The aim of this study, unfortunately, is to have to reveal the biggest scam committed in the history of mankind, and not with the intention of revenge or retaliation, but simply with the intention of helping heal the markets.
The scam that is going to be tested currently exists and that it is not only an economic scam, but also legal, that is to say punishable, again, unfortunately, I repeat, it is easily quantifiable in many Billions of Euros.
And unfortunately, I also repeat, it is not in itself a difficult scam to prove and yet it is tremendously simple, to prove that its demonstration is absolutely correct and irrefutable.
Although the only meaning of this text, is not that people see that they have been deceived, but simply, to help the economy to be more perfect, so that there is no more crisis, and that the right of societies is preserved, to advance in a fair and correct manner, within the customs, customs and laws of each country.
This text, simply now, will begin by trying that scam, then it will deal with more important things, because in life, without even forgiving, you cannot move forward.
** I need to give you an introduction: (You can skip it, 2 pages.)
There is a method of amortization, infinitely more perfect than those currently used in loan banking services.
That method is called, the increasing installments at the interest rate, where if you look for it, you will find on the Internet, a simple 30-page text that talks about it.
Be that as it may, this method has a property, very important, which is that it is a method of amortization comparable to owning something for rent.
Due to the fact that the quota in it is guaranteed that it rises to the interest rate, and where apart, logically, the economies tend irresolvable, to an equalization between economic interest rate, and inflation, Due to a fact, if the interest rate is lower than inflation, there is an incentive to invest in any average product, on credit, because that product rises to inflation.
And if inflation is lower, equivalently, there is a predisposition, not to invest in its purchase, since it implies in an average environment, it gives more utility the preservation of existing capital, generating bank deposits.
In such a way that in this amortization method, by raising the installment to the interest rate, and a rent raising the rent bill to inflation, it happens, both systems are comparable, In this way we manage to make absolutely comparable between renting and buying, with this method.
In addition, economically, something else happens, the rent is simply, in terms of depreciation value, that is, if competitive markets are generated, it happens, I will be willing to buy a car with my savings of 10,000 euros, and rent it for 1,000 euros, per year, if the car lasts 10 years, and if it is an inflation environment, in order to be able to return in the future, to buy another car to rent it again, the fee that I will charge will start from 1000 euros, per year, and per year will rise to inflation.
Well, because I have said all this, very simple, to ensure the economic average, the rent represents the depreciation of the goods, and for this reason the economic average risk is zero, in an economy.
And definitely, this helps me to know equivalently that as in the increasing installments at the interest rate, the installment rises to the interest rate, and this in economic average, is a smoothing of inflation, implies that the bank risk in this system of amortization, on average, is zero.
And again say, this helps me to download a hypothesis:
Can the overall risk of an economy be less than zero?
The meaning of this question is very simple:
It is because, for example, with the French, German, etc. method, the initial payment of the bank customer occurs, it is higher than that of the method of increasing installments at the interest rate.
And apart in any method of amortization, due to the bank commission, or bank differential, the fee is even higher, of the client.
Well, that makes, economically, that the pending amortization of any method of amortization within the loan, is paid if the product is sold in a second-hand market if the client does not pay his installments, if the object of the loan is the purchase of a material good, with a determined useful life, and is financed at most for its useful life.
But on the other hand it happens that banks actually charge real money for lending money, that is, they charge a commission apart from the market interest rate.
And that commission is due to risk, which would not make sense if your average risk was less than zero.
What happens at the real level regardless of what the bank does is that the average risk of an economy is invariably zero, because it cannot be less than zero, ever.
Well, if it were less than zero, it would imply that at the end of the useful life of the good, the good would continue to have an economic residual value, and that is false, since useful life, in economics is simply to wear down the entire value of a good, until make it worth absolutely, always zero euros, and not be able to provide any additional utility. (The only thing that happens is that at the end of the loan is when the bank benefit appears, if any, and balances the economic risk at 0, again,)
In the same way, it is shown that the average banking risk of a country, where banks do not intend to do business in it, and then leave the country, ruining it, cannot be greater than zero.
To all this, what I wanted to demonstrate irrefutably is that, throughout the amortization of an asset, the banking risk, starting from a higher or lower level, becomes zero, until it reaches the zero average of everything. the market at any time, if no agent, changes its predisposition on average.
What does this mean, very simple, there are methods that are harmful to the economy, despite the aforementioned, such as the American method, because it is not amortized during the loan, and that in a stable country, where People follow the average, of paying the bank, in a%, constant, although the bank charges a differential, to correct clients who do not pay, since the principal must be paid at the end of the loan, just when the asset no longer has average value, implies that if the country follows the average, normally this method is fair, but it happens if the average changes, that is, suddenly, people do not want to pay the bank all, it happens that the problem is noses, because in this method, before any change in the average payment trend, the bank cannot compensate itself economically,since it allowed the pending amortization to be much higher than the residual value of the goods in the second market.
Well to all this what we have shown so far is very simple, economically, all the mathematical, amortization methods are exactly the same for the economy, provided that they start, in their formulation of the method of increasing installments at the interest rate.
And from there, any method is good, since in any of the existing ones that pass this test, it happens that the economic pending to amortize is less than or equal to the second market value of the good, and in these systems the risk is zero, always, although as we all understand, the perception of risk is not.
Furthermore, the second market value of a good is not economically controllable, due to market irregularities and the different temporary depreciation of the goods.
Which is simply a piece of information, to see, that if you can require minimum guarantees, in credits, because, the purpose of buying something is own consumption, not the equivalence between purchase and rent, apart, which we all know, the bureaucracy, can, suppose costs, etc., and besides, the bank like any structure, charges money because it needs to maintain that structure at least, and what I am saying is that it is not irrational, for that the bank risk is zero, do not charge differential.
