Velocity of Money: British Economy worse than during depression

Velocity of money is the frequency with which a unit of money is spent on new goods and services. It is a far better indicator of economic activity than GDP, consumer prices, the stock market, or sales of men’s underwear (which Greenspan was fond of ogling). In a healthy economy, the same dollar is collected as payment and subsequently spent many times over. In a depression, the velocity of money goes catatonic. Velocity of money is calculated by simply dividing GDP by a given money supply. This VoM chart using monetary base should end any discussion of what ”this” is and whether or not anybody should be using the word “recovery” with a straight face...   http://www.zerohedge.com/print/468830

Bad Policy Has Us Stuck

We are stuck in a depression because the government has done all of the wrong things, and has failed to address the core problems.

Instead of bringing in new legs, we keep on recycling the same old re-treads who caused the problem in the first place [61].

For example:

• An economics professor says we’ll have “a never-ending depression unless we repudiate the debt, which never should have been extended in the first place”[62]

• Fraud was one of the main causes of the Depression, but nothing has been done to rein in fraud today [63]. Indeed, the only action the government is taking is to help cover up fraud [64]

• All leading independent economists have said that the economy cannot recover until the big, insolvent banks are broken up [65], but the government has just helped them to get bigger [66]

• Excessive leverage helped cause the Great Depression and the current crisis, but the government has encouraged more leverage [67]

• The Federal Reserve caused the Great Depression and the current crisis [68], and has done nothing but help the fatcats at the expense of the little guy. And yetthe government has given the Fed more power than ever [69].

• Government policies send manufacturing jobs and dollars abroad [70]

• Quantitative easing won't help ... it will only make things worse [71].

• The government is doing everything else wrong, as well. See this [72] and this. [73]

This isn’t an issue of left versus right … it’s corruption and bad policies which help the super-elite but are causing a depression for the vast majority of the people.