The Discount Rate

[VideoGameCoupons]

thanks for the video

[no0000ob]

hahah "ass"

[KLB1954]

the Federal Reserve is a series of private banks

[superslave1984]

@lappardas money is created out of thin air, khan said it himself, the only thing they have to do is have an offsetting liability. They can print as much as they want and they have no oversight. The Federal Reserve as Allen Greenspan has stated is not an agency of the federal government.

[bluelonesome21]

You're a good instructor. That was something I should have known a long time ago. Thank you.

[RunLiberty]

Read the book-"The Creature from Jekyll Island-A Second Look at

the Federal Reserve." Great start on central banking history.

Ron Paul 2012

[misstaoying]

very useful! Thank you!

[smokenfly514]

This is what Wikipedia tells me: "Present value The current worth of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows. Determining the appropriate discount rate is the key to properly valuing future cash flows, whether they be earnings or obligations"

[smokenfly514]

My calculus teacher told me this has nothing to do with the discount rate. He said it's something to do with the time value of money and interest rates .. I'm confused can someone explain please?

[ForbiddenStallion]

@smokenfly514 There are several definitions. Investopedia had this to say:

What Does Discount Rate Mean?

1. The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank.

2. The interest rate used in determining the present value of future cash flows.

[RunLiberty]

@smokenfly514 Read Richard Maybury's book "Whatever Happened to Penny Candy?" it lays out central banking for easy understanding.

[balot27]

who here knows where to find transcriptions to these videos? tnx.

[hwt2009]

before 0ct ,2008 the overnight deopsit rate was zero and the discount rate was set below the fed funds rate; after oct 9, 2008 the federal reserve initiated interest payments at Federal Reserve Banks. This was done by Bernanke. so there are three different rates a) the discount rate where the feds lend a bank

b) the Fed funds rate for interbank loans

c) the overnight deposit rate

khans videos are out of date

[hwt2009]

the fed funds rate is reported to be 0; why would any bank with excess funds want to deposit their excess reserves with the feds?

could there be a situation where a bank deposits its excess reserves with the Fed but no other banks wants to borrow?

[yeshodeep]

fun learning !! thanks!! 5 star !!

[KLguy133]

what happens when the bank has no or not enough assets to back a repo ?

Like what's happening now , does that mean it has to go insolvent or become nationalised or take some sort of direct loan from then FED?

[seven8000]

So, summarizing: Money is created by credit from banks, by governments and by the fed lending to banks. Is that right ?

[SadegoGG]

@seven8000

Correct, and the entire process is illegal and not authorized by the United States Constitution. Any politicians who advocated for such policy is committing tyranny and should be charged with felonies.

[wowrogue8]

so many bad comments and five star haha!! lol

[Falange2000]

SDR is not gold, it's an artificial currency based on several index currencies and used by different intl'l organizations.

[jefflehman]

nerd fight lol

[jackuy12345]

isten ppl!! swine flu is attacking!!!!!! this is waht human gets for destroying the nature

[BigPurple121]

Baxter Labs found a vaccine. Swine flu is no longer a threat.

Thats what nature gets for fucking with humans

[jackuy12345]

LOL no longer a threat? naw u fucking wish it keep spreading day by day lmfao, and they r planning to make a vaccine they didnt even test it, it cant be used unless it is been tested, and testing need time ok? so too bad, humans r just over confidence and try to fight against nature

[BigPurple121]

Is that why Baxter Labs stock has gone up 6 points in three days.

moron

[jackuy12345]

lol u just jealous cuz what i said was correct, lmfao u dumbass

[BigPurple121]

troll

[jackuy12345]

lmfao

[zzxzqwq]

big purple121 is someone called Phil Bredesen who works for ACLU. He supports bullying and right wing policies.

[jackuy12345]

works for aclu? lmao yeah right.... i work for the white house u faggot

[zzxzqwq]

jackuy12345 Fuck you peado scumbag. You maggot you cunt. You are such an evil shithead just fuck off and die. I mean this just die cunt.

[jackuy12345]

zzxzqwq, what u have said right there proves that u r nothing but a piece of retarded shit

[zzxzqwq]

No, it proves you a low iq pedophile now fuck off cunt.

[jackuy12345]

ur mom is low iq like ur whole family

[zzxzqwq]

jackuy12345 My mum went to university, just as my whole family did your family are low iq scum. I fucked your mum with my 109 inch black cock.

[jackuy12345]

fuck u doche back, u have a 109 inch cock? if u do then i have a 1000 inch cock u faggot dumbshit

[hgkhgv12]

In this playlist you have been talking a lot sense except starting at 02:40 here , you think that FRN is an asset to federal reserve.

It does not make sense. All federal reserve will do is simply create and entry in the account of the bank which sold the T-bill. refer wikipedia.

[brokeinvestor]

whats the name of the spread between the two rates?

[pongman]

I still say if you lower the price of food and energy then the economic crises would disappear. I don't quite understand why we can't produce more food and lower prices for everyone so that people can have more purchasing power to buy the other things that keep the economy going. John K. Galbreath did it somewhat in WW2 but that was a price freeze.

[jnp4825]

intresting