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Showing posts from April, 2013

On the other hand - an Unbalanced Economy - Monetary Policy vs Finance vs Economy

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In order to better understand this example, please note that in the drawing, Money is seen as Water... in his various forms ... In the atmosphere, our air ▼ has the following composition, and, Water has the following ▼... ...So, as presented above and as we all know, water (1 part of Oxygen and 2 parts of Hydrogen) travels throughout the air that we breathe. Because every center in these presented economies, mentioned in the Drawing: 1) ■ Government; 2) Supply side of the economy, ■ producers ■ service providers and ■ manufacturers 3) Demand side of the economy,■ Consumers, both private and public ...are leaking or loosing money towards the world markets, and because these economies are not self sufficient, mainly because they lack sufficient resources to produce the Energy that they need to support their activities, and, because they rely heavily on their imports, in order to provide for a significant part of their...

Monetary Policy influencing commodities and finance, and damaging the economy.

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Who or what is driving these lines!? link to the working paper on Oil vs Gold vs S&P500 A hint: Monetary Policy. These evolution's, doubling and tripling the value in just 4 years, have no economic support and they are damaging the economy As you can see, concerning M2 Nominal Money Velocity vs Central bank Assets, since early 2006, the economic activity associated with M2, has decreased from 2 times units of goods and services per 1 unit of money (M2), to, 1,54 times units of good and services per 1 unit of money (M2). (Velocity of money measures the rate at which money changes hands) The speed and the amounts of which money is being printed, under the form of Quantitative Easing programs and other new means / operations, has no parallel in recent central bank history, as you can see here in this graph with information about the USA M2 Money velocity Historically, Monetary Aggregates haven't grown in this way... this is getting out of con...