• 21. 11. 2024 • H. T. •
It is not easy to really grasp the concept as we are usually exposed to linear growth (or regression) processes. It is important to really understand the completely different nature of exponential growth vs. linear, especially in today’s debit base financial system.
Imagine a magic pipette, the water that comes out of it will double in size every minute. So the first minute there is one drop, the second minute there are two drops, the third minute four drops, the fourth minute eight drops and so on… Now, imagine a normal sized football stadium. In this stadium we are sitting on the seat at the very top of the stadium when the first drop is dropped on the field. How long would it take to fill the stadium? Days, weeks, months even?
After the first drop, the stadium would be full of water in only 49 minutes. After 45 minutes the stadium would be only 7% full of water.
Exponential growth is not only rapid, but we also have very little time in which to react to a situation before it’s too late.
A couple of examples:
- It took USA 205 years to print its first $1 Trillion of debt (from its independence in 1776 to 1981). It now prints $1 Trillion USD every 100 days.
- It took US about 220 years to reach first $11 Trillion of debt, the last $11 Trillion of debit was created in last 4 years, since 2020.
