NO GOLD STANDARD AFFICIANADOS?

progress!!!

]]>Thanks for the thought, James!

]]>Fred, consider the function governing compound interest –

A = P(1+r/n)^nt

– where A = the amount accumulated, P = principal, r = %(rate) , n = number of compoundings per year and t = the number of years.

Assume that a “banker” 2013 years ago lent 1 oz. of gold at 3.0567% for one year. At the end of the year the “banker” collected 1.030567 oz. of gold. The gold was lent and repaid every year to the present.

After 2013 years of lending at 3.0567% the banker collects 2.101E+26 oz. of gold = a number, 2.101 plus 23 zeros = equals the mass of the earth.

Obviously this is a ridiculously unreal result, but such is the reality of compounding interest.

I wonder, when that banker had to go off the gold standard, Fred?

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