Velocity Of Money

[Aman A.K.A. Ahamburger]

Jul 30, 2014 12:52:03 GMT -5 usaone said:

4% GDP

Ya man. They still aren't accounting for the ACA yet I would imagine, and that sucked 3% from Q1 GDP. The interesting part about that was the reduction came from decreased healthcare spending, which means what?

[frankq]

Now all we've got to do is wait for the markets to get used to a normal interest rate environment and things can settle back in. No matter what, it looks like the U.S. is the best bet around the world for the forseeable future.

[Aman A.K.A. Ahamburger]

Without a doubt q. North America(aside from the Canadian housing market) is the best place to count on. I see you noticed that gold hates the talk of higher rates as well.

The thing I love about these death to America propaganda spreaders -aside from how they are obviously brain washed and don't even see it- is how they continually find new ways to spin it.

Just 5 more years, it's gonna happen. Disregard all the amazingly difficult situations the USA has made it through that make current problems seems like a cake walk. Just five more years. Disregard the coming Chinese depression, the killer viruses spreading all through Africa and Asia, the war that will take 200-300 million Chinese soldiers to win. JUST FIVE MORE YEARS!! The collapse of America is coming. It's gonna happen. Even though we -the brain washed propaganda artists- are continually wrong about economic trends. The collapse of America is GONNA HAPPEN! Just five more years!!

As the would say, HA HA HA HA...

[damnotagain]

When you can't argue the facts you resort to name calling ! Now you say I hate my country. It is just the opposite . Let's stick with the topic. Do you dispute the facts presented since the topic is money velocity.

Money velocity is dropping ?

They must use different math to get to the velocity of money? Oops GDP revised up and money velocity revised down?


2014:Q2: 1.531
2014:Q1: 1.534
2013:Q4: 1.563
2013:Q3: 1.569
2013:Q2: 1.568

research.stlouisfed.org/fred2/series/M2V

The only thing up is the number of illegal aliens coming across the boarder .

[Aman A.K.A. Ahamburger]

I'm not calling you names, I'm stating a fact that some around her are consistently spreading death to America propaganda without even realizing it. That is the definition of brain washed.

I already answered you on the last two pages, and I directly answered your last question already. Here, the response once again.

Jul 30, 2014 22:56:26 GMT -5 Aman A.K.A. Ahamburger said:

I will repost the OP for you damnot, minus the comments on personal finance so the conversation stays on point. As an aside, the GDP revision going back to 1999 has to do with how they are calculating sectors like movies.

Apr 6, 2014 9:27:10 GMT -5 Aman A.K.A. Ahamburger said:

Since you seem to be missing how velocity works damnnot, jar, or whoever you are, I will start a new thread on it.

From investopedia...

Definition of 'Velocity Of Money'

The rate at which money is exchanged from one transaction to another, and how much a unit of currency is used in a given period of time. Velocity of money is usually measured as a ratio of GNP to a country's total supply of money.

Velocity is important for measuring the rate at which money in circulation is used for purchasing goods and services. This helps investors gauge how robust the economy is, and is a key input in the determination of an economy's inflation calculation. Economies that exhibit a higher velocity of money relative to others tend to be further along in the business cycle and should have a higher rate of inflation, all things held constant....

Definition of 'Multiplier Effect'

The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends on the percentage of deposits that banks are required to hold as reserves. In other words, it is money used to create more money and is calculated by dividing total bank deposits by the reserve requirement.
Investopedia explains 'Multiplier Effect'

The multiplier effect depends on the set reserve requirement. So, to calculate the impact of the multiplier effect on the money supply, we start with the amount banks initially take in through deposits and divide this by the reserve ratio. If, for example, the reserve requirement is 20%, for every $100 a customer deposits into a bank, $20 must be kept in reserve. However, the remaining $80 can be loaned out to other bank customers. This $80 is then deposited by these customers into another bank, which in turn must also keep 20%, or $16, in reserve but can lend out the remaining $64. This cycle continues - as more people deposit money and more banks continue lending it - until finally the $100 initially deposited creates a total of $500 ($100 / 0.2) in deposits. This creation of deposits is the multiplier effect.

The higher the reserve requirement, the tighter the money supply, which results in a lower multiplier effect for every dollar deposited. The lower the reserve requirement, the larger the money supply, which means more money is being created for every dollar deposited.....

So, in laymen's terms....

