Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.
Let's face it... buying more stocks & index funds during stock market corrections and bear markets is scary. Which makes it really hard to do for most people like me. I have 260k i want to transfer into an s&s isa but its hard to bite the bullet and do it.
@@kimyoung8414 You need a Financial Advisor my friend so you don't get ripped off in the market. They provide personalized advice to individuals based on their risk appetite, placing them among the best of the best. There are bad ones, but some with good track records can be very good.
@@alexyoung3126 I agree with you totally Rose, Yes they can be positively impactful to an individual's portfolio. I started with a trust Financial Adviser named "Eileen Ruth Sparks". She is verifiable and her work ethic complies with the US Investment Act of 1940. Her approach is transparent, allowing full ownership and control of my portfolio with very reasonable fees relative to my portfolio earnings.
@@checkforme234 I know I've wanted to start investing for a few months, but just haven't had the courage to start because the market has been down for most of this year. Please how can I reckon with such skills and what are his services like?
@@joesphcu8975 She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things like that. You can take a look at her full name on the internet. She is renowned. So it shouldn't be difficult to find her official webpage.
The Fed, along with the Treasury Department print out half a trillion dollars and dump into the global financial market every year. During Covid era, the Fed also printed out around $7.5 Trillion for stimulus relief.
@@theman44ful . Every time the government prints more money your money devaluates. The government isn't helping you when they print money. Printing money only helps the already wealthy. Get it through your thick head.
Finally, a WSJ video of some quality. I get that WSJ is trying to appeal to the masses but at least we got some value out of this video. Now, let's try stepping it up another notch.
Only because the US is the reserve currency, so there is always demand. The US pays for it in terms of deploying troops all over the world and racking up a large trade deficit. It's not strictly "free," or "something for nothing." Most other currencies have been "printing" also.
Our government works for the privately owned "Federal" Reserve. They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it. However, this is nowhere near the truth. The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government. Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation. You are being played. If they took your house and income away you would beg. These people are planning to make it so difficult for everyone that we accept a universal currency. They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale. Our elected politicians do not get into office with our votes. We are given a few choices, and they already own every politician displayed on their media. Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time. We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers. They decide what they want, and then lie to us about the outcome of the elections. They think we are too ignorant to realize what is going on. They divide us through the media that they control. Please look into this, and also look into "fractional reserve banking". This is a good start to understanding. "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $400k portfolio is down by approximately 20 %, any recommendations to scale up my ROI before retirement will be highly appreciated.
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Right, I've been in constant touch with a fiinancial-analyst since covid . You know these days it's really easy to buy into trending stock`s, but the task is determining when to buy or sell . My advisorr decides entry and exit commands on my portfoliio, I've accrued over $550k from an initially stagnant reserve of $150K.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Sandrine Nadege Logan is my portfolio-coach, I found her on Bloomberg where she was featured and at once, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
I'm here to learn how to trade and also to invest. After listening to a guy on a live program about the importance of investing and how he made $410k in 4 months from $145k, somehow this video has helped shed light on key points, but I'm still confused as a newbie and I'm open to meaningful ideas.
As a beginner who doesn't understand how Bitcoin/forex trading works and you really want to make profit from it. I will advise you to first start working with a professional broker.
Say you use actual coins. The amount of silver and gold was also chipped away at by monarchs or governments. Debasing it's called. Say you don't want to do that either. Your system breaks overnight as you can never have enough gold or silver to even use as a currency for the sheer amount of people today. How would you pay for cheap items? A grain of gold sir.... oh it blew away. No you got it! Oh wait it's a grain of sand never mind.
The way they used to get people to work was by making sure a job enabled you to have a home, a family, stability, etc. If that isn't true anymore why should anyone work?
Maintaining perspective while trading requires setting reasonable goals. Going hard in the markets helped me personally pay off $240,000 in debt. In this volatile environment, there are untapped opportunities. What counts most is where you feel most comfortable putting your money, not how well your strategy works or how little money you lose.
