Posts Tagged ‘capital’

“It’s EZ credit that is the linchpin in today’s fake-money system.

The Deep State’s stocks, bonds, and real estate values… not to mention its careers, incomes, and reputations… depend on it.

And it is made possible by the China trade… by Chinese workers who put in long hours in miserable conditions in order to stock the shelves of Walmart with cheap goods… by Chinese manufacturers who undersell their competitors to keep consumer price inflation in the U.S. at low levels… and by Bank of China, which holds some $1.25 trillion worth of U.S. bonds… thus propping up the whole wobbly capital structure….

In politics and economics, BS is all there is. The calculations are almost always fake; the statistics are quackery; the theories are devilish nonsense. And bad ideas never entirely disappear, they just re-emerge after a few years… often dressed in new duds.”

-Bill Bonner

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“When you borrow money two things usually happen.  First, you’re taking capital that others saved in the past, and are probably using for consumption, not to create more wealth.  And second, you’re mortgaging your future, which makes you a serf when you have to pay it back.” -Doug Casey

Poor Projects

Posted: February 11, 2017 in Money Matters
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“Believe it or not, capital is limited.  If you use it for bad projects, you get poorer, not richer.” -Bill Bonner

“An individual doesn’t enrich himself by borrowing capital.  He can only enrich himself by carefully increasing his utility (his skills), saving his excess production, and investing that capital wisely to further increase his production.” –Porter Stansberry

“Most people assume that if you know about investing, you must also know about economics, which is a related discipline.  But that’s completely untrue.  It’s analogous to thinking that someone who knows how to drive a car also knows how one works.  Economics is the study of how men go about producing and consuming; investing is the practice of allocating capital for maximum returns.” -Doug Casey

Banking Terms

Posted: April 10, 2016 in Economics
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“Banking is at the center of the economy… And the policies you set in banking determine who gets capital and under what conditions. That’s the definition of capitalism: how to allocate capital and under what terms.” -Porter Stansberry

Until you’ve mastered the discipline of saving money, you have no realistic chance of developing the discipline to manage capital.” -Porter Stansberry