Posts Tagged ‘capital’

“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
Tags: , , , , ,

“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

“Real credit comes from money that is saved… taken out of the consumer economy so that it can be used for emergencies and capital investments.  When it is paid back – usually out of increased output – the world is a richer place.  But try to trick the economy with phony credit – money that was never earned and never saved – and you are just asking for trouble.” -Bill Bonner

“Remember, compounding your capital is simply a way of saying that the growth of your money happens over and over again at regularly-timed intervals….  That’s the whole point of compounding, you earn money on the money you’ve earned….  The only way you can use compounding to your advantage is through time.” -David Eifrig

“The greatest shortcoming of the human race is our inability to understand the exponential function.” -Albert Bartlett

“The ‘exponential function’ is a mathematical way of explaining compounding….  Remember, compounding your capital is simply a way of saying that the growth of your money happens over and over again at regularly-timed intervals.” -David Eifrig