Aman A.K.A. Ahamburger
Senior Associate
Viva La Revolucion!
Joined: Dec 20, 2010 22:22:04 GMT -5
Posts: 12,758
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Post by Aman A.K.A. Ahamburger on Aug 7, 2014 12:51:12 GMT -5
Totally misses this in your flurry of posts the other day. Does feeling sorry for them count?
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damnotagain
Well-Known Member
Joined: Oct 19, 2012 21:18:44 GMT -5
Posts: 1,211
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Post by damnotagain on Aug 7, 2014 14:22:45 GMT -5
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phartmoore1
New Member
Joined: Jun 26, 2013 13:09:08 GMT -5
Posts: 43
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Post by phartmoore1 on Sept 8, 2014 16:35:23 GMT -5
Could someone explain to me, why is the Dollar, gaining so much strength against other currencies? And how does this effect the stock market?
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damnotagain
Well-Known Member
Joined: Oct 19, 2012 21:18:44 GMT -5
Posts: 1,211
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Post by damnotagain on Oct 13, 2014 15:04:50 GMT -5
Velocity revised up .001 GDP should sky rocket.
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flow5
Well-Known Member
Joined: Dec 20, 2010 21:18:02 GMT -5
Posts: 1,778
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Post by flow5 on Oct 17, 2014 16:08:52 GMT -5
I went thru this exercise n 79. I took demand deposit turnover and multiplied it by M1, then by M1 less currency (currency couldn't have the same turnover rate), then just used bank debits. This isolated "saved" demand deposits.
Today we have income velocity declining because of several different factors: unlimited transaction deposit insurance, historically low rates of returns, higher capital adequacy requirements, higher LCRs for TBTF banks, the promotion of zero-risk weighted (i.e., un-capitalized), bank investments, etc.
Money is the measure of liquidity (bank debits). RR's are driven by bank debits. The relationship between M1 and gDp isn't valid. If money velocity was a constant it wouldn't matter. No money stock figure standing alone is adequate as a guide post for monetary policy. Roc's in MVt = roc's in gDp.
Escape velocity is where the NBs start growing faster than the CBs. Dissect the Z.1 release, old flow of funds, or financial accounts of the U.S. This will demonstrate the economies' true strength.
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