Jim3013 Wrote:
Aug 22, 2013 8:00 AM
Good article. A decreasing velocity is a a way to hide the true inflation that is being introduced by QE, which is really just the increase in the money and not increase in prices. This inflation will not show up in prices if productivity increases proportionately, or if velocity decreases proportionately. It's not hard to figure out which is the current situation. If velocity ever does tend back toward traditional values with productivity shackled by the endless march of new programs and regulations, just watch how fast prices rise. It won't be pretty.