{"id":8876,"date":"2015-06-06T08:01:46","date_gmt":"2015-06-06T13:01:46","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8876"},"modified":"2015-06-06T08:01:46","modified_gmt":"2015-06-06T13:01:46","slug":"an-important-economic-indicator-money-velocity-crashes-far-worse-than-during-the-great-depression","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8876","title":{"rendered":"An Important Economic Indicator \u2013 Money Velocity \u2013 Crashes Far Worse than During the Great Depression"},"content":{"rendered":"

An Important Economic Indicator \u2013 Money Velocity \u2013 Crashes Far Worse than During the Great Depression<\/a><\/h3>\n

Underneath the Propaganda, the Economy Is In BAD Shape \u2026<\/strong><\/p>\n

We noted 3 years ago that the velocity of money \u2013 an important economic indicator \u2013 is\u00a0lower than during the Great Depression<\/a>.<\/p>\n

Things have gotten even worse since since then \u2026<\/p>\n

By way of background, the velocity of money is the rate at which people spend money.<\/p>\n

In other words, it\u2019s the speed at which a dollar moves from one person to the next through the economy.<\/p>\n

The Federal Reserve Bank of St. Louis\u00a0explains<\/a>:<\/p>\n

The velocity of money can be calculated as the ratio of nominal gross domestic product (GDP) to the money supply \u2026 which can be used to gauge the economy\u2019s strength or people\u2019s willingness to spend money. When there are more transactions being made throughout the economy, velocity increases, and the economy is likely to expand. The opposite is also true: Money velocity decreases when fewer transactions are being made; therefore the economy is likely to shrink.<\/p><\/blockquote>\n

The St. Louis Fed\u00a0labels<\/a>\u00a0the velocity of money as \u201cGross Domestic Product\/St. Louis Adjusted Monetary Base\u201d \u2026\u00a0 and\u00a0provides<\/a>\u00a0the following data on the velocity of money between the start of the Great Depression and today:<\/p>\n

\"Money\"<\/a><\/p>\n

Here\u2019s the money velocity right before the Great Depression hit:<\/p>\n

\"Money<\/a><\/p>\n

Here\u2019s the money velocity from the darkest point during the Great Depression:<\/p>\n

\"Money<\/a><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

An Important Economic Indicator \u2013 Money Velocity \u2013 Crashes Far Worse than During the Great Depression Underneath the Propaganda, the Economy Is In BAD Shape \u2026 We noted 3 years ago that the velocity of money \u2013 an important economic indicator \u2013 is\u00a0lower than during the Great Depression. Things have gotten even worse since since […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[124,303,305,353,383,536,2532,4915,1615,6050,5510],"class_list":["post-8876","post","type-post","status-publish","format-standard","hentry","category-economics","tag-central-banks","tag-fed","tag-federal-reserve","tag-gdp","tag-great-depression","tag-money","tag-money-velocity","tag-saving","tag-spending","tag-velocity-of-money","tag-washingtons-blog"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8876"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8876\/revisions"}],"predecessor-version":[{"id":8877,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8876\/revisions\/8877"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}