What is this concept? The profit of small workshop manufacturing is less than 10 percent, and many of them are even less than 5 percent.

The annual interest rate for VAM agreements that already belong to the financial sector is generally only 12%. Why is it set at 12 percent, and not tens of percent?

The truth is actually very simple, everyone is a smart person, a professional, and no one is stupid. How much normal profit margin there is, has long been calculated by each other.

What is not clearly calculated is that some of these artificial and uncontrollable future variables are among them. Therefore, the gambling agreement signed by the two parties is betting on these uncontrollable future variables.

Soros and Warren Buffett bring an average of more than 20% of the annual income of such a famous financial investment master.

The reason why the money of ordinary people has been snatched away by a very small number of people is that they do not know how to calculate it, and they do not understand it at all, after all, they are mainly preceded by the inherent way of calculation.

Otherwise, it is under the strong pressure of the individual, you have to buy and buy. As for the other consequences, they have been ignored. Banks are not too afraid of bad debt rates when issuing credit cards, because high profits have been able to make up for it.

As long as the bad debt rate of credit cards can be controlled to a certain extent, you will never lose money, but only make money. Because it will also lead to another concept, called the fund rolling theory (that is, in a certain period of time, the total amount of funds participating in the market is relatively constant, and these funds are rolling in two different directions, rising and falling, triggering transactions).

Whether it is a bank, a microfinance company, a loan shark, an underground bank, etc., this is how it operates when applying the theory of capital rolling.

A portion of the principal + interest will be recovered from the borrower every month. So, they will release the money in the same way as the new lender.

In the next cycle, new ones are retracted, and so on, and so on. For example, in the first month, 200 million yuan was released, which was calculated according to the equal principal and interest repayment method.

In the second month, part of the principal and interest will be recovered. Similarly, in the second month, I released some of the principal and interest that I had recovered. At this time, my total capital must be greater than 200 million.

In fact, this should be 200 million + 1/12 of the 200 million principal released in the first month + 2% handling fee of the 200 million principal released in the first month = 220.6 million, an extra 20.6 million.

The 20.6 million yuan can be lent out in the same way for profit. The next month's money of 20.6 million lent out to make a profit can continue to + plus the second month's part of the principal and interest recovered from the previous 200 million yuan lent out and continue to roll towards the next month......

In the United States, all kinds of new tricks have been played, payday loans, quick money, easy money...... They can be seen in cash-changing cheques and street-level offices in poor and working-class neighborhoods.

They have formed at least a dozen national chains, and their earnings are equivalent to 500% annual interest rates. They also provide an emergency service.

Let's say you're short on money, bills are piling up, and there are some missing notices in them. However, there are still two weeks to go until payday.

Until then, your phone will have to go off, and your electricity will have to go out. The guy at the check-changing kiosk at your local convenience store will throw you a life-saver.

If you borrow $100, you have to write a check for $120. Two weeks later, he went to the bank with a check for $120 to cash $120.

This means that the interest rate is as high as 20% for two weeks, and the daily interest rate is 1.428%, or 521% per annum. It doesn't matter if it bounces (i.e., you can't get the $120 check to be cashed) after two weeks.

You add another $20 and re-issue a check for $140, again cashed in two weeks. To put it simply, you borrow $100 for four weeks and pay $140 for it.

If you're an Ivy League college student, you'll receive calls or text messages from banks inviting you to apply for a credit card almost every day.

The reason why the poor live their lives is because many people fall into the poverty trap of high interest rates. The money you can earn every day is not enough to pay the interest on your loan for one day.

As a result, even if it is not clear, it is even more lazy to think about it. This directly became their epiphysis.

South Korean director Kim Ki-duk's representative film "Holy Martyrdom" has a reaction. The withering of a hardware store street in Seoul, South Korea, was either forced to close or was collected by loan sharks, and ordinary self-employed operators fell into trouble one by one.

One of the most memorable is the calmness of a person before committing suicide. He said he came here to work when he was 16 years old.

Fifty years later, nothing has changed. I borrowed the money and didn't plan to pay it back, so as I spoke, I went directly upstairs to the roof and jumped down.

Another is to be collected for debts to the point that he would rather cut off his own hands, after all, he was forced to buy an accident personal injury insurance by a loan shark.

Even the actor who gave loan sharks didn't want him to pay back the money in the end, and he answered a phone call and heard that his wife gave birth to a child, and he said that he would use a lot of money in the future, and he couldn't let the child grow up in a state of no money and poverty like him.

So, he also crushed one of his own hands with his own hands. No matter how high the interest rate of a credit card is, it will not be higher than that of a loan shark. Those who embark on the road of loan sharking may have already completely lost the road of credit cards.

The credit card issuing bank will blacklist people who have not paid their credit card debts for three months and will not be allowed to use the credit card for life.

Otherwise, it is to sell the debt to a debt collection agency to collect the debt. The credit card debt of a family of four can be as high as 15 million yen, and there is even a tragedy in South Korea where the whole family is forced to commit suicide.

Even if Kishimoto knew all these unbearable things, he didn't intend to be merciful. First of all, this series of social and financial problems in South Korea is not self-inflicted, but of their own making.

Flies don't bite eggs. If the South Korean government and the Bank of Korea had not been eager to recover the domestic economy from the Asian financial turmoil, and adopted aggressive and loose monetary policies on credit card restrictions, they would not have planted this time bomb.

Now that South Korea has revealed its problems, it cannot afford to miss the opportunity to loot. If you want to grow stronger, you must eat like a snake.

He also believed in a sentence in China's "Zengguang Xianwen", benevolence does not do business, righteousness does not guard money, affection does not stand up for authority, kindness does not live in officials, mercy does not command the army, and softness does not supervise the country.