EQUATION IN FINANCE
In finance the best kept secret is the profit known as interest.
It is commonly known that brilliant scientists, political leaders, eco-warriors, and religious gurus can no longer save us from ourselves. The military are powerless since the word finance itself is interpreted by many people from different walks of life as meaning budget, economy, etc.
The Book “THE DOW JONES-IRWIN GUIDE TO INTEREST – What you should know about the time value of money” by LAWRENCE R. ROSEN provides his evidence with his Editorial Advisor Melvin Bloom, Ph.D.
Page 1 of the Book uses 4 % and 1 year. Here we are using 7% and 10 years for simplicity sake to reveal another secret. If one invests $1,000 today at 7% simple annual interest, after ten years the account is worth $1,700.00 and so on. Interest paid only on the original principal is called “simple interest”
A simple example is as follows: The Department of the U.S. Treasury issues a Bond for 1,000 dollars at 7 percent (0.07) simple interest per year for 10 years
Therefore I = $1,000 X 0.07 X 10
I = $700.00
Thus the value of the account (S) is the original principal ($1,000) plus the interest earned ($700) (over ten years)
Thus, S = P + I
Therefore, the value of the account (S) is $1,700 after 10 years using simple interest. For simplicity sake we will continue to use simple interest for 10 years to reveal more secrets.
The secrets are explained here in simple terms.
SECRET NUMBER 1
In source number 1 above it is evidenced that for profit to occur a double-entry system was needed to be put in place. This is John Maynard Keynes economic laboratory of the world in action as per his published work in February 1936 as The General Theory of Employment, Interest and Money.
The Book “DOUBLE ENTRY How the Merchants of Venice Created Modern Finance” by Jane Gleeson-White evidences material in her book about history’s best-kept secrets of the corporate world and government.
Page 146 and 148 is evidencing here the purpose and use of INCOME and taxes on income also “…because profits derive from income, not from capital.” “…How to calculate income or profit?” “…found in Pacioli’s double entry, a tool perfectly made for distinguishing between capital and income and therefore for calculating profit. The power of calculating the difference between capital and income is one of the basic characteristics of double-entry bookkeeping…”.
It requires repeating that all forms of property from the population are given over for a said economy through a registry that holds titles. The Registries mentioned in the beginning of this Due Diligence exists to hold and have title. Then the registrars of the registries provide to you evidence in documented form that they are holding title on behalf of a member in the population. Through the income that a population makes revenue is received by the United States organizations and corporations. Reporting the income for taxes is the evidence of this.
The U.S. Treasury has become and is the borrower and must assign collateral to borrow from the Federal Reserve System in order to circulate Federal Reserve Notes. The educated population refers to the Federal Reserve Note as the U.S. Dollar. This is a Federal Reserve note from the Federal Reserve System only.
While using the evidence above a real life process is taking place as follows:
- The U.S. Department of the Treasury (Treasury) borrows through its issuance of debt in the form of bonds, notes, bills, guarantees and all forms of “securities” marketable and non-marketable,
- This Treasury debt called securities carries with it “…A PROMISE TO PAY…”,
- These Treasury debt “securities” “…PROMISES TO PAY…” principal and interest,
- The Treasury assigns their “…PROMISES TO PAY…” to the Federal Reserve System,
- The Federal Reserve System issues paper notes as FEDERAL RESERVE NOTES paper back to the Treasury,
- The Treasury re-distributes to the banks these Federal Reserve notes to be re-distributed to the population,
- The population is now responsible for the Treasury’s debt when they carry the Federal Reserve note to buy food with it.
- The population is now charged with interest, taxes and revenue back to the Treasury.
The profits in a double-entry bookkeeping system received from the population in the form of revenue, taxes, interest is collected from the population holding the Federal Reserve note.
The population has agreed to pay for the U.S. Treasury’s principal and interest that it borrows from the Federal Reserve System. The profits the U.S. Treasury collects in all forms directly and indirectly does so through its statutes and codes because it has formed registries to register titles held in a registry. These titles having right to property and principal are used as collateral when the U.S. Treasury borrows from the Federal Reserve for payment of the U.S. Treasury’s borrowings. Therefore, the U.S. Treasury’s “…promises to pay…” are contracts and are required to be honored.
