111.11% The MAGIC number behind interest & the financial crisis EXPLAINED - Please read.

Originally posted by JakiusFogg

In this case it is: 5.56%. This is a 111.11% increase on 5% which YOU have to pay.

This cycle continues and continues, of loan, reserve and deposit over and over again. Each time this happens the next institution has to charge a higher rate in order just to break even, let alone make a profit.

The increase is exponential, and goes like this:
5.00% 5.56% 6.18% 6.87% 7.64% 8.49% 9.44% 10.49% 11.66% 12.96% 14.40% 16.00% 17.78% 19.76% 21.96% 24.40% 27.12% 30.14% 33.49% 37.22% 41.36% 45.96% 51. 07% 56.75% 63.06% 70.07% 77.86% 86.52% 96.14% 106.83% 118.70%

edit on 27/3/2011 by JakiusFogg because: slight figure correction

edit on 27/3/2011 by JakiusFogg because: (no reason given)

I must add a correction ( or maybe I misunderstood how you see it ). The increase you are talking about would be of 11.11% increase related to the reference value: 111.11% of 5% is 5.56% but it is not a 111.11% increase as it would lead to 5% becoming 10,56%. 5 * 1.1111 = 5.56 which is 11.111% increase and 5 * 2,1111 = 10.56 which is a 111.11% increase.

Altough I understand perfectly the concept you're explaining here as it was something shown to me in my highschool 5th year. Just a little correction I tought I should bring there for further misunderstanding.

Originally posted by JakiusFogg
Wow, I guess everyone has been shocked into silence at this revelation!!!

Well not really this is nothing new to most people on these boards
Don't mean to sound harsh.

But your going on like you've discovered the holy Grail
When reality you've just informed people not in the know about
How a fractional reserve currency works.

Cheers

might be helpful to clarify that the money paid back via interest is NOT created at all and must be taken from someone else. So consolidation is a natural occurrence. The rich get richer and the poor get poorer because of the vacuum created by the lack of printing of the interest. A 100k loan will cause the borrower to pay back 300k in interest, but since he didn't borrow that money, and it wasn't printed up at the time, he has to steal if from another. So more loans, means more poor people somewhere.

I do find your correlation to the number 11 interesting. Could it be that your crash occurs 11:11:11:11?

You could be right. however I used excel to do my maths (cos I suck at it)

5.56% / 5.00% = (when expressed as a percentage) gave me the 111.11%

it just stoke me that the same exponential increment was necessary each time just to break even.

Financial suicide. These people should be tested for being part lemming!!

reply to post by Analyze76

The note refers to paper money (esp since the fed took over) but go back and look at a silver dollar or a gold coin minted prior to 1913 (or a gold certificate payable in X Dollars in gold coin) and you will see either the word "Dollar" or the initial "D." after the quantity. The dollar was the unit of currency.

Originally posted by crankyoldman
I do find your correlation to the number 11 interesting. Could it be that your crash occurs 11:11:11:11?

Right when they pause for a moment of silence on Veterans (Armistice) Day.....est.

reply to post by tombangelta


I know it's nothing new.

However despite this being common knowledge, what I have done here, IMO, is shown, not just how the fractional reserve system works, but also how the application of interest requires the continual increase at each step. Failure to do so result in immediate, and I mean immediate bankruptcy. Within one transaction.

The point of this is to show people who hang on and say this is rubbish or could never happen, a method by whoch they can easily prove this to themselves.

Just because you're in the know, does not mean everyone else is. share and share alike

reply to post by crankyoldman


Exactly, it is that very reason that they cannot magic the money for interest repayment out of nowhere means that they have to get it from ... interest on making a loan.

By the action of doing this, the rate HAS to be higher.

It's not like they can just go out washing cars.

They could tak it out of the deposits they do have. But that would leave a black hole in the books!

Surely they would never do such a dishonest thing!!

reply to post by CosmicCitizen


UK too

11th Nov at 11

I don't think so. I am not predicting any crash here. Just defining that the breaking point is entirely subjectiev depending on how long you are willing to take credit at any price. or making deposits.

As soon as they cannot make the 111.11% rate increase on their loans. Or do not have enough deposits to paper the cracks

The dutch boy takes his finger out of the Dyke and makes a run for it!!

reply to post by Analyze76


They will force you to take that card or you will be unable to buy and/or sell.
Here in the UK the Olympics being held in 2012 are only available to people using the Visa card if they want to attend.
NO OTHER form of payment is allowed if you want tickets. Well as I dont have a credit card because I dont want to enter into the forced way of life that means I can't go. It sucks but no way will I bow down to being forced to have one.So that is one liberty that I am being dnied. How long before all establishments do the same thing? Funny how the mark of the beast says without it you can't buy or sell.

