DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - outstanding interview w/ mike maloney on banking, money and taxes!

**JeorgeNoxeref** · 10-27-2011, 12:22 AM

Bigjon

The two economic illustrations you posted crack me up, simply because you can’t be serious. If we’re talking about the velocity of money, there are three generalities that we should be able to agree upon. The velocity of money must be constant, increasing or decreasing.

If total money in circulation (MZM) is decreasing, it’s a very easy guess what will happen to the velocity of money, and when the MZM is increasing, so will its velocity. A hurricane or holiday shopping will throw a little blip into the works, but it will all even out over a longer period of time depending on MZM.

I’ll make a long story short, by using another analogy, people can run around as fast as they want, but in the game of musical chairs, every time the music stops, there is still one less chair.

If that didn’t work, try this, MZM is an orange. The velocity of money is an apple. MZM does not increase with velocity.

All I'm trying to convey is that money can be spent multiple times.

Actually velocity only increases when people lose their faith in the money and seek to get rid of it as fast as they can.

10-27-2011, 12:22 AM	#4
JeorgeNoxeref Join Date Nov 2005 Posts 369 Senior Member	Bigjon The two economic illustrations you posted crack me up, simply because you can’t be serious. If we’re talking about the velocity of money, there are three generalities that we should be able to agree upon. The velocity of money must be constant, increasing or decreasing. If total money in circulation (MZM) is decreasing, it’s a very easy guess what will happen to the velocity of money, and when the MZM is increasing, so will its velocity. A hurricane or holiday shopping will throw a little blip into the works, but it will all even out over a longer period of time depending on MZM. I’ll make a long story short, by using another analogy, people can run around as fast as they want, but in the game of musical chairs, every time the music stops, there is still one less chair. If that didn’t work, try this, MZM is an orange. The velocity of money is an apple. MZM does not increase with velocity. All I'm trying to convey is that money can be spent multiple times. Actually velocity only increases when people lose their faith in the money and seek to get rid of it as fast as they can.
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