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Money Velocity and Prices
MONEY VELOCITY AND PRICES The yearly growth rate of US AMS jumped to almost 80% by February 2021 (see chart). Given such massive increase in money supply, it is tempting to suggest that this lays the foundation for an explosive increase in the annual growth of prices of goods and services sometime in the future […]
How Politicians Are Creating the Worst Economic Crash in History
How Politicians Are Creating the Worst Economic Crash in History Politicians have totally and completely misunderstood the trends within the global economy and as a result, they are actually creating one of the worst economic debacles in history. I have explained several times that the bulk of investment capital is tied up in two primary […]
Velocity of Money Picks Up: Inflation Coming? Stagflation? How About Deflation?
Velocity of Money Picks Up: Inflation Coming? Stagflation? How About Deflation? The velocity of money is picking up. What does it mean? Velocity of money is defined as (prices * transactions) / (money supply). Economists substitute GDP for (prices * transactions). This tweet caught my eye today. Velocity of Money has increased for third quarter […]
Inflation Alert: The Velocity Of Money Has Finally Bottomed
Inflation Alert: The Velocity Of Money Has Finally Bottomed Forget the Trump tax cuts, the Senate budget deal, the Fed’s Quantitative Tightening and the collapse in foreign buying of US Treasuries: after years of dormancy, the biggest catalyst for a sharp inflationary spike has finally emerged, and it is none of the above. Behold: the […]
One Chart Says It All
One Chart Says It All People sense the ‘recovery” is bogus, and their rational response is to save more money rather than squander it. Sometimes one chart captures the fundamental reality of the economy: for example, this chart of money velocity and the civilian-population ratio. (thank you, Joseph Y. for posting it on my Facebook feed.) […]
Deutsche Bank: Negative Rates Confirm The Failure Of Globalization
Deutsche Bank: Negative Rates Confirm The Failure Of Globalization Negative interest rates may or may not be a thing of the past (many thought that the ECB had learned its lesson, and then Vitor Constancio wrote a blog post showing that the ECB hasn’t learned a damn thing), but the confusion about their significance remains. […]
Bob Janjuah Warns The Bubble Implosion Can’t Be “Fixed” This Time
Bob Janjuah Warns The Bubble Implosion Can’t Be “Fixed” This Time Having correctly foreseen in September that “China’s devaluations are not over yet” it appears Nomura’s infamous ‘bear’ Bob Janjuah has also nailed The Fed’s subsequent actions (hiking rates into a fundamentally weakening economy in a desperate bid to “convince markets that strong growth and inflation are on their […]
The Velocity of the American Consumer
The Velocity of the American Consumer I was reading something yesterday by my highly esteemed fellow writer Charles Hugh Smith that had me first puzzled and then thinking ‘I don’t think so’, in the same vein as Mark Twain’s recently over-quoted quote: “It ain’t what you don’t know that gets you into trouble. It’s what […]
Money Velocity Is Crashing–Here’s Why
Money Velocity Is Crashing–Here’s Why The inescapable conclusion is that Fed policies have effectively crashed the velocity of money. That the velocity of money has been crashing while the money supply has been exploding doesn’t seem to bother the mainstream pundits. There is always a fancy-footwork explanation of why whatever is crashing no longer matters. Take […]
The Yield Curve and GDP – a causal relationship?
The Yield Curve and GDP – a causal relationship? One of the most reliable indicators of an imminent recession through recent history has been the yield curve. Whenever longer dated rates falls below shorter dated ones, a recession is not far off. Some would even say that yield curve inversion, or backwardation, help cause the economic contraction. […]
Highly Respected Economist Warns: “Hyperinflation Is On The Table… It Will Be Completely Uncontrollable”
Highly Respected Economist Warns: “Hyperinflation Is On The Table… It Will Be Completely Uncontrollable” Thibaut Lepouttre is a highly educated and well respected economist from Belgium. But unlike many of his counterparts who often toe the line of mainstream politicians and financial pundits, he’s not one to sugarcoat the seriousness of the current global economic, […]
A Question of Money – Interest – Bankers
A Question of Money – Interest – Bankers QUESTION: Mr Armstrong, interesting article today, the story of the store of value (at least long term) has always confused me. One can look at saving accounts also as an asset as it yields the interest payment and one relinquishes the access to the money. No difference […]
An Important Economic Indicator – Money Velocity – Crashes Far Worse than During the Great Depression
An Important Economic Indicator – Money Velocity – Crashes Far Worse than During the Great Depression Underneath the Propaganda, the Economy Is In BAD Shape … We noted 3 years ago that the velocity of money – an important economic indicator – is lower than during the Great Depression. Things have gotten even worse since since […]
The Coming Crash of All Crashes – but in Debt
The Coming Crash of All Crashes – but in Debt Why are governments rushing to eliminate cash? During previous recoveries following the recessionary declines from the peaks in the Economic Confidence Model, the central banks were able to build up their credibility and ammunition so to speak by raising interest rates during the recovery. This time, […]
