The Profit Prophet

Almost 9 months ago the government pumped in $757 Billion, that is right Billion, into the economy, but for some reason, they still do not realize that what they did, though noble, was not the most effect way of stimulating the economy. Why? It is because they do not understand the power of money’s momentum. Essentially, the faster money flows, the stronger you economy. Why? Well, as money moves through the system, its “effect” in multiplied by the number of times it exchanges hands. This velocity of money actually makes it seem like there is more money in the system than there actually is, or that the multiplicative effect of the existing money is greater as the velocity increases. Back in school, I learned a few interesting equations about how velocity effects things. These include momentum, kinetic energy, and finally Einstein’s equation of relativity. To review these equations are: Momentum momentum = mass * velocity Kinetic Energy (KE) KE = ½ mv 2 ...