Folks I have been posting about the velocity of money here for a long time. I have been warning you that money printing didn't seems to matter until it did (and then boy would it). I have been telling you to watch the wave count in velocity of money.
Well, velocity of M2 is now definitely in the final stages and we will likely get a rapid bottom and then rapid reversal which changes this multidecade trend from falling to rising. As I have said before, this is zero bound. Wave red 5 is now about the same length as red 1. This is the end game. The fed is about to fail badly at one of its stated goals which is price stability. When the velocity of money turns back up, rising prices will be the result. We will finally come to understand that yes, debasement of the current will eventually catch up to you no matter who you are.
Sunday, August 2, 2020
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