And I have simply made this introduction, for nothing, because I will not need it at all to test the scam, but, perhaps, less people read this text, and others believe that it is on the way of being a shot of hair, but not at all.
***** Let's get started.
For this text, we are going to use the same Excel that you have in another text called, "the increasing fees at the interest rate" also when you have time you can read a text that is on the Internet, called "the real fees charged by banks."
Well in that Excel let's see what we have.
cid-7d6a20ac04530f3c.skydrive.live.com/self.aspx/P%c3%bablico/las%20cuotas%20crecientes.xls
Let's put a very simple example, a loan in French method, the most usual bank currently; 5 years, for the purchase of a car for example, 10,000 euros; where the interest rate of the economy is 5%, (I put a higher rate than there is right now in Europe, to make this analysis more global, considering other countries and currencies.)
Good, and we assume that the bank charges you a differential of 2%.
(Because 2%, very simple, surely, is higher but to put ourselves on the side of the bank a little bit, and start from an idea of business ethics.)
amount € 10,000
periods 5
type 1st 5%
PENDING INTEREST FEE
1 7% € 2,438.91 € 700.00 € 1,738.91 € 8,261.09
2 7% € 2,438.91 € 578.28 € 1,860.63 € 6,400.46
3 7% € 2,438.91 448.03 € 1,990.87 € 4,409.59
4 7% 2,438.91 € 308.67 € 2,130.24 € 2,279.35
5 7% 2,438.91 € 159.55 € 2,279.35 € 0.00 €
Well this is Excel, which shows the amortization table that the bank shows the customer, where the bank tells the customer, if the market rate is 5% per year, the annual fee you pay is 2,438.91 euros.
And I want you to observe one thing in this Excel, financial mathematics itself is perfect, because for that it is mathematics, and only mathematics, and it happens that it is so perfect that at the end of the loan, neither you owe anything to the bank, nor the bank owes you.
Well, actually, the French amortization method is not this, because the true banking structure is found, taking the fee paid to the bank by the customer, and making the internal amortization table, at an interest rate of the 5%, not 7%, since the money market is 5%.
In Excel, there is in the box, A1, to write an X, so that Excel does this operation, and let's look at it:
Variation 5.5919%
INTEREST FEE PENDING
AMORTICE Installment 1 5% € 2,438.91 € 500.00 € 1,938.91 € 8,061.09 -559.1907
2 5% € 2,438.91 € 403.05 € 2,035.85 € 6,025, € 24 0% -587.15
3 5% € 2,438.91 € 301.26 € 2,137.64 € 3,887.60 0% -616.51
4 5% € 2,438.91 € 194.38 € 2,244.53 € 1,643, € 07 0% -647.33
5 5% € 2,438.91 € 82.15 € 2,356.75 - € 713.68 0% -679.70
The difference between this Excel and the other one is that now we already know what the bank's profit is, for lending money, which is 713.68 euros, since that is exactly what the bank earns, and it appears as the last data, of the column pending amortization.
Well, there is another column in Excel that updates the value of that money, at the time of the purchase of the good, and what it means is that since the interest rate has been stable, the bank in value of money referred to at the time of the purchase wants to earn with us,
The amount of 559 euros, which we will call real, for being referred at the time of purchase. In rate that is 5.59%, since the car was worth 10,000 euros, and this data clearly, it says, what you will pay to the bank is 1.0559 cars.
Well, that's the real way to measure bank fees.
But we use that data because we need it, to calculate the table of an amortization method in increasing installments at the interest rate. And let's look at it.
The increasing interest rate installments are very simple to explain, if the financing is carried out over the useful life, it implies the installment is simply the market price of the rent, but since the rent is paid at the beginning of the period, and the installment of the loan at the end, the installment is the rental price plus the interest rate for the period.
In other words, in this case, these two data would be 10,000 / 5 = 2000 euros, technical rental price, to which we add the interest payable at the end of the period; 2000 * 1.05 = 2100;
And where now the method operates since the bank's commission is 5.59% adding that% to the value that we obtained 2100 * 1.0559 = 2217.43.
And we already have the method, that invariably, of the evolution of the economy, the increase in the quota will raise the interest rate.
2000.00
2100.00
QUOTA INTERESTING SLOPE PAYBACK
2000 10,000 €
May 1% 2217.43 € 500,00 € 1717.43 € 8282.57 €
May 2% 2328.30 € 414.13 € 1914.17 € 6368.40 €
3 5% € 2,444.72 € 318.42 € 2,126.30 € 4,242.10
4 5% € 2,566.95 € 212.11 € 2,354.85 € 1,887.25
5 5% € 2,695.30 € 94.36 € 2,600.94 - € 713.68
The only thing I want you to see is a very simple thing, in fact very simple, to prove the absolute perfection of financial mathematics, and it is the following, doing this operation, in the end the pending amortization of this method is (- 713.68 euros.)
That is to say, it is logically, the same amount that the bank earned in the French method, simply put, are methods that once, once known how to assign the bank commission, are identical, because the financial mathematics is perfect, that's why itself is mathematics.
And you can do thousands of studies in Excel so you can see with your eyes that there is nothing tricky, it is that simple, and real.
And simply to say, the following, there is no compelling reason to use the increasing interest rate installments, because economically, it is an equivalent method to the French, German, etc. method.
Although if there would be, for example, if the economy varies, of interest rates, well, there are methods like the French, which can strangle the client and the economy.
But anyway.
The hard time has come to test the scam.
And since it is very simple, I will be forceful.
ALL EXISTING AND RATIONAL AMORTIZATION METHODS FOR THE COMPANY, CAN BE OBTAINED BY PARTIAL AMORTIZATION, FROM THE METHOD OF INCREASING FEES AT THE INTEREST RATE.