The banks aren't lending and lots of houses that are being bought, are cash deals on FORECLOSURES. The velocity isn't picking up because the money supply is growing very fast, and the economy is growing very slow. This is again because of too much debt and not enough savings.. The irony in this topic is that you doomers where crying hyperinflation a couple years back, and the velocity of money says,THERE IS NO INFLATION!!!

Do you understand damnnot?

[damnotagain]

Thanks for clearing that up? So now that we both agree, according to the federal reserve, that the velocity of money is at lows not seen since 1950. 
We can then assume ! 

Low velocity = no growth 

[Aman A.K.A. Ahamburger]

Hahaha.. We aren't in agreement. Economic growth has been slow and steady since bottoming out in Q1 2009. What you have demonstrated, but just don't get, is that velocity peeked in 1999 and has had no correlation with GDP growth since then because of the debt in the banking system thanks to "financial products". What you still seem to not get -at all- is that velocity is more of a gauge for inflation than GDP.

Again, the snapback in growth when velocity was going down is the final nail in the coffin. Keep grasping at straws, spreading death to America propaganda, and buy that gold!

www.statista.com/statistics/188185/percent-chance-from-preceding-period-in-real-gdp-in-the-us/

[damnotagain]

 By "Financial product".. You mean derivatives and the gambling with mortgage backed security's?

So your take on lower oil prices in this " recovering economy " and no growth ?

[Aman A.K.A. Ahamburger]

Yes, those are the "products" I'm talking about. That, and how home equity loans were all the rage among consumers and how a large portion of the boomer generation decided to spend, on credit, and not save enough for retirement.

Price of oil? You mean how it's about 2.5 times the price it was in 2009?

Or, are you talking about how because oil and gas production has been a large part of the foundation of this recovery that all this mid east turmoil hasn't caused but a blip in prices so far?

Or do you mean that over the last month its taken a beating because the dollar is getting stronger on the speculation that benchmark rates are going to go up?

Is that what you mean? Or are you talking about the taper and how we are finally seeing wage pressure and true inflationary trends starting to build, essentially solidifying the recovery that some of you think is fabricated?

Oh, maybe you are talking about how Chinese property is taking a beating and what is truly going on behind the curtain right now is positioning for a global conflict and the Chinese depression which will destroy the price of commodities over the short term along with any inflationary pressures that have built along those lines?

[damnotagain]

Lol, I just like hearing you talk! Your almost as windy as q.

[damnotagain]

Money velocity ! According to the federal reserve is dropping. 

According to you it's not!

[Aman A.K.A. Ahamburger]

What's that you say, you've got nothing? As usual, thanks for trying!

[damnotagain]

4% GDP ! Now that is funny.

[Aman A.K.A. Ahamburger]

Awe, what's a matter? Upset because you don't know jack? Oh I know, the -2.1% number was real an the positive number from this quarter(whatever it ends up being) is fake, because in your end of America fantasy world the only thing that is real is "the end".

As I've sias before, the final nail is in the coffin on this argument. Have fun talking to yourself from here on in because I'm not going to be feeding you, the self proclaimed troll, anymore.

[damnotagain]

They changed accounting methods on the 31st of July 2014 for GDP calculations! The negative 2.9 was real bro. You you live on fantasy island!

[mmhmm]

Gentlemen, please! If you can't disagree civilly, ignore each other.  Damnot, I'm removing that last post for name-calling. You accused someone of calling you names. I couldn't find that, but I sure saw you do it. Now, cut it out. Both of you!

mmhmm, Administrator

[damnotagain]

Dip shit ! Is not all that bad mmhmm!

[Aman A.K.A. Ahamburger]

Aug 1, 2014 22:29:33 GMT -5 mmhmm said:

Gentlemen, please! If you can't disagree civilly, ignore each other.  Damnot, I'm removing that last post for name-calling. You accused someone of calling you names. I couldn't find that, but I sure saw you do it. Now, cut it out. Both of you!

mmhmm, Administrator

Ignoring is exactly what I'm going to do with the self proclaimed troll, mmhmm. This entire thread is about how there can be a recovery and GDP growth without velocity of money growth.

Bruce clearly outlined -with math- how there is no correlation between GDP and velocity on the first page. I've tried to be patient and explain it for about two pages now. However, as you can see, he's clearly confused about the topic or he's mad because has been proven wrong. Either way, the spiral into name calling and baiting proves the final nail is in the coffin on the topic.

