This is a syndicated repost published with the permission of Confounded Interest - Online Course Notes For Financial Markets. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.
The US Surprise Index remains in negative territory indicating that economic news releases are negative compared with economist’s expectations.
But is it any surprise when The Federal Reserve is battling against declining labor force participation?
M2 money velocity (aka, GDP/Money Supply) is falling along with labor force participation despite the enormous monetary stimulus provided by The Fed in terms of a near zero Fed Funds Target Rate and a massive balance sheet.
Here is a video of The Fed’s theory of economic recovery.
Join the conversation and have a little fun at Capitalstool.com. If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.
