Economics & Multiple ExpansionWhy does this chart matter to investors?
Imagine a town that produces 100 pizzas a year. Each pizza costs $10. The town's "GDP" is $1,000.
Next year, the town will still produce 100 pizzas. But now each pizza costs $15.
The town's GDP is now $1,500. Did the town get richer?
No. It made the exact s
About Gross Domestic Product, 1 Decimal
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Velocity Of Money Rolling Over Again!The Real Interpretation
This chart is telling one story:
Money supply growth has massively outpaced real output for decades.
It lines up perfectly with:
Falling real productivity
Stagnant wages
Declining borrower quality
Rising debt-to-GDP
Asset inflation decoupling from fundamentals
T
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MV=PQ RevisitedHistorical data can be hard to compare against modern ones.
The longer back an analyst goes, the better the results of their analysis.
100 years of yield rate analysis may seem enough...
5000 years of interest rates however is a whole new story.
Money has been as cheap as it has been for the past
Return To BaseA "back to the basics" analysis. Let's leave behind the stock markets and look at the slow and deep fundamentals of the worldwide economy.
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The miracle of China caught the West in the sleep.
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