Velocity of money signaling economic depression
M2 money velocity is considered the pulse of an economy. This metric refers to the number of times a unit of currency changes hands between people and businesses.
As you can see, the velocity of money has been nosediving for decades. This is the story of the real economy, not the financially engineered stock market.
Notice that as interest rates began to normalize, the velocity of money saw some relief in its drastic fall. There's no doubt it will continue falling as interest rates move lower once again.
As you can see, the velocity of money has been nosediving for decades. This is the story of the real economy, not the financially engineered stock market.
Notice that as interest rates began to normalize, the velocity of money saw some relief in its drastic fall. There's no doubt it will continue falling as interest rates move lower once again.