Ever since last summer, a federal moratorium on evictions has prevented landlords from evicting millions of tenants who are behind on their rent payments. This moratorium has caused extreme financial distress for many landlords, but it has also kept us from witnessing millions upon millions of Americans being thrown out into the cold streets. Of course this moratorium on evictions was never actually legal, and it was just a matter of time before it was challenged in front of a federal judge that still had respect for the U.S. Constitution. On Thursday, a federal judge in the Eastern District of Texas named John Campbell Barker ruled that the federal moratorium is completely unconstitutional…
J. Campbell Barker, a Trump-nominated judge in the Eastern District of Texas, issued the 21-page ruling Thursday in response to a lawsuit from a group of landlords and property managers.
“The federal government cannot say that it has ever before invoked its power over interstate commerce to impose a residential eviction moratorium,” Barker wrote, noting that it did not do so during the Spanish Flu pandemic or during the Great Depression. “The federal government has not claimed such a power at any point during our nation’s history until last year.”
But Barker did not issue any sort of an injunction, and so the moratorium is still in effect for the moment. In his ruling, Barker expressed his belief that the defendants will “respect the declaratory judgment” and will willingly withdraw the moratorium on their own…
The scope of the order is unclear. Barker wrote that given “defendants’ representations to the court, it is ‘anticipated that [defendants] would respect the declaratory judgment.’”
Federal officials could attempt to drag their feet, but the current moratorium is set to expire on March 31st anyway.
So whether it happens immediately or in a few weeks, the federal moratorium on evictions is ending.
Of course some states have their own moratoriums in place, and Barker noted that those are constitutional. So renters in those states will still have at least some protection moving forward.
But for most of the country, things are about to change in a major way.
According to one recent study, a whopping 10 million U.S. households are currently behind on their rent payments…..
This is mind control. The obvious solution would not only liberate homeowners, landlords and tenants, it would release a much needed tidal wave of money on main street.
To reiterate: all currency is created as debt to banks. When a loan is taken out from a bank, the bank creates the principal out of nothing. The borrower has to pay that principal back plus interest. With each payment, the bank destroys the principal but gets to keep the interest.
But if the borrower only had to pay back the interest and got to keep the principal, the bank would not lose anything, the borrower would have a lot more money to spend, there would be a huge economic boom on main street as “real” money catalyzes economic activity rent-free, and the “need” to throw free money at the TBTF banks would be eliminated. Inflation could be alleviated by eliminating banks’ ability to create principal out of nothing and reverting back to the standard principal+interest payments going forward. The money in circulation would stay in circulation without further infusions from above.
No doubt there would be concerns about who gets the windfall of free principal. But as a first iteration even this crude approach would be much better than allowing the current madness to continue.
The current system is a wealth extraction mechanism where dollars rain down from above and go down the drain, while the real wealth that those dollars represent percolates upward to a deluge at the top of the pyramid, where our pathological aristocrats dwell.
Must we continue this stupidity?