Confounding Compounding Perspectives

by Rob Kirby
Gold Seek

In recent interviews I have “borrowed” a descriptive I originally heard from Chris Martenson explaining the effect of compound interest and exponential growth. The descriptive involved picturing Yankee Stadium and beginning with a drop of water and doubling the amount of water until the stadium was full. Regarding the compounding visual – I misspoke somewhat when I originally explained – the reality is that the timeframe used – 50 minutes – is correct. I should have said the doublings only have to occur every MINUTE [not every second] and the outcome remains the same – stadium fills up in 50 minutes, with all the “action” [water going from ankle deep to overflowing the stadium] occurring in the last 5 minutes – this is the power of compounding.

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