Thanks for your time mmhmm.

[mmhmm]

Aug 1, 2014 22:52:39 GMT -5 damnotagain said:

Dip shit ! Is not all that bad mmhmm!

It's bad enough not to be acceptable, damnot. Do not name-call.

mmhmm, Administrator

[mmhmm]

Aug 3, 2014 1:07:03 GMT -5 Aman A.K.A. Ahamburger said:

Aug 1, 2014 22:29:33 GMT -5 mmhmm said:

Gentlemen, please! If you can't disagree civilly, ignore each other.  Damnot, I'm removing that last post for name-calling. You accused someone of calling you names. I couldn't find that, but I sure saw you do it. Now, cut it out. Both of you!

mmhmm, Administrator

Ignoring is exactly what I'm going to do with the self proclaimed troll, mmhmm. This entire thread is about how there can be a recovery and GDP growth without velocity of money growth.

Bruce clearly outlined -with math- how there is no correlation between GDP and velocity on the first page. I've tried to be patient and explain it for about two pages now. However, as you can see, he's clearly confused about the topic or he's mad because has been proven wrong. Either way, the spiral into name calling and baiting proves the final nail is in the coffin on the topic.

Thanks for your time mmhmm.

Aham, don't call another poster a troll. Because someone doesn't agree with you doesn't mean they're confused, or mad, or wrong. It just means they don't agree with you. Do as you plan and ignore him if you two can't get along.

mmhmm, Administrator

[Aman A.K.A. Ahamburger]

mmhmm, this is a mathematical situation, so yes in this case there is a right and wrong answer. As Bruce already showed on the first page with his math.

As far as me calling him a troll, read reply #69. He is clearly admitting that he is baiting q and myself, which is what a board troll does. Aka, he called himself a troll.

[mmhmm]

Aug 3, 2014 11:06:22 GMT -5 Aman A.K.A. Ahamburger said:

mmhmm, this is a mathematical situation, so yes in this case there is a right and wrong answer. As Bruce already showed on the first page with his math.

As far as me calling him a troll, read reply #69. He is clearly admitting that he is baiting q and myself, which is what a board troll does. Aka, he called himself a troll.

Nevertheless, Aham, I've asked that the name-calling stop and that's what I expect to see - from both of you.

mmhmm, Administrator

[frankq]

Aug 1, 2014 0:19:05 GMT -5 Aman A.K.A. Ahamburger said:

Without a doubt q. North America(aside from the Canadian housing market) is the best place to count on. I see you noticed that gold hates the talk of higher rates as well.

The thing I love about these death to America propaganda spreaders -aside from how they are obviously brain washed and don't even see it- is how they continually find new ways to spin it.

Just 5 more years, it's gonna happen. Disregard all the amazingly difficult situations the USA has made it through that make current problems seems like a cake walk. Just five more years. Disregard the coming Chinese depression, the killer viruses spreading all through Africa and Asia, the war that will take 200-300 million Chinese soldiers to win. JUST FIVE MORE YEARS!! The collapse of America is coming. It's gonna happen. Even though we -the brain washed propaganda artists- are continually wrong about economic trends. The collapse of America is GONNA HAPPEN! Just five more years!!

As the would say, HA HA HA HA...

Agreed.

[frankq]

Aug 1, 2014 15:38:44 GMT -5 damnotagain said:

Lol, I just like hearing you talk! Your almost as windy as q.

I thought you didn't want to talk about me anymore Please stop.

[jarrett1]

HAAAAAA HAAAAAA  HAAAAAA  HAAAAAA
This is some pathetic shit...why do youz guyz persist with this on going waste...you know what your doing and will NEVER convince the technically challenged that they no not what they do!!!

[damnotagain]

Money velocity down! 

[frankq]

Aug 3, 2014 15:17:25 GMT -5 jarrett1 said:

HAAAAAA HAAAAAA  HAAAAAA  HAAAAAA
This is some pathetic shit...why do youz guyz persist with this on going waste...you know what your doing and will NEVER convince the technically challenged that they no not what they do!!!

HAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[jarrett1]

YES..and er hmmmm...GOLD  DOWN...again!!!!

[frankq]

HHHHHHHHHHHHHHHHHHHHHHHAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[jarrett1]

FrankieBoy... !!!YOU KILL ME!!!