Thursday, February 8, 2018

Zero Hedge finds a clue

When the dollar velocity falls, that is a lowering of transaction rates, and a drop in the rank of the economy.  The economy is less granular and thus likely dominated by hegemons. 

The drop in velocity should also coincide with the rise of dark pools and alternative monetary systems, like the yuan and euro and bitcoin and food stamps and walmart coupons and gold and VC firms and black market labor.

Notice velocity rises just before a crash.   I haven't look at the details of why, but likely the economy has already done its requant by the time velocity turns up. Look at the other ZeroHedge headline:


"Bloodbath" - Dow Crashes Over 1000 Points, Enters Correction

Correction means requantin our semantic, called group normalization in physics.   But this 'correction' has to hit the labor markets sometime this year in the sense that the large mass of new employees need to be sorted out under the new regime. In California this is going on as the local government requantize their hiring plans. No one is ever prepared for huge employment shifts, except the labor insurance system.

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