.
Federal Reserve Chairwoman Janet Yellen, when asked yesterday about federal reserve monetary policy, was unable to explain why despite month after month, year after year, The Federal Reserve continues to miss it's 2% inflation target.
The fact of the matter is since last December the US dollar has been in A downward trajectory, losing purchasing power virtually week after week.
What Janet Yellen will not speak of is a topic which I bring up almost on a constant basis, and that is the money velocity.
Have a look at the chart below.
.
.
You will notice that the money velocity, that is the rate at which cash is moving to our economy, is near historic lows.
Now, what Janet will not say, although she is well aware of this fact, is if cash is not moving through our economy no matter how hard she tries, no matter how much cash she prints out of thin air, no matter how many digital dollars she wants to introduce into the money supply, without the cash moving through our economy she will not be able to create inflation.
Here is another nice fact for you which Janet Yellen does not want you to know.
In times of economic recession's and stagnation, the money velocity does not move, just like we are seeing now.
Conversely, In times of economic prosperity the cash moves rapidly through the economy and thus money velocity is high.
Despite what we are being told by the mainstream financial outlets, Janet Yellen, and our politicians, the proof is right in front of our face that the US economy is dead in the water, and that is why the money velocity is near an historic low.
The illusion of the stock market reaching record high after record high allows people like Janet Yellen to perpetuate the lie that we are in some type of economic recovery, A complete falsehood. The stock market is hyper-inflated on the back of the largest bubble the world has ever known-the debt bubble, and has nothing to do with economic growth in this fake environment (created by the Federal Reserve's interest rate suppression scheme now going on for nearly a decade....)
Gregory Mannarino
.FRIENDS, LIONS, TIGERS AND BEARS. TAKE ADVANTAGE OF THIS! 100% FREE eBook, Downloads, Chat Room, Commentary, ALL ON MY WEBSITE. Have a look! Click HERE: https://www.traderschoice.net/