So now, by essentially printing money, buying debt, increasing the supply of money, two things happen.

The Federal Reserve slashed interest rates.

Well the first thing that you would do is that you would lower the

What gets raised? A noun phrase, a vital role to announce here interest rates.

So this is interesting.

And this is a really good time to kind of let it all sink in.

And fifth, we will champion SMALL businesses, America's engine of job growth.

And there's something else interesting here.

But by doing this open market operation the Fed was able to do both of its goals.

This guy needs less cash, so it lowers demand.

And our intuition was correct.

166 effective interest rate.

lower the interest rate for people buying and selling dollars, or I should say borrowing and lending dollars, not buying and selling.

It can go out there, perform open market operations, and buy, usually, Treasury securities out from the general market, and what that does is it increases the amount of cash that is in circulation. which decreases the demand for cash, increases the supply, and it should lower the interest rate.

I also want 100 of that.

We borrowed money at high interest.

I wouldn't lower myself to borrow money.

Now,I think we can get him to bite on a settlement figure. Why the hell would I want to do that?

So this is what people are talking about when they say treasury prices go up, if treasury prices go up then the yields go down

This is actually the power of compounding interest.

Or fiscal policy could go the other way.

And they want to do two things they want to inject this money into the banking system, which essentially will, hopefully, find its way into the economy, and they also want to lower the interest rate, especially the short term interest rate, this overnight borrowing.

Choice number two improved by a lot more when we lowered the interest rate, than choice number three did.

Why were they willing to pay rent, when they could have bought a house, where the mortgage would have been interest plus a little principal it would have been no more than 400 a month?

That's 100 , right?

It exposes the Fed to less interest rate risk.

I'm talking about base money right over here then the overnight borrowing rate between banks will go down.

applause

We all have heard of it.

And obviously they don't let you compound like that, but this just gives you a sense of how ridiculous this interest rate is.

So if it raises the supply of cash, and this guy needs it less, then the rate to borrow this cash is going to go down.

Falling interest rates have stimulated the automobile market.

Remember, this is the annual interest rate but this is an overnight loan.

Every time we went through a recession, from the mid '80s, onwards, the government solution was to make financing easier.

Hurry up, goldenrod!

Bank lending is rising because of lower interest rates.

We borrowed money at high interest.

Before Interest and Taxes.

Oh, my rate right.

And this is the same thing as what?

(Applause)

He came crawling to me to ask for a loan.

TOUCH YOUR NOSE TO THE GROUND!!

And we get tenx over thirteen minus x is equal to minus fifteen.

So why is that?