The Compound Principle – How is it Working Against You As I Write?

A good example of the power of compounding is found at “wiki” and everywhere, I needn’t go into that. But I think few people realize that Inflation, whilst it is working against you, has the Compound effect working for it.

Let’s take 100 dollars and let’s inflate it by an arbitrary 1% per year. (1% more money and/or credit added to the pool.)

Without compounding you can quickly figure out that in 100 years the currency would have 100% more money in circulation? Inflated means quite simply, Deflated buying power.

Now let’s take into effect “The Compound Principle”:

I am going add 1% to $100 per year for 100 years: That becomes 170% new money in circulation. An extra 70% over and above what is generally considered.

Your buying power is decreasing more and more each year without you noticing the change in yearly percentage…it is unchanged in the example above at 1%!

I wonder if when the bankers took over in 1913 they new this was working for them too? 🙂

Now that I have your attention, I wonder if you also knew that the deficit the bankers put the world’s Countries in is inescapable but nothing to worry about?

Let me explain:

Back in the day, the country made it’s own money by backing it against the Countries own Hard Assets Or commodities and could trade with other Countries and make to have “profits”. The Country had the power to get it self out a hole if it needed to.

After the banks installed the Laws that allowed private institutions (The Federal Reserve in the US [only a few shareholders]) to be the sole creator of the money things got confused. And still are. But instead of going into the via’s that explain how money is now created let me tell you it’s inherent flaw and the comedy of it all.

Imagine there is no money. Country needs money. Bank loans it to Country for 1% interest (Because it is not allowed to print it’s own). At the end of the year Country needs to pay back $101 but there is no such thing as the $1 extra yet, so the bank borrows it’s $100 it needs again plus the $1 to pay the bank back it’s interest for last year… Continue the cycle…that’s the situation we’re finding ourselves in right now.

An “impossible to pay back” deficit. And utter control by the bankers… you don’t want them to foreclose do you?

If only 1 Country were like this it would be able to sell goods and get itself out of debt, but because nearly all have been “taken in” by the bankers we are (financially) in an ineffable downward spiral.

But, (and here is the good news) When all countries are in a laughable and inescapable debt (Almost there). The only answer is but to change the system, and so, in my eyes we are nearing the end of bank governed (instead of people governed) Governments. Let it crash, good and loud, the bankers will realize the folly in their “take over” plan and we can re-establish the old system… or one like it hopefully. It worked well, it was built on trial and error.

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