Gyroscopic Investing

http://www.zerohedge.com/news/2015-12-1 ... -heres-why

Is the velocity signaling we are entering or are in a huge depression?

No, because it is meaningless.

Libertarian666 wrote: No, because it is meaningless.

It's not meaningless at all if the money supply is stable. However, with the Fed printing money like there is no tomorrow and demand not changing or going down it isn't super difficult to figure out why velocity is way down.

However, in the current context I would agree that there is no real significance to the fact.

I think we can blame MMM.

Libertarian666 wrote: No, because it is meaningless.

You don't think the speed at which money is trading hands for goods and services has meaning in economic analysis?

moda0306 wrote:

Libertarian666 wrote: No, because it is meaningless.

You don't think the speed at which money is trading hands for goods and services has meaning in economic analysis?

Right.

Well, it seems obvious that if more money is moving around in the economy, that would mean that more goods and services are being sold/bought, and that sort of activity is generally good for an economy.

Unless I'm missing something.

Libertarian666 wrote:

moda0306 wrote:

Libertarian666 wrote: No, because it is meaningless.

You don't think the speed at which money is trading hands for goods and services has meaning in economic analysis?

Right.

Where do you think inflation comes from then?  Hint: Lack of demand.

There's undoubtedly a much better way to view supply/demand for money, but until some rocket scientist besides myself (j/k) comes up with it, velocity is all we have.