@WilliamNaville It does not appear you followed the lesson very closely. The 'Fed' is not a 'private bank', it is owned by the citizens of the US. There are no shares in the Fed traded anywhere. It is autonomous to a degree so that it can stay independent of politics but it is still firmly in the public not the private sector. You do see shares of banks like Citibank, Bank of America and JPMorgan traded and they can be purchased by anyone who has the money, subject to anti-trust laws.
The alternative to a private banking system is one totally controlled by the government. If you live in a country that has no private banking, that gives the government enormous monopoly power and control over the economy. Since there is no way to have government without politics, then you are the ones who are f***d.
@SimonEissen The whole FED is a stupid idea...banks that have a central reserve are less applicabel to their mistakes,that plus that they have Insurance means they can go all out and spend all your money...If everybank had there own reserve (wich is not 10%,more like 30%) then you will never get a bank run...meaning banks cant invest more money ...but fuck that
@AsakuraAvan Because the banks can lend money at a reserve ratio of 50 % -so for the 100 $ you deposited in- they will lend out 200 $ - which will increase the M1 by 200$ - Hope it helps- Cheers
@Wamy85 You got the reserve percentage backwards. A reserve ratio of 50% means the bank can lend out 50% of its demand deposits. With deposits of $200 the bank may loan $100. That $100 will get added to the total of demand deposits in the banking system - all money that doesn't go under the mattress goes back into the banking system. Total demand deposits grow as banks make loans. As demand deposits grow, the banks make more loans, subject to the reserve requirement. It multiplies.
@SimonEissen The money multiplier also works in reverse. When a bank loan is written down or off the bank's reserves are affected - the bank can't take the loss from the demand deposits, those are protected by law. The bank has less money to lend and may have to borrow or call in even good loans to be able to protect depositors' 'demand deposits'. Depositors that lose 'confidence' in the bank may 'demand' their money. If too many depositors do that at one time, any bank will fail.
If depositors start to demand their money, the bank could find that it has more loans out than the reserve requirement allows. The bank may then look to 'liquidate' loans - sell them to other banks or investors for cash or call them - forcing debtors to look for re-financing from other banks. If debtors cannot pay up or find other credit - they may go bankrupt and then the bank has even more bad loans to write off.
sorry i have this very basic question and am just trying to understand these videos better...... why does the government need to borrow cash from foreing countries if the central bank can print bank notes as needed ?
@zzakariaa The central bank doesn't "print bank notes as needed', it sells them for the US Treasury and collect the proceeds from the buyer and adds the funds to the US Treasury's accounts. The buyer can be anybody - American, foreign or the bank itself. This last option is what some say 'prints money' because it increases the total bank reserves and the money supply. Money, and the economy, also grows whenever any bank loans money against its demand deposits.
@SimonEissen thanks man.... but i still need some clarifications. let say the central bank prints a 100$ bill, the central bank will sell it to let say china as I understand from your reply. what does the central bank get in exchange for the 100$ bill. and how is that a fund for the US treasury account ?
@zzakariaa ok -just so we all know who does what. The dollars are printed by the Bureau of Engraving and coin is made by the US Mint - both are part of the Treasury Dept, not the 'central bank' which is called the Federal Reserve, 'Fed' for short, in the US. The Fed was established by law and it's directors are appointed by the President, subject to Senate approval, but it operates independently, more or less, of the US government. The Fed acts as the banker for the Treasury.
@SimonEissen The Fed is also the banker for it's member banks. The Treasury has 'bank accounts' with the Fed. So do the member banks and so do foreign 'central banks'. The Fed is responsible for clearing all payments made between all it's account holders. Look at the back side of any canceled check that was paid to a company in another part of your state or part the country and you will see a stamp by the Fed indicating the date they processed it.
