More Month than Money?
Read Post This to Find Out Why
“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
— Albert Einstein (maybe)
Are you one of the billions of people on the planet who never seem to have enough money?
Does it seem like you are always just barely surviving and never really getting ahead?
Have you noticed how even the richest people in the world still seem to be locked in the same frantic scramble to get more and more money, even if they have millions of dollars and the world’s most exotic “toys” and the most glamorous lifestyles?
Don’t hate on the rich. We are all working hard bailing out the same sinking boat.
Do you feel sometimes that there just does not seem to be enough money? Especially for you?
Do you want to know why?
Keep reading, and I promise, you will know exactly why by the end of this post.
Expanding on the thoughts of this previous article, Dead Broke, let us dive a little deeper into a major problem with our current financial system.
Why are our current lives such a mad, stressful scramble to get money?
Let’s Crunch the Financial Numbers
Do you know that all of the government currencies in the world are issued as debt?
Look at the US dollar. At the very top of the little piece of paper are the words “Federal Reserve Note”. A note is a debt, a promise to repay.
And that promise to repay is accompanied by a another unspoken promise to repay… with interest.
If the Federal Reserve (or any other central bank) issues 1 billion of its notes at 3% interest, then the payment required back to the Federal Reserve is 1 billion in notes… plus an additional 30 million of notes due to the interest charged (assuming a year has passed).
Remember, there are only 1 billion notes issued, not 1.03 billion. Where are the additional 30 million notes?
The additional 30 million notes do not exist!
Let the implications of this sink into your brain for a moment.
The reason why there never seems to be enough money is simply because…
There isn’t enough money.
And, under this system, there never will be.
The Government’s “Solution”
The supposed “solution” to the problem is for the Federal Reserve to collect the 1 billion and reissue 1.03 billion so that there is enough now.
However, the 1.03 billion is once again issued as… notes… with interest. So every year, the problem gets larger and larger.
And through the miracle of compounding, next year, the 1 billion will still be owed… along with 60.9 million in interest. And in 50 years?
The 1 billion plus another 3.4 billion in interest alone. Are you figuring it out?
The entire system is on the wrong side of the compound interest curve…
Until it all collapses.
That’s why it’s more and more difficult to get ahead… every year.
We don’t have enough money because…
There is NEVER enough money in the system itself.
And because of interest, there never can be. It is impossible.
Think.
And we will look at why we have inflation in the next post. (Hint: It’s the same reason.)
“The greatest achievement was at first and for a time a dream. The oak sleeps in the acorn; the bird waits in the egg; and in the highest vision of the soul a waking angel stirs. Dreams are the seedlings of realities.”
— James Allen
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