patrick.net

This tells a lot about the future: because the thing about velocity is it can't go to zero.

Money can't be accumulated forever. People save for retirement, at some point retire and start spending (Boomers). Companies hoard cash, then start paying dividends, or buying back shares, or buying other companies (Apple). Nations that have been huge savers, start to transition toward spending more (China, Japan).

This is a big reason to be more optimistic about the real economy.

While there is plenty of time for one more bout of deflationary recession, it probably won't be as bad as the previous one. The longer term future is not about deflation.