Money velocity at all time lows

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Money velocity at all time lows

Postby Pixel8r » Sun Jun 15, 2014 4:40 pm » Safari 7.0.4 Safari 7.0.4  Mac OS X Mac OS X  Screen Resolution: 1680 x 1050 1680 x 1050

Was watching this video today, Greg is talking about the money velocity being at historic all time lows. Money not changing hands is a big sign of deflation and it shows that business isn't being done and there is no recovery.

But I am wondering if the money velocity is at all time lows because the quantity of money has expanded exponentially but most of that money is lying dormant as banks reserves? Surely money velocity is related to the quantity of money, if most of the freshly printed fiat is sitting doing nothing as reserves for the bankrupt banks we would be at all time lows. So in effect there could actually be more business being done than previously but not in comparison to the current amount of money hence the reason we are seeing MV at historic lows.

My guess is that the CB's still think the will be able to reverse the extraordinary measures taken when the recovery starts.

Watch on

"Money is Gold, and nothing else"
(As John Pierpont Morgan once stated under oath before the USCongress and the Pujo Commission in 1912)
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Re: Money velocity at all time lows

Postby Laura » Sun Jun 15, 2014 5:30 pm » Google Chrome 34.0.184 Google Chrome 34.0.184  Android Android  Screen Resolution: 960 x 544 960 x 544

It isn't 'money'. Bye Greg :(
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