If you’ve read the What is Money? essay from this Anti-Concepts of Money series we can now discuss the Anti-Concept of Velocity. That pseudo-equation MV=PQ described in the What is Money? essay leads us to the anti-concept velocity. The Anti-Concept of Velocity Even in the gold standard, money supply is not a physical object that […]
In Part I, we looked at the concepts of nonlinearity, dynamics, multivariate, state, and contiguity. We showed that whatever the relationship may be between prices and the money supply in irredeemable paper currency, it is not a simple matter of rising money supply –> rising prices. Here is a fitting footnote for Part I. I […]
In fall, 2008, the US banned short selling of certain stocks. It triggered a massive short-covering rally. Then, without the shorts in the market, prices went into freefall. When prices are falling, the shorts (when taking profits) are the only bidders. Markets don’t crash because of short sellers. They crash because the bid is withdrawn. […]
