Money velocity is the movement of money around the economy and it can exist alongside debt. But as it collapsed you see debt continue parabolic.
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See also What banks need is a recession and lower interest rates ASAP. Because they can’t make money borrowing at a Fed rate of 5% against a bond portfolio yielding 2%. But, rates won't come down until banks implode
It means to me that wages and savings are gone long before the average person Borrows the difference