I am going to do this Rant backwards because that is how it came into being. It began from a chatroom comment about Exponential Math from a recent Rant. Exponential math is used in compound interest computations. I demonstrated that which lead me to share math secrets Banksters use to screw customers.
If you hate math and want the 95% way the Banksters defraud you, skip to the bottom section of
C) The Final Method The Bankster's Cheat You.
This is what started the discussion: “Dr chris Martensin needs to learn math nomenclature. doubling and then re doubling is not a n exponential function, unless it is some new math that is based in following the science.”
A) First I responded with this:
How The Bankers Cheat You Using Exponential Math
TiredMan: I see what you are saying.
The only time I used exponential was compound interest computations.
Simple interest is borrowing $10,000 and paying interest on it annually at 10%.
At the end of the year you owed the bank $1,000 interest plus the original $10,000.
Then the Banksters learned how to defraud you by charging Compound Interest.
Now they charged you 10% Interest, compounded monthly (@ 10%/12 Months).
Thus at the end of the first month you owed $10,0833.33
2nd month you owed $10,167.66.
12 month you owed $11,147.13
The banker screwed you out of: $47.13 (11,147.13 - 11,000)
Then later they changed to compounding method to daily and shafted people even more.
Then after a drunken Bankers convention,they calculated a year as 365 days / 360 days, increasing their interest earnings at 10% even more.
All the while they said they were only charging you 10% Interest.
That is when the Feds said enough is enough and forced all bank interest rates to be quoted as APR (Annual Percent Rate.)
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Note: The exponent in the top calculation is1.008333 (1 plus (10%/12 months))
B) Then I Responded Again With This:
How The Bankers Cheat You Using Exponential Math. Part II
(This part is not exponential math, but it continues the Bankster's cheating game)I don't know if anyone is interested, but I am on a roll so I figured I would divulge all.)
The final way the cheat is their Rule Of 78.
Suppose you take out a loan for 12 months.
It doesn't matter if it is paid each month or one payment at the end of the year.
The bank knows that when people are near the end of their loans many will pay them off early, reducing the amount of interest the bank makes off that loan.
So they devised a method to earn most of the interest in the first half of the loan so when you pay off early you save nothing. They got you.
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Here's How They Did It:
In Column 1 they add up the number of months the loan is for. In our case that total is 78.
In Column 2, they take the number of the last month (12) and make a fraction of it by placing it atop of the total of column 1, being 78.
So now they take (12/78) X (Total Amount of Interest to be earned by that loan).
= .153846 X (Total Amount of Interest to be earned by that loan).
= Amount of interest they claim they earned in the First Month.
The Monthly earning history is:
First Month = .15% earned
2nd month = .14% earned
3rd Month = .13% earned
Whereas normally they would earn .083% each and every month.
They just screwed you!
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Accelerated | Total | % | ||
Month | Earned | Earned | Earned | |
1 | 12 | 12 | 0.1538 | |
2 | 11 | 23 | 0.2949 | |
3 | 10 | 33 | 0.4231 | |
4 | 9 | 42 | 0.5385 | |
5 | 8 | 50 | 0.6410 | |
6 | 7 | 57 | 0.7308 | |
7 | 6 | 63 | 0.8077 | |
8 | 5 | 68 | 0.8718 | |
9 | 4 | 72 | 0.9231 | |
10 | 3 | 75 | 0.9615 | |
11 | 2 | 77 | 0.9872 | |
12 | 1 | 78 | 1 | |
----------------- | ----------------- | ----------------- | ||
Total: | 78 | 78 | 1 | |
C) The Final Method The Bankster's Cheat You.
It is their MAIN method of cheating.Consider this as their movie trailer because you will learn this after they have collapsed.
History of Creating Money:
Before the United States was formed, settlers were forced to use British coins as money.
This was impossible when pioneers ventured away from cities. So they had to travel 1,000 miles up river to sell their goods for coins and go back home to purchase anything. They then developed their own money - "script" or IOU's.
A mountain valley would have a General Store (GS) that acted as the banker.When you needed seeds, the GS took your IOU and held it until the harvest. The farmer sold his produce to the GS for the storekeeper's IOU and drew against it all year.
Therefore, each man created their own money and the US became a booming economy that soon became the envy of England who stepped in and tried to force us back on their coinage and taxes. This is what lead to our Revolution.
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This was blocked out of our history so the Banksters could continue to cheat us.We then went to paper money and when you got a bank loan you thought you were borrowing their cash. Wrong. The bank took your signed note (IOU) and created the money out of this air and lent it back to you with interest. Notice that in the 1700s there was no interest on money created, because it was your money to begin with. Why would you charge yourself interest?
In legal terms, this is fraud. It is a slight of hand.
In contract law, it is called Unfair Advantage. If you sell me a painting and I recognize it to be a lost Rembrandt valued at $12 Million, and pay you $200 for it, I defrauded you. When you realize it, you can reverse the transaction.
In conclusion, every time you dealt with a banker, you were defrauded.Once all people understand this, they will stop paying them, as is their legal right.The banks can't sue you if they defrauded you.
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