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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (43399)	11/24/2011 9:40:12 AM
From: Follies	Read Replies (1) \| Respond to of 71475

What happens when the velocity hits zero? Time stands still?

To: Tommaso who wrote (43399)	11/24/2011 9:52:47 PM
From: Real Man	Read Replies (1) \| Respond to of 71475

"Calculated as the ratio of quarterly nominal GDP (http://research.stlouisfed.org/fred2/series/GDP) to the quarterly average of M2 money stock (http://research.stlouisfed.org/fred2/series/M2SL). Velocity is a ratio of nominal GDP to a measure of the money supply. It can be thought of as the rate of turnover in the money supply--that is, the number of times one dollar is used to purchase final goods and services included in GDP." The mathematical meaning of this velocity chart is that the GDP is not growing much while M2 is. Yes, typically very high inflation rate requires much higher velocity of money, perhaps, about 6-10 on that chart