Sunday, June 18, 2017

MZM Velocity

This is an amazing chart.  The velocity of money has been in a major downtrend since the US government created the 401k system.  Everyone has pushed their savings into the Ponzi stock market hoping to eventually take back out of the system more than they input without having done any work to justify it.

At some point the market participants will want their savings back out of the system and I suspect that it will be the turning point for VOM.  Money that was tied up will be pushed back into the economy at the same time that the dollar's status as global reserve currency is being challenged.

Long term savings cannot be done using Ponzi markets because as soon as you need the associated spending power you can expect the value to collapse.  The smart long term way to save for retirement is in gold and silver bullion coins.  Let's watch for a breakout at the circle.

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