It's very late so perhaps I'm not thinking this through, but try this...
First, let me give a general description of what I'm trying to say. Take your calculator, computer, whatever, and graph f(x)=x2. Now evaluate the derivative at some point close to 0, say, .01. At .01, the derivative is .02. Now at .01, the functions value is .0001, so we see that the derivative is greater than the function value. Now this may be particular to f(x)=x2 (I don't believe it is, though I am not completely sure), but it's just an example. Think about functions where f(0)=0, and think about them close to 0. If they are ever going to be something other than 0, they have to "get up off the mat" so to speak... they have to move up or down. Now when you get to infinitesimally small values very close to 0, think about the derivative... is it possible for the derivative to remain smaller than those tiny, tiny, infinitesimally small values, and for the function still to increase from 0 to something else? Think about it... if the derivative is less than the function, than the function's absolute value will shrink moving forward ( I believe - it's late), and the function will never get any bigger.
That's the point of the argument I've made here, or how it works. The point is to show that when you're dealing with this function close to 0, the derivative will always be greater than the function itself. Now in words, I don't know how convincing that is, but the analytical argument works as far as I can tell. So here it is:
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f(0)=0. Now because f is differentiable, we know that it is continuous.
Given that, suppose that there is some point y where f(y) /= 0. Because f is continuous, the Intermediate Value Theorem requires that there is some point c where f(c) = L for ever L < |f(y)|. (In other words, whether f(y) is positive or negative, every value between f(y) and 0 must be on the function somewhere between y and 0).
Choose any c0 where |f(c0)-0| < 1. In other words, |f(c0)| < 1.
Now by the Mean Value Theorem, there is some point c1 where |c1| < |c0| such that f ' (c1)=\frac{f(c_{0})-f(0)}{c_{0}-0}. That is, f ' (c1)=\frac{f(c_{0})}{c_{0}}. (In other words, there's some point c1 between 0 and c0 where the derivative at c1 equals the slope from f(c0) to f(0).)
Now |c0| < 1, which means that \left|\frac{f(c_{0})}{c_{0}}\right| > |f(c0)|. In other words, |f ' (c1)| > |f(c0)|.
Now, we are given that |f ' (x)|≤ |f(x)| for all x. This requires that |f(c0)| < |f(c1)|, because |f ' (c1)| > |f(c0)|, and if |f(c0)| > |f(c1)|, then |f ' (c1)| > |f(c1)|.
This means that for every x and x0 such that |x|> |x0| > 0, |f(x)|< |f(x0)|. (In other words, for all points within 1 of 0, the absolute value of the function must decrease as the points get further away from 0.)
Now because f is continuous, this requires that for all ε > 0 (and < 1, but that's rather trivial for the area of the number line we're talking about here), there is some x1 such that |x1| < ε and |f(x1)| > |f(ε)|. (In other words, no matter how close you get to 0, there is some point even closer where the function has a greater absolute value.)
This creates a contradiction, because f is continuous and f(0)=0. This is fairly obvious, because the closer to 0 we get, the greater the absolute value of the function must be, and so there will be a jump - a discontinuity - between 0 and the function's value.
In technical language, I *think* - and it's *really* late now so don't hold me to this - we explain it this way: If f is continuous, then for all ε > 0, there must be some δ > 0 such that when |x-0| < δ, |f(x)-f(0)| < ε. However, in our function, for all ε > 0, there is no δ which will meet the requirement. For every possible ε and δ, we can find some x so that |f(x)-f(0)| > ε. (In other words, no matter how big a epsilon-neighborhood we try, and no matter how small a delta-neighborhood we come up with to pair with it, there is some point inside that delta-neighborhood which is outside of the epsilon-neighborhood.)
I'm pretty sure this works, but I've been wrong before...