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by blks 28 days ago
In the current economic system, if capital is not growing, it’s reducing.
1 comments

Can you explain this further?

For example, if the market cap is $6B and has been for years, how is that reducing?

I think they're saying that inflation means the $6B is reducing in buying power.
A bank account (or a spread of bank accounts across different banks to stay under the FDIC insurance limit per-account) is way, way, way safer than a flat market cap publicly traded company -- and with the same or perhaps better rate of return. Stocks are "supposed" to give better rates of return than "flat", in exchange for the higher risk.
Inflation, plus if you’re not trying to grow your market share, competition will be taking it away from you.
HDDs, SSDs, RAM for their servers are all up what, anywhere 50% to >100% for the year?
inflation … ?
My rule of thumb is inflation will eat half your principal every 20 years unless you're growing. An average of 3.5% growth will double every 20 years.