velocity of money has fallen off a cliff.....

[Large Sarge]

http://www.blanchardonline.com/beru/beru.php?article=5455

[Hatha Sunahara]

The velocity of money has a lot to do with 'fractional reserve banking'. It is how quickly the 'multiplier' kicks in to boost the economy. It is the idea that if you deposit $100 in the bank, how long does it take for the banks to create $1000 circulating in the money supply from that $100?

Well, it could take just about forever. If nobody is borrowing any money, it will take forever. The borrowing in the economy is done mostly by the government. People who buy real estate don't borrow--they pay cash.

Seriously, would you borrow any money right now? Or, better yet, would anyone lend you money right now?

And we do have inflation. Not much because all the markets are rigged. But food and 'health care' prices are rising rapidly. Taxes are rising too.

But don't worry, the velocity of money will pick up again with a vengeance when the money is worthless and nobody can get enough of it to pay their bills. Then borrowing will speed up for sure.

We have a two tiered economy. The government and corporations control all the money, and the people have to work 24/7 in exchange for a pittance. And they are imposing 'austerity' on us but just not calling it that.

Hatha

[Hypertiger]

The QE is just filling a hole that appeared to another dimension.

all credit that is created has a demand to exoponetially grow and exponentially decay attached to it.

The 85 Billion a month QE is to supply the demand of the global system for power that vanished into thin air 2005.

and lead to the implosion into a black hole of Lehmans

it was created out of thin air and implode bak into thin air.

it was a bad bank.

you load up a bad bank with all your fundable assets that have turned into unfindable liabilities...or negatively yielding garbage...and then open a door to another dimention.

and it sucks the skin off skeletons or their clothes...or their houses or their ability to exist.

and then they start being attracted like magnets looking for love towards food stamps or die.

the invisible power of deflation causes black holes to form in credit supplies on clothes and rust to appear on metal and lights to go out and Christmas bulb delusions to begin to crack shatter.

The QE is just sustaining the rape you all to oblivion to supply your demands to be raped to oblivion machine you all worship as a GOD.

I just try to point it out is all.

[old steel]

Where is Carl?

He was a big proponent of deflation taking over and grinding everything to a halt.

Did he bug out?

[Hypertiger]

The governments and corporations can be eaten and the bones shit out for the survivors to play Flintstones kids for awhile.

Until its time to employ you all to construct the next war machine to attempt to defeat Truth with a lie.

You all being the survivors which is not you personally...but the other people that will survive to be fooled again...According to the recorded history of lies all believe are Truth.

[mamboni]

The governments and corporations can be eaten and the bones shit out for the survivors to play Flintstones kids for awhile.



Thank for this alluring imagery. I was going to lunch. On second thought, I think I'll barf.

[Ares]

“I’ve always believed that America’s government was a unique political system – one designed by geniuses so that it could be run by idiots. I was wrong. No system could be smart enough to survive at this level of incompetence and recklessness by the people charged to run it.”
Thomas L. Friedman, “Rescue the Rescue”
The New York Times, Sept. 30, 2008

That is an awesome quote at the end of that article.

[Hypertiger]

I happen to know where inflation and deflation come from.

they are the same thing...just depends on your perspective.

The screw down of deflation is powering the screw up of inflation

that is the affordable healthcare act.

That is a big screw up or visible chaos being powered by the invisible order of the screw down.

[Hypertiger]

Greatest strength at the start is the greatest weakness at the end.

the cheques and balances.

“Be cautious in your words and carriage, that the most penetrating stranger shall not be able to discover or find out what is not proper intimated; and sometimes you shall divert a discourse, and manage it prudently for the honour of the worshipful fraternity.” (of bankers or power brokers or some invisible order hiding behind the visible chaos.)

[7th trump]

I happen to know where inflation and deflation come from.

they are the same thing...just depends on your perspective.

The screw down of deflation is powering the screw up of inflation

that is the affordable healthcare act.

That is a big screw up or visible chaos being powered by the invisible order of the screw down.

Ok.....I'll bite!
Where does inflaion and defltion come from?


