Liquidity has always set the pace for economies and financial markets. Imagine a simple closed-loop island economy with a coin-based currency for a moment. If you double the number of coins and everything else remains equal, then you would probably expect consumer prices, wages, corporate profits and asset prices to double as well. I have discussed this…
Money Supply ≠ Liquidity
When you think liquidity, think credit, not money. It's still bull market fuel because it keeps growing. But in the end, does it even matter?