@SimonEissen Most of the money supply is in the form of bank deposits. Only a small % is in the form of actual currency in bank vaults, cash drawers, purses and wallets at any time. Banks allow for moving large amounts of money across large distances very quickly - the economy depends on banks to do this. Banks also allow for large amounts of money to be brought together to accomplish big operations and projects. Big business and big government with big banks "built this city".
@SimonEissen To understand banks and money, you need to understand double entry accounting. Assets (debits) are balanced by liabilities and equity (credits). The bank's assets are the cash it has in it's vault but mostly it's loans and maybe some 'collateral' it has taken when a loan went bad. The bank's liabilities are it's depositors accounts and CDs and maybe loans it has borrowed from other banks. Banks are regulated. The bank's shareholders will engage auditors to examine them.
@SimonEissen The bank is also audited by state and federal regulators like the FDIC and the Fed. The laws are designed to protect the bank's depositors before anyone else. Keeping the confidence of depositors is essential to the banking system. While depositors may legally 'demand' their money at any time, the banking system would fail if too many depositors did that at the same time. Insuring deposits is designed to bolster depositor's confidence. So is the reserve system.
@SimonEissen Member banks maintain a 'reserve' account with the Fed that is a % of it's demand deposits and limits how much the bank may have out in loans. The Fed can boost the bank's reserves by 'buying' US treasuries. By increasing the reserve deposits the Fed can increase the lending capacity of it's member banks. That is how money gets 'created' by the Treasury with the Fed. But money is also 'created' any time a bank increases the amount of loans it has out. Money is 'based' on credit.
@SimonEissen So to answer your question. The Fed sells treasuries to the Bank of China or whoever that it has 'bought' from the Treasury or from whoever has sold them a treasury bond or note (treasuries get traded up until they mature, they are a commodity). The Bank of China doesn't nor any other bank 'buy' a Treasury bond or note directly from the Treasury. That's the Fed's job as the banker for the Treasury.
@SimonEissen I see that I didn't answer your whole question. Foreigners, including China, buy US treasuries with dollars. China and other countries that have a trade balance surplus with the US end up with dollars in their banks. Those dollars could be used to buy US made goods and services or to buy our IOU's (treasury notes). Either way, the dollars get transferred from the foreign banks back to the US. Eventually, the treasury note is redeemed with interest so the dollars go out again.
@SimonEissen I left out that the amount the bank has on deposit with the Fed is also part of it's assets. And banks don't hold on to 'collateral' but will 'liquidate' (sell) it as quickly as they can. Collateral could be a repossessed auto, boat or even a house. Banks want assets that produce income without having to get into another line of business like managing rental property or auto brokerage.
You made a mistake at 11:38. The bank gets $100 from the deposit of the person who sold the Treasuries. The bank can lend $50 of that deposit- not $100 as you said because the bank has a 50% reserve requirement. M1 goes to 550- not 600.
@jeffreagan2001 No, that's not right. The new deposit itself, 100$, represents the reserve for the total amount of new loans that can be made. So I go to the bank and give them my 100 notes. They can then indeed loan out only 50 of those, but those borrowers will come back and deposit those notes again, to be lent out by the bank again. So eventually, the 100$ represents the reserve for a total of 200$ in new deposits. And as such the M1 will indeed increase to 600
@JackoWacko0087 If only 50 is deposited back then only 50 will be lent back out. As long as the bank has a total of 100 dollars it can't lend out more than 50. But that 100 dollars will eventually be lent out because of other later deposits.
@Luigi84289 I did not take into account interest but in an interest free system It would take more deposits to lend out that 100 dollars with interest the bank after receiving the return for that 50 dollar loan would have slightly more than 100 dollars and would eventually be able to lend out your entire 100 dollars without further deposits.
@Luigi84289 This is in response to both your posts. First, let me explain again, because Khan is in fact right: 100 is deposited, 50 lent out. That 50 is deposited again, and 25 lent out. That 25 is deposited, 12,5 lent out and so forth, until the total additional deposits are 100 (+original 100 = 200). Second: what you say about interest might be true, but in this case it is not relevant and has only confused your analysis more. The bank does not need interest to lend out the entire 100.
