Compound interest is a lie
Conversation
Compound interest is integration over time. In the limiting case, an unrestricted positive feedback loop. These don’t actually exist in nature. They either end in finite time or they’re accompanied by a hidden compensating compounding effect elsewhere that you’re not seeing.
Replying to
One reason this is hard to see is that time is a single dimension with only 1 path between 2 points. This obscures decision-making. In space, climbing a cliff and driving up a road with switchbacks are 2 paths that “integrate” to same height, but are obviously different.
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Replying to
Money doesn't exist in nature. The real world operates on ecological principles, not financial ones. We're fucked until we realise that
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