Modern History in under 500 words

Modern History of the World in under 500 words

Most creditors globally employ a nominal approximation formula to disclose and declare interest rates to borrowers. In technical terms, they disclose and declare a logarithmic-derivative “of” the interest rate, instead of the interest rate itself. 

Under the nominal approximation formula, a real annual rate of 1.01% is converted to 1.00%, (and vice versa) with the deviation ever so slight (about 1%, per se). 

Under the same formula a real rate of 6.167% per annum is converted to 6.000%. Basically, by increasing the stated rate from 1% to 6%, the deviation increases by a factor of 6 x 6 = 36 times.

By the time a micro-loan business or payday-loaner discloses and declares 300% per annum (as most of them more or less do), the real interest rate is about 30,000% per annum (about 100-times greater than declared). 

In 1974, however, the government in the U.K. banned the nominal approximation formula as criminal fraud on the grounds that it is “false and seriously misleading”.

So today in the U.K. the micro-loaners and payday-loaners tell the truth?

No, of course not. That would be silly. In 1974 the U.K. system merely adapted by massively switching (at the higher-end especially) to employing equally illegal pretended loan-fees to disguise and disclose the rate of interest to the borrower, as for example:

Payday-loaner: You get £335 today for an obligation to pay £400 in ten-days time. Legally I am required to disclose and declare to you that the rate of interest is 62,644% per annum.

Borrower: 64,000 per cent! I can’t possibly afford that!

Payday-loaner: OK – I tell you what – We’ll call the £65 difference an application fee plus a cheque-cashing fee. That way you get £335 today for an obligation to pay £400 in ten days. That way the interest rate will be zero percent.

Borrower: Oh that’s much better. I can afford zero percent. 

The truly sad state of humanity is that this transparently stupid nonsense actually works on people.

So how much money are we talking about here?

Answer: All of it.

By total amount, all debt and money in the world today is a direct function of the objective math-error in the approximation formula – just since 1974 when it was technically banned as criminal fraud in the U.K.

The entrenched-money-power merely decided at that time that you have no pressing need to know about such things. And so know you don’t (until now).

More generally, the existential problem with lethal danger that grows exponentially is that if you wait until you actually see it coming, then you’re already dead

Applied to the nominal Covid vaccines, it means that if the coefficient-of-toxicity is a real 64,000, then the pharmaceutical company people will disclose it as about 300

And they will believe it. 

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