For decades, the Federal Reserve got away with increasing the money supply to juice the economy. But, it was reliant on an undeniable fact: during this entire period, money velocity was in decline, excluding pauses or very brief minuscule rises. The factors responsible for the decline in money velocity are less important. Investors need to […]
Tag: money velocity
Why Can’t the Fed Fix the Velocity of Money?
With Tesla’s market cap clearing $1 trillion and US stocks hitting fresh record highs, I have proof that the majority of the middle and lower class are largely missing out on the current recovery. The answer is in the ever-declining velocity of money. Money Velocity Continues to Crater Despite Fed’s Best Efforts I’ve personally written […]