Here's another update to this chart. I show it because it illustrates a point I made in my previous post, about rising money velocity being an important source of economic growth. Rising money velocity is the flip side of falling money demand. When demand for the dollar falls, the dollar weakens unless the Fed takes steps to offset the decline in demand. That's the case today. Money demand is falling (because we know money velocity is rising), and the dollar is falling as well because the Fed remains extremely accommodative. As money gets spent instead of being stored under mattresses, economic activity picks up. It's "payback" for the surge in fear and trembling which tanked the global economy in late 2008. The economy is getting back on track, thanks to improving confidence and declining money demand. That's why the equity market is rising, because it realizes that the outlook for cash flows is improving.