Quantitative Easing Explained
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- Опубліковано 26 сер 2024
- What the Federal Reserve is up to, and how we got here.
September 2012 Update: Check out my essay on how the Fed thinks QE will create jobs: omidmalekan.com...
and another on the way the Media covers the Federal Reserve: omidmalekan.com...
by Omid Malekan
www.omidmalekan.com
@malekanoms
![Lp. Сердце Вселенной #1 НАЧАЛО ПУТЕШЕСТВИЯ [Новый сезон] • Майнкрафт](http://i.ytimg.com/vi/380Q7gLWGvk/mqdefault.jpg)
This one never gets old. I’ve watched it a dozen times at least. “The Fed has been wrong about every major economic development in the past 20 years.”
“Is this an episode of the Twilight Zone?” “Is this some kind of nightmare?” UA-cam gold. Should be required viewing for every person on the planet.
woman detected
there is no "planet" earth is flat
@@dfgghdfgdgsadfsfafdaagadgadgad is this satire or no?
Fed just announced massive QE. This video is still relevant in 2020
not massive, it's QE INFINITY
Hence my watching it again. Is there a word for rueful nostalgia?
Feds will always announce QE during an economic crisis you idiot, this video will always be relevant anytime something like this happens
@@tian_obia wrong, QE is a modern thing.
@@SmashBrosBrawl Whoever thinks this video is a good explanation of QE and what the Federal Reserve does to stabilize its economy is an idiot. Go take an economics class
Hello to everyone watching this on 3/15/2020.
Time is a flat circle.
Hi!......this video only makes me more libertarian.....lol
Where is the Ben Bernank when one "needs" him?!? LOL
The Ben Bernank! The William Dudley! Those were the good ole days
@@jamesd.salehi4752 Amen and I laughed my head off. Yip!!! the same applies in 2020 and we are in a very big mess and welcome to the depression of 2020 and my girlfriend son just lost his job. We will have soup lines in the next few years. We are in for a major, major change.
*fiat circle
Watching in 2020 as the Fed just announced a $700 billion quantitative easing program
I'm from the future. $700B is child's play son.
@@mineshaftrisotto ohhh man I hate to say it but Biden got elected and now that $700billion is turning into $1.9billion
@@jasonyeszkonis8364 Trillion
Nice!
Update from the future 6/10/2022: CPI% was released today....8.6%!!!
Here from the latest Patrick Boyle video (May 2024). Referenced this legendary classic.
1,150 people work for the Goldman Sachs.
And the Lehman, and the Ben Bernank.
They got the bail out
Gee, they might have to find more productive jobs.
"The only thing that is deflating that I can see is the Fed's credibility."
HAHAHAHA.
I was expecting other things, but this totally cracks me up.
This is one of the all-time great videos on UA-cam....a Hall of Famer. GREAT job on this. I LOVE how you nail "the Goldman Sachs" over and over, and very rightly so.
The Ben Bernank... love it;)
I wish the video creator had continued to make more videos that followed along with each Fed induced economic blunder. Could’a had quite the series
the way they're talking is fabulous
higher than a year ago!? lmaoooo
I know I love these
buy bitcoin thank me later
what does that mean
Watching this in 2019, QE4 from the fed.
Also rewatching in 2019 ,this is a sinking ship
Huh, and in 2020 I was going to say this video didn't age well. 😆
if you only knew then what we know now. People were right. Fed lied about not doing QE. People think the economy is screwed because of the virus when in reality , there are things way worse than that.
Hey QE is back stronger than ever
Watching this in 2020, QE5 (the corona edition) from the fed :-)
Hello, I am here again after hearing about Ben Bernanke winning the nobel prize in economics. I want to bang my head against a wall.
"the only thing deflating, that I can see, is the Fed's credibility." lel
and the value of money...
AND OUR PAYCHECKS.....😠
I lost my shit at "the Ben Bernank" lol
me too
*Pokemon_Go Pokecoins* twitter.com/dailyoffers98/status/755360029943947264?v=PTUY16CkS-k?v=PTUY16CkS-k
*Pokemon Go Pokecoins* twitter.com/dailyoffers98/status/755371120212205568?v=PTUY16CkS-k?v=PTUY16CkS-k
Same
This should be required viewing for every high school student on Earth.
It shouldn't be required for anyone. It's humorous, but that's it. I'm guessing not one person involved with the video has even heard of Triffin, much less understands how the Triffin Paradox and the US drastically cutting the deficit under Clinton played a major role in the trade of derivatives. This simplistic horse crap appeals to the uneducated and should not be put in schools as "education"...
