What are your thoughts? Housing going UP or DOWN?

[Rich Toscano]

[quote=Nor-LA-SD-guy]Unless they start sending everybody checks, they don’t seem to have a way to get the money into circulation, without circulation, is the money supply really being increased?[/quote]

Personal incomes have risen, and the amount of money in circulation has increased, per the two graphs I posted in earlier comments… so I don’t understand the question.

[Rich Toscano]

Arraya’s chart of the liquidity trap is a good illustration of monetary velocity (or demand for cash balances if you are utilizing the Austrian framework). There’s no question that it is relevant, and that velocity is low/demand for cash balances is high — this is a key factor in helping to keep consumer price levels from rising.

Velocity is also a topic I covered in my article so I won’t rehash it here… but just to clarify so that things don’t become further confused, the discussion up til now has been about the amount of money in the economy. The amount of money is an important concept, and the velocity at which it is spent is also important — but they are two different topics. (Arraya I am not saying that you are conflating the topics, I just want to clarify the distinction in the attempts to keep the waters from getting even more muddied).

[Rich Toscano]

Arraya’s chart of the liquidity trap is a good illustration of monetary velocity (or demand for cash balances if you are utilizing the Austrian framework). There’s no question that it is relevant, and that velocity is low/demand for cash balances is high — this is a key factor in helping to keep consumer price levels from rising.

Velocity is also a topic I covered in my article so I won’t rehash it here… but just to clarify so that things don’t become further confused, the discussion up til now has been about the amount of money in the economy. The amount of money is an important concept, and the velocity at which it is spent is also important — but they are two different topics. (Arraya I am not saying that you are conflating the topics, I just want to clarify the distinction in the attempts to keep the waters from getting even more muddied).

[Rich Toscano]

Arraya’s chart of the liquidity trap is a good illustration of monetary velocity (or demand for cash balances if you are utilizing the Austrian framework). There’s no question that it is relevant, and that velocity is low/demand for cash balances is high — this is a key factor in helping to keep consumer price levels from rising.

Velocity is also a topic I covered in my article so I won’t rehash it here… but just to clarify so that things don’t become further confused, the discussion up til now has been about the amount of money in the economy. The amount of money is an important concept, and the velocity at which it is spent is also important — but they are two different topics. (Arraya I am not saying that you are conflating the topics, I just want to clarify the distinction in the attempts to keep the waters from getting even more muddied).

[Rich Toscano]

Arraya’s chart of the liquidity trap is a good illustration of monetary velocity (or demand for cash balances if you are utilizing the Austrian framework). There’s no question that it is relevant, and that velocity is low/demand for cash balances is high — this is a key factor in helping to keep consumer price levels from rising.

Velocity is also a topic I covered in my article so I won’t rehash it here… but just to clarify so that things don’t become further confused, the discussion up til now has been about the amount of money in the economy. The amount of money is an important concept, and the velocity at which it is spent is also important — but they are two different topics. (Arraya I am not saying that you are conflating the topics, I just want to clarify the distinction in the attempts to keep the waters from getting even more muddied).

[Rich Toscano]

Arraya’s chart of the liquidity trap is a good illustration of monetary velocity (or demand for cash balances if you are utilizing the Austrian framework). There’s no question that it is relevant, and that velocity is low/demand for cash balances is high — this is a key factor in helping to keep consumer price levels from rising.

Velocity is also a topic I covered in my article so I won’t rehash it here… but just to clarify so that things don’t become further confused, the discussion up til now has been about the amount of money in the economy. The amount of money is an important concept, and the velocity at which it is spent is also important — but they are two different topics. (Arraya I am not saying that you are conflating the topics, I just want to clarify the distinction in the attempts to keep the waters from getting even more muddied).

[jpinpb]

Arraya, I don’t know where you got that from, but a picture is worth a thousand words. Thanks. Looks like whenever the money at rest gets circulated, it’ll be a doozy.

I guess the thing is not the amount of money actually in the economy, but the amount of money circulated and spent (velocity?) and the ease in which that process happens by whatever means.

[jpinpb]

Arraya, I don’t know where you got that from, but a picture is worth a thousand words. Thanks. Looks like whenever the money at rest gets circulated, it’ll be a doozy.

I guess the thing is not the amount of money actually in the economy, but the amount of money circulated and spent (velocity?) and the ease in which that process happens by whatever means.

[jpinpb]

Arraya, I don’t know where you got that from, but a picture is worth a thousand words. Thanks. Looks like whenever the money at rest gets circulated, it’ll be a doozy.

I guess the thing is not the amount of money actually in the economy, but the amount of money circulated and spent (velocity?) and the ease in which that process happens by whatever means.

[jpinpb]

Arraya, I don’t know where you got that from, but a picture is worth a thousand words. Thanks. Looks like whenever the money at rest gets circulated, it’ll be a doozy.

I guess the thing is not the amount of money actually in the economy, but the amount of money circulated and spent (velocity?) and the ease in which that process happens by whatever means.

[jpinpb]

Arraya, I don’t know where you got that from, but a picture is worth a thousand words. Thanks. Looks like whenever the money at rest gets circulated, it’ll be a doozy.

I guess the thing is not the amount of money actually in the economy, but the amount of money circulated and spent (velocity?) and the ease in which that process happens by whatever means.

[scaredyclassic]

I guess i just don’t get it. if the country were a casino, money would be the house chips. you can keep making chips, lots and lots of chips, and it doesn’t change the value of the cars, houses, businesses, stocks, etc. it’s all worth what it’s worth. but if you make a lot more chips, those chips are gonna get played somewhere…i really hope somehow I can figure out how to get in the way of all this money.

[scaredyclassic]

I guess i just don’t get it. if the country were a casino, money would be the house chips. you can keep making chips, lots and lots of chips, and it doesn’t change the value of the cars, houses, businesses, stocks, etc. it’s all worth what it’s worth. but if you make a lot more chips, those chips are gonna get played somewhere…i really hope somehow I can figure out how to get in the way of all this money.

[scaredyclassic]

I guess i just don’t get it. if the country were a casino, money would be the house chips. you can keep making chips, lots and lots of chips, and it doesn’t change the value of the cars, houses, businesses, stocks, etc. it’s all worth what it’s worth. but if you make a lot more chips, those chips are gonna get played somewhere…i really hope somehow I can figure out how to get in the way of all this money.

[scaredyclassic]

I guess i just don’t get it. if the country were a casino, money would be the house chips. you can keep making chips, lots and lots of chips, and it doesn’t change the value of the cars, houses, businesses, stocks, etc. it’s all worth what it’s worth. but if you make a lot more chips, those chips are gonna get played somewhere…i really hope somehow I can figure out how to get in the way of all this money.

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