What is the basic mechanism for the growth of monetary assets?
If he deposits these 10,000 Euros, Dollars or any other currency on the savings account of a bank at 3% interest, the amount will be four times as big after 50 years. If he manages to get 6% instead of 3, the effect does not simply double but it becomes 4 ½ times as big. And again 3% more results in an amount which is 74 times bigger than the original investment. We can conclude from this, that small changes in high interest rates have much more dramatic consequences than at low levels. An increase from 1% to 2% is almost negligeable, but an increase from 9% to 10% has enormous effects in the development.