1LYhkDWvmE8Xj6c4juhc4ak7mSUDcW186R (271) ·
Keep going my friend. Velocity of money = value
https://twetch.app/t/4746ddf578defcbccf251e0d7eadb44b836441fc98a093fe33df15d2b90268f5
Replies
1Abd9yJS6mrzMmj1Ni6kjQB9GqtyaNujrm (3375) ·
That is false. Value is future production.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
I would typically say Velocity of Money = Inflation Catalyst.
But I also know that’s partly a function of fiat.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
Still, as value is ‘created’ (or ‘destroyed’), it ripples outwardly into the market.
𝙏𝙝𝙚 𝙛𝙪𝙩𝙪𝙧𝙚 𝙞𝙨 𝙖𝙡𝙧𝙚𝙖𝙙𝙮 𝙝𝙚𝙧𝙚, 𝙞𝙩 𝙟𝙪𝙨𝙩 𝙞𝙨𝙣’𝙩 𝙚𝙫𝙚𝙣𝙡𝙮 𝙙𝙞𝙨𝙩𝙧𝙞𝙗𝙪𝙩𝙚𝙙.
The decentralization of money supply will shift that flow.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
It will not remove the capacity for Inflation Wave Riders to exploit shifts in the Market.
But, it will unhinge the #Genesis of those shifts from concentrating around the spigot, where Delayed-Released Inflation is born, empowering Trickle Down Grifters.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
Future leverage is often cataclysmic to a system over many iterations, especially from a normalized predictability perspective, which is what underpins the current value.
The more volatile over a longer period, the less valuable it should be today, yet..
1Abd9yJS6mrzMmj1Ni6kjQB9GqtyaNujrm (3375) ·
You're just not valuing money correctly if you buy more when the velocity goes up. The correct reason to buy more is more future production.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
There’s levels to it, methinks.
For instance, when the Fed prints money, velocity is inevitably going to rise.
Banks ‘buy’ that money fast (tacking-on velocity + inflation), then turn around and leverage it (vi++) by loaning it, (vi++), etc etc.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
This is why payday lending is a huge scam, and a terrible idea.
But buying at the top is the name of the game.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
By the time that money trickles all the way down to that person who’s ‘buying’ it, it’s changed hands too many times.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
ie: There is not enough margin left for the ‘leaf user’ to create any ‘real value’ - it’s all been ‘exited’ by the vampiric ‘value = velocity + future product’ machine.
This is why the rich stay rich despite producing practically no value through labor.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
So, to see ‘value in velocity’ requires decomposing the scenario and isolating the ‘environment’ in which the commerce happens; errantly attributing the lion’s share of value creation to ‘the system’, not the individuals transacting.
ie: ‘exit mentality’
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
In a way, this is part of what’s wrong with the speculation-seeking forks of Bitcoin 🐍
While I’m long on BitCoin as a tool, I’m less certain about the ultimate intrinsic viability of pay-to-play systems of equitability. First-mover advantages, etc.
1G7DLq695juhR7QFz5jn1AaXH55Hxn4kZS (1489) ·
Agree, velocity *can* be a symptom of an increase in economic activity, but that is totally different from asessing future productivity.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
I wouldn’t say totally different - future productivity is certainly impacted by inflation, no?
I was trying to imagine how an increase in economic activity could create *lower* velocity.
Sure, maybe *after some period of time*, but ‘in the now’?
1G7DLq695juhR7QFz5jn1AaXH55Hxn4kZS (1489) ·
Since GDP is in the numerator, you can link velocity to economic activity supposing money supply is constant, but one thing is present and another is future economy.
1Abd9yJS6mrzMmj1Ni6kjQB9GqtyaNujrm (3375) ·
People can transfer money back and forth to one another (that is, increase velocity) without increasing any motivation for savings. That means that the value doesn't go up and you shouldn't buy more. Value is what makes people want to save.
1JisMSUJUivsgMSk7WymPBNe3MfZ3cjvU2 (384) ·
Velocity of money, in the traditional sense, is an artificial construct, a derivative produced in an effort to explain the world, not something directly observed.
https://mises.org/wire/problem-velocity-money
Of course, more txns on BSV is good.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
1. Exactly.
2. I still think the idea of buying money is a problem.
3. Exactly.
So, if Savings are low while Velocity is high, isn’t the inference that the Value is Inflated?
How can Velocity fix a problem it created without a market-wide Correction?
1G7DLq695juhR7QFz5jn1AaXH55Hxn4kZS (1489) ·
But saving isn't necessarily hoarding cash, right? Usually it is not.
1G7DLq695juhR7QFz5jn1AaXH55Hxn4kZS (1489) ·
If it doesn't increase GDP it doesn't increase velocity.
1Abd9yJS6mrzMmj1Ni6kjQB9GqtyaNujrm (3375) ·
GDP is a scam!!!
1Abd9yJS6mrzMmj1Ni6kjQB9GqtyaNujrm (3375) ·
Yes savings means the amount you hold in cash.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
This is fair. What are some other forms of saving?
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
Maybe doesn’t rise to a scam, outright.
A tool, yes. Abused? Sure.
All sorts of rubrics become attractors in capitalist systems; that’s the point, right?
So we need to ‘be the wiser’ + shepherd our use of old + new tools .. vs succumb to their tendencies.
1J6h7Bex83EVCGvamT5LMVm9MECX4bSquW (7355) ·
Maybe doesn’t rise to a scam, outright.
A tool, yes. Abused? Sure.
All sorts of rubrics become attractors in capitalist systems; that’s the point, right?
So we need to ‘be the wiser’ + shepherd our use of old + new tools .. vs succumb to their tendencies.