Argonaut Gone Wild 4
Once more unto the breach... Your predilection to falsehoods and erecting straw-men is evident.
Argonaut: "Latest comment - "I never claimed an impact on income velocity." Original article - "...demonstrating a reverse velocity relationship with the rise in type (2) transactions." - right next to a chart of the income velocity of M1 and MZM. Black and white contradiction."
Well there you go again, selectively misinterpreting and twisting things to your point of view while erecting straw-men. YOU define M1 and MZM as income velocity whereas I DID NOT. The velocity of money refers to how fast money passes from one holder to the next.
It CAN refer to the income velocity of money as you put it. Alternatively and less frequently, it CAN refer to the transactions velocity of money as I put it. And there you have it.
Argonaut: "So when someone comes along and tells you that financial transactions increasing has lowered velocity and that is why the Fed's supposedly ruinous inflationary policy hasn't resulted in the long awaited inflation, don't believe a word of it."
Much like a lizard, you speak with forked tongue. I NEVER associated my casual hypothesis with long awaited inflation. YOU DID. My only statement regarding inflation is: "Excessive housing speculation leads to both wage and non wage price inflation " An already well proven point.
Argonaut: "Hey, I predicted high inflation from the Fed's actions, and there isn't any. I was flat wrong. I really need to go to school again and find out why."
Wrong. As anyone with an ounce of common sense knows, Inflation is anything but tame. The falsity of government econometric methods and the disingenuous media narrative have the inflation expectations of most firmly anchored, as per Fed objectives: "Communicating this inflation goal clearly helps keep longer-term inflation expectations firmly anchored.... whereas keeping inflation expectations firmly anchored generally implies that the inflation objective should remain constant unless there are compelling technical reasons for changing it, such as changes in the methods used to measure inflation." Nowhere therein does it say that the inflation objective, methods used to calculate it or communications thereof, shall be grounded in reality or truth.
Argonaut: "and knew that the Fed's easy money policy was not dangerous and would work."
Wrong. The CB's policies are based upon the same bankrupt theoretical falsity that you refer to above, coupled with econometric gerrymandering to "anchor" expectations. Rather than let markets and nature take its course, the CB's bailout actions have had dangerous side effects by perverting and distorting everything in their path. There is something in this more than natural...
The end result of their actions, no crystal ball here, TBD, insight from an insider: "[We] still have to see if the unwinding of those policies [unavoidable, orderly or not] can proceed in an orderly fashion. [If not the unwinding could] feed into inflation and induce higher than warranted interest rates and financial instability." See here.
Argonaut: "Preferably something slightly more believable than a hidden conspiracy of lizard men from alien stars supposedly manipulating international finance."
How dare you besmirch the reptilian shape shifters. David Icke and his ilk shall smite you.
Argonaut: "At bottom, the reason they were wrong is that their entire theory is false. It does not understand monetary economics."
In the end, aside from the running joke of shape shifters, UFO and yeti sightings, at least there is something else we can agree on. My exception is that I deservedly extend this to today's theorists and academics and modify the statement: their entire theory is false as it misunderstands and or selectively misstates reality.
Common sense, street smarts and the ability to discern, are elusive commodities which can never be book taught. Indeed, your intelligence and book smarts abound. Some detractors might be a predilection towards selective misinterpretation and jumping conclusions which can lead to an inability to read between the lines and appreciate the subtleties in the bigger picture, while disingenuously erecting straw-men to pointlessly argue over.
Again, four words sum it up, "has missed the point" or "does not get it". Regardless of any response on your part, there shall be no further communication on my part. Good luck out there.
More to come in the finale, Part 5.
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