The Importance of Understanding Where New Money Comes From

The velocity thing ultimately requires people to understand where new money comes from. I always have to remind people with banking because the stuff does get complicated and there's a real benefit for high-falutin economists that most people don't understand it. So they can sort of say stuff. It sounds a little fancy and if not impressive. But see, all I did was move money from bank A to bank B. There was no new money created in that.