Transaction Velocity Redux

Over at a financial forum

P – "Wow, someone is finally considering the money multiplier (the velocity of money I keep whining about)!  This is the entire flaw in top-down QE – as I've been saying for, gosh, it must be 9 years now!  In fact, this is why I told Geithner it wouldn't work and we needed to do infrastructure spending and home-loan refinancing to put money to work from the bottom of the economy instead of funneling it to the Banksters, who, surprise, surprise, hoard it!"

We Natter: Spot on brother from another mother, we've been hammering big on this one too. Despite staring everybody directly in the face, nobody gets the Vt (transactions velocity) picture. We hammered on Vt and the money base/supply March 16th in Need For Speed?  

At length we proved that increased financialism (financial engineering) and speculation is at the root of the problem being fueled by QE (pouring gasoline on a fire) in The Transactional Velocity Effect of Speculation.