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I apologize. I know you are the regular target of economic ignoramuses and fools. I do very much appreciate your posts and insights.

In the case of the exact velocity, I don’t think it matters what you set it at. Here’s a short discussion of the theory: https://en.wikipedia.org/wiki/Quantity_theory_of_money#Quantity_theory_and_evidence

There will be times when it will be ‘cheap’ and others when it will be ‘expensive’, but the benefits are for individual liberty. Get the politicians and bureaucrats and their biases out of the way. Here’s the velocity of the US dollar going forward and that’s it.

What really matters for credit is the real interest rate, yet we’re always confused between it and the nominal rate. Here’s a more in depth article: http://www.aei.org/publication/why-milton-friedman-is-still-right/

We know that central planning for an entire economy, even a local one, doesn’t work. There will always be inefficiencies and waste. Worse, there will always be political reasons to intervene and moral hazard caused by it. Let’s work to eliminate the politics from our economy.

I also fully understand that fiscal policy is at the heart of what ails the US economy. Regulation costs $2 trillion a year and presuming that even half of it is necessary (which I doubt) we could have an extra $1 trillion from that change alone. Not to mention deficit spending, the high debt and local permitting licensing and zoning rules.

Great explanation and charts here:

http://www.nam.org/Data-and-Reports/Reports/Cost-of-Federal-Regulations/The-Cost-of-Federal-Regulation/