing.
And I think we're at the tipping point right now of it becoming unbearing.
And that to me means that the people should participate, understand real economics and honesty.
But right now, the current crop of politicians we have in Washington is not likely to come up and have the vote and the Congress will open up the government again and everything will go well.
I don't believe that's going to happen because I think debt has to be liquidated, malinvestment has to be liquidated, and honesty has to be salvaged because if people want to know what their real deficits are, and right now they don't know even if they tried to do it, because the system is so messed up.
But I'm convinced the answers are not complex.
They can be found in seeking the cause of liberty and working for those ends.
I want to thank everybody for tuning in today to the Liberty Report.
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