And he shall make all, both little and great, rich and poor, freemen and bondmen, to have a character in their right hand, or on their foreheads. And that no man might buy or sell, but he that hath the character, or the name of the beast, or the number of his name.
Revelation 13: 16-17
I think this may be the most important economics piece I ever write. This came to me at Mass as I was thinking about Monetary Theory and how to explain to folks why it is that we have not had Weimar Republic/Zimbabwe-like hyperinflation given the massive, unprecedented money and debt creation by the Washington D.C. and European banker-oligarch regimes over the past decade. The realization made me gasp audibly.
First, the question. Why HASN’T there been hyperinflation? Why ISN’T a loaf of bread $100,000 by now?
The answer, which I did know, even from my ridiculously bad college days of Keynesian drivel, is because the VELOCITY of money is very, very low.
INFLATION is defined by the equation MV = PQ. Now stay with me, because this is actually really easy to understand.
An interesting read. in fact I just had a similar discussion with my wife and daughter Sunday on the way to church.