I don't trust banks i really don't like them at all they say you money is safe in there banks. But when you go get money out from your account,savings or even go to the ATM'S they charge you way to much. You can never trust banks at all.

Originally posted by squizzy
reply to post by Analyze76

 

They will force you to take that card or you will be unable to buy and/or sell.
Here in the UK the Olympics being held in 2012 are only available to people using the Visa card if they want to attend.
NO OTHER form of payment is allowed if you want tickets. Well as I dont have a credit card because I dont want to enter into the forced way of life that means I can't go. It sucks but no way will I bow down to being forced to have one.So that is one liberty that I am being dnied. How long before all establishments do the same thing? Funny how the mark of the beast says without it you can't buy or sell.

Dont you find it kind of funny that all Governments are paranoid, they suffer from this curse just as much as their subjects do, ie us the people.

Tracing.

Cash -

You walk into a shop, and pay cash, and lets presume that you have not just robbed a bank and are using marked notes, you are untraceable, the only connection between you and your purchase is the witness statement of the shop teller, plus security video footage, lets not forget that, its the reason all shops have cameras, (no, please dont delude yourselfs that its for theft reasons)

Electronic Transfers -

You live your life on a Card, Credit Card, Debit Card, whatever you want to call it, it does not matter, its all the same thing, its an electronic transaction that can be traced and monitored by anyone or any official or unofficial organizations.
It can be converted into transactional spending data, this data can then be itself monitored, and sold on to third party organizations, and it goes on, and on................

This is the reason all cash will vanish, it will be sold to you on the premise that its for your own good, for your benifit, for your security, for your peace of mind, and it will be a lie, but you will accept it, just like you have accepted every other lie since the dawn of this new age, (hard to put a date on the start of that new age, for a guess around 1800 or so).

Paranoia -

"Paranoia is a thought process believed to be heavily influenced by anxiety or fear, often to the point of irrationality and delusion. Paranoid thinking typically includes persecutory beliefs concerning a perceived threat towards oneself. Historically, this characterization was used to describe any delusional state." Wiki.

reply to post by crankyoldman


Only banks make money, everything else is simply a redistribution of wealth. This is why the rich poor divide continues to widen. Unless you already have capital, in order for the wealth to be redistributed from someone else to you, it is extremely difficult to climb out of poverty.

The labour system is a like a closed loop always benefiting the owner of the means of production (capitalist), the workers are paid, but that money always goes right back to the capitalist in order to buy the needs for life. They always gain by this redistribution, we lose.

After riding the interest train for many, many years and paying easily $200k in interest in my life, I am done. No more credit cards. No more car loans. No more house loan. If I can't pay cash, I can't afford it. That is how we beat these people. I have been with BofA for 15ish years and I intend to close my account as soon as I can get a little time to research my local banks.

BofA is charging me $14/mo for an account that I have had since 1997. When I opened it, it was "no fees for life". in Dec. 2010 they started charging these fees and when confronted they told me flat out that they don't care what I think about how they run their bank, and if I feel like I have a lawsuit, then get to it. When I said that it's easy to have that attitude when you don't have to serve your customers because those same customers will have their money stolen by the gov't to keep them in business, she agreed.

I seriously think we should run make a run on BofA. Let's put one of these institutions out of business. Then, tell the politicians that if they save this one, we will impeach every one of them.

This video, "Money As Debt," explains the monetary system very well:

Google Video Link

Nice thread!

I got rid of my credit card loooong ago. As soon as I learned about what the OP refers to, I got rid of it, and now am completely debt free. 99.9% of what we have is ours. And for whatever reason, people around us believe WE are poor...

But the unseen adverse side of this ( I had more than a decade to ponder on this ) is that at the end, when the "bottom feeders" will go bankrupt, they will still be technically in debt. That is when they will loose their Rights and become, just like their ancestors, slaves to the "masters".

What? You believe they let us have "freedom" in order to be free for the sake of it? It was simply a way to build the technology we now have. They don't really need "The People". Heck, they have robots to do whatever they want... Terminator all right.

Bottom line is, Western civilization might be about to see slaves appear as the new merchandise of the 21st century.

What will you do when they have taken back everything you own? OP is dead right. The game is over and it is already starting to show.