11 votes

Economic Collapse a Mathematical Certainty...

I get the impression a lot of folks still don't believe the economy will completely collapse. I ran across this video that I thought was very good at painting the picture for unbelievers. However what's really good is it is based on the math. I have said many times it is a mathematical certainty. All Fiat currency schemes in history have ended very badly it is mathematically inherent in the scheme as it is driven by continually printing and injecting more money/credit debasing the currency. This will be the worst the world has ever seen and exponentially greater then ever imagined.

The Dollar is the defacto world currency. Currency collapses in the past were softened a bit by the fact that they were regional and there we other currencies they could fall back on. Still they caused havoc.

Folks there is no fall back currency here the Dollar has permeated the world like no other currency ever has... There is no place left to kick the can down the road to. Its time to batten down the hatches and shore up preparations this is for real! This fiscal cliff is at the top of the Grand friggen Canyon!

"Here is the math folks - Its called the Compound Interest Equation A=P(1+r/n)^nt
"The most powerful force in the universe is compound interest".

If this does not convince you then nothing will!

http://youtu.be/b3-vwYJiD8g




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Cyril's picture

BUMP

BUMP

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

its happened to every credit

its happened to every credit based fiat monetary system in history it is mathematically inherent in the scheme. The fact remains if you debase the debt based currency with continued printing of money it will crash every time!

It is past the point of no return it has little to do with how corporations take money from the community. The whole system is designed to funnel all the wealth and property from the people to the banksters at the top and that is exactly what its done. Its also the reason why the politicians have never done anything to fix it they are paid off too...

When you inflate the currency in circulation (printed or book entry) it devalues the purchasing power of the currency. When the currency is debt based (created from promissory notes on loans) you must continue to increase the debt or it all collapses. We are at the end of the cycle if they stopped now the economy would come to a screaching halt. they are between a rock and a hard place. Their choices are stop printing now and crash the economy now or continue to inflate and keep the the scheme going till the wheels fall off. Guess which one they have chosen?

So they keep increasing the debt to keep it going a little longer problem is they are in the last 3% of the tipping point were the currency when it goes over the edge has to be inflated exponentially to keep up and becomes worthless seemingly almost overnight even though its taken 40 years to get to this point...

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Cyril's picture

We are at the end of the cycle

"We are at the end of the cycle if they stopped now the economy would come to a screaching halt. they are between a rock and a hard place. Their choices are stop printing now and crash the economy now or continue to inflate and keep the the scheme going till the wheels fall off. Guess which one they have chosen ?"

Yup. And in figures specifics and pictures :

http://lewrockwell.com/orig13/hewitt-m1.1.1.html

We are lucky if we have one more year to stack on.

We are very lucky if we have two.

We are extremely lucky if we have three.

...

http://www.youtube.com/watch?v=F27fGMXg3o0

Stay safe !

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Math

I am weak in arithmetic, especially calculus which I failed in my senior year. I had an A half-way through and got destroyed the next half and have had a hard time forgiving myself for it as it messed up some plans.

Is there a good site where this compound interest may be further looked into.

Thanks

donvino

Cyril's picture

Shortcuts

Well, for the essential there is to know about it, on the example of mortgages :

http://en.wikipedia.org/wiki/Compound_interest#Monthly_mortg...

(Hence, how easily we can end up giving to banks twice as much as the house price vs. if we'd bought it cash in hands.)

And, morally speaking, for a refresher :

http://en.wikipedia.org/wiki/Compound_interest#History

'HTH

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Everything else being equal, your equation is correct, however

I believe your math assumes a constant value for the dollar. What is happening is the reduction in value of the dollar, Ron Paul has said the dollar is now devalued by 90 some percent from the 1913 dollar. I like his example of the 1964 dime, now worth about $3.50, that should shock everyone. It appears the fed plan is to continue the controlled devaluation, as long as the world will keep trading oil in FRNs, it will work, at least for a while. If an event happens that causes the world to reject the petrodollar, it's hyper inflation and probably WWIII as the US military steps in to control the worlds oil fields.

Linda Cross's picture

edit

no comment

If you see something, say something, the government is listening.
Silence isn't golden, it's yellow.

Where's the math?

Kind of disappointing. I was looking forward to some mathematics in the video.

I agree a collapse is most likely inevitable but the video was all Chicken Little and no substance.

Interesting nonetheless.

The equation is posted in the

The equation is posted in the OP and under the video. He explained it in the video starting at about 2:48, it's simple if you continue to debase the currency exponentially it will become worthless, in our fiat credit based monetary system the debt has to be increased every year in excess of the debt accrued the year before. That's like borrowing money to pay the interest only on your credit card. How long do you think you could last if you handled your finances in that manner? The problem is the government has unlimited credit via the printing press or so they think except inflating the currency does have a limit and we are very close to that limit.

-----
End The Fat
70 pounds lost and counting! Get in shape for the revolution!

Get Prepared!

Cyril's picture

Maths ?

If you enjoy (simple enough) maths, you may want to check these out :

http://www.dailypaul.com/262493/how-would-anyone-make-money-...

http://www.dailypaul.com/261454/the-great-silver-market-myth...

http://www.dailypaul.com/259965/restoring-liberty-in-north-a...

;)

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius