Creature From Jekyll Island by G. Edward

They were being paid back in dollars that were worth only a fraction of the ones they had loaned out. The banking crisis had caused the disappearance of savings and investment capital, so they were unable to issue new loans to replace the old. Besides, people were afraid to sell their homes under such chaotic times and, if they did, very few were willing to buy with interest rates that high. Old loans were being paid off, and new loans were not replacing them. The S&Ls, which in the 1980s had been in trouble because home prices were falling, now were going broke because prices were rising.

Congress applied the expected political fix by bailing them out and taking them over. But that did not stop the losses. It merely transferred them to the taxpayers. To put an end to the losses, Congress passed the Housing Fairness and Reform Act (HFRA). It converted all Bancor-denominated contracts to a new unit of value—called the "Fairness Value"— which is determined by the National Average Price Index (NAPI) on Fridays of the preceding week. This has nothing to do with interest rates. It relates to Bancor values. For the purpose of illustration, let us convert Bancors back to dollars. A $50,000 loan on Friday became a $920,000 loan on Monday. Few people could afford the payments. Thousands of angry voters stormed the Capitol building in protest. While the mob shouted obscenities outside, Congress hastily voted to declare a moratorium on all mortgage payments. By the end of the day, no one had to pay anything! The people returned to their homes with satisfaction and gratitude for their wise and generous leaders.

That was only an "emergency" measure to be handled on a more sound basis later on. Many months have now passed, and 548

THE CREATURE FROM JEKYLL ISLAND

Congress has not dared to tamper with the arrangement. The voters would throw them out of office if they tried. Millions of people have been living in their homes at no cost, except for county taxes, which were also beyond the ability of anyone to pay. Following the lead of Congress, the counties also declared a moratorium on their taxes—but not until the federal government agreed to make up their losses under terms of the newly passed Aid to Local Governments Act (ALGA).

Renters are now in the same position, because virtually all rental property has been nationalized, even that which had been totally paid for by their owners. Under HFRA, it is not "fair" for those who are buying their homes to have an advantage over those who are renting. Rent controls made it impossible for apartment owners to keep pace with the rising costs of maintenance and especially their rising taxes. Virtually all rental units have been seized by county governments for back taxes. And since the counties themselves are now dependent on the federal government for most of their revenue, their real estate has been transferred to federal agencies in return for federal aid.

All of this was pleasing to the voters who were gratified that their leaders were "doing something" to solve their problems. It gradually became clear, however, that the federal government was now the owner of all their homes and apartments. The reality is that people are living in them only at the pleasure of the government. They can be relocated to other quarters if that is what the government wants.

WAGE-PRICE CONTROLS AND WORK ARMIES

Meanwhile, the UN Wage and Price Stabilization Agency

(WPSA) has instituted wage and price controls to combat inflation.

What few businesses were able to survive the ravages of inflation are knocked out by these measures. Vital industries have been seized by the WPSA and prevented from closing. When employees refuse to work for low, fixed wages or to take the jobs assigned to them, they are placed under arrest and convicted of anti-democratic activities. Given a choice between prison or "volunteering"

for the UN Full Employment and Environmental Restoration Army (FEERA), most of them chose the army. They are now doing the work prescribed for them in return for food and shelter. Many have been reassigned to new jobs, new cities, even new countries, A PESSIMISTIC SCENARIO

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depending on the employment quotas established by the UN

International Human Resource Allocation Agency (IHRAA). Their families have been given living quarters which are appropriate to their work status and their willingness to cooperate.

Automobiles are now used only by the ruling elite who hold government positions of authority. To the extent possible, workers have been relocated to barracks which were constructed within walking distance of major industries. Others use rapid-transit systems, which have been greatly expanded by FEERA. For middle management and the more skilled workers who are allowed to live in the suburbs, there are "Peoples' Van Pools" (PVPs) that shuttle them to and from assigned boarding areas.