An Important Economic Indicator – Money Velocity – Crashes Far Worse than During the Great Depression
WashingtonsBlog.com
June 5, 2015
Underneath the Propaganda, the Economy Is In BAD Shape …
We noted 3 years ago that the velocity of money – an important economic indicator – is lower than during the Great Depression.
Things have gotten even worse since since then …
By way of background, the velocity of money is the rate at which people spend money.
In other words, it’s the speed at which a dollar moves from one person to the next through the economy.
The Federal Reserve Bank of St. Louis explains:
The velocity of money can be calculated as the ratio of nominal gross domestic product (GDP) to the money supply … which can be used to gauge the economy’s strength or people’s willingness to spend money. When there are more transactions being made throughout the economy, velocity increases, and the economy is likely to expand. The opposite is also true: Money velocity decreases when fewer transactions are being made; therefore the economy is likely to shrink.
The Rest…HERE