@Luigi84289 Bank uses money to buy stuff like any company. They are not in it to hoard cash (which is useless).
So any basically any interest bank makes is used, they may of course always hold some cash at hand for liquidity.
Someone finally wrote an article about this at mises.com. The fallacy of not having enough money to buy interest is getting broad. Interest happens in real world, not in monetary one.
Confidence is another way to say how much risk. If you buy a Treasury in current dollars, what is the confidence that you will be paid back in dollars at equivalent worth when the Bond Matures? What are the risks that the US will not debase the currency before your Bond Matures?
The US roll over in debt is very sensitive to interest rate changes. This is a risk.
Seems to me that if you control a large enough portion of treasuries you also control the government (through blackmail), so if the Fed can buy as many treasuries as it wants, it can gain a higher and higher percentage of the total treasuries. Treasuries require that the government pay interest as well as the face value, so more treasuries = more government debt, and the gap is filled with taxes. So you have infinite money supply (Fed) vs total possible taxation. Am I missing something?
Also it's not just the federal reserve that purchases these treasuries (bonds, debt) but individuals and other countries. China for example owns $1 out of every $10 of U.S. public debt. Check out Warren Buffetts "Thriftville vs Squanderville" example, it can be found here on Youtube.
The inference seems to be that increasing the reserves subsequently increases M1. Operationally the causation is the reverse. Banks make loans without regard to reserves. Reserves are borrowed later if necessary.
Consequently the reverse is also true. If the bank can find no good loans to make, because say the economy is crap, then no loans are made. The fed can increase the reserves, wont make any difference to M1.
Banks are not constrained by reserves. Reserves are a tax on the banks.
To suggest that the government can lower interests simply by printing more money is what one economist described as "ordinary, man in the street economics".
I love the dissection of how banking works, just be careful when presenting theory when there's a good chance it might not be correct.
I've watched all the videos up until this one, and this is the first error I've noticed.
Sal appears to be putting forward the theory that interest is a puerly monetary phenomenon. I submit that this is simply not the case, and that the interest rate is an intertemporal price that expresses information about the preference of present goods over future ones. An economy can function with any level of money supply - the price level will adjust to fit the MS.
Sal, you clearly believe time should not simply be consumed but invested. I really am benefitting from your videos. Interesting to learn that derivatives of f(x) = e to the power of x, like Bilal, repeat 1. I understand how buying treasuries, the Reserve Bank can put cash into the system. What prevents the seller from depositing or investing outside the system? Is not more money be printed for no benefit for the domestic system, in this scenario?
How much they think they have....In a fiat currency what is the reason we have such a fraudulent and barbaric system? Are we running out of digits on the computer?
I was able to follow the first couple of videos with relative ease, however now my mind is beginning to explode, I'm finding I have to watch these videos over and over to grasp the concept.
But thank you so much for these videos as I am sure the written material on this is 100x more mind boggling.
First off thank you for these video. They are immensely valuable and informative. However, because you take such great pains to explain everything and reiterate the same points over and over again, it ironically becomes harder to follow having deferred from arriving to the actual point for so long.
For example in this video after mentioning that bank can take receipt of notes from the reserve bank or simply have the reserve bank create a checking account...
Federal Reserve is ran by 7 members (The Board of Govenors) They are appointed by President and confirmed by senate for 14 year terms. They get long terms to stay independent from political pressure.
why in the world would we stop using credit cards? Much easer then debit cards, I always use my credit card. Don't have to worry about how much money you have in your account.
thank you,Sal! You made this complex problem so much more easier!
I found I never understood the open market operation before, but after hearing your explanation, the concept become clear in my mind.
And I just can't believe you did it in such a short time video!
I've followed your courses about the banking, and in 2 hours with your classes, I've learned so much, even better than my whole semester in school!
