Answer the first question first... and not sure where you got your pic from but m2 didnt look so good in the 70s..
http://www.marketoracle.co.uk/images/2013/Apr/Velocity_Of_Money.gifvelocity is the output not input.. the end result is the velocity. It needs to rise to sustain the new supply. Its a ponzi scheme as soon as gold was given up.
well, there are several velocities of money depending on the monetary aggregate that you use (mine was from MZM), link in previous page, but:
* still I do not see any problem in the chart
* no central bank makes any monetary policy decision on the basis on velocity of money
But, I think this debate of velocity is heading us nowhere anyway.
M2V is the one that's usually more important.
Again you're not reading between the lines.. but that's fine. M2V tells us that there were problems that needed to be rectified and hard limits were being reached (kinda like the debt ceiling today and how they kept raising and now will just lift indefinetly. Again it is an OUTPUT it is the health indicator. You can't use it as input.
This is why I called this thread an anonymint thread because he did the same thing... made accustations and built a base off of information then jumped to conclusions (atleast 10% of population being collectivists because they are gay or whatever you wrote). Finally he would jump off to a profound conclusion based on this info like bitcoin is doomed to fail as is...
