So first, a little bit of definitions.

Actually, I believe the one year itself is a note.

So this right here is a Treasury bond or bill.

What is even a treasury?

But hopefully at this point you have a sense of what the yield curve is.

So these treasury securities, whether they're T Bills, treasury bills, treasury notes, or treasury bonds.

External debt something that I can tell you a long story about because I personally worked on one of the biggest debts on the continent has come down dramatically.

So I will give the government 1,000, the government would give me a treasury bill.

America's foreign debt shot past 500 billion.

And because it's a junkier rating, no one is going to want to buy it.

Traditionally, when the fed is more focused on short term interest rates, on overnight borrowing rates between banks, it will use these to buy shorter term debt that increases the amount of currency out there the amount of dollars out there, and so it will

And maybe the fed is able to, through intervention, first they're able to print money, normally they buy shorter term debt, maybe they start buying longer term treasury debt, and maybe that helps get the yield curve, for longer term treasuries down a little bit.

But this I just want to show you some data here.

Maybe debt that you have to pay in the next year.

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

You're still solvent.

They serviced the loans.

And this non traditional type of intervention, where the Fed is no longer concerned about a target rate, because the target rate is already at zero, where the Fed is not purchasing short term debt, but is trying to buy longer term debt, things further down the yield curve, and maybe things that aren't Treasury securities to begin with, maybe they're starting to buy corporate debt, maybe they're starting to buy mortgage backed securities, this is called quantitative easing quantitative easing.

This is the retiree health care benefits.

But the whole point of open market operations is to set this overnight borrowing rate.

This would be something like here on our graph.

Helps bring it down.

Short Periodic Table

Come back 15 years later.

But if the Fed wants to inject more cash, it can now buy different types of securities.

So that's bankruptcy.

You go get bankruptcy protection.

Similarly, if it's three months, it's a three month treasury bill.

So if I give a loan to the government for 1,000 for six months, that will be a treasury bill.

We would create incentives for securitization.

It can do it through debt or equity.

I have 4 billion in residential CDOs, collateralized debt obligations.

Over the next few years big decisions will be made in Washington on jobs, the economy, taxes and deficits, energy, education, war and peace.

Payable to the City of San Francisco.

Resident population 562.

For a very short while now.

The Secretary of State administers foreign affairs.

What is your strategy in your household?

You have 189,000 as the value of this equity.

Have a surplus? Take two tax cuts, roll back some regulations and call us in the morning.

Now let's say it gets even worse.

It's exciting, but we went over our finances and...

Poverty is on the rise and the gap is widening between the rich and the poor.

And as you can see, for most of recent history, except for a brief period, we have consistently spent more than we take in.

It won't be for long. It's a shortterm placement.