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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: mishedlo who wrote (94341)2/17/2009 10:53:49 AM
From: ajtj991 Recommendation  Respond to of 116555
 
Mish, you often talk about abolishing the Fed and eliminating fractional reserve lending.

If GDP is basically money supply times velocity, eliminating fractional reserve lending in theory could to take the money supply down by 90% and GDP down by 50%, assuming the velocity remained the same. I assume from that base the economy would grow naturally through population growth and productivity gains.