[alloysteel]

Spending our way to prosperity.

Though I doubt if the majority of economists today even understand the concept of “prosperity”. The velocity of money (one of the vital components of its value) has slowed to a pace that is, at its person-to-person rate, to almost the levels of the Great Depression, even though vastly greater numbers of currency units are now in circulation.

[nathanbedford]

Which might well be the explanation for the "black hole" of trillions of dollars and other currencies being shoveled into cyberspace by the world's central bankers without apparent effect, or at least without inflationary effect commensurate with the amount of stimulation.

In other words, without velocity no recovery except in the stock market. But that does not mean that there will not come in terms of inflation a day of reckoning, it merely tells us that it is postponed. Meanwhile, we have the model of Japan which tells us we might be facing decades of stagnation.

Now we know why it is called the dismal science.