The Biggest Open Secret of Banking

Bankers and Economists, small and big, show up in three piece suits, with illusory vocabulary, jargon of economic terminology and complex mathematical formulas, to confuse and impose on the naive and uninitiated, but, there are only a few simple secrets behind all this apparent complexity. 

The most important one to know is the power of compounding interest that you can understand by two metaphors:

Firstly, legend has it that the person who invented chess, when asked by the king, as to what reward his heart will desire, asked the king, to put one grain of rice in the first box and keep doubling it in every of the 64 boxes of the chess board.  The King thought that it should be a simple affair and the inventor did not have the wisdom to ask for something worth while, but, to his surprise the whole crop of country could not meet this requirement of 64 doublings! You do the math!

Secondly, The penny invested by Augustus Caesar in 8 BC would be worth 3 trillion, trillion, trillion, trillion dollars today at 6 percent compound interest. The world only has around 100 trillion dollars in total wealth today, unable to keep pace with returns on a single penny.

The rest is history!

USA National Debt: Totaling more than 14 trillions now.

 

Categories: Economics

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1 reply

  1. The Prevailing Banking system is developed basically to safeguard the interest of Capitalist class.It is due to this system that the rich becoming richer and poor becoming poorer.

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