A 1 0 U.S. Savings Bond.

And in the mean time, personal savings absolutely plummeted.

A lone robber held up the la brea savings and loan.

What we're seeing is an uptake in the savings rate.

Savings bonds.

They're savings bonds.

I made a deposit of 1,000 at the bank.

It's not just numbers on a piece of paper.

Or I could buy this house for 1 million.

But the remainder is savings.

This is something I call the 50 20 paradox.

What's this building?

Save your dollars bills, yo!

let's look back at that OECD graph that we were talking about.

He's given a control that allows him to adjust his savings rate.

If people can find that that sub prime product has been transferred across nations many, many times until it ends up in banks in Iceland or the rest in Britain, and people's ordinary savings are affected by it, then you cannot rely on a system of national supervision.

So we're starting to pay for things with money that we have.

So this is a timely problem.

I have a deposit of 500,000 yen at the bank.

And what I'm going to talk about today is Save More Tomorrow.

It's not even sustainable economically.

And slowly, slowly we're bringing it up to a moderate savings rate.

Before we let the clock run, the energy is stored as gravitational potential energy of the cylinders.

I put ten thousand yen into the bank every month.

Holding down the right flank of the OECD, all the way on the other side, is Greece.

Now I'm going to describe to you a study I did with Gur Huberman, Emir Kamenica, Wei Jang where we looked at the retirement savings decisions of nearly a million Americans from about 650 plans all in the U.S.

There was nothing to buy, unless you wanted to buy some rivets. Right?

Because I kind of view that as a reference point.

Until we get to this point right here, where everything starts blowing up.

Let me just put it into my mattress.

Well, think about smoking, for example.

I still have some money saved! I'm prepared for hard times.

It is a loan to the U.S. Treasury.

I could go on and on with the list of differences that you can find.

Keep something for a rainy day.

You'd rent a smaller home.

Where maybe I saved 5, but someone else borrowed 5.

So all the way over on the left of this graph, what you see is many OECD countries saving over a quarter of their GDP every year, and some OECD countries saving over a third of their GDP per year.

In an emergency you can fall back on your savings.

Put by money for the future.

Do you know what this was right here?

I don't dividend it out to the shareholders. I just keep that.

Do you know who sponsored this research?

In an emergency you can fall back on your savings.

It should be noted, of course, that the United States and the U.K. are the next in line.