Currency and bond markets are relatively calm.

But kind of the one that people always talk about, I guess in the same phrase, is bonds.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

Savings bonds.

They're savings bonds.

However, in a pure quantitative easing regime, the focus of quality is the quantity of bank reserves, which are liabilities of the central bank the composition of loans and securities on the asset side of the central bank's balance sheet is incidential.

So what the Federal Reserve will do is called

So, for example, for each one gold piece

Let's say they want to make it 20 .

So a security in the equity world is a stock.

Now we're not as familiar with the term bank note because we only see one type, or at least one type per country.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

Right now I only have 100 gold pieces of on demand checking accounts.

What I'm squaring off in blue, that's the

Once you have all of that put together, there's not one reason why you couldn't actually have a marketplace for all of that, where you cannot dispose of all of those bonds in a pretty quick way.

And if buying debt seems like a weird thing to say, buying debt is the same thing as lending money (lending money).

In the U.S. right now, it's 10 , although the reserve commodity isn't gold anymore.

So one bank note might look like that and have Bank of Sal.

Another bank note might have Bank of

So it's going to be 6,000 times 1,000 bond certificates.

that rectangle is much larger than it should be relative to 1,000, but I think you get the point then I'll do I'll have a liability here that says five gold pieces bank note outstanding.

You can't get it on Yahoo!

We would create incentives for securitization.

It can do it through debt or equity.

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

So this is essentially you have the government, you have the government, it has two sources of revenue that it can spend it has money from taxes, it has tax revenue, and then it can go out and borrow money, and so it also has access to debt markets.

Remember, they can transact with this money.

And that's true because a dollar bill is a Federal Reserve bank note.

Loan B and I can give that.

over the total amount of

The bank was profitable.

They said, wow, this is great.

There's very little chance of them defaulting on their loans.

Our doctors don't know who the hell we are, and they don't have enough time for us.

Now let's say we go on to Yahoo Finance and we type in the ticker symbol for this bank Bank A, whatever we want to call it.

Or they might even start to buy things that aren't Treasuries.

I will go to the market.

So if someone gave me 500 gold pieces,

This is one of its assets.

Bellwether signs again.

Everything on the liabilities right now is on demand loans, which means whoever has that liability can come back and exchange it for gold at any moment in time, but the bank could've taken just a regular loan

I will issue a bank note

And it's often, maybe this debtor right here, he'll hire one bank.

I'll just create a checking account for them.

lifecycle adoption curve popularized by Geoff Moore in a book called Crossing the Chasm.