Cash-strapped Berlin stalked by 450-year-old Trillion dollar debt

Started by jimmy olsen, July 20, 2012, 01:55:28 AM

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alfred russel

#45
July 20, 2012, 03:48:22 PM
Quote from: Viking on July 20, 2012, 03:42:31 PM
Quote from: alfred russel on July 20, 2012, 03:37:25 PM
Quote from: Zanza on July 20, 2012, 03:05:28 PM
I wanted to point out that Alfred can't do math.

Wait a second...if you calculate by simple interest 400 +(400 * 450 * 0.06 ) you get 11,200, which is a number actually quoted in the article. Plus, simple interest makes sense in light of the time period the theoretical contract was written.

The problem is that compound interest is the only way to get to trillions and the article mentions compound interest. This story is only interesting because of compound interest. Berlin welching on a minor debt is not interesting, berlin owing some shit hole sub-urb 1000 times the world's total gold supply in gold coins is fascinating.

It isn't the only way...The calculation in the article, for reasons mysterious to me, takes into account inflation. Germany has had a bout or two of significant inflation through the centuries, so when you string them together you can get a very large number.
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.

There's a fine line between salvation and drinking poison in the jungle.

I'm embarrassed. I've been making the mistake of associating with you. It won't happen again. :)
-garbon, February 23, 2014

Viking

#46
July 20, 2012, 03:51:23 PM
Quote from: alfred russel on July 20, 2012, 03:48:22 PM
Quote from: Viking on July 20, 2012, 03:42:31 PM
Quote from: alfred russel on July 20, 2012, 03:37:25 PM
Quote from: Zanza on July 20, 2012, 03:05:28 PM
I wanted to point out that Alfred can't do math.

Wait a second...if you calculate by simple interest 400 +(400 * 450 * 0.06 ) you get 11,200, which is a number actually quoted in the article. Plus, simple interest makes sense in light of the time period the theoretical contract was written.

The problem is that compound interest is the only way to get to trillions and the article mentions compound interest. This story is only interesting because of compound interest. Berlin welching on a minor debt is not interesting, berlin owing some shit hole sub-urb 1000 times the world's total gold supply in gold coins is fascinating.

It isn't the only way...The calculation in the article, for reasons mysterious to me, takes into account inflation. Germany has had a bout or two of significant inflation through the centuries, so when you string them together you can get a very large number.

Historical inflation ffs.. you can get a currywurst for a few trillion 1923 reichsmarks.
First Maxim - "There are only two amounts, too few and enough."
First Corollary - "You cannot have too many soldiers, only too few supplies."
Second Maxim - "Be willing to exchange a bad idea for a good one."
Second Corollary - "You can only be wrong or agree with me."

A terrorist which starts a slaughter quoting Locke, Burke and Mill has completely missed the point.
The fact remains that the only person or group to applaud the Norway massacre are random Islamists.

alfred russel

#47
July 20, 2012, 03:57:45 PM
Actually, the fourth paragraph mentions compound interest. I can't be expected to read so far down. I don't understand why they mention compound interest but quote the simple interest value.

Maybe this is just silly article and not meant to be serious financial journalism. :hmm:
They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.

There's a fine line between salvation and drinking poison in the jungle.

I'm embarrassed. I've been making the mistake of associating with you. It won't happen again. :)
-garbon, February 23, 2014

Viking

#48
July 20, 2012, 03:59:17 PM
Quote from: alfred russel on July 20, 2012, 03:57:45 PM
Actually, the fourth paragraph mentions compound interest. I can't be expected to read so far down. I don't understand why they mention compound interest but quote the simple interest value.

Maybe this is just silly article and not meant to be serious financial journalism. :hmm:

Journalists are uneducated dolts. Film at 23.
First Maxim - "There are only two amounts, too few and enough."
First Corollary - "You cannot have too many soldiers, only too few supplies."
Second Maxim - "Be willing to exchange a bad idea for a good one."
Second Corollary - "You can only be wrong or agree with me."

A terrorist which starts a slaughter quoting Locke, Burke and Mill has completely missed the point.
The fact remains that the only person or group to applaud the Norway massacre are random Islamists.

MadImmortalMan

#49
July 20, 2012, 04:24:02 PM
Only fair way to figure it out would be to calculate the amount of gold or silver the guilders were worth and than convert that to the spot price in euro.
"Stability is destabilizing." --Hyman Minsky

"Complacency can be a self-denying prophecy."
"We have nothing to fear but lack of fear itself." --Larry Summers

Viking

#50
July 20, 2012, 04:28:05 PM
Quote from: MadImmortalMan on July 20, 2012, 04:24:02 PM
Only fair way to figure it out would be to calculate the amount of gold or silver the guilders were worth and than convert that to the spot price in euro.

I did that in reply #9 in this thread.
First Maxim - "There are only two amounts, too few and enough."
First Corollary - "You cannot have too many soldiers, only too few supplies."
Second Maxim - "Be willing to exchange a bad idea for a good one."
Second Corollary - "You can only be wrong or agree with me."

A terrorist which starts a slaughter quoting Locke, Burke and Mill has completely missed the point.
The fact remains that the only person or group to applaud the Norway massacre are random Islamists.
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