There aren't too many investments that throw off that kind of increase, guaranteed, year in year out, over 40 years. If there are, lemme know so I can sign up, immediately.
The author of this piece has a small nugget of truth, wrapped up in a thick blanket of hyperbole and BS.
That is the point. 1% annual interest compounded monthly is a whole lot different than 12% annual interest compounded monthly. What the author states as 1% is not in fact, 1% annual interest.
And like you said, 12% annual is better than the average return of the market and requires the risk of loss of principle.