Tag Archives: inflation

In 1950, when the global economy was struggling to recover from World War II, Venezuela had a GDP per capita of 7’425 USD, making the oil-rich South American nation, the world’s fourth-wealthiest country, exceeded only by the United States, Switzerland and New Zealand. Venezuela’s per capita income then was nearly four times higher than Japan’s (1’873 USD ), almost 75% …

”Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” John Templeton   Last night, I had not one, but two invitations for dinner. According to the motto ‘First-come, first-served’ I …

In chapter 1 we found out how hard it is and how long it takes to double an investment by simply put it on a bank account. And we didn’t even mention a powerful enemy for any money saver – the inflation. If I ask my friends or colleagues ‘what is inflation?‘, the answer is always the same: something like ‘when …

Question 2: Suppose over the next 10 years the prices of the things you buy double. If your income also doubles, will you be able to buy less than you can buy today, the same as you can buy today, OR more than you can buy today? Answer: same This case seems to be clear – when you earn 1000 …