Question: " Why isn't there Hyperinflation, like everyone honestly expects... when, most the governments on earth are now just printing more money "?
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| Quantitative Easing is: " Printing More Money ". |
After all, throughout around 6000 years of human history,
' Economics Has Always Been Governed By The Immutable Laws Of Cause And Effect '... and yet today, in Our Modern Information Age, it now appears to many of us that
The Verifiable Laws That Once Governed Our Universe Are No Longer Truthfully In Play!
Well folks, there is ( indeed ):
" An Honest To God Answer " - for every single puzzle in the universe... and, this one, is certainly no different.
The Quantity Theory Of Money is currently perceived ( by most economists ) as follows:
The Quantity Theory Of Money states that:
- where M is The Money Supply, V is The Velocity Of Circulation, P is The Current Pricing Level and T is Our Total Transactions And Output.
Monetarists currently assume that V and T are determined ( or, fixed variables ) in the long run, by such things as the productive capacity of the economy; and that there is therefore ' Always A Direct Relationship Between The Growth Of The Money Supply And The Overall Level Of Inflation '. - as summarized, from an excerpt at Wikipedia.
And while,
The Theory Is Entirely Correct Mathematically... most of those ignorant assumptions have never been! You see, folks, in order for
V to actually remain
Fixed ( or, dare we say,
Static ) :
" The Billions Of People That Are Needing To Make All Of Those Purchases Must Possess An Unchanging Percentage Of The Overall Economic Pie ".
What most of you have been failing to realize is, thanks to all of that monetary inflation,
' More Than 40 Percent Of Americans Now Make Less Than The Minimum Wage Of 1968 '... and, other than the basics of:
Food,
Clothing, and
Shelter - are no longer ( significantly ) participating in
The American Economy.
{ ***NOTE: Buying Used Cars, Utilizing Food Stamps, and Purchasing All Of Your Furnishings Or Clothing At Goodwill, creates very little demand upon The Overall Economy! }