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Zero Percent Magic Explained

Blog Apr 6, 2016

When interest rates are artificially low, like they are now ( interest rates are currently from zero percent rates to one-half of a percent) the old model of banking and saving and investing goes right out the window, and this is why:

Zero Percent Interest Rates.

When a large corporation or bank can “borrow” unlimited funds at zero or near zero percent, there is no incentive for them to create profits for or share them with individual investors. If you could borrow unlimited amounts of money at no interest, and you weren’t necessarily required to pay them back if you go broke, you could probably make a decent living just buying lottery tickets with borrowed money, and you could call up your boss and just quit.

In The World Of Unlimited Zero Percent Interest Loans, There Is No Need To Work.

In The World Of Unlimited Zero Percent Interest Loans, There Is No Need To Work.

If you chose to open a business, you wouldn’t need investors that want and demand to be paid back in full along with a nice dividend, nor would you want these investors because to borrow their money would be more expensive and more of a liability than the funds that would be available to you through the Federal Reserve Banking System.

What Is Zero Percent Money For Loan Doing To The Economy?

Today the stock markets are setting new record highs one after the other. Yet, the economy remains depressed, new business creation and small business in America is struggling, and Americans have more debt and less savings than they did just one generation ago.

This is due in large parts to large corporations in America borrowing money at zero percent to buy back the stock they have sold to Americans and international entities. This only makes business sense, since any one with a calculator or even a dull pencil can reason and figure that paying the zero percent rates is more profitable than paying investors even three or four percent plus any dividends.

Some Crooks Go To Jail, Some Cook Up Zero Percent Interest Scams.

Some Crooks Go To Jail, Some Cook Up Zero Percent Interest Scams.

CEO’s, CFO’s, and accountants cannot justify paying investors out of profits when they no longer have to, and this is why companies are posting record profits and these CEO’s and CFO’s are taking home record bonus checks. And, as long as the loans from the Federal Banking system are free or nearly free, and as long as million or multi-million bonus checks are being distributed to the upper one percent, don’t look for the system to change.

How Would Zero Percent Interest Rates Change Your Life?

Imagine buying a $288,000 home. No money down. Imagine payments of $2000 a month. Sounds good doesn’t it. Now imagine paying it off in 12 years.If this sounds too good to be true, it’s not. That is zero percent interest.

Imagine buying a $40,000 dollar car and paying $400 a month 100 months.Sound too good to be true? How about a $60,000 truck for $60 a month for 1000 months? Does that sound too good to be true? Well, at 0% interest this financial scenario works.

Now imagine having a $20,000 credit card at 0% interest. Let’s say you could max out your super magnificent ultra amazing credit card and have a monthly payment of $200. Pretty good deal huh. Now figure in that after you max out the card and then make a $200 payment, you have $200 in available credit, no over the limit fees, and no penalties. Zero percent is amazing, isn’t it?

Zero Percent Dodge

$60,000 At Zero Percent For $60 A Month.

So in this zero percent scenario, you can live in a $288,000 home, drive a $60,000 truck while keeping a $40,00 back-up car garaged, and finance whimsy through a $20,000 limit credit card for the mere cost of $2480 a month. Zero percent money is amazing, isn’t it?

Those Zero Percent Examples Don’t Even Cover Zero Percent Magic.

What happens when you pay your bills on time? Your debts decrease and your credit limits rise.If you are working with reputable creditors, then perhaps over time your interest rate decreases as well.

Now apply this reasoning to zero percent loans. If you pay on or pay off a zero percent loan, you can get a bigger zero percent loan and or more zero percent loans. Now apply this reasoning to the zero percent situation.

Make a few payments of $2480 a month, and you can qualify for a $400,000 zero percent loan, and pay everything off, and pay off the $400,000 at $400 a month for 1000 months, and then eventually refinance that loan for $600,000 at $60 a month for 10,000 months.

Zero Percent Interest Can Be Seen As The Magic Rabbit In The Magic Fiat Currency Hat.

Zero Percent Interest Can Be Seen As The Magic Rabbit In The Magic Fiat Currency Hat.

Common sense says you can’t do that, even at zero percent. But do unlimited loans at zero percent make any financial sense at all? If you don’t think they do, then you should realize that that is exactly what the US economy is running on, and some say it is running on fumes. Zero percent fumes.

So, if you can’t retire on CD’s that pay one-quarter percent, or stocks that don’t pay dividends and represent companies that are greatly overvalued because their stocks have risen to ridiculous valuations because they are artificially inflated by free capital and zero percent loans, then you must look at other alternatives.

If you would like to discuss owning gold coin or bars and silver bullion as an alternative to participating in what may truly be a rigged zero percent economy waiting to collapse, then please call one of ITM Trading’s hand picked and highly experienced financial professionals at 1.888.OWN.GOLD.

Sources & References In This Article

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