[Uncle Miltie]

If I recall my econ correctly (30 year old memory here...)

M*V = P*Q

M = Money Supply
V = Velocity of Money (Re-use of the same dollar by many people through the banking system)
P = Price Level (An increasing one is “Inflation”)
Q = Quantity of Goods

So, it is entirely possible that the printing of money (+M) is completely offset by the reduction in the velocity of money(V-) because banks won’t lend.

That’s my theory. If banks actually started to lend at historic rates, inflation would ramp to unheard of levels.

But what bank is going to be willing to lend for a house? What person can qualify for a loan to buy a house? What business is willing to take risks so that they ask a bank for a loan? So, money stays on the sidelines, waiting for a better economic policy environment.

0bamanomics is killing us, but keeping inflation under control by disallowing growth.

[Moonman62]

0bamanomics is killing us, but keeping inflation under control by disallowing growth.

But growth in Q by the equation M*V = P*Q would lower inflation.

[MrB]

Indeed, money has to MOVE in order for there to be across the board inflation.

However, food prices are going up, package sizes getting smaller, etc.

Time to “grow your own”.

[Wyatt's Torch]

From the article: “It would seem that the inflationary and Keynesian policies followed by the US, Europe, China, and Japan have resulted in an economic and financial environment where bankers are afraid to lend, entrepreneurs are afraid to invest, and where everyone is afraid of the currencies with which they are forced to endure.”

[uncommonsense]

"So, it is entirely possible that the printing of money (+M) is completely offset by the reduction in the velocity of money(V-) because banks won’t lend."

Ding, ding, ding... winner

Banks and private companies are sitting on piles of cash, and the velocity of gov spending is process constrained (> 1.0).

Also, the corrupt gov institutions change metrics to keep their gravy train chugging along. Employment, inflation, debt/unfunded obligations, student test scores - you name it...

[Neidermeyer]

printing of money (+M) is completely offset by the reduction in the velocity of money(V-)
********************************************
Velocity has been negative (under 1.0) for 3+ years ,, what gets printed goes into the black hole of bailing out the banksters bad bets and failed PONZI scheme that is the housing crash...

[Pelham]

Low velocity is what I am thinking as well.