Sunday, May 10, 2015

I Got Economically Clobbered in 2009

The economy just collapsed for me in 2009. My business of 21 years just evaporated. I had to sell my gold and stocks. It was just horrendous.

It has picked up some since then, thank God.

This article discusses velocity of money, which is the speed at which money changes hands. What's important about it is that no matter how much the Fed prints money, if no one is buying anything you can still deflation instead of instead of inflation.

Pumping fake, fiat money into the economy is supposed to get it going - for a while, at least. Then you get inflation. But, again, if no one is buying anything, you can pump billions into the economy and not get inflation but instead, deflation. The Fed is desperately pumping money into the economy and we do have inflation in the stock market. But overall, for everything else - nope. Deflation.

Everyone should understand the velocity of money.

I'll only post one graphic here. There rest are at the site.

The site is called Sober Look and it is HERE.


Anonymous said...

2009 was easily my worst year too. Mouths to feed, no unemployment insurance, living in the middle of nowhere. I expected a bubble to burst but I was a year too late.

Anonymous said...

My condolences, I hope you regain what you lost someday. I made the mistake of going back to college and getting a Bachelor degree, now the student loan is an anchor around my neck.