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:
I’m not clear in which group I best fit - economic ignoramus or fool.
how we can privatize monetary policy. Would we like, take bids or something on how many dollars to be printed and award say, a 6-month contract to whoever can print the most dollars for the lowest bid?
Here’s the velocity of the US dollar going forward and that’s it.
Wait a second, the FedReserve doesn't do velocity, it does 2 or 3 particular interest rates and leaves the other thousands of rates to the market --but never velocity. I mean, it's completely impossible for any private contractor change U.S. dollar velocity.
Honestly, all I'm getting here is that you don't like the Federal Reserve and at the same time you can't find a better way. I'm sure you'd never intend to be a complainer w/o options so maybe you'd either want to rethink your complaints or restate your options..
fiscal policy is at the heart of what ails the US economy. Regulation costs $2 trillion a year
That's absolutely true but let's please not change the subject to fiscal policy until we decide how we want monetary policy done.