Velocity of money is a theory or a model used to sort of explain how money changes over time and over regions. Typically “it is the number of times one dollar is spent to buy goods and services per unit of time.” Yet I don’t like that simplistic version. Because I don’t just fuck with time, I fuck with space-time, my niɠɠa. So I also want to include Velocity of Money to also apply to space as well.
A price change here doesn’t immediately affect a price change way over there. The idea is that there is a sort of speed or ‘velocity’ to the changes in money felt and perceived both real and imaginary. Essentially there is a speed of money and that has to reach you, like the ripples of waves in a metaphysical ocean of cash-money.
Inflation is a thing, and some people are feeling it, others are not.
Here is just a shit post connecting the two to explain why you may experience a different reality or perspective on inflation and the economy. I mean, I doubt you’re not complaining about food prices or gas. But there exists a strata of people that live meek and sheeply lives above the brunt and idea of concerning themselves with disgusting terms like ‘The cost of living’. Because why should living cost you anything?
So wouldn’t it be better to have faster velocity of money to mitigate the damaging effects caused by delays? You know, like instant deposits and faster transactions and instant taxation? Lmao, no.
Well Instant velocity isn’t a solution
So we don’t want instant velocity of money, because that could lead to a fickle and highly volatile af pricing-index of cash. Meaning money would change fast in value. All sorts of made up numbers would tug at the valuation of money, from basis points to interest rates to a used hooker trying to upsell herself from ‘damaged goods’ on your mom’s credit card. Point is, a lot of shit is affected and effects the whole velocity of money. And we don’t want this shit to be instant or that fast.
An instant velocity of money would result in immediate change and that would be felt very instantaneous. (Surprising). This instant velocity of money could be accomplished if there was a really small region that used money, or if there was a really advanced technology that could update in real time allowing people to adjust near immediately. Something like a CBDC, or a Centrally Backed Digital Coin which is totally a scam by-the-by.
See, you can’t keep money rigidly stable pegged to a Fed-Printer or else inflation will run you amok. Just ask Thailand or any other country that used to peg their currency to the US Dollar. Lmao, Germany from Bretton woods to the EU, there seems to be a problem with pegging currency (let alone pegging the dollar) naww-meen.
Also while we’re at it, I mean, You think those “stable Coin” crypto-bros would learn from history, on how retarded having a stable coin pegged to instability is. Turns out, it’s pretty retarded, and the number of ‘stable (shit) coins’ losing their pegs are as ever high and expanding like the amount of suckers born every minute. Stable coins, they are anything but.
If people always change the value of the dollar, you’d be fucked. The slightest change would be instantly noticed. There would be instability. Money holes and demand for money would instantly affect the value and pegging of the underlying. (So basically interest rates aren’t enough to control purported value).
If one day your dollar was worth ten gallons of milk, and the next it was worth a pocket full of sunshine, then you’d be super fucked. That’s basically what would happen if the spider-web-currency-circulation of money were to be immediately changing with hard quantifiable numbers attached and readily apparent for all to see. The slightest change would reverberate in waves across the money-web hitting everyone else proportional to location in space-time.
So the delay can actually be a good thing because it creates natural and artificial time for people to jump ship in case shit hits the fan. Judging by the people liquidating their crypto assets AND THEN their stonks, it’s only natural that people would jump out of Houses, and real assets next. Point is, you liquidate the liquid slush instead of hard assets first, in your slush fund you call yours.
I mean, if there was instantaneous change, then something out of a scene from Rick and Morty would definitely cause mass panic and hysteria;
With instantaneous Speed-of-light values of the Speed-of-money; There would be no time to atleast play the devaluation of the US Dollar. No time to dodge the storm, no time to move money to a less riskier bet.
No one wants a highly volatile cash value
(unless they’re gambling on that cash with other stable cash/assets like gold or Egyptian relics).
This is partly why the Fed Bois try to control ‘interest rates’ to be a derivative value in a calculation to control money and money supply. Of course, as mentioned above, turns out, the value of the goods being bought with said money are actually interdependent and fluctuate on their own outside of interest rates. Basically, shit changes in value depending on factors outside of the value of money. I mean, what’s the going rate for a blowjob in a city vice some backwater meth lab? (The answer, it depends).
(Over)Centralization and control of policy is stupid, but that’s an opinionated argument that degenerates. Degenerates, nice.
You also can’t get rid of velocity of money.
If there is a price difference somewhere, then there is a peddler or skim trader or merchant or arbitrator or *insert synonymous nym/name* that will try to make a profit from the difference in exchange rate.
And you can’t really fix the prices and exchange rates on ALL goods. Plus, bartering is a thing.
Yea, that means we can’t really eliminate velocity of money.
Inflation and deflation will still effect velocity of money, and you’re just caught in the waves.
I got drunk as usual and started rambling-
So, where was I? Oh yea,
Basically, Money and value effects people differently and not as fast.
It’s dependent on speed, time, location, and a bunch of other shit variables. Things like interest rates and inflation or deflation, all of that applies to value.
That’s the real takeaway.
So the fucks that work at home and order uber eats and shit, and complain about a surcharge of five extra dollars, feels the inflation a lot differently than,
The fucks that slave at work in person and feeling robbed every time they go to refill their gas for their daily commute to a 9-2-5 soul sucking.
I mean, how’s the crime rate? Is it going up? Are (more) people desperate yet?
Are you feeling the crime as a victim or is it just those strippers and people with cars in sketch neighborhoods? Are you feeling the indirect effects of inflation? Tuck your tail and blaming it on bad luck?
Or you just lucky and bougie that you don’t see what other people see in their realities? So you just think their incessantly bitching about being in dire straits and hating life and work and all that jazz because they’re victimizing themselves in a delusion of grandeur? I mean, probably.
Everyone’s reality is subjective, and the speed of money hits their face differently.
So you’ll feel it eventually, if not now. Just buy literally anything, or watch as your Amazon delivery is delayed by a few days. Maybe you’ll get smart and catch on, that all of this shit is related.
No data on why I wrote this post, just wanted to sit on the toilet of the internet and take a shit-post today. Add to the pile of already cum-piled scat- So there’s that.
Hopefully I’ve wasted your time and made you less enlightened. That’d be great.
If not, who cares. Money is subjective, so stop worshipping it like air. What are you, an animist? I doubt you’re that spiritual. But if you are, then you should worship money. Don’t be dumb, it’s got spirit too.
*Not Valid Financial, Legal, Life, or Any Advice