Posted on 07/15/2013 4:44:16 PM PDT by whitedog57
Both Goldman Sachs and JP Morgan Chase have lowered Q2 Real GDP growth to 1%. Retail sales, although in Q3, were disappointing in today’s release.
usretail071513
Tepid GDP growth and rising adjusted monetary base is not a great combination.
moneyrelgdp
As a consequence, M2 Money Velocity has plunged.
m2velocbernake
Of course, M2 Money Velocity is correlated with dwindling labor force participation.
m2velpart
The change in the M1 Money Multiplier is not so clear.
m1multi
And as I have discussed before, the rise in M1 Money Supply and the collapse of the Money Multiplier did not go unnoticed.
m1multiexcess
But both money velocity and multiplier have disappeared. Now THAT is an impressive trick!
Bernanke with his Disappearing Velocity Machine.
velockillingmahine
And Bernanke with other Fed Board of Governors.
The-Incredible-Burt-Wonderstone
Bfl
“Bernanke is an idiot!”
Another George W. Bush gift that keeps on giving!
The way I read the top chart is that the velocity of money has really crashed under Obama.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.