Posted on 07/16/2013 2:53:57 PM PDT by whitedog57
Tomorrow, Federal Reserve Chairman Ben Bernanke will testify in the House Financial Services Committee tomorrow.
Certainly, Chairman Bernanke will tout bubbles in the stock market, bond market and he might even discuss a possible housing bubble. But other than bubbles, Congressmen need to ask Mr. Bernanke about the painfully slow real GDP growth and employment recovery.
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
M1 Money Multiplier has also plunged along with the employment to population ratio.
m1multiemppop
So, both the money velocity and money multiplier have disappeared. Now THAT is an impressive trick!
Bernanke with his Disappearing Velocity Machine.
velockillingmahine
Can we try something different?
Establish your short positions now.
God, I hope he doesn’t walk into the meeting with a hoodie and a bag of skittles.
It’s called a metaphor.
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