So much thanks that I wanna say to you!
dadac123 2 months ago
Lol americans are held hostage by a private bank...you guys are so fucked
WilliamNaville 4 months ago
@WilliamNaville It does not appear you followed the lesson very closely. The 'Fed' is not a 'private bank', it is owned by the citizens of the US. There are no shares in the Fed traded anywhere. It is autonomous to a degree so that it can stay independent of politics but it is still firmly in the public not the private sector. You do see shares of banks like Citibank, Bank of America and JPMorgan traded and they can be purchased by anyone who has the money, subject to anti-trust laws.
SimonEissen 4 months ago
@WilliamNaville
The alternative to a private banking system is one totally controlled by the government. If you live in a country that has no private banking, that gives the government enormous monopoly power and control over the economy. Since there is no way to have government without politics, then you are the ones who are f***d.
SimonEissen 4 months ago
@SimonEissen The whole FED is a stupid idea...banks that have a central reserve are less applicabel to their mistakes,that plus that they have Insurance means they can go all out and spend all your money...If everybank had there own reserve (wich is not 10%,more like 30%) then you will never get a bank run...meaning banks cant invest more money ...but fuck that
WilliamNaville 4 months ago
How 100$ deposited increases the reserve of the nationalized bank?
specificquestion 5 months ago
how did the 100 dollars from the treasuries increase the money supply from 400 to 600?
AsakuraAvan 8 months ago
@AsakuraAvan Because the banks can lend money at a reserve ratio of 50 % -so for the 100 $ you deposited in- they will lend out 200 $ - which will increase the M1 by 200$ - Hope it helps- Cheers
Wamy85 8 months ago
@Wamy85 You got the reserve percentage backwards. A reserve ratio of 50% means the bank can lend out 50% of its demand deposits. With deposits of $200 the bank may loan $100. That $100 will get added to the total of demand deposits in the banking system - all money that doesn't go under the mattress goes back into the banking system. Total demand deposits grow as banks make loans. As demand deposits grow, the banks make more loans, subject to the reserve requirement. It multiplies.
SimonEissen 7 months ago
@SimonEissen The money multiplier also works in reverse. When a bank loan is written down or off the bank's reserves are affected - the bank can't take the loss from the demand deposits, those are protected by law. The bank has less money to lend and may have to borrow or call in even good loans to be able to protect depositors' 'demand deposits'. Depositors that lose 'confidence' in the bank may 'demand' their money. If too many depositors do that at one time, any bank will fail.
SimonEissen 7 months ago
@SimonEissen Banking is a 'confidence' game.:-p
If depositors start to demand their money, the bank could find that it has more loans out than the reserve requirement allows. The bank may then look to 'liquidate' loans - sell them to other banks or investors for cash or call them - forcing debtors to look for re-financing from other banks. If debtors cannot pay up or find other credit - they may go bankrupt and then the bank has even more bad loans to write off.
It's a reverse multiplier.
SimonEissen 7 months ago
1 million dollar(lol) question!! whats whole essence of this cycle?
juliusreea 11 months ago
sorry i have this very basic question and am just trying to understand these videos better...... why does the government need to borrow cash from foreing countries if the central bank can print bank notes as needed ?
zzakariaa 11 months ago
@zzakariaa Because printing will lead to huge inflation.
Free cake can not be created applies here.
Keyguya 10 months ago
@zzakariaa The central bank doesn't "print bank notes as needed', it sells them for the US Treasury and collect the proceeds from the buyer and adds the funds to the US Treasury's accounts. The buyer can be anybody - American, foreign or the bank itself. This last option is what some say 'prints money' because it increases the total bank reserves and the money supply. Money, and the economy, also grows whenever any bank loans money against its demand deposits.