In Excel, in column G you can put how much you want to amortize in a specific period, as a%, economic, and Excel in column H tells you what extra contribution you should make to the bank.
Let's imagine that in period 3 and 4, we amortize 5% to observe it, PENDING INTEREST FEE
2000 € 10,000
1 5% € 2,217.43 € 500.00 € 1,717.43 € 8,282.57
2 5% € 2,328.30 € 414.13 € 1,914.17 € 6,368.40 €
3 5% 2,444, € 72 € 318.42 € 2,126.30 € 4,040.10 5.00% 202.0
4 5% € 2,444.72 € 202.00 € 2,242.71 € 1,711.79 € 5.00% 85.6
5 5% € 2,444.72 € 85.59 € 2,359.13 - € 647.33
Well, as we are amortizing economically, one thing happens, very simple, as in this method the fee would go up at the interest rate, and it would go up 5%, if we amortized 5% per year in those periods, in the next period after making an amortization, the quota does not rise and we see it, seeing that the quota of period 3, 4, and 5 is now the same.
And where to achieve this, in the third period we had to amortize nominals of that period 202.0 euros, and 85.6 euros, in the next.
Well, because I say that it is an economic amortization, very simple, it is due to the following property.
In the French method, look at it again, in this case at the end, the bank was winning in nominal money at the end of the period, 713.68 euros.
And yet in the growing method where we have made these two amortizations the bank now earns in nominal money, final, 647.33 euros.
And simply the difference is that now we are amortizing, and not before, and what we want to know is if economically, the bank earns the same.
To find out, and having amortized 5% per year, two periods, economic, implies:
(1,05) * (1,05) = 1.1025, and if we multiply it by 647.33; 1.1025 * 647.33 = 713.68.
And we see that effectively, amortization neither gives nor takes economic money from the bank, because before it lent more real money, than now, because the customer amortized.
To corroborate what we have just said, we can see the same Excel, but where we remove the bank commission; and we will have:
PENDING INTEREST FEE
2000 € 10,000
1 5% € 2,100.00 € 500.00 € 1,600.00 € 8,400.00
2 5% € 2,205.00 € 420.00 € 1,785.00 € 6,615.00
3 5 % € 2,315.25 € 330.75 € 1,984.50 € 4,410.00 5.00% 220.5
4 5% € 2,315.25 € 220.50 € 2,094.75 € 2,205.00 € 5.00% 110.3
5 5% € 2,315.25 € 110.25 € 2,205.00 € 0.00
And the original without amortizations:
PENDING INTEREST FEE
2000 € 10,000
1 5% € 2,100.00 € 500.00 € 1,600.00 € 8,400.00
2 5% € 2,205.00 € 420.00 € 1,785.00 € 6,615.00
3 5% 2,315, € 25 € 330.75 € 1,984.50 € 4,630.50
4 5% € 2,431.01 € 231.53 € 2,199.49 € 2,431.01
5 5% € 2,552.56 € 121.55 € 2,431.01 - €
As we can see, the method is correct because in both cases, by eliminating the bank commission, in the end the pending amortization gives zero euros.
In any case, you can submit Excel to any check, it has no trick, just as you can submit the methodology of the method to any check, it is simply correct, the data given.
Well, in Excel we have, however, a little problem, which is that since we are amortizing in economic percentage, if we want to obtain the French method from the increasing installments to the interest rate, we will have to spend a little time, calculating the data, and approaching them, but I have preferred to leave the Excel like this, so that it is the same as in the previous book, OK.
Anyway, I will solve the example for you, what we are doing, for other cases, that you check, you will have to use a little of your time.
Well, if you scroll, very to the right of Excel, it appears where it puts an introduction to chaotic, two columns, which compare the sum method, resulting from the increasing installment at the interest rate, plus the nominal amortized with the method that we compared, in this case French, I ask you to observe it.
Ok, let's solve the method.
2,100.00 Amount
INTEREST FEE PENDING method
2000 € 10,000 Sum
1 5% € 2,217.43 € 500.00 € 1,717.43 € 8,061.08 2.7476% 221.5 2,438.916
2 5% € 2,266.04 403.05 € 1,862.99 € 6,025.23 € 2.8691% 172.9 2,438.910
3 5% 2,312.98 € 301.26 € 2,011.72 € 3,887.57 € 3.2395% 125.9 2,438.918
4 5% € 2,352.42 € 194.38 € 2,158.04 € 1,643.04 € 5.2640% 86.5 2,438.912
5 5% € 2,346.52 € 82.15 € 2,264.37 - € 713.72 - 12.9450% 92.4 2,438.914
When the fee for the French method was:
FEE
€
2,438.91 €
2,438.91 €
2,438.91 €
2,438.91 € 2,438.91
As you can see, I have made an almost exact approximation of the sum method, from the installment of the increasing installment method plus the amortization made in each period.
BUT WHAT HAPPENED MYSTERIOUS?
Very simple, very simple, by making these repayments, the client of the increasing installment method has managed to make his repayment method, a simple French method, in total installment that he pays to the bank.
BUT WHAT HAS HAPPENED TO MYSTERIOUS?
Very simple, it happens that, there is something strange, in this Excel, in fact it is very rare.
Check it out, please try to find out: (If you don't see anything, keep reading.)
Well, it is very simple, because the client has made the appropriate amortizations, it happens, that he has transformed his amortization method into the French method, just as he could have done in the German method or in any other method, of the rational for the economy.
And we also see, how in the end, the bank in nominal value, wins, the same as with the French method, and it is the same as originally, that is, 713.72 euros. Where before they were 713.68 euros, and the difference is because I did not fine-tune in a perfect way in the calculation of amortizations.
