Posts Tagged ‘capitalism’

“This number (10-year treasury note) is probably the most important number in modern capitalism. It tells us the ‘risk-free’ price of money… which is to say, it tells us the cost of borrowing money, or more abstractly, the price of the future.

The more you borrow today, the more time you will have to take away from tomorrow to pay it back. Eventually, you run out of time… and out of luck.

To put that in more concrete (or wood and plastic) terms, the higher your mortgage rate… the longer you have to work to pay for your house.” -Bill Bonner

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

“Politicians all over the world are predicting that banks will charge depositors (you) money for storing cash in negative interest rate currencies.  It’s a perversion of saving.  It’s a perversion of capitalism.  It’s a perversion of planning for the future.” -Brian Hunt

“Capitalism is constantly burying its mistakes and discovering tomorrow. Cronyism, on the other hand, keeps you in the past. It is today and yesterday trying to stop tomorrow from happening…. The future is where new wealth is created. When you try to stop or twist the future into the shape want, you prevent this wealth from ever happening. Cronyism depends on the credit bubble…. Cronies owe money.  They borrow money.  They depend on borrowed money for their budgets, their spending, their bonuses, their portfolios, their welfare checks, and their special privileges.  They all depend so heavily on borrowing that few of them – whether in academia, media, business, finance, or government – can see the truth… let alone speak it.  They are all paid not to see it.  And if they do see it, they keep their mouths shut.” -Bill Bonner

“Capitalism is a system whereby profits and losses are private.  Serving customers well leads to profits; failing to do so leads to losses or bankruptcy.  Socializing the losses while keeping profits private encourages reckless risk taking and sloppy business management and causes “private” businesses to operate more like government bureaucracies.” –Thomas DiLorenzo

“Capitalism is about voluntary exchange for mutual benefit.  Businesses don’t “take” money.  Only government (which has a monopoly on the legal use of force) and criminals do that.  Businesses merely collect the money that consumers and other businesses voluntarily trade for products and services.” –Alex Green           May I emphasize the word VOLUNTARY!  When government forces, or even provides an incentive for, someone to purchase a certain product, it no longer becomes the voluntary choice of a citizen; thus it is no longer a “free” market.