SimonEissen 7 months ago
@SimonEissen thanks man.... but i still need some clarifications. let say the central bank prints a 100$ bill, the central bank will sell it to let say china as I understand from your reply. what does the central bank get in exchange for the 100$ bill. and how is that a fund for the US treasury account ?
zzakariaa 7 months ago
@zzakariaa ok -just so we all know who does what. The dollars are printed by the Bureau of Engraving and coin is made by the US Mint - both are part of the Treasury Dept, not the 'central bank' which is called the Federal Reserve, 'Fed' for short, in the US. The Fed was established by law and it's directors are appointed by the President, subject to Senate approval, but it operates independently, more or less, of the US government. The Fed acts as the banker for the Treasury.
SimonEissen 7 months ago
@SimonEissen The Fed is also the banker for it's member banks. The Treasury has 'bank accounts' with the Fed. So do the member banks and so do foreign 'central banks'. The Fed is responsible for clearing all payments made between all it's account holders. Look at the back side of any canceled check that was paid to a company in another part of your state or part the country and you will see a stamp by the Fed indicating the date they processed it.
SimonEissen 7 months ago
@SimonEissen Most of the money supply is in the form of bank deposits. Only a small % is in the form of actual currency in bank vaults, cash drawers, purses and wallets at any time. Banks allow for moving large amounts of money across large distances very quickly - the economy depends on banks to do this. Banks also allow for large amounts of money to be brought together to accomplish big operations and projects. Big business and big government with big banks "built this city".
SimonEissen 7 months ago
@SimonEissen To understand banks and money, you need to understand double entry accounting. Assets (debits) are balanced by liabilities and equity (credits). The bank's assets are the cash it has in it's vault but mostly it's loans and maybe some 'collateral' it has taken when a loan went bad. The bank's liabilities are it's depositors accounts and CDs and maybe loans it has borrowed from other banks. Banks are regulated. The bank's shareholders will engage auditors to examine them.
SimonEissen 7 months ago
@SimonEissen The bank is also audited by state and federal regulators like the FDIC and the Fed. The laws are designed to protect the bank's depositors before anyone else. Keeping the confidence of depositors is essential to the banking system. While depositors may legally 'demand' their money at any time, the banking system would fail if too many depositors did that at the same time. Insuring deposits is designed to bolster depositor's confidence. So is the reserve system.
SimonEissen 7 months ago
@SimonEissen Member banks maintain a 'reserve' account with the Fed that is a % of it's demand deposits and limits how much the bank may have out in loans. The Fed can boost the bank's reserves by 'buying' US treasuries. By increasing the reserve deposits the Fed can increase the lending capacity of it's member banks. That is how money gets 'created' by the Treasury with the Fed. But money is also 'created' any time a bank increases the amount of loans it has out. Money is 'based' on credit.
SimonEissen 7 months ago
@SimonEissen So to answer your question. The Fed sells treasuries to the Bank of China or whoever that it has 'bought' from the Treasury or from whoever has sold them a treasury bond or note (treasuries get traded up until they mature, they are a commodity). The Bank of China doesn't nor any other bank 'buy' a Treasury bond or note directly from the Treasury. That's the Fed's job as the banker for the Treasury.
SimonEissen 7 months ago
@SimonEissen I see that I didn't answer your whole question. Foreigners, including China, buy US treasuries with dollars. China and other countries that have a trade balance surplus with the US end up with dollars in their banks. Those dollars could be used to buy US made goods and services or to buy our IOU's (treasury notes). Either way, the dollars get transferred from the foreign banks back to the US. Eventually, the treasury note is redeemed with interest so the dollars go out again.
SimonEissen 7 months ago
@SimonEissen I left out that the amount the bank has on deposit with the Fed is also part of it's assets. And banks don't hold on to 'collateral' but will 'liquidate' (sell) it as quickly as they can. Collateral could be a repossessed auto, boat or even a house. Banks want assets that produce income without having to get into another line of business like managing rental property or auto brokerage.
