Why is there no money?

Now that money is made out of paper or electronic bits, the Treasury can surely make all the money we need. (In fact, there's millions of gold colored dollar coins sitting in bank vaults unused because nobody wants to wear out their pockets carrying heavy metal when they can use paper or plastic). So, the quantity of money is not the problem.

http://research.stlouisfed.org/...

The Lord of Little Rock, Warren Stephens says corporations can't spend because they are uncertain about what Washington is going to do. Will they or won't they repeal Dodd/Frank and give up on protecting consumers? Everybody knows it's man-made corporations that are, sort of like boy babies, most vulnerable.

What I'd say in response to reports that corporations are hoarding $2.5 trillion in cash because they don't trust the President is that what we've got here is a cash constipation problem. The money isn't moving through the system.

FRED, being more polite, refers to the velocity of money, the rate at which dollars move through the economy. But, the data FRED has collected clearly shows that something is stopped up.

So, the system has to be irrigated. And that's what the Buffett Tax, which the President is about to announce, is intended to do -- to administer an enema to people sitting on their unearned income and refusing to let go.

The Buffett Tax spells relief for the constipated elites.

Now, as a mother, let me assure you that it doesn't much matter whether the legislation gets passed. Just as running a bit of water and reading a relaxing book works to stimulate the bowels of little kids, a gentle reminder that hoarding money is not a good thing should do wonders. And, for the religiously inclined, it probably wouldn't hurt to remind that the LOVE of (the desire to have and to hold) money is the root of all evil because, after all, change is good, regardless of whether our constipated conservatives believe it. Money is supposed to move.