This chart taken from Gary Shilling's insight shows why CenBank stimuli has little effect on economy: money velocity, ratio of GDP to M2 money supply, which reflects how rapidly money is spent & re-spent, has collapsed. #Fed has learned about its limited ability to spur activity. pic.twitter.com/RANqnxjhf3
— Holger Zschaepitz (@Schuldensuehner) September 7, 2020
If you thought the velocity of money in the US was low (1.10), check out Japan were the velocity of money has dropped to 0.4. Only part of the money created is flowing around. pic.twitter.com/ObA0p0UTBP
— jeroen blokland (@jsblokland) September 7, 2020
Peak rebound.
The recovery stalls. pic.twitter.com/44mMEHqtYo
— Daniel Lacalle (@dlacalle_IA) September 7, 2020
US banks signal mounting concern over real estate lending https://t.co/Zzg2yJlLno via @financialtimes
— @AcrossTheCurve (@acrossthecurve) September 7, 2020