But let us not take into account this error in the calculation of amortizations, because it is negligible, and logically, if from the increasing method, we obtain the French method in global installment, we will earn the same, as a bank, for lending money.
And that is due and I repeat it once, more to the fact that financial mathematics is perfect.
OR IS IT NOT THAT PERFECT? OR IS IT JUST NOT PERFECT?
IN REALITY IF IT IS PERFECT, BUT IT IS NOT USED TO BE APPLIED IN NON-MATHEMATICAL BUT ECONOMIC SYSTEMS.
The issue is that I do not know if you observe it, in the last period the client, amortizes a negative figure.
BUT WHY WILL THE CUSTOMER HAVE TO PAY OFF IN THE LAST PERIOD?
The question is not tricky, a client in the last period does not have to amortize anything at all, because in this method the bank's profit appears in the last period, that is, only a fool amortizes when he no longer owes anything of money to pay more commission to the bank.
In fact let's look at the Excel without amortizing the last period.
INTEREST FEE PENDING method
2000 € 10,000 Sum
1 5% € 2,217.43 € 500.00 € 1,717.43 € 8,061.08 € 2.7476% 221.5 2,438.916
2 5% € 2,266.04 € 403.05 € 1,862.99 € 6,025.23 € 2.8691% 172.9 2,438.910
3 5% 2,312.98 € 301.26 € 2,011.72 € 3,887.57 € 3.2395% 125.9 2,438.918
4 5% 2,352, € 42 € 194.38 € 2,158.04 € 1,643.04 € 5.2640% 86.5 2,438.912
5 5% € 2,346.52 € 82.15 € 2,264.37 - € 621.33 0.0000% 0.0 2,346,523
Well this is the true amortization table of the client, the real one.
And as is obvious, the client is not a fool, and does not amortize the last period a negative amount, that is, he does not give money to the bank, to shake his hand when entering the office, and see him with his beautiful new tie.
And as is obvious, the French method is not completed and the quota of the last period is less than the one marked by the French method.
And as is obvious, the bank now earns less money, specifically, it now earns 621.33 euros, when before, it earned 713.72 euros.
Well, you already know about the scam.
In this case it is 713.68-621.33 = 92.35 euros.
And to verify that it is correct, let's do the economic test:
(1.0275) * (1.0287) * (1.0324) * (1.0526) = 1.1486
1.1486 * 621.33 = 713.68
Where we have first calculated the total economic amortization, and then we have multiplied it by the bank's profit, in increasing amortizing installment, and we see that the result it gives us is exactly, the profit, of the French method, without amortizing.
WHY IS THIS IMPORTANT?
Very simple, one thing happens, economically, the method of increasing installment at the interest rate at the aggregate level does not transfer more risk to the bank,
Just as it happens, amortizations are a right of the client, and not an obligation, And it also happens that financial mathematics is perfect, but formulated and developed by mathematicians, not by economists.
What happens is that amortizations are an economic fact, not a mathematical one, they affect the core of the economy.
And finally one thing happens, the scam is that the bank, to charge, the commission that it wants, for that it is free. But the banks, the very ……, do not offer this method, because once the economic fact that the client amortizes is incorporated, it happens that they would end up earning, less money.
But I repeat, where if they want the client to amortize, to give them a prize, and not see, as covertly, even and despite reducing their risk of the loan, they try to charge a commission even to be amortized.
But one thing happens. And I say it clearly.
The French method, the German method, and any other, rational, are nothing more than a method of increasing installments at the interest rate, where this method is its mother. And they are spoiled children.
And what happens is one thing:
For not giving freedom of the amortization method, banks, for restricting the freedom of the individual, for all the things they do, it happens:
There has not been a single ethical bank in the world that has dared to denounce the scam that are the amortization methods, and yet, being ethical, despite having to charge more commission, not for being the worst bank, but because the rest of the banks, live in the most absolute economic scam to the citizens, and simply, they live by stealing money. (We may be entering the dead society of values.)
The French, German and any other method of amortization are pure economic crime, pure fraud, due to the lack of training of mathematicians, who do not know anything about economics, and because of the macabre silence of all banks, which offer methods that they strangle and destroy the economy, because they believe that this way they earn more money.
Although the competition laws, even when all the members are scammers, it happens that they balance the final benefit.
But this scam even at the aggregate level, due to population growth, money, etc., happens, it is a totally real scam
Specifically, as we have calculated the crime of fraud, due to the fact that banks oblige the client to amortize a negative figure in the last period, when that is the pure right of a client, not to give away anything for good, supposes in this measly loan, a 92 euro scam.
And so is the entire financial system.
Imagine, at a global level, the billions of loans that are signed annually in the world, the final amount of the scam committed by banks.
However, the scam gives me, absolutely, the same, I only ask that, please, give this credit model, the increasing interest rate installments, because, through it, it is almost impossible to fall an economy in crisis, and if it falls, due to international crisis, etc., it is very easy to rescue the economy.
Well, the scam, in simple terms, the non-legally prescribed scam, is of billions of euros, And simply, if the right of citizens were exercised, right now all the banks in the world are bankrupt. And its managers should go to jail for theft.
Of course, I believe, that we must forgive, and not seek reasons to nationalize, even if what they have done is despicable, But, at least, I give you another chance, please do not rob people, and think as people that in you resides, the capacity of economies.
In fact, say, the country, that takes this method that I give you of amortization, that it knows, if in resources it is a country, medium, etc., that it knows, barrier in competitiveness to other countries, that simple.
