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To: central_va
You are completely ignoring the role of MONEY VELOCITY in our economy.

Go back to the example of the butcher and the baker. If the butcher buys $1 worth of bread from the baker buys $1 worth of meat from the butcher, then you have $2 of GDP for $1 of money supply. If the butcher buys $1 worth of bread but the baker sticks that money in his mattress, then you only have $1 of GDP for the same $1 of money supply. Adding $4 to the system does nothing to support growth unless the baker starts buying meat from the butcher. It just makes the $1 loaf of bread cost $5.

101 posted on 12/28/2018 6:04:16 AM PST by Alberta's Child ("I'm a cool dude in a loose mood! Hey -- two ginger ales for my girls!")
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To: Alberta's Child
Adding $4 to the system does nothing to support growth unless the baker starts buying meat from the butcher. It just makes the $1 loaf of bread cost $5.

The baker goes out to buy a new American made truck and gets his house painted by Americans because the economy is good and psychology and politics play a huge role in confidence.

103 posted on 12/28/2018 6:12:34 AM PST by central_va (I won't be reconstructed and I do not give a damn)
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