Is that $240,000 in stock trading profits? I've been trading cryptocurrency for years, but I haven't been making as much money in over a year, so I'm concentrating on diversifying my holdings
Realizing a person can be a consistent profitable trader with a ~30% win rate completely changed my perspective. it's a very important thing I realized as a beginning trader.
@@michealrubel6759 Diversifying your portfolio is undoubtedly a way to avoid overexposure to any one investment. I’ve taken my mind off my crypto holdings till 2023
@@michealrubel6759 of course, having a portfolio made up of multiple investments protects you if one of them loses money. I made most profits through consistent trading in stocks and crypto with the aid of my trading coach Carol Ann Mcelroy..Carol focuses on achieving more winning trades and ensures consistency in my returns irrespective of the market trends. There’s no way I would have financially survived 2020 without her help, I’m very confident in the future performance of my portfolio
@@joanshulz3938 Yes, I did attempt to maintain a 50:50 profit ratio, and I quickly moved from cubicles with little trading accounts of around $10,000 to higher profits. I believe technical action, and buying at the right time, are all part of the process to succeeding in the stock market
Our government works for the privately owned "Federal" Reserve. They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it. However, this is nowhere near the truth. The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government. Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation. You are being played. If they took your house and income away you would beg. These people are planning to make it so difficult for everyone that we accept a universal currency. They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale. Our elected politicians do not get into office with our votes. We are given a few choices, and they already own every politician displayed on their media. Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time. We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers. They decide what they want, and then lie to us about the outcome of the elections. They think we are too ignorant to realize what is going on. They divide us through the media that they control. Please look into this, and also look into "fractional reserve banking". This is a good start to understanding. "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
That’s a good thing though, in very simple terms inflation comes from having too many dollars out in the economy, by essentially lighting money on fire the fed is bring down that money supply, which brings down inflation. The fed isn’t like a private company that can go bankrupt if is loses money, their #1 mission is to keep the currency stable and that’s what they’re trying to do.
This administration has failed us. No one cares thats why we gotta safeguard ourselves. Although I don't know any yet, investing with the help of a seasoned coach I read is a really good technique to create passive income. However, my portfolio contains about $570K in Adobe/Fedex/TSLA stocks. Can you give me some ideas on other equities I should buy in order to spread my savings among different markets and build a well-rounded portfolio that balances my risk aversion concerns with returns that keep up with inflation?
Not fast-moving equities, but rather controlling risk in relation to reward, are the key to high returns. Because creating a great investment portfolio is far more difficult, I strongly advise hiring an investing counselor. Plan development will take into account your individual long- and short-term objectives as well as your financial preferences
When you cut off the main source of the economy is fuel for delivery and everything else that is involved and then still export that product, your an idiot and they don't care what you call them. It's about power, not the people...
“In some ways the federal reserve is like a company.” No no you almost had it WSJ. The money supply of the most powerful country in the world is literally controlled by a private corporation.
...What? I don't understand the point you're trying to make here... Is the problem that it's "private"? Fed board members are appointed by and have their salaries set by the U.S. government, the Fed isn't a for-profit organization.
@@KevinChoiboy07 just because they’re not telling you doesn’t mean they’re not! The government is run by private organisations “party donors” so technically these donors pay their salary. Im just putting it out there 🤷🏽♂️
@@KevinChoiboy07 The Fed is not a for-profit organization for itself. It's a for-the-profits of the banking executives organization. The current interest rate hikes will protect their assets from inflation. The massive amount of variable rate debt on credit cards and real estate will generate windfall profits from these higher rates.
The "United States" is a corporation. However the "United States" corporation works for the "Federal" Reserve. Our government works for the privately owned "Federal" Reserve. They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it. However, this is nowhere near the truth. The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government. Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation. You are being played. If they took your house and income away you would beg. These people are planning to make it so difficult for everyone that we accept a universal currency. They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale. Our elected politicians do not get into office with our votes. We are given a few choices, and they already own every politician displayed on their media. Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time. We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers. They decide what they want, and then lie to us about the outcome of the elections. They think we are too ignorant to realize what is going on. They divide us through the media that they control. Please look into this, and also look into "fractional reserve banking". This is a good start to understanding. "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
The currency listed as a liability needs an explanation. It's uniquely weird in a sense if you take the currency notes to the Fed, the Fed will give you another of the same value of the note you gave them. It's doesn't give you anything else. It's a fictional liability.
