Posts Tagged ‘Economy’

Share Nicely?

Posted: March 4, 2017 in Economics
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“Nobody is sharing.  It’s not the sharing economy.  It’s the Access Economy.” -Chip Conley

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“…the world has been binging on debt like never before.

The International Monetary Fund reported last month that total nonfinancial-sector debt has ballooned to an all-time record of $152 trillion… while the global debt-to-GDP ratio has also soared to an all-time high of 225%, up from 200% just 14 years ago.

Worse, we’re seeing record debt at the government level, the corporate level, and the consumer level (via auto and student loans, in particular). The boom in corporate borrowing is especially concerning…

U.S. companies have already borrowed $1.4 trillion this year to date, according to data firm Dealogic. This is on pace to shatter last year’s previous all-time record of $1.5 trillion.

Unfortunately, most are using this money to refinance existing loans… buy back stock and pay dividends… and finance expensive (and often questionable) mergers and acquisitions. This will do little to help the economy. But it greatly increases leverage… and risk.” -Justin Brill

Economic Lifeblood

Posted: September 27, 2016 in Economics
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“Exchange is the lifeblood, not only of our economy, but of civilization itself.” -Murray N. Rothbard

Banks are the growth engine of an economy. They make loans to fund new businesses, construction, and consumer spending. And they collect the ‘spread’ between what the short-term rates pay to borrow and the long-term rates they earn when they lend.” -Porter Stansberry

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

“In a normal, healthy economy, people work, save, invest, and build real wealth one dollar at a time.  But today’s dollar is different.  And the economy is different, too.  It runs on credit, not real savings, and builds debt – not wealth.” -Bill Bonner

“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