SimonEissen 7 months ago
his a pervert u know, he touched my daughter. how much m0 money should he pay me?
darkdavegmail 1 year ago
my dad forced me to start learning economics since i was 10,
i mean like wtf lol
u7alll 1 year ago
UMMM, It runs a bit like musical chairs. What happens when the music stops?
sugarraygras 1 year ago
@sugarraygras
Then we all sit down, and faggots like you miss out on a chair.
parklinkin52 1 year ago
@parklinkin52 Fuckoff
sugarraygras 1 year ago
This has been flagged as spam show
Do you find a trusted wife gettop5.info
criseldaprangehkg 1 year ago
so m1=liabilities?
Sexisttroll 1 year ago
The treasury pays the fed 3/4 in.
TheCameo86 1 year ago
You made a mistake at 11:38. The bank gets $100 from the deposit of the person who sold the Treasuries. The bank can lend $50 of that deposit- not $100 as you said because the bank has a 50% reserve requirement. M1 goes to 550- not 600.
jeffreagan2001 1 year ago
@jeffreagan2001 No, that's not right. The new deposit itself, 100$, represents the reserve for the total amount of new loans that can be made. So I go to the bank and give them my 100 notes. They can then indeed loan out only 50 of those, but those borrowers will come back and deposit those notes again, to be lent out by the bank again. So eventually, the 100$ represents the reserve for a total of 200$ in new deposits. And as such the M1 will indeed increase to 600
JackoWacko0087 1 year ago
@JackoWacko0087 If only 50 is deposited back then only 50 will be lent back out. As long as the bank has a total of 100 dollars it can't lend out more than 50. But that 100 dollars will eventually be lent out because of other later deposits.
Luigi84289 1 year ago
@Luigi84289 I did not take into account interest but in an interest free system It would take more deposits to lend out that 100 dollars with interest the bank after receiving the return for that 50 dollar loan would have slightly more than 100 dollars and would eventually be able to lend out your entire 100 dollars without further deposits.
Luigi84289 1 year ago
Comment removed
JackoWacko0087 1 year ago
@Luigi84289 This is in response to both your posts. First, let me explain again, because Khan is in fact right: 100 is deposited, 50 lent out. That 50 is deposited again, and 25 lent out. That 25 is deposited, 12,5 lent out and so forth, until the total additional deposits are 100 (+original 100 = 200). Second: what you say about interest might be true, but in this case it is not relevant and has only confused your analysis more. The bank does not need interest to lend out the entire 100.
JackoWacko0087 1 year ago
@Luigi84289 Bank uses money to buy stuff like any company. They are not in it to hoard cash (which is useless).
So any basically any interest bank makes is used, they may of course always hold some cash at hand for liquidity.
Someone finally wrote an article about this at mises.com. The fallacy of not having enough money to buy interest is getting broad. Interest happens in real world, not in monetary one.
Keyguya 10 months ago
When do we get to inflation?
professornuclearbomb 1 year ago
Rothchilds!? Don't forget the Illuminati, Bilderbergers, et. al..!!
Funny how it would seem folks are genuinely astonished to discover the risk factor as it relates to finance and how finance relates to the state.
Weird.
Great videos! Thanks.
jakebarnes28 2 years ago
many many thanks.
silanath 2 years ago
Confidence is another way to say how much risk. If you buy a Treasury in current dollars, what is the confidence that you will be paid back in dollars at equivalent worth when the Bond Matures? What are the risks that the US will not debase the currency before your Bond Matures?
The US roll over in debt is very sensitive to interest rate changes. This is a risk.
personova 2 years ago
@personova, That's why they invented TIPS (Treasury Inflation Protected Securities.) You can buy those if you fear inflation.
ananiasacts 1 year ago
Seems to me that if you control a large enough portion of treasuries you also control the government (through blackmail), so if the Fed can buy as many treasuries as it wants, it can gain a higher and higher percentage of the total treasuries. Treasuries require that the government pay interest as well as the face value, so more treasuries = more government debt, and the gap is filled with taxes. So you have infinite money supply (Fed) vs total possible taxation. Am I missing something?
blahdelablah 2 years ago
Also it's not just the federal reserve that purchases these treasuries (bonds, debt) but individuals and other countries. China for example owns $1 out of every $10 of U.S. public debt. Check out Warren Buffetts "Thriftville vs Squanderville" example, it can be found here on Youtube.