What makes me sad, at all, is to see how you have taken advantage, even knowing that you live by cheating, and stealing, and not by being honest people, for if the interest rate rises, 2% on a recent mortgage, and seeing as the quota of a client can, to raise him a 40%, in a French method, to have taken advantage of, to ruin so many people, and that destroys the economies, and collapses the economy is cascade.
As for seeing only your cost rider, for another bank to withdraw its working capital policies, to the companies, you, to do the same, so as not to increase the cost of own risk, and yet increase the overall cost of economic risk.
Generating millions of unemployed, and thousands of bankruptcies, in Spain has been a shame.
And also, see how you do not hesitate, when things get tough, collect over 10% overdraft in Spain, etc., etc., simply, that is not how you can live, your work is immense, but what you have done It is very sad, and you should feel ashamed even to see your own shadow, but for yourselves, I today decide not to stigmatize you.
The worst thing is because of the crises, which you provoke, thousands and thousands of people die, if not millions.
Please make your profession an honorable profession.
Despite the fact that later Spain, for example, struts saying that it has a solid system.
Curious, to see how unemployment increases, how poor people also ruin it. etc., and still, you dare to say that.
What would happen, if people demanded the crime and compensation for the crime you have committed.
Good, but I tell you the truth, I believe you can, do your job infinitely, better, and I trust you, I think you have learned your lesson, and just now, I give you one last vote of confidence.
Although laughing at people like that, for not having studies, is not ethical.
And simply to say, the economists who have done, damn it, have allowed, that mathematicians, who are square brains, who only do numbers, have eaten the ground, generating a world of unlimited corruption.
Your work is immense, and it is not just doing numbers, but interpreting them.
All this makes me consider that perhaps all systems have to be rethought, if all systems are wrong, at the root.
And in markets, where growth is already nil, please, I ask you, banks, nothing is gained either by swindling, or by confusing people, or by deceiving them, because competitiveness drags you to the benefit of the market.
And you just get, make people unhappy, segment them wrongly, and make them wrong.
What is it about you buy something on credit, and they give a discount for having credit cards, pension plans, etc., please, your market is very important for an economy, do not confuse bread with wheat, or giving service with the scam.
The economy simply cannot be like the Spanish economy, sold to the people as something very hard and resistant, because simply, by the law of life, we know that everything that has an appearance of hard, in reality is something, fragile, the economy, it has to be like a ball, that if it falls, for anything to the ground, it is not hard, but it bounces.
And simply economists, what I ask of you is courage, but courage to do good, and not just be sold beings, where even if you have to risk your own life, to try to do good, or that evil does not prevail, there is We have to do it, because we are born, in society, and in a beautiful world, if we do not allow, that those who live by cheating, or stealing or worse, follow their path of evil, eternally.
The reward will be immense, despite the fact that most people are given a stable job, and little else, and are already happy, and in crises, it is sad to see how people kill themselves to be civil servants, and beggars of the corrupt system, instead of understanding that society is all of us, and evil cannot be generated eternally, and believing that everything will go well, like this.
Economists, that is our job, whatever the cost, even if it is in one's own skin, not just living off the story.
Well, I would have made a demonstration of the scam, by economic means, much more perfect, but it no longer makes sense, I think you all understand since the commissions must be given in real value, and that freedom is restricted to the maximum, It is never fair, it is not even good.
And that that, giving freedom, and defending even markets and individual freedom, is not even bad. Or it doesn't have to be.
We are truly living a very important historical time, and full of infinite opportunities, please look for them, because the next few years hold infinite joys.
Being able to develop new energies, and millions of other things, you do not have to be so afraid, or live in anguish, nor will you be happier for taking revenge on anyone.
That is not society, in my opinion.
Well, economics is the science where everything is possible, if people want to earn money, there will be inflation, and an interest rate, but money will be born alone in the structure, you do not even need to manipulate the markets to make them stable, money is only something at the service of society.
Economic chains are important, very important, it will take many years to adjust them, but then, forever, society will function infinitely better than now.
To all this simply, to say, all the methods that banks sell today are scams, please deny them. And denounce it publicly.
Just say, a few things, on other topics, in this text.
There is a structure of money, which says, the following because the interest rate must be that of the market, if in this way, citizens have to save any bank.
No, the interest rate can already be measured exactly, and the interest rate is simply the value of money that a bank itself takes, deposits, from customers or other banks, and we no longer need, central banks, manipulating everything.
This structure says the following, just as a bank should not behave badly or very badly, as today with clients, if the bank's risk increases, it will simply cost more money, and that is the interest rate, which Each bank must charge the client, plus its risk or benefit, curiously, this leads to a reduction of the risk to zero, because if that bank has good clients, they will go to another bank, which has a lower reference rate, and of good commissions, and thus, if that bank is good, or simply works with many old women, to whom it does not pay for their savings, nothing, like today, everyone should benefit, and this, the bank, will adopt the ideal form of your risk, And the bank and the client, travel and will always travel in the same boat, which is what it is about, That you have to guarantee a little deposits, by law great, but what is it that a beggar or a mileurista is guaranteeing in Spain, 100,000 per person and bank account.
Current right level fence.
What's more, the economy is a gap, or lags, it may be that a bank momentarily does not find money in the market, its structure, so very simple, because it is not given the option to make money, for a while, and then commit to destroying it, say a week or a month. Well, money today is nothing more than a supervised account entry to be real, in the banks.
Do not really tell me, as today, it is supervised, to ensure that financial money is not created, out of nowhere in tax havens where there is opacity of everything, and they allow them to have foreign local currency, incredible.
The money that is lent, by law and by pure law, can never be a perpetual debt, but existing money, not like right now. So I am not surprised, everything explodes.
In short, the structure of variable interest rates, depending on each bank, is very positive in advanced economies, because there, if possible, that one day, you may even have a single world currency, if you wish.
