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To: Fishtalk
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.

152 posted on 07/12/2020 8:30:08 AM PDT by Bernard (If I knew then what I know now, I probably would not have believed it anyway.)
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To: Bernard

Sorry Bernard I’ve got five quarters and you are not getting them,LOL!!I may buy stock or real estate.....


157 posted on 07/12/2020 8:51:15 AM PDT by rodguy911 (FreeRepublic home of free because of the Brave)
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To: Bernard

Hmmmm....maybe I’ll start tipping the curbside ppl with a baggie full of coins.

Small bills are hard to come by, in our household. We have plenty of coins, though :)


161 posted on 07/12/2020 8:53:08 AM PDT by Jane Long (Praise God, from whom ALL blessings flow.)
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To: Bernard

Wait just a minute, bub.

That last handoff in that velocity was to me.

You don’t need to steal mu moneys!


185 posted on 07/12/2020 9:31:04 AM PDT by Alas Babylon! (The prisons do not fill themselves. Get moving, Barr!)
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