My economics professor showed my class this video. It was funny and easy to comprehend.
This is one of the first UA-cam videos I remember watching.
"I want to bang my head against the wall"
"You shouldn't do that"
"Why not"
"The Health Care is too expensive"!!!
"The Ben Bernanke."
"Ron paul" I'm back benny boy.
Watching this in 2020, after Corona outbreak, still spot on....
Dude 1.5trillion in 2020 again...
Finally some useful information put in layman's terms that can actually educate people instead of creating straw man arguments that just want to denounce another party. A breath of fresh air!
If only people weren't so easily manipulated. This video is medicine for an ill mind.
I had to watch this again! Its still so relevant in 2021
Get ready for this video to be revived
kevin robson you sir are ahead of the game
It has been resurrected.
@@quentindaniels7460 Doesn't feel like 10 years since I last watched this...
Administrator - Crazy, ehh? Time flies, and here we are again, except this time we have “the Jay Powell” doing “the quantitative easing” on steroids and meth at the same time.
@@quentindaniels7460 this video seems almost quaint now. It's concerning
This video still relevant in 2023
The first time I watched it was today, March 26, 2023.
And I was really thinking this video was made 1 or 2 weeks ago.
Been on this ship since around 2011.
It's worse than we can even imagine.
When the west collapses it's going to be Africa tier shit.
"it means they are going to print a ton of money"
"the 'printing money' is the last refuge of failed economic empires and Banana Republics"
Ben Bernanke actually references this cartoon in his memoir lol
Lol really?
Can you quote the extract?
““Our difficulties were evident in an animated UA-cam video featuring two creatures of indeterminate species hilariously but wholly inaccurately explaining “the quantitative easing.” The video went viral, and by mid-December it had logged 3.5 million views.”
Chpt21
I’d be curious to know his reasons why this is inaccurate.
@@mynameisben123 His reasons would be couched in complex bullshit.
“The William Dudley “ ha let me get this straight the guy in charge of selling the treasuries to the Goldman Sac used to be a partner at the Goldman Sacs?!!
Let's get this William Dudley on the line
The use of the definitive article ‘the’ is especially pleasing
2023 checking in. Here we go again!
THEE Goldman Sachs.
I think it is about time for the algorithm to make this popular again.
Ahh a piece of artwork that will live on in our hearts and minds while we suffer from superflation
Yeah... I want to feel nostalgia from this 10+ year old video, but that nostalgia is outweighed by the fact that the video's message has held up so well. :/
I commend the author for simplicity and clarity. Another great video is WHY WE ARE IN SO MUCH DEBT. It goes to the root cause by explaining how the monetary system enriches and empowers Wall Street by stealing our individual prosperity.
hilarious, yet the reality is sad
yoo it's been 9 years. How is life and what are you upto? What changed?
yoo it's been 3 months. How is life and what are you upto? What changed?
I'm about to build a 5 foot wingspan RC Airplane.
11 years later; seeing the collusion between media, pharma and government, it makes a lot of sense. It's depressing but it's good to better know your enemy as well.
Capitalism, capitalism never changes.
I favorited this back when it was around 500,000 views. Everything is absolutely true in this video. Beware those who try to debunk it with complication. Facts are very easy things to comprehend, they will try to convince you that you are never smart enough to understand the very obvious.
So true! And this is getting so relevant now.
Inflation is because of quantitive easing
So Kanye is right?
"You must be shitting me."
My exact sentiments. God help us when the next "bubble" hits the fan.
Hi in 2023
I love this video. Referring to all of these institutions and effects as if they were inanimate objects is awesome.
8+ years later and all this did was kick the can.
2019 recession and bubble burst.
Only because under different circumstances this time the FED actually is sabotaging the market.
@@djmars1983 the whole so called recovery was completely artificial and due to central banks creating money. If it was healthy interest rates would have been at normal rates years ago.
Worse new problems like too many companies buying back stock will be compounded as they borrowed money to buyback stock.
@@ninjamaster3453 , we can't have normal rates because the debt is too high now. A 5.2% yield on the 10 yr bond would put us in default. 4% is the tipping point. That's why every time yields get over 3% they are knocked down. We'll never see even 3.5%. Ever. Guaranteed.
A former Fed guy detailed it all in a very lengthy report. Those aren't my numbers, they're his. I believe his name is Fred Mishken. Might be able to find the report online if interested.
Close enough
yes, recessions are inherent to capitalism or ANY market-based economy
Never gets old...just change some names and can fit today's reality easy
The Ben Bernanke has just been awarded the Nobel Prize in Economics
Because that awards is bullshit the gave Obama is peace
This is the best video on economics I have ever seen!
