Monday, November 17, 2014

Velocity of Money

StockTiming.com
by Marty Chenard

Stagnant Money?
Food for thought:  The Central Banks are creating imbalances that are a growing problem.   Along with this, the G20 approved a 2 Trillion dollar five year plan to try and reverse their economic weakness.  If these countries are in such a weak economic situation, how do you think they will get the 2 trillion dollars they are talking about?
 
Below is the St. Louis Fed's chart on the Velocity of Money.   Money is not turning over so economic weakness is still a problem.   With all the QE money pumped in, you would think that some improvement would show up.  How is stagnant money supposed to help an economy expand?





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