What is implausible is the botch that is done today by central banks, because money has the property, to be born in economies, and it is born, to the average intention that citizens want, and if that country, it protects a little from foreign trade, for example by culture, not even by protectionism, it implies money in that country, it is born, stronger, than the natural interest rate of the rest of countries, and that country, which curiously it has a common currency, not its own, it becomes more powerful.
Y curiosamente, enhorabuena, eso le llevara a la ruina, en vez de proteger la unión de países, un ejemplo España que tenia un riesgo alucinante, y claro, venia todo el dinero para ca de Europa, por que la rentabilidad en vivienda también lo era, al final, por una estructura de tipos europea, primero España hace un daño alucinante a toda Europa, y luego España sufre un daño alucinante, cuando se destruye su economía de pago.
Valla concepto de verdad de unión de países, no se que será la guerra para vosotros.
The formula to allow money not to go completely from one bank overnight is a matter of compensation, and says the following, if a customer takes money from one bank to another, the second bank or the customer, in If this fact increases the risk that loses deposits, during a preset time it will pay the percentage of risk increase, for that money.
The issue is very simple, very simple, it is necessary to give stability to the markets where panic can spread, for any news. That simple
And the issue is simple, the bank and the client travel together in the same boat, it cannot be one that sinks the ship, and leaves the other to sink.
Identically, if a bank has a history of financing working capital, the economic situation of companies cannot be allowed, like Spain, from one day to the next, the banks will go away, and do not grant more credit, for that reason, because they do not hesitate, they will destroy the country, as a last act of faith, I will trust in the future in a behavior not of bank robbers. But if they don't understand it, you have to design a compensation system, or if not more drastic, encourage the capitalization of companies, and prohibit working capital policies and commercial discounts, absolutely.
If one day, you put the currencies together, if a world central bank can be formed, and if appropriate, give money to the states, because this method that I present to you does not unsettle the economy, no matter how much money you put in, nor do you never hyperinflationary.
Apart in each country, each state can make its own money, to compensate the global bank commission, as you have explained, in the other books because that does not modify interest rates or equilibrium inflation.
The issue is simple: money is born, at the rate of desire of the people, and by subsidizing credit, this rate does not change, because we are simply annihilating the perception of risk in the economy.
And some states should not complain, others do that, because foreign banks can position themselves perfectly, in new countries, etc.
This structure gives rise to the possibility of contracting shares, where there is an equation that cancels out what I call chaotic channels, but since banks will already be ethical, they will simply no longer make use of them, which would allow them to earn money from very seriously, and simply, each state, can determine a% of shares to contract. When contracting a loan, and the function of this is to generate a growth in business value, without profit, and its meaning is that companies will be oriented by force to growth and development, in whatever is possible. And apart from that, the financial markets will remain totally connected with the real markets, being impossible, that you go back, to have a single world crisis. And apart from the fact that this design is infinitely more competitive than the current one and the country that uses it,barrier to other countries, if they don't use it.
The production of durable goods, you should pamper it more, well, we are not here, to waste resources, but the most important issue is that the useful life is not exactly controllable, and if you do not have a depreciated market, it is possible, the market will leave to exist, as in cars, where the pure egoism of the brands, even encourage, subsidize the purchase of new cars, to later sell spare parts at high prices, Well, those companies, if they made a lot of money, but they even deserve to go bankrupt, and disappear, well, if the cycle changes, and all the economy cars are new, those cars, they last much longer, and if people can throw away With them, you will not buy another if you do not make ends meet.
But most of the fault is yours, for not promoting the use of cars throughout their useful life, even if you are serious manufacturers, you should give away with the purchase of the car, visits to the workshop for life, or something future, whose function is that your brand always have cars that need to be changed, for authentic old age, not because the workshop costs are very high, and of course, if you need, to put a premium on new cars to encourage this, better than better The issue is that in mature markets, product cycles must be controlled, and where the world is driven by scarce resources, their use must be encouraged in whatever is efficient.
I believe that years ago it was forgotten that money represents utility, but that is the case, and it always will be, and it must be taught that resources are not intended to be efficient.
But to assess the usefulness they provide us.
With regard to housing in order to improve urban planning and limit its price, since we already know how to compare between buying and renting, it can be very positive in cities, limiting its useful life, for example to 200 years, and then spending state property.
Until the building is demolished, etc., and it is because that measure does not harm anyone, because no one buys anything anymore, so that their great-grandchildren continue to live there, but it is an exchange market, and that term is more than reasonable, therefore at the aggregate level, this measure does not harm anyone.
In perpetual assets such as lands, due to their risk and the value they possess, there tends to be a non-market for them, therefore, it is ethical, since they tend to be concentrated in extension, that there is a public company that is dedicated to buy big land when it goes on sale, if it comes out at a reasonable price, for whatever reason, and divide it up, that's the only way the market will be preserved, regardless of whether the state makes or loses money from that fact.
Regarding the unions I do not know outside of Spain, but it is sad, here, what they are and what they have become, and just to say, any corrupt system a country, at the aggregate level, does that, no matter how much corruption it finds in the end no profit is made from it. But in cycles, what it can do is horrible, the regulation of the labor market as it is currently done.
And the workers are not even happier because in Spain they live enslaved with their company, because of the acquired rights they have, and as companies have high costs, hiring is impossible. And in Spain that has destroyed a huge workforce.
There is a structure that you must know, and it is economical, designed to protect you, but not macabre like the current one, what happens is that you will scream in the sky if I tell you about it.
And it says the following, the employment must be totally, free, and free salary.
But to compensate, the situation, of layoffs, massive, for anything, or occasional tyrannies, the structure says this:
Do not be afraid, because, if you give something, instead of demanding it the economy in return will compensate you with a higher salary.
