We have been taught to do savings
since our childhood. Everyone and financial
experts say that “the compounding effect” will make your savings very
considerable, but no one ever
said, “Who is going to pay the terrifying gigantic financial end result of the
compounding effect?” Einstein once said, “The compounding effect is more tragic
than the explosion of an atomic bomb.” We have savings in the bank and
insurance companies that guarantee a minimum rate of return. Once people withdraw large sums when
the deposit matures or when the
insurance policy has expired, where and how these financial institutions come
up with a huge amount of money to pay the principal plus the interest generated
by the compounding effect? (Example: When an interest rate of 7.5% per annual
being compounded for 10 years, $100 will become $206) In reality, the economy is not growing
each year, so how do these financial institutions earn enough principal plus
interest from economy and give it back to us? CROSS Capital Group thinks that the ups and downs of the real
economy are common, so no one can catch up the accelerating expansion of the
compounding value of man-made financial market from real production of real
economy. The following statistical chart is a simulation diagram of
"the market capitalization of artificial compounding financial market /
debt" and "GDP output from real economy”.
Consequently, in order for human or
governments to catch up with this unreachable bubble of artificial compounding
financial markets, it will exhaust the resources of the physical world
ignorantly and selfishly, and tries to drive-up the economic GDP output to
satisfy and pay off the man-made compounding effect bubbles. However the ebb of
the economy is common, it cannot be expanded with no limitation as man-made
compounding effect (even a land needs a fallow period to be revived in order to provide again in the future; still less the real economy needs to
rest too), so people will foolishly "create demands" to meet the
supply, plus selfishly plunder the resources of the real word to satisfy
people’s needs and solve their own problems, or to pay off the compounding
effect bubbles. It will only squander the resources of the earth and moving
towards the destruction of human civilization.