Pantz104 2 years ago
This has been flagged as spam show
Nice try. Keep it up check out esteembpo + com for social media marketing. vfvghfs
SadeTabitha 2 years ago
The inference seems to be that increasing the reserves subsequently increases M1. Operationally the causation is the reverse. Banks make loans without regard to reserves. Reserves are borrowed later if necessary.
Consequently the reverse is also true. If the bank can find no good loans to make, because say the economy is crap, then no loans are made. The fed can increase the reserves, wont make any difference to M1.
Banks are not constrained by reserves. Reserves are a tax on the banks.
caveltor 2 years ago
very good keep them up~!
jackuy12345 2 years ago
very good, very understandable, the only thing is is that the federal reserve actually does make money! HELLO but other than this it's good.
carracer481 2 years ago
Cause it's secretely owned by the Rothchilds?
ananiasacts 2 years ago
To suggest that the government can lower interests simply by printing more money is what one economist described as "ordinary, man in the street economics".
I love the dissection of how banking works, just be careful when presenting theory when there's a good chance it might not be correct.
[The part I'm talking about is at 5:09 onwards]
20000miles 2 years ago
I've watched all the videos up until this one, and this is the first error I've noticed.
Sal appears to be putting forward the theory that interest is a puerly monetary phenomenon. I submit that this is simply not the case, and that the interest rate is an intertemporal price that expresses information about the preference of present goods over future ones. An economy can function with any level of money supply - the price level will adjust to fit the MS.
(continued above)
20000miles 2 years ago
Sal, you clearly believe time should not simply be consumed but invested. I really am benefitting from your videos. Interesting to learn that derivatives of f(x) = e to the power of x, like Bilal, repeat 1. I understand how buying treasuries, the Reserve Bank can put cash into the system. What prevents the seller from depositing or investing outside the system? Is not more money be printed for no benefit for the domestic system, in this scenario?
BroAbdul 3 years ago
How much they think they have....In a fiat currency what is the reason we have such a fraudulent and barbaric system? Are we running out of digits on the computer?
gwynedd1 3 years ago
I was able to follow the first couple of videos with relative ease, however now my mind is beginning to explode, I'm finding I have to watch these videos over and over to grasp the concept.
But thank you so much for these videos as I am sure the written material on this is 100x more mind boggling.
Boxmanboxman 3 years ago
yea same here
likeriver 2 years ago
First off thank you for these video. They are immensely valuable and informative. However, because you take such great pains to explain everything and reiterate the same points over and over again, it ironically becomes harder to follow having deferred from arriving to the actual point for so long.
For example in this video after mentioning that bank can take receipt of notes from the reserve bank or simply have the reserve bank create a checking account...
Roshibear 3 years ago
then you go on to interrupt your point serval times to reiterate that yes the capital can take the form of either actual notes or a checking account.
Sorry for the criticism, because again I am thankful that you've bothered to make these videos at all, but honestly sometimes they hard to watch.
Roshibear 3 years ago
To Pongman
Federal Reserve is ran by 7 members (The Board of Govenors) They are appointed by President and confirmed by senate for 14 year terms. They get long terms to stay independent from political pressure.
HitmaNmofka 3 years ago
This has been flagged as spam show
why in the world would we stop using credit cards? Much easer then debit cards, I always use my credit card. Don't have to worry about how much money you have in your account.
smallbighorn 3 years ago
I have a question to the creator. Ever seen "A beautiful mind?" :P
Casper48022 3 years ago
So who regulates the Federal Reserve? Is there a government entity that is in charge of the Federal Reserve?
pongman 3 years ago
I guess the scary part is when the government has to borrow money, from whom I don't know, to cover the treasury obligations that have come to term.
jdrizd2 3 years ago