How do we materialize that, very simply, a worker does not demand rights from his company, but on the contrary, he gives them to him, and he gives them to him like this, by agreement, I give you, working hours, proportional, to the time I work, for example, 1 day, per month, worked, Do not be afraid that the salary would compensate it, and it would go up, that.
But if you do not agree and the boss fires you, he loses those hours that you give him.
The complementary structure is as follows, the company can only have a% of the hours you give it away, in each period.
In this way, as you take more years, the company accumulates more free hours, yours, but where as the years progress, each year the company may have a higher percentage, and you, however, as the years progress each time, you give him fewer recurring free hours.
You see the real economy is a game of pure compensation, nobody has to lose. (But of course, a union sells better to say that the employers explode, than to say, I must give something for free, and yet it is the other way around, in the first model to compensate for anything, you will be paid very little, and in the second when the fear of the companies disappears, you will be paid with dignity.)
The reason for this is that in this way the companies if the company is really going bad, if they have to fire, because they do not sell, they can do it, without years of bonanza, having had to capitalize, to anticipate, the blow that they You will put, that is, you complain about the concentrated capital, but you are the ones who force the companies to seek huge benefits, the unions are simply ashamed.
This structure is the opposite of yours, because if you leave the company, or the company loses you, the gift disappears, you do not owe anything, it is your gift, that is, this structure, is to encourage, certainly, that people, seek and find employment where you are happiest.
That is, the company will pay you less and less hours per month, and that's it, but you can negotiate a present salary, and apart from that, the state creates a compensation fund that charges all companies, with which it gives you a value, for your work as the years you have been with the company increase. That is, the state pays you part of your salary, and collects it from companies but at a continuous rate. That generates an efficient pure structure. Where you continue to maintain freedom, and the highest salary.
But your salary is entirely free to negotiate, you can also be fired, any day, and you can leave the company any day.
It is not necessary to promote countries where because of the fear of being fired, or rather, because of the fear of leaving, and losing rights, you are entirely unhappy in your work. And you would rather be slaves than seek happiness. (Thank the unions.) And this of course has nothing to do with each country having unemployment protection. (Although for a worker it is more beautiful, to certainly believe that a company owes him for his service, than to think he owes him for his service, but in economics neither one thing nor the other happens, only, the perception, and the capacity adjustments to changes.)
I would like to talk about the marketing of war for countries in crisis situations
The current systems, and especially the credit systems, apart from international relations, restrict today, much to exercise, monetary policy, well, well, it should be said, much of this, but without going into detail to say.
The economy is made up of present and future consumption, where present is food, etc., which is not financed, and future, what you finance, well, but the monetary base is the same, and depends only on future consumption.
Well, I will tell you, and I leave you this sample so that you can see, how little the markets are understood today, when a crisis arises, a country, simply, with which companies tell them, you have to pay the citizen, each 15 days, instead of monthly, implies, the money destined to circulating in the economy, the necessary is reduced, that is, you increase the speed of circulation, without damaging the monetary base more than it is, and at the same time, you regenerate the pattern of consumption of money, food, etc., and the economy improves dramatically, curious, and how simple it is.
In any crisis situation, adding value, and the market will heal, value is an equation of risk, of increasing share, where in that equation, because it is of increasing share, responsibility is implicit, as it also represents increasing effort.
As in a crisis, even breaking the citizen logic, the best way to get out of it is simply by buying products from companies that have not renounced the benefit, because, in them, value is still generated, that is, these Companies, in the absence of monetary policy, have the virtue, by generating net inflation to the market, of eating past valuation errors. But that only works if the market for the product they sell is manufactured and produced domestically.
Adjusting the markets downwards implies social policies, adjusting them upwards, implies equations of value, of joint benefit, I have nothing against social policies, except that they are the most random there is, the most manipulated, and the least efficient. From my point of view, and at least currently, and no wonder, if everything is sold to elections, and a politician worries about the debt very little if they are going to pay it in many years, and he will no longer be there.
Despite the absence of any predefined economic pattern, in order to generate a common pattern that has efficiency properties, I would like to suggest that agents should be oriented towards an economic benefit based on the average period that things are financed in an economy, being this in type and inflation that allows the average product to revalue in price twice, in the average loan period.
And the way to guide these patterns is through the public sector, increasing spending on that pattern, etc., etc. And at the same time, the economic agents, distributed by competitiveness and by free capacity.
Well, this is enough, I would like to put an example in German method, from the example we saw, INTEREST FEE PENDING ALEMAN Installment
2000 € 10,000 Sum method FEE
2,212.65 500.00 1,712.65 € 7,800.00 6.2481040% 487.4 2,700.0000 1 5% 2,700.0000 €
2,186.66 390.00 1,796, € 66 5,630.00 6.6313360% 373.3 2,560.00000 2 5% €
2,560.0000 2,153.20 281.50 € 1,871.70 € 3,491.50 7.6413438% 266.8 2,420.00000 3 5% 2,420, € 0000
2,100.37 174.57 € 1,925.79 1,386.07 12.9598770% 179.6 2,280.00000 4 5% €
2,280.0000 1,952.36 69.30 1,883.06 € -496.98241 0.0000000% 0.0 1,952.36 5 5% € 2,140.0000
In this Excel, I have calculated more exact data, it is the example at 5 years, 5% interest rate, and 2% bank commission.
And we see, that we get the German method. Except for the last period because we are not stupid enough to give money to the bank.
