Deposits on long term leases.

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

let's say, let's do the yield curve for treasuries, maybe it looks something like this.

A long time.

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

So GDP goes up a lot fantastic! That's the short run.

On leave?

A long rest. Are you?

Money lenders are enjoying a profitable period.

When we started compounding, at first you owed me 2, just when

He's on leave.

And then it does seem that the overall trend is that I expect more and more money as I lend money to the government for

I also want 100 of that.

The borrowers use the newly created loan money to grow their businesses, and pay back the debt, with an interest payment which requires more growth.

We borrowed money at high interest.

This is actually the power of compounding interest.

It'll have some interest rate, let me make something up, maybe it's a 7 loan.

Low real long term rates mean that any long term asset that pays, say, 100 a year in real terms would have been worth a real 1,429 in 1984, when it yielded 7 , but would have to be worth a real 5,000 now, when it yields just 2 . A decline in long term rates of such magnitude would thus appear to imply massive price inflation for real assets, justifying the high prices we are in fact seeing.

Or what you think the real interest will be after you take into account people pre paying their mortgage, people defaulting on their mortgage, and other things

If they have to pay for it, they use it.

We do not need to destroy.

So those three actors.

Was he here long?

That's 100 , right?

So first, a little bit of definitions.

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

Im in too new things, cutting edge Hip hop. Experimental stuff Big still into the Golden Age.

But, while the worldwide recession of 1981 2 brought inflation down rapidly, nominal long term interest rates did not fall immediately, for the world s markets were still not convinced. Hence, real long term rates remained quite high in the mid 1980 s.

We all have heard of it.

And then a homologous one for my mom that's also a little bit longer.

We don't know.

It's more like a sabbatical.

Let me draw this yield curve right over here, so this is maturity on the horizontal axis, and this is yield, and I'm gonna draw the yield curve for treasuries.

Chairman!

So EBlT, I kind of view that it goes backwards.

I don't want to romanticize aging.

And I'll show you a couple of people that did well by pursuing sabbaticals.

Now it might make a little bit more sense if we go to the next period.

And here's the really alarming part

I put photography as my life.

We're not quite a YouTube.

Robert Fischer, heir to the FischerMorrow energy conglomerate.

We borrowed money at high interest.

Before Interest and Taxes.

So now, by essentially printing money, buying debt, increasing the supply of money, two things happen.