Negative compounding, what the h is that?
Negative compounding never heard of it.
If you don't understand what compounding is try understanding this, 100 plus 5% equals 105. If you add 5% to that the number becomes 110.25 in a shorter period of time then it would take you to double 100 to 200 by having 5% add to the whole number plus the disciple number. It will take you 15 addition compounding to make it over 200 were it will take 20 additions of 5 to make 200.
Negative compounding works the same way except in the opposite way if you take money out of the economy more money then you can imagine is being taken out of the economy. If money is taken out of the economy there is less money to spend or invest creating what one might call a domino effect.
The same is true if you take jobs out of the economy other jobs are lost due to compounding.
What I'm trying to put into words those buffoons who are running the various governments in the US are job killers, including the private sector.
If were not careful the deficits in real terms is going to balloon because of negative compounding brought about by those who want to control the deficit.( Hard to believe cutting government spending will bring about a larger deficit)?
I hope for (anyone?) who reads this blog I didn't bore you to death.
Tuesday, March 15, 2011
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