10 years later and this circus is still happening
Never thought it would last this long.
Oh my God this is definitely the best video on UA-cam
History isn't supposed to repeat itself this quickly.
Watched this back in 2010 I laughed, Now its 2020 and I'm crying!
Holy S*!! This is pure gold!! Funny, informative, didactic, critical, and eye opening! Keep it up! 👏
Ah, the good old days of the Internet.
And yet this video's message has unfortunately stood the test of time.
How has this video aged, now 10 years later? Like fine wine, sir. Tips fedora
I have a dear friend from Argentina, a country which basically could not have had more incompetent monetary policy, from the ill-fated dollar peg, hyper-inflation in the 80s. Yet despite it all, the country moves forward. My friend calls it "riding the bike." I don't doubt the kind of damage that could be caused if Ron Paul got his way and ended the FED. But at the same time, the economy is resilient enough to adapt to this highly improbable scenario. Life goes on my friend. C'est la vie.
"The people at the Goldman Sachs"
Oy v3y
We need malekanoms back 😭
I'm fucking crying doing this international business assignment. Thank you for this gem.
still relevant 9 years later....
"No, they buy the treasury bonds from the Goldman Sachs." "You must be shitting me."
when my professor linked this video for our assignment this was not what i expected, but i appreciated it
Imaging doing exactly the same thing from exactly the same mistakes 12 years ago
Sometimes I go back to this video.
I think about this a lot.
The conversation is hilarious... lol
Putting it into the mouths of two perfectly static cartoon characters and disguising it as a conversation sure made this monologue more entertaining and credible.
Sure does
who else is watching in 2022?
Every time it said "The Ben Bernanke" I laughed.
Actually, the fed doesn't even bother to print the fiat currency.
I mean, the fiat currency the fed creates is simply an electronic creation. It isn't even paper money.
+Carl Favorito The new "money" is keystrokes on a computer. Something they are probably doing tonight, in fact.
+Carl Favorito 1,000,000,000....I'm a billionaire!
+James Exactly. The Fed "pays' for the bonds it buys with a check drawn on a non-existent account/ written on money IT DOESN'T"T HAVE. That's the scary part because that's the EXACT THING which transpires. It's all just 1's and 0's and the banking system is now free to further debase our money and steal our purchasing power. They aren't literally printing money (not technically, but effectively that's the concept b/c it increases the monetary base, but necessarily the money supply---it depends on whether the banks loan out the new reserves or just sit on them and earn Fed-payed interest. Although back when this video was posted I'm not sure if the Fed was paying interest on reserves yet??......I digress...)
print equals new digital money entries or classic bill printing, both are forms of fiar currency
ＴＨＥ ＢＥＮ ＢＥＲＮＡＮＫＥ
Teh benbernank. LOL
oy vey
This is the best video i have ever seen on youtube.... HILARIOUS!!!
"The Ben Bernank" LOL. This is all so sad but true, how did the Fed get away with this, without any of us idiots realising or doing anything about it???!
I watch this before every FOMC meeting
Best video on UA-cam
It has been 9 years since I saw this youtube. Today it occurred to me that in 2008 "Debt" was generally seen as the villain. In 2020 "Debt" has now been broadly cast as the hero as people around the world seem to have gone beyond patience and into a passion for QE. Had to just see if this UA-cam was still accessible. What we are going to see now will make the past look very moderate.
"the ben bernank" I'M DYING!!!!
"The Bernank" is my favorite part of the vid.
The Bernanke just won the Nobel freaking prize in Economics... I re-posted this to my FB page in honor.
rewatching this in 2022 its just so sad how everything said has only gotten multiples worse
Always relevant
Copy and paste for QE2 and now... ding ding, here we go again.
8 years later and this still applies today
I emailed this video to my corporate finance professor who worked on Wall St for 20 yrs when this video was first released and I was still enrolled in business school.
He never talked to me again.
When the government prints money it's called quantitative easing. When we do it that's called counter fitting.
its a great clip, but just to be accurate. I love deflation, but in current so-called economic system deflation increases debt:currency ratio, making it harder for population to deal with loan payments (less currency to pay more debt). So this system is constructed to force governments to have inflation. (expansion of money supply - commercial credit is collapsing, thats why they print money at 0% not allow to debt:currency ratio to increase) This system should not be called economy, but legalized theft and slavery system. Under it, governments cannot stop printing money, even if they wanted to, (or they have complete stagnation like japan in 1990-2010) without huge financial reform.