Let me guess........sucking the bottom ass!

[Hypertiger]

from the farmers is one place...you do not supply the sun...the seed...the land...the water.

you tax them so they have to produce 1000's of times more real power than they require to sustain their existence so they can supply the demand for you to sustain yours in exchange for fake power or money you found on the ground or something.

Its socialism or antisocialism when one person supplies the power to sustain 1000's and 1000's

and what do they get in return?...your ignorant question...Like a question I suppose a child would ask...Like daddy...where does inflation come from?

I fly and find worms and then bring them back to the nest and regurgitate them into your mouth to sustain your existence.

Guess you did not learn much in school or on the Internet.

deflation comes from the same place.

when I stop or can not continue supplying the worms...

eventually I will die...and then you will have to get your own worms or get sucked into a black hole and get shit out as bones...or something.

[Hypertiger]

I told you I'm non religious

All belief is religious.

I either know or not.

I either am knowledgeable or ignorant.

[7th trump]

from the farmers is one place...you do not supply the sun...the seed...the land...the water.

you tax them so they have to produce 1000's of times more real power than they require to sustain their existence so they can supply the demand for you to sustain yours in exchange for fake power or money you found on the ground or something.

Its socialism or antisocialism when one person supplies the power to sustain 1000's and 1000's

and what do they get in return?...your ignorant question...Like a question I suppose a child would ask...Like daddy...where does inflation come from?

I fly and find worms and then bring them back to the nest and regurgitate them into your mouth to sustain your existence.

Guess you did not learn much in school or on the Internet.

deflation comes from the same place.

when I stop or can not continue supplying the worms...

eventually I will die...and then you will have to get your own worms or get sucked into a black hole and get shit out as bones...or something.
This is identical to palani's responses............better known as "nonresponses of drivle"!
Can never actually answer a simple question.

I didnt think you knew where inflation or deflation comes from hypertiger....thats why I said I'll bite and ask you.

I think hypertyger might be palani's sock puppet.
Both think they know something but in reality their rubber never meets the pavement......just an old sign blowing in whatever direction the wind blows.

[Hatha Sunahara]

Hypertiger--You are correct that inflation and deflation come from the same place. They come from those who issue the money. Issue too much money, you create inflation--prices go up not for economic reasons, but for 'monetary' reasons'.. Too little money, and nobody has enough, so you get deflation. Prices go down so what little money people have can buy them necessities. Neither inflation nor deflation are economic conditions. They are a result of intentional misuse of controls of the money supply. They do not originate from economic conditions. Economic deterioration is a result of monetary malfeasance.

Our misfortune is that our politicians have sold our government to those who issue the money. They apparently do not understand that the people who issue the money are not supposed to make the laws--, but they let them do that. The politicians also allow the banksters to shape the public mind through the public school systems and the media. Any nation with crooked banksters, corrupt politicians and an ignorant brainwashed population cannot survive as a nation for very long.


Hatha

[Bigjon]

Hyperkitty is always right, just ask him. For those of you who need him as an authority.

http://answers.yahoo.com/question/index?qid=20081215125251AAuwsKx

I need to calculate the velocity of money.?
Calculate the velocity of money if real GDP is 3000 units, the average price level is $4 per unit, and the quantity of money in the economy is $1,500.
What happens if the average price level falls to $3 per unit
What happens to the velocity if the average price level remains at $4 per unit but the money supply rises to $2,000.
What happens to the velocity if the average price level falls to $2 per unit, the money Supply is $2,000 and real GDP is 4,000 units?


Answer:

You use simple algebra. The formula for the velocity of money is:
V = (P * Y)/M,
where V is the velocity, P is the price level, Y is the real GDP and M is the quantity of money.

For the first part you have:
V = (4*3000)/1500 = 8. Money changes hands 8 time on average.

If it the price falls to 3, then:
V= (3*3000)/1500 = 6. Money changes hands 6 times on average.

if the money supply grows to 2.000:
V = (4*3000)/2000 = 6.

Last part:
V = (2*4000)/2000 = 4.