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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (113832)	10/17/2015 2:42:58 PM
From: 3bar	Read Replies (2) \| Respond to of 219490

The Ant knows this better than me . The Private Sector Debt to GDP ratio and its growth has to be in that equation when you have an economy where consumer spending is a large part of GDP . It gets complicated .

To: Hawkmoon who wrote (113832)	10/17/2015 3:48:51 PM
From: Elroy Jetson	1 Recommendation Recommended By Hawkmoon Read Replies (2) \| Respond to of 219490

There's a practical upper limit to monetary velocity, depending on your technology. So restricting money supply results in declining prices and usually a smaller economy, rather than increased monetary velocity, as Volcker demonstrated when he ended inflation in the late 1970s. Monetary velocity is very costly to measure so it's always derived from a comparison with price stability and money supply. During a downturn, or economic depression as we've been in since 2006, the central bank increases the available money supply by what ever quantity is required to maintain price stability. From this huge increase in monetary supply the huge fear-driven decline in monetary velocity can be easily derived. A gold-restricted economy is slower-growing, and much smaller than it could have been, as financing is simply not available for most economically viable projects. Inflation is a problem to avoid but so is a crippled stagnant economy.

To: Hawkmoon who wrote (113832)	10/17/2015 8:28:58 PM
From: THE ANT	2 Recommendations Recommended By 3bar Hawkmoon Read Replies (1) \| Respond to of 219490

The equation gives the answer when money supply falls velocity must go up for any given amount of GDP.You cant create more GDP out of thin air.