SECRET NUMBER 2
Day 1 (one) the U.S. Treasury has borrowed $1,000 from the Federal Reserve System it then receives Federal Reserve Notes in return as $1,000 Federal Reserve notes.
The U.S. Treasury borrowed $1,000 Federal Reserve notes at a rate of 7 percent simple interest for 10 years.
Therefore I = $1,000 X 0.07 X 10
I = $700.00
After receiving $1,000 Federal Reserve notes day 1 (one) at day 3,360 (after 10 years) the U.S. Treasury after paying Interest to the Federal Reserve System has $300 Federal Reserve notes (Fed notes) left when using simple interest.
Meaning Treasury account Day 1 $1,000 Fed notes in circulation
Treasury account after years 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 deduct $700 in Fed notes to pay the Federal Reserve Interest since it is the Treasury that is borrowing from the Fed.
Treasury account day 3,360 (after 10 years) $300 Fed notes left after paying in simple interest to the Federal Reserve System.
Treasury account after 10 years still has “…A PROMISE TO PAY…” on the principal on its debt “securities” issued from the Treasury to the Federal Reserve System since Day 1 because it received $1,000 in Fed notes to circulate to the population at Day 1.
Thus $1,000 minus $700 leaves only $300 Fed notes in the Treasury account.
Now the Treasury account needs to pay the principal after it has paid the interest after 10 years.
Only $300 in Fed notes are in the Treasury account to pay the Principal that it borrowed from the Federal Reserve System. The Treasury account is in the red or minus $700 in Fed notes to pay the $1,000 the Treasury owes in principal.
The property of the population and the concept of personal property with the U.S. Treasury is put into action as the John Maynard Keynes economic laboratory of the world.
The intentions are clearly on profit using the double-entry bookkeeping system. The social fabric of society and the population using Fed notes is unable to uphold its’ “…PROMISE TO PAY…” via the U.S. Treasury and by anyone and by any corporation using Fed Notes.
SECRET NUMBER 3
In the Book “THE DOW JONES-IRWIN GUIDE TO INTEREST What you should know about the time value of money” by LAWRENCE R. ROSEN with the equation for the time value of money as the formula: I = P X i X T here-in lies another secret. The true definition of money and the true definition of value as it is relating to money in this equation is unrelated to time. Time is used for profit as interest etc., in a double-entry bookkeeping system.
As evidenced by Mr. John Exter, he defines Money as a former member of the Board of Governors of the Federal Reserve System. In 1948 he served first as adviser to the Secretary of Finance of the Philippines and then as the Minister of Finance of Ceylon (now Sri Lanka) where he establishment their central banks. In 1954, he served as vice president in charge of international banking and precious metals operations at the Federal Reserve Bank of New York. He was also a member of the Council of Foreign Relations, the Committee for Monetary Research & Education states in writing that
Source in the ECONOMIC EDUCATION BULLETIN, Vol. XIV No. 5, Published by AMERICAN INSTITUTE for ECONOMIC RESEARCH, of May 1974, Great Bafrington, Massachusetts 01230, on page 3 titled “Toward a New World Monetary System” by John Exter
In truth the “…time value of money…” is for the double-entry bookkeeping system for “…the economic laboratory of the world.” as per John Maynard Keynes. The double-entry bookkeeping system is evidenced in Source number 1 is for PROFIT.
The evidence is Money is “…a store of value…” as stated by the late Mr. John Exter himself.
Simply when the equation I = P X i X T has removed from it the TIME VALUE OF MONEY that is i X T the equation simplifies to I = P where P is PRINCIPAL.
It is the principal that is with the “…store of value…” and is the money.
As stated in the beginning, the corporation is in control of the registry. The registrar of the corporation is issuing evidences of title. This allows the corporation to charge and receive profits of any and all forms on the property being held under title that is the principal.
Note: A title can be granted and placed in trusts. The trust then can have its own legal and lawful right of ownership of title and use of property and use of the principal as true money having a “store of value”. This is important because “time value of money” is usury. The equation above I = P X i X T is for Profit in a double-entry bookkeeping system.
The “…store of value…” of real money is with the principal in the equation above. P is principal and i and T are removed from the equation above since this is the representation of the “..time value of money.” for interest that is a profit. No interest is required in a single entry bookkeeping system. The value is with the PRINCIPAL in a single entry bookkeeping system.