What if the current definition of Velocity of Money is wrong? https://www.thebalance.com/velocity-o...
Richard Duncan and David McAlvany argue that a new Velocity of Money definition should include credit growth, which has exploded since 1968!
Between 1968 and 2017, the US Monetary Base expanded 53 times, from $66 billion to $3.5 trillion; while total Credit in the United States surged 48 times, from $1.4 trillion to $68 trillion.
The combined Monetary Base of the 20 largest countries increased 23 times between 1985 and 2017, from $800 billion to $18.4 trillion. And, nearly everywhere the ratio of total credit to GDP moved very sharply higher as credit growth outstripped economic growth.
The combined Monetary Base of the 20 largest countries increased 23 times between 1985 and 2017, from $800 billion to $18.4 trillion. And, nearly everywhere the ratio of total credit to GDP moved very sharply higher as credit growth outstripped economic growth.
A Concise History Of Creditism https://richardduncaneconomics.com/a-...
McAlvany Weekly Commentary from Sept 29, 2020 talking about velocity of money: Will Covid Be The Excuse For A Cashless Society? https://mcalvanyweeklycommentary.com/...
According to Richard Duncan of Macro Watch, capitalism died decades ago and has been replaced by a system based entirely on credit, which he calls creditism. Since beginning his career as an equities analyst in Hong Kong in 1986, Richard has served as global head of investment strategy at ABN AMRO Asset Management in London, worked as a financial sector specialist for the World Bank in Washington D.C., and headed equity research departments for James Capel Securities and Salomon Brothers in Bangkok. He also worked as a consultant for the IMF in Thailand during the Asia Crisis.
Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason's work at his blog website at www.jasonburack.com.