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The Defining
Moment
Your Money Will
Never Be Worth More Than It Is Today
Every financial
institution understands the power of money. They
also understand the term “the velocity of
money.” Money that doesn’t move or have velocity
is like money that is stuffed in a
mattress; it doesn’t create wealth or profits.
To give you an example, the average bank in the
United States spends a dollar about five and a
half times. They take money, and it is not even
their money, that is
deposited in their bank and lend it to other
people. These people who borrowed the money make
payments back to the bank and pay interest. The
bank then takes those monthly payments and lends
that
money out again, over and over. This process
continues repetitively about five times on each
dollar they touch. The collection of interest
alone is very profitable for the bank. But they
understand one rule
that creates more profit for them than just
collecting interest. They understand that MONEY
WILL NEVER BE WORTH MORE THAN IT IS TODAY. Due
to inflation the buying power of a dollar
decreases over time. The buying power of
$1,000.00 today with a 3% inflation factor built
in will have the buying power of only $412.00 in
30 years. The banks and lending institutions
understand this clearly. They may even encourage
you to make additional monthly payments on the
money they lent you. The banks are in a win-win
situation. If you don’t make additional payments
they will collect more interest over time. If
you do make additional payments they will take
that money and spend it five and a half times
thus increasing their profits. Money will never
be worth more than it is today. |