Someone send this to John Oliver, he needs it.
Why does he need it? He didn't say anything about QE that was off base...
Ryan Nugraha Uh, yes he did. He was saying Jill Stein's QE plan to erase student debt wouldn't work. And that's bs.
Daniel Stewart I don't think he was saying it wasn't going to work; of course printing money will solve any debt. But his argument was whether it is a good idea or not, which is highly debatable.
Let's say all student debts are wiped clean without fixing the real problem which is the school pricing itself. Are we then going to do this again in 10 years time? 20 years time? 30 years time? Why do you, or all students in debt now, get to be the lucky ones who have their debt wiped... Jill Stein is promising a magical fix for a problem that's much more complex.
Wiping out the student debt, coupled with making public college free was what Jill was proposing. The "lucky" folks who would not have to worry about being thrown into debtor's prison because of their massive student debt is actually a plus economically and morally. It's not like credit card debt where it's totally avoidable. Many jobs (especially STEM fields) require college degrees and college is ludicrously expensive. I was lucky enough to be born in a family that could afford to send me to college. What Jill was saying was that we jump to bailout the big banks when they screw up the economy but we can't do the same for our own citizens that are just trying to make a better life for themselves.
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The gift that keeps on giving. Referring both this video and the Fed 's ability to keep printing more mone...I mean qualitative easing.
Just heard an excerpt of this in the Freakonomics podcast with The Ben Bern-Nank and came here for the full story.
2:06 did anyone else hear "Right before the shit hit the fan" lol wtf am I watching
You're watching nonsense, of course...
Only a gov/bankster troll would say that
Pablo Malaga LOL, the video is complete bulshit but given the average intellectual capacity of people I’m not surprised so many ‘geniuses’ like it. I hope you don’t trade it coz you would have lost loads of money
@@mihaililiev5932 you don´t even know what money is
Pablo Malaga Do you think you know?
Watching this in Mar. 2020, another QE from the fed.
"The Ben Bernanke" always makes me legit lol everytime
The Ben bernake also has a noble peace prize in economics
Great presentation of the history of the Fed and its actual role in the U.S. I'll gladly share this in my circle. Only one critique, I agree with Darvinisti that I would prefer human voices, and, although I don't mind animation, I would prefer it to be a little less cute. But the dialogue is fantastic and very engaging, with the characters asking real questions and providing engaging answers. Thank you, and I'll be sure to check out the rest of your series!
agree, good script, execution could be better, but ok; the message is there, now all we need are another 300 million people to actually watch this ... damn, there goes my hope ...
FED - Failure and Epic Dept
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Wish every American that cares about their future and the their children's future would watch this and spread the word !
1:02 - 1:39 - the greatest moment in the UA-cam history
There needs to be a sequel...we're on round 5, featuring the Janet Yellen, who received $810,000 to Give Speeches at One of the Firms in the GameStop Mess. Who does she have pictures of?
“Biden announces $6 Trillion stimulus package”
3. With a 27% tax on the rich
The big issue I see with QE as Richard Koo (Economist) correctly
points out that whilst QE is trying to encourage banks to loan... The
everyday businesses and households stop borrowing money in order to pay
off their debt.
It happened in Japan whereby there was money to be borrowed but they
just wanted to pay off their debts even at 0% interest rate. In that
case the government needs to borrow money to keep the economy stable
until such time businesses and households start borrowing again which is
when the government can start paying off their debt.
Basically QE doesn't work but yet they keep doing more and more of it
causing a huge problem in the long term and now it's doing nothing in
the short term. They have so much money in reserves that when they start
borrowing again, interest rates will sky rocket.
The video is for pre school only. Money is not created by printing machine any more .It is actually just one side of the Coin of Credit.
Quantitative easing is creating the worst bubble of all....the currency bubble of the American Dollar. This means our money, when the bubble breaks, will be worth nothing. Cents on the dollar.
Everything old is new again.
I love the pure honesty of these videos
The Bernank pushed credits onto the big banks' balance sheets, he didn't actually roll the presses. Makes the banks look solvent, gives them more resources, kept them from collapse.
"about a year ago!!!"
beat drops*
year ago, year ago!!
I didn't assume anything about you, I was just explaining my first comment: pejoratively dismissing a system because it is unintuitive is exactly what this video is doing, and they shouldn't. But I'm glad the issue is resolved. Here on youtube, lack of nuance is often just to save space, not because of short-sightedness.
this is the most beautiful video on the Fed I have ever seen
12 years later, the Ben Bernanke got the Nobel in economy