/biz/ - Business & Finance

>>53955963

>money velocity dropped

Velocity is a dependent variable downstream of price metrics which are purposely understated. IOW: if you print, and then underreport resulting inflation (mainly assets and debt-financed purchases) of course it looks like velocity collapses. In reality, you have no way to know what velocity actually is, you just have a number from government propagandists.

>Oil sparked a large amount of the inflation we saw last year.

No, oil simply adjusted to money printing and stabilized after the brief demand collapse of covid. System seeking equilibrium. No big oil glut or shortage. Not yet, at least.

>>53846800

It moves with M2, but also on shortage. Fortunately it's easy enough to filter out the M2 and see shortage periods.

I see reasons we could have a shortage but so far we aren't, and zero reason to be bullish on M2 growth in the near term.

>>53846795

It's not stupid, it's very deliberate deception to trick voters into thinking they can unleash a magical money fountain, and with no consequences. Many of the MMT advocates are very clever socialist zealots who know exactly what they're doing.