"Velocity of money, yes, if SPENT. However, if it's to retire debt, since debt is money under our FIAT currency (lent into existance) system, retiring debt would be DEFLATIONARY in nature (under the current monetary system.)"
Yes. This is why the federal budget surplus (1997-2001) was deflationary. That is what triggered the collapse of the internet bubble. However, the same would be true under a gold standard.
Want DP delivered to your inbox daily? Subscribe here: