Velocity

 Velocity represents the productive half of the GDP.  Liberal economists overlook or ignore velocity. Legislators and the bureaucracy don’t know what velocity means. Recently the Saint Louis Fed started publishing velocity. Previously one had to divide GDP by M1 to estimate velocity. Even now, these numbers change. The estimate of GDP divided a by the BEA estimate of present M1 does not exactly match  the St. Louis Fed’s listing of the velocity, but close, “good enough for government work.”

The velocity most closely relates to the energy you feel on the street. It equates to productivity and I would argue with happiness and a feeling of prosperity. The GDP does not, nor does the stock market. The numbers below reflect a drop in economic productivity starting in 2008 with minimal recovery in 2018 only to crash in 2020 with the pandemic lockdown. These numbers, while economic, may contribute to the   depression, loss of humor and hate we experience here at year end. The greater problem, however, may be the CCP’s communistic subversion, the globalists and the new oligarch-technocracy. Many seem blind to the threat that these combined elements present.

Two pieces of good news, however, include that the tariffs remain in place, and the Administration wants to block all imports of products from China produced by slave labor or in association with involuntary organ transplant donors. The combination should encourage domestic US manufacturing and consumption with a direct positive effect on the America’s economic velocity, jobs, income and health.

The most accurately and timely government figures come from the Daily Treasury Report. I’ve used these figures as a 

GDP and Money Supply (M1) in trillions
			(turnover)
Date	GDP t	M1 t	Velocity
2021	22.06	20.35	1.18
2020	20.89	17.81	1.17
2019	21.54	3.9231	5.46
2018	20.61	3.7277	5.53
2017	19.39	3.5640	5.44
2016	16.49	3.2446	5.08
2015	16.47	3.0730	5.33
2014	16.15	2.9212	5.53
2013	15.76	2.6414	5.97
2012	15.38	2.4586	6.26
2011	15.19	2.1618	7.03
2010	14.94	1.8600	8.03
2009	14.54	1.6965	8.57
2008	14.58	1.6034	9.09
2007	14.99	1.3711	10.93
2006	14.72	1.3849	10.63
2005	14.37	1.3869	10.36
2004	13.95	1.3900	10.04
2003	13.53	1.3025	10.39