Monetary policy is more indirect.

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

So this is essentially lending money.

I lend money.

Money lenders are enjoying a profitable period.

Do you have safety deposit boxes?

Why don't we open the box?

And so it would essentially be I gave them 100 thousand maybe to do some work for me it would be a transfer of money by giving a loan and then keep forgiving over and over it would be completely identical to giving someone a gift, which is taxed, or giving someone some type of income

In the name of the pizzeria he's going to borrow some money and then maybe invest that in stocks or something.

So in this situation, what you're going to have happen is Bank A is going to lend some reserves is going to lend some cash to Bank B.

So Bank C will have an asset here that says, no I lent money to Bank B.

I'll do it in green.

So I'll give out a loan to that person.

Perceived lending risk goes down.

Lend you money?

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

And all of that is, essentially, just consumption that just destroys wealth.

I can't lend you any money.

So they say, that's a good idea.

Lend your money and lose your friend.

And that loan officer at the bank, he's going to be giving the bank's money for your house, right?

They still owe you money, fool!

The second actor, different cast of guys, is the donors.

As Chief Loan Officer at Brea Federal Savings and Loan... you gave a man money to start a fertilizer business.

So that makes more people willing to lend.

No more than I already gave you.

Would you lend me some money?

Will you lend me some money?

Didn't I lend you some money yesterday?

So this is lending some cash.

Khalid is asking for some money to be made as a donation to the mosque.

And it's going to get highly politicized.

I raise funds.

So, in that situation there will be 102 of your money so, at the 950 dollar price, you're essentially lending the government money at 5.3

If I buy a treasury bond, so if I'm buying debt,

And once, again let's say that risk free I could put money

What the Fed was doing was, they were saying, OK, we'll take some of these assets that Bank C has.

Safety deposit box.

After going through the safety deposit box...

First and foremost, I learned about this new method of change in the world that, for once, showed me, maybe, a way to interact with someone and to give, to share of a resource in a way that wasn't weird and didn't make me feel bad that was exciting.

They all say, gee, I'm paying a 500,000 loan.

I can tell if you pay your bills on time.

We mean to treat you, but you must lend us money, we spent ours. Look!

I left the money with him.

But they are extremely efficient organizations.