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Mr Gordon Gekko
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Mr Gekko is a genuine 68er and native to nothern Germany. With 23 he made his degree in "Computer science" at the University of Hildesheim (near Hanover). Having worked 15 years in various huge banks and insurance companies as an IT consultant, he quit his job to have more time for... More
  • Mathematical calculations regarding our compound interest based currency system (1) 0 comments
    Nov 9, 2010 4:08 PM
    Worldwide all national currency systems have basically one thing in common:

    Investors can obtain on their available funds interest. Whether it is through savings accounts or by investing in government bonds. Of course there are other ways to increase money, but which should be disregarded. 

    Let us assume, Joseph had in year 10 AD opened for Jesus a savings account with $ 1 opening balance with 4 percent annual interest applied fix. 

    Of course, in year 10 AD there was no U.S. dollar, but we simply assume it to have been existed this early. The whole thing is only 2,000 years ago. The homo sapiens exist in his present form since about 100,000 years, so 2000 years are not an unimaginable timespan, right? 

    What would become of the savings account of Jesus, if we start from the fact that it is still valid (in the U.S. unused savings account are qualified invalid after a while), and in addition to interest payments, no further transactions would been carried out (withdrawals or deposits)?

    Mathematics helps us : 

    Value in 2010 = (1.04) 2000 = 1.16 * 1034 $.

    Overall a fairly large number, a 1 with 34 zeros. The popular "trillion" has only 12 zeros.

    To give you an idea on how much this is ......... there are just measly 38,835 earths, which consist of gold instead of stone.

    Here the calculation: 

    Mass (weight) of our Earth = 5.974 * 1024 kg. 
    1 kg gold is valued at $ 50,000.

    Earth weight at gold cost = 2.987 * 1029 $  (by multiplying the values in the rows above it).

    Now we have to divide only the current dollar stock of the Jesus-savings account by the price of a gold-earth to get the number of gold-earths that Jesus could buy now.

    Further calculations regarding the compound interest based currency system, plus an evaluation of the results here soon ...... at this blog.

     

    Themes: Macro
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