That explanation strikes at the heart of the fractional reserve banking system which is a pyramid scheme supported by the US government to increase banking profits.
We're all to blame. The common American should be out in force voting out the corrupt politicians holding public officials accountable for filling the pockets of the wealthy while the rest of us get obliterated by inflation and other economic forces.
@@josephhoward4697 for example, while the black panther party hasn't been able to educate enough of their fellow voters to stop misinformation from controlling elections, they have done a lot of good exercising and protecting their second amendment rights.
@@HolbrookStark Yeah, and their exercises are why we wound up with gun control laws. People got scared of them. The Black Panthers ultimately set everybody back.
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -Henry Ford
Everyone should researched how the Federal Reserve was created. Basically, in total secrecy and at people's back, because the creators were damm sure everything would opposite it, and how see exactly why.
I was at the gas station and noticed a car full of belongings and a lady with her dog. I gave her $20 and she just started bawling and was extremely grateful. When I was in my 20's I was homeless for 2 months and lived in my car. I know how it feels to be in that situation.
referring to the chart, why do currency and bank reserves go up when the fed purchases more treasuries and mortgage securities? thanks in advance for any response.
By my lights, the size of the Deferred Asset roughly equates to a subsidy to the banking system. The Deferred Asset being the approximate difference between $ paid to banks as IORB (interest on reserve balances) and interest the Fed receives on its asset holdings.
Dude, that comment sounded like it was very smart, but... Our government works for the privately owned "Federal" Reserve. They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it. However, this is nowhere near the truth. The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government. Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation. You are being played. If they took your house and income away you would beg. These people are planning to make it so difficult for everyone that we accept a universal currency. They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale. Our elected politicians do not get into office with our votes. We are given a few choices, and they already own every politician displayed on their media. Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time. We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers. They decide what they want, and then lie to us about the outcome of the elections. They think we are too ignorant to realize what is going on. They divide us through the media that they control. Please look into this, and also look into "fractional reserve banking". This is a good start to understanding. "It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
So we had a financial crisis because of overbought MBS, and now the Fed is doing it. No wonder aliens won’t visit us, there no sign of intelligent life here.
@@phoenix5054 And funny enough, it's the world that has to suffer because of this yet us non-Americans are supposed to "deal with it" when Uncle Sam is r@ping us because 'Murica is *ALWAYS RIGHT*
I am calling BS. You can't talk about making or losing money when the FED actually creates money at of thin air. Granted, it exchanges this money for Bonds, but its 'Reverses' are created arbitrarily.
Except they've done a pretty good job overall. They got us out of 2008, helped the US weather the storm of a complete halt in US productivity during the pandemic. We now have to pay a price for that bail out. That seems reasonable to me.
@@wilthethrill2000 They helped banking executives with $7.7 trillion beginning in 2008 and the effects of the recession still lasted almost a decade because the executives used the money to gamble in the stock market instead of lending to the middle class.
The Fed is always in the red as they have no money to buy things, they always buy with debt. So the title is kinda silly. the red is their P&L in this case.
@@spacetoast7783 they borrow at 0% or even a negative rate. It’s FREE money to the banks and primary dealers. Or they borrow at whatever rate and get a higher interest by parking that money at the FED.
Increased demand for bonds (i.e. from fed) = Increased price of bonds. Price of bonds are inverse of interest rates (i.e. as interest rates go up -> bond prices go down, vice versa).
@@brianok2186 oh ok thanks for the explanation. I understand that bond prices and interest rates have inverse relationship now, but I'm still confused as to why interest rates fall when bond demand is up. Does it fall because the government limits the supply of bonds to sell?
