RE: Velocity Of Money Continues To Slow
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The Fed should have started tightening long ago, the writing was on the wall.
The Fed is only at tapering and they shouldnt even be doing this. There is no way the economy will stand up.
So what will happen, is after a couple months, the markets will take a downturn and the Fed will have to increase it activities.
But I'm of the opinion that it is inapplicable when considering essentials as the mentality becomes 'buy today as it'll cost more tomorrow' and in such case people are inclined to stock essentials (just look at the toilet paper shortage...).
The stocking of essentials I dont think has anything with the idea they will cost more tomorrow. It is more they will not be available.
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