An Economy Awash With Liquidity That Is Not Reaching the Broader 'Real' Economy

The velocity of money is the frequency at which one unit of currency is used to purchase domestically-produced goods and services within a given time period.

In other words, it is the number of times one dollar is spent to buy goods and services per unit of time.

If the velocity of money is increasing, then more transactions are occurring between individuals in an economy.

St. Louis Fed

In other words, what we may be seeing here is a declining 'bang for the buck' or 'the law of diminishing returns' for the massive amounts of liquidity which the Fed has been selectively applying to the financial system using quantitative easing.

Does adding even more quantitative easing work?  Work for whom?

How has throwing money in the same way into a broken and corrupt system been working out for the past ten years?

The 'recoveries' or sparks of real economic activity are growing fainter, and shorter, While the subsequent declines are continuing in length and depth.

One can hardly see the 'jumps' in velocity between the long plunges of helicopter drops from the Fed to the one percent, leaving the real economy and the broader public further and further behind.

At what point does the fallacy of endless printing without consequence begin to 'bite?'

One might fear that the Fed is continuing to add fuel into and around a vehicle that is stuck in a ditch and wrapped around a telephone pole.

And all the elite financiers and their sock puppet politicians can seemingly do is to keep pouring on the gas.