I will forever be indebted to you you’ve changed my whole life I’ll continue to preach about your name for the world to hear you’ve saved me from a huge financial debt with just little investment thanks so much Amy Priscilla Raskin
Powell needs to explain how higher interest payments on credit cards and variable rate real estate loans help the economy. He needs to explain how all the extra income Jaime Dimon and other billionaire bankers get from higher rates helps the middle class. He needs to explain how all the extra interest the government pays out on bonds helps the working poor. He needs to explain how making mortgage payments higher will help the housing crisis.
@@caedenw No, it's privately run. The leaders are approved by the government to help banks stay profitable and support the fractional reserve banking pyramid scheme.
Central banks are crooks! They call themselves independent but they're run by the global financial elites robbing the masses. Decentralization is the way to go.
You won against Post WW2 Japan & USSR. 40% global trade is done in $ 80% pil trade is done in $ This gave you the power to sanction the sh** out of any nation. You sell your debts(Treasury), any countries buy that, as reserve. You freeze the reserves of any nation🇷🇺 you want. (I am not going to pay the debts I owe to you, & its called Sanction) You can lower the nations credit ratings, simply by not accept the interest, causing an artificial default.
Yes, but that’s not what was happening. Banks were getting paid interest for storing their cash with the fed. They do this to reduce their liabilities to meet the reserve requirement in a safe and profitable way. It’s called a reverse repo.
@@c87kim But in sum, the Fed must have made more money from the banks than what it was paying them. Because the total volume of the Reverse Repose is smaller that the total volume of money lent out to the banks
There is a portal into the Archives of the Congressional Record. A Portal does exist. And these are the dates in the period between 1910 and December of 1913, when the Elder Lindbergh made his historic Critique of the legislation that resulted in the Federal Reserve System - as that legislation was being fine - tuned by the Senators & Congressmen who were in the pocket of the Wall Street Bankers. Lindbergh in Congress June 16, 1910 Lindbergh in Congress June 13, 1911 Lindbergh in Congress February 24, 1912 Lindbergh in Congress February 27, 1912 Lindbergh in Congress September 11, 1913 Lindbergh in Congress December 22, 1913 Here is one such Portal. It leads to a very important speech that the Elder Lindbergh made on the Floor of Congress on September 11, 1913 - ninety years ago. At that point in Time, the U.S. National Debt stood at roughly One Billion Dollars. On that day, the Elder Lindbergh introduced a Bill in Congress which he proposed as an alternative {italics) Bill to the Federal Reserve Act. It was "the path not taken." Had that Bill passed the House and the Senate, the National Debt of the United States would not have grown to the astronomical Sum that it has reached today, because the Lindbergh alternative would have created Debt - free Currency, issued by a "Sub- Treasury Central Bank of Issue." archive.org/details/sim_congressional-record-proceedings-and-debates_1913_49_appendix
The Fed is undoubtedly responsible for the Rate Cut. I consider it to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365K. Wish I could accomplish that.
The Fed should not raise rates too quickly now. You must control the speed. Today, mankind is going through a special situation, a special time. Assuming the economy is strong, don't raise interest rates too sharply. It's important to stay alive until you win. So, you have to take a long view, raise interest rates slowly, or apply another method. Above all, we need to help people actively participate in economic activities and do their best. It should inspire people to work and encourage innovation. It is important to increase the productivity of the industry. Humanity has already suffered a lot due to corona, war, inflation, etc. Rather than aggravate this pain, it is necessary to relieve it. In this way, various side effects and disputes can be prevented...
It's hard to take any of this arbitrary bond buying, interest rate setting, and irrelevant balance sheet stuff seriously when the entire system is built on numbers created from nothing. I'm just saying, let's not pretend that this stuff is somehow rooted in some kind of fundamental reality, it isn't. Its foundation is purely imaginary and it should be treated as such.
It's rooted in the allocation of finite resources. The system is an abstract 'agreement', yes. But the numbers are based on the existence of material goods.