On the other hand, let's see that we have effectively amortized economically, correctly. It implies:
1.06248104 * 1.06631336 * 1.076413438 * 1.129598770 = 1.377556312
-496.98241 * 1.377556312 = - 684.62125; And the Excel in German is:
PENDING INTEREST FEE
1 5% € 2,700.0000 € 500.00 € 2,200.00 € 7,800.00
2 5% € 2,560.0000 € 390.00 € 2,170.00 € 5,630.00
3 5% € 2,420.0000 € 281.50 € 2,138.50 € 3,491.50
4 5% € 2,280.0000 € 174.58 € 2,105.43 € 1,386.08
5 5% € 2,140.0000 € 69.30 € 2,070, € 70- € 684.62125
And the scam that the bank wanted to commit is: 684-496 = 188 euritos PA takes it out. "Let someone else work."
As you can see, it is the same, the calculation data and everything is correct.
What happens simply is that the entire current financial system is a scam, as are all the amortization methods that restrict clients from hiring.
Which does very seriously, suggest, and almost impose laws of homogenization of banking product, and the sale of related products, because banks have shown that they seek disinformation from customers, and they seek that a customer cannot compare products, and even seek to generate scams, of disproportionate magnitude, based on the fact that they must always be rescued if they all do the same, even if it is wrong.
It is simply shameful, to see how they do not offer the method that gives more freedom, and where the crises are practically over. If they want to demand guarantees, it is easy, opening commission, subsequent minimum compensation, not like in Spain today, which is shameful, where a person can almost become a slave of the bank, etc.
What a shame, and above them, committing a criminal, malicious act, and everything.
You have to make infinitely better systems than the current ones, the current ones are wrong.
Together, we must defend a better world. But where, a person does not defend rights for resentment, or compensation, not that, but to make a better world.
David Sánchez Palacios.
**** One last chance for banks:
Well, in life by the way, to make sense of it, while still valuing the good and the bad, it is important, if not to allow the same in the future, not even for be the same, but if the spirit of not holding a grudge, it will help us to give more than one chance, even if the valuation scheme of something for us has changed.
Well, I am going to try to demonstrate in an incorrect way that the crime of robbery and fraud cannot be attributed to the banks, which is not true but hey, I will do it on the latest Excel in German method:
5 periods, 10,000 euros, 2% commission, German method.
Well, we knew and we verified that we could transform the increasing installment method to the German method, and of course in this case we got a small scam on each loan of 188 bucks.
Okay, but let's do something different now, update the depreciation amounts to the reference value at the time of purchase.
Well, let's see it:
€ 487.4 464.14487
€ 373.3 338.63421
€ 266.8 230.46973
€ 179.6 147.78502
Well, here we already have you updated, well, then, one thing happens, as the amortizations at the time of purchase are referred to, we can assume the equivalent of having taken at the time of purchase not a loan of 10,000 euros, but of that amount minus the amortizations in real variable, and let's see the final Excel already without amortizations.
Well, the sum of those green numbers gives, = € 1,181.0338
And so this is similar to assuming an initial loan of: 8,818,966184
GERMAN METHOD.
INTEREST FEE PENDING
€ 2,381.12 € 440.95 € 1,940.17 €
6,878.79 € 2,257.66 € 343.94 € 1,913.72 €
4,965.08 € 2,134.19 € 248.25 € 1,885.94 € 3,079, € 14 €
2,010.72 € 153.96 € 1,856.77 € 1,222.37 €
1,887.26 € 61.12 € 1,826.14 -603.76517
1851.98 GROWING FEES AT THE INTEREST RATE.
INTEREST FEE PENDING
1763.793237 €
8,819 € 1,951.33 € 440.95 € 1,510.38 €
7,308.59 € 2,048.89 € 365.43 € 1,683.46 €
5,625.12 € 2,151.34 € 281.26 € 1,870.08 € 3,755.04 €
2,258.90 € 187.75 € 2,071.15 € 1,683.89 €
2,371.85 € 84.19 € 2,287.66 - € 603.77
Well that has happened to us, because before, supposedly the bank earned with us, if it did so in increasing quota, 496 euros, and yet now the ethical thing is no longer that figure, but that it is 603 euros.
Well, conclusion, obviously there is scam so let's not forget that the bank, as it does today, what it earns is 684 euros.
But hey, we no longer know if what the scam is 188 napos, or it is less money, so well, since we do not have accurate information about the scam, we simply say that we forgive them, and we simply ask them to think about it a little. What do they do.
Although I do not really have to forgive anything, well, I have never asked for a single loan, and I doubt that I will do so in what I believe they are an organization not only that does not do ethical things, but by not doing them, it endangers all mankind.
Although good, the need is what it is, and I have had to infiltrate his system at some time to know it.
Well, what has happened already outside of jokes, very simple, what is here, they are tail properties of the methods due to the bank differential, that is, when you actually amortize you not only amortize for your loan, but you amortize on the bank's profit differential, it is not complex, in itself.
That is to say, in a simple way, in the current methods, which they sell, they intend to charge you economic dough, even for the amortized amount that they force you to carry out, this is how the friends of the outstretched hand are.
But I repeat, the reason for being forced to reveal this scam is simply because if it is not known, never in life, they would deign to offer the method of increasing installments, at the interest rate, because with the same differential, if the client decide to amortize, earn less, But even in that, they have no head, the economy is feedback, even if you earn less than a loan, because the client pays off, but in return, do not hesitate, economically, more loans will be born, money is feedback, do not hate it so much like to handle it scamming.
In addition, there is very little head in banking, as the economy stabilizes, the interest rate inevitably converges to inflation, and obviously, very few people by opportunity cost would decide to amortize, because that is why they have it in their bank account.
Why do so much evil, being able to do good, to do evil, you already have the old ladies who by shaking hands give you all their money, without paying them a penny. !!!!
Ciao. (Life must be valued, even though it may have its own price.)
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