Hughesair (Inflection Point)

Retired physician and air taxi operator, science writer and part time assistant professor, these editorials cover a wide range of topics. Mostly non political, mostly true, I write more from experience than from research and more from science than convention. Subjects cover medicine, Alaska aviation, economics, technology and an occasional book review. The Floatplane book is out there. I am currently working on Hippocrates a History of Medicine and Globalism. Enjoy!

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Friday, June 10, 2022

Velocity

 I don’t think there’s a business man in Washington. The Saint Louis Fed. posts velocity, but I don’t see it mentioned anywhere else, and St. Louis is 820 miles away.  A merchant tends to raise his prices if goods are scarce or customers are scarce. Only in good times with a wide gross margin and a tail wind will the merchant be tempted to lower prices. Relative velocity in the GDP ranges between 1 and 15. Velocity presently hovers just above 1. The Fed, however, jacked up the M1 half of the GDP equation to over 20 trillion. Can you not see that only a slight increase in velocity will have a great effect the GDP? Velocity x M1 = GDP. Furthermore, the GDP does not reflect prosperity, velocity does, and the maldistribution of GDP favors big business and the wealthy, while velocity benefits everyone equally. Velocity, the energetic economic activity, represents the energy you feel on the street and the magic of US economy. Was President Trump the only business man to come to Washington? WAs Brzezinski and academia more interested in building international velocity than securing our own? We certainly share the consequences for such academic largesse. If you are a business man, you can see a thousand ways to stimulate velocity. Only a small increase in velocity will swallow inflation by way of supply, demand and increased productivity. Velocity will be the key to our recovery, American velocity.

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