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Xi Jinping Asks: What Is Good Technology?
- jeffreyrogers 5y agoThis is an interesting question to ask, but velocity of money has been declining for about 25 years now and shows no signs of stopping[0] (the recent large drop is due to the stimulus). [0]: https://fred.stlouisfed.org/series/M2V https://fred.stlouisfed.org/series/M2V
- WheelsAtLarge 5y agoI've wondered about the utility of velocity now that the money supply can be increased at will. In the past when there was a limit I can understand why it was useful but now there are many dollars sitting in bank accounts that are not being used so I can see why it's declining and it seems that that won't change given the feds constant expansion of the money supply. There's also the fact that the dollar has become a worlds currency whose velocity is hard to measure. We need an alternative way to measure the dollars utility to the economy.
- WheelsAtLarge 5y agoI suspect that China is trying to make sure its manufacturing sector does not deteriorate. The country is trying to become a world power in all aspects. It needs a strong and efficient manufacturing force to beat the rest of the world plus it knows that it can't become a strong military force if it can't count on domestic manufacturing. Xi Jinping is just trying to balance the 2 industries. It's now a strong world power in software and there are all kinds of reasons to think that with in the next 30 years it will be a first class manufacturing power that will feed its quest for military might. We are looking at his actions short term but he's acting on a long term view. Yes, his actions are causing a bit of turmoil now but long term it won't matter since he will get what he wants. A china that's second to none.