The Khmer Rouge didn't believe in money.

Do you know who sponsored this research?

So when I talk about the short term interest rate I'm talking about the interest rate on loans that are made over very short periods of time.

And that's what the reserve ratios were all based on, based on the bank notes themselves.

And maybe it'll be another 5 or maybe the interest rate can change again.

And it really just kind of gets rid of a little nuisance.

Let's keep reading what the fed is saying.

The Federal Reserve slashed interest rates.

The Fed is trying to stave off a run on the banks.

Now, when I went to look at the figures of the U.S. money supply, the U.S. money supply is the amount of dollars that the Federal Reserve prints every year in order to satisfy the increase in the demand for dollars, which, of course, reflects the growth of the economy.

What I want to explore in this video is the different ways of measuring the amount of money we have in circulation.

And it makes sense all the way up to 5.0001 , I'd actually borrow it.

So it was expansionary.

Maybe people aren't getting mortgage loans still.

let's say that they're printing some money right over here, so that's money that they're printing, so this is literally, it would be federal reserve notes being created, so these are notes, which are essentially dollar bills.

And this is the rate that you always hear talked about on the news, and it's essentially a target rate that the Fed wants to see banks lending money,

lending cash to each other on an overnight basis.

Now, fast forward to a situation like we are right now and the Federal Funds Rate is already at zero.

The price of money will go down, that's what the federal funds rate is, it's the target rate, so I'll say Fed Funds Rate, it's the target rate that the Fed sets for the overnight borrowing of reserves between banks, that's the Federal Funds Rate, and it will go down and that's how the Fed tries to set the Federal Funds Rate.

And the Fed usually cares about getting that interest rate within a certain zone, around a certain target.

About 1,700,000. It's a Federal Reserve shipment.

So they start printing some money. I should do money in green!

And the height here is proportional to how much money they print, so maybe this is another trillion dollars they're printing.

I want to point out the notoriously left wing socialist group that financed the research, the Federal Reserve Bank.

This is their current assets, and let's say that is is their liabilities over here, so liabilities, and then this is their equity, although the federal reserve's equity is a little bit strange, it's not like traditional equity, that they get all the excess profits and all of that, all the excess profits actually go to the US government.

Which is essentially the same thing as printing money.

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

The Federal Reserve cut its benchmark discount rate to an 18 year low.

So now all of these dollars are transferred to PB 1, and they are no longer... the Fed Reserve or the central bank (the general case) is no longer in posession of them.

This might the yield on 1 year debt, and this might be the yield on maybe 5 year debt.

Short term, overnight borrowing between banks is already zero.

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

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

And I'll just draw it here as physical dollars, but most of the money that it is going to print actually is electronic money.

We only see bank notes from one bank, or at least one bank has the right to issue them within the United States and that's the Federal Reserve Bank.

There's the definition as you type.

Why don't we just all concentrate our gold in one reserve bank?

State

Micronesia, Federated States Of

And they'll still take a little discount of your collateral.

I have to go. Contact me when everything's set up.

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

Resume jump prep. Resume jump prep. Attention, all hands.

Prepares me for what?

So I don't know what 5 7 is.