[Fishtalk]

Have y’all heard about the big coin shortage?

Man I got enough coins in my house to replenish the entire country.

Week after next I hear we’re going to run outta food.

[Bernard]

The coin shortage comes from people not using their coins. M1 is the actual supply of currency or coins. So if you have $1.00 in coins in your pocket your M1 is $1.00 and the velocity is zero.

Now, if I perform a service or sell you a product for $1.00 and you hand me the $1.00 and then I hand Rodguy that $1.00 for a good or service, and Rodguy hands that $1.00 to Alas for a good or service, the velocity is 4 and nobody sees a coin shortage.

If you don't spend that $1.00 in coins, then everybody in the chain sees a coin shortage.

If you send me your coins, I promise I will do my part to reduce the perceived coin shortage.