@@SquizzMe The numbers are based on the preservation of the capitalist class hierarchy. If the workers are too comfortable to work it means that there are too many numbers in circulation. If the workers would rather riot than work it means that there are too few numbers in circulation. The sweet spot for maximum production is right in the middle.
@@SquizzMe The issuer determines when, in what quantity, and to who the numbers are issued. There is no tangible connection between the numbers and physical resources that regulate their choices. They do what they want.
I always thought government bonds were a neutral asset (worth 0) on the fed balance sheet since it represents a liability to itself. What this video is saying is that the fed gets a positive income shown on its balance sheet from collecting interest on treasury bills, but then if it makes a profit from that, sends that profit right back to the treasury anyways. So am I correct in my understanding that if you were to merge the treasury and the fed's balance sheets into one, government bonds would be a neutral asset?
There are non-treasury assets on the fed sheet, but other than that, you're basically correct. The video did not explain well how the Fed was still making a profit though. Buying short-term bonds by creating money, or selling bonds and destroying money is essentially the Fed's entire job. It's called open-market operations and that's how the Fed will actually enforce the interest rates they set: the Fed can pretty effectively control how much money banks will ask from it by just controlling the supply of competing short-term government debt. This creates effectively no profit, as the video said was the case before 2008. QE after 2008 focuses on buying LONG-DATED debts, like government bonds and mortgage-backed securities. This is useful if setting short-term borrowing costs to 0% is still not enough to start economic activity. But the issue with long-dated bonds is that their interest rate is set when the bond was issues, and the price was set when the Fed bought it. So effectively, the assets will always generate a fixed amount of money, but the money you issued to buy it is a liability you gotta pay a variable interest rate on. The value of your balance sheet is thus now largely out of your control. The Fed has to increase its liabilities because fighting inflation is its primary job, but it cannot simultaneously increase the value of its assets because the fed locked that in when they bought the bonds in the first place.
Guys the stock market knew beforehand the CPI numbers would be low (and surged of course), the MACD positioned itself in the Futures markets. On 10/13, 10/21, and 11/10 it shows the same MACD Futures pattern before markets surged those days. I discussed this last night
Thats why i need people to helping and to translator to explain for me the good and what is the right and what is the best way and i always respect the decision of any person who helping me they all peoples who support me is all my boss to feel them that i appreciate all things that can help me of everyone i want them to feel my kindness and respect for their sacrifising and to put my situation in the right way
And I treat those people is my true family I dont have any secrets I open all my information and I give them a special treatment I give all my respect and I always pair to everyone all of them is my favorite and I treat all people are my friends because I giving importance all who giving me a big support honesty is best policy respect is the best way and number one people like it
Thats why those transactions are very important that why i always ask i don't get trouble or any problems i cant decide if my self only cause i dont understand about the policy and rules of our government
The average FICO score mortgage rate will get to 10%? We lost 7.5 MILLION jobs JAN. 2009 and had been in crisis for over a year? The M2 money supply growth turned negative while at one point the 3 month treasury bill / 30 YEAR TREASURY BOND INVERTED!
I appreciate videos like these, thanks WSJ
I love videos like this
The spam bots seem to like it as well.
Stop simping on them bro
Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.
Let's face it... buying more stocks & index funds during stock market corrections and bear markets is scary. Which makes it really hard to do for most people like me. I have 260k i want to transfer into an s&s isa but its hard to bite the bullet and do it.
@@kimyoung8414 You need a Financial Advisor my friend so you don't get ripped off in the market. They provide personalized advice to individuals based on their risk appetite, placing them among the best of the best. There are bad ones, but some with good track records can be very good.
@@alexyoung3126 I agree with you totally Rose, Yes they can be positively impactful to an individual's portfolio. I started with a trust Financial Adviser named "Eileen Ruth Sparks". She is verifiable and her work ethic complies with the US Investment Act of 1940. Her approach is transparent, allowing full ownership and control of my portfolio with very reasonