T bill if it's a shorter duration,

Treasury bond if it's a longer duration.

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

That's why it's called open market operations.

This is an example here

And I'm doing this just to show you a point

And maybe it also does some longer term treasury securities, or whatever else.

So this right here is a Treasury bond or bill.

So let me draw them over here.

They are going to issue Treasury bills, when they essentially just need to borrow money.

And then at some future date, the U.S. Treasury is going to pay them a larger amount of money than they put back in.

I'll draw it as a dollar bill, right over there they hand the U.S. Treasury money, and then the U.S. Treasury gives them an IOU.

It can buy Treasury securities, so instead of short term Treasury securities, maybe it could be longer term Treasury securities.

They can buy treasuries from either two sources.

There is the United States government.

The public agency with the greatest expertise on Earth is of course the treasury that is, the British Treasury.

This is highly rated mortgage backed securities, maybe they have a slightly higher interest rate.

This is the other context.

This is a Treasury bond.

We would create incentives for securitization.

It can do it through debt or equity.

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

Secretary of Homeland Security. Veterans Affairs. Education.

I have a whole video on mortgage backed securities.

They will give this money to the market, and in exchange they will usually buy treasury securities, sometimes something slightly different, but usually very safe securities.

It's not accurate, but just gives you an idea.

10 million, in negotiable US Treasury certificates, coupons attached.

It went for 20 billion pounds through auction.

The Ministry of Finance is the next tower over.

My next presentation, I'm going to take it to a further

So that's what we're going to show you in the presentation on collateralized debt obligations.

Hey, the Fed's going to intervene if we don't lend to each other at that rate, the Fed can actually intervene.

This IOU is what a Treasury bill is, and what it entitles the holder of this piece of paper, it allows them to get interest from the Treasury, depending on what type of Treasury bill or bond it will be.

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

Okay? We want to try to recalculate.

I have a US treasure security here it says that the owner of this piece of paper here will be paid 1000 in one year so, if you buy this from the Treasury, maybe from somewhere else

They're going to use it to buy assets, and they're going to buy liquid and safe assets.

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And what happens is, this cash goes into the hands of the people who just sold these Treasury securities, and they have to deposit it in banks, and so they might deposit it in this bank over here, the might deposit it in this bank over here, or other banks.

But you should watch the videos on mortgage backed securities and collateralized debt obligations, if you want to get a better understanding of exactly how the money flows go.

Financial

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Annual rate of security

And then that's led to a decrease in prices.

I traveled to the Gaza Strip.