Thursday, October 1, 2009

SOS Velocity



Momentum = MV = mass x velocity Money Supply = money pump in the banks (but banks are hoarding cash and dare not lend) x velocity (so there are not much movements or circulations of the new credit to the consumers, who are not spending as well, saving rates has increased)

The inflationists called that money printing and will cause hyperinflation.

The deflationists said the impact on money printing can hardly compared with the credit or debt deleveraging (Private debt is about USD45 trillion), the impact at very best, create a bit of mania.

MyView

As what Max Keiser said, it does not really matter what you call it, a black cat or a white cat, show us your portfolio performance year on year since 2008, which will speak louder than any call.

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