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[quote=Anonymous][quote=Anonymous]Rand Paul is such a liar. Velocity of money (M2) is at historical lows because business/capital owners and corporations are hoarding their money. We need more money in the hands of every family with an HHI of $500K.

Why? Because they spend it. Unlike the wealthy which just inefficiently plow it into pushing up the prices of existing assets.

Fix this graph, and you fix America:
https://fred.stlouisfed.org/series/M2V[/quote]

Nope. M2 is low because has been printing for so long, that they've made money very easy. It's like a drug. The more you take, the less effect it has. So now the Fed has had money rushing into the system by every form possible. TANF, TALF, QE 1,2,3, Maiden Lane and a dozen other programs. In other words, easy money.

Meanwhile, they lie about inflation, because the government doesn't want to increase the COLAs for the entitlements. But, when everyone is screaming we need a higher minimum wage all of sudden, you know damn well there's inflation whether Uncle Sham wants to admit it or not. Just look at the packaging sizes of consumer products and food.

Now, back to Velocity of Money. When you make money so easy by printing and printing like the fed has, prices on bigger items like houses and cars and education rises. That locks out a lot of the people on the lower end, so the velocity of money stops because they aren't buying. See what happens when the govt gets too involved in economics and central planning of the economy?

If prices are allowed to go where they have to without massive manipulation like the federal reserve and treasury and Washington DC are doing, then velocity of money naturally rises. The masterminds and overlords in DC are screwing us with price supports, artificial inducements and subsidies and unrealistic pricing caused by bad political policy.[/quote]

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