As for velocity, well, vortex is a good metaphor. I stand by my statements that US fiscal policy is geared to consolidate and add value to fiat in the top 1%. The domestic market will be squeezed of every penny earned. Psychology trumps data in predicting what makes the worm turn. Every time. Diversity is the key to economic and political evolution.
I stand by my statements that US fiscal policy is geared to consolidate and add value to fiat in the top 1%. The domestic market will be squeezed of every penny earned.
Yes, very much so.
A political narrative is built into all the main structural economic indicators, and that makes them suspect as a measure of what's really happening in the real economy. (q.v. our discussions about unemployment.)
Using them as if they measure something that matters only propagates the narrative - it doesn't necessarily tell anyone anything useful about the real experience at street level.
But this intuitive meaning helps you understand some extreme cases of the equation of money (like, in times of hyper inflation, cash burns your hands, you want to change it for material goods immediately, and the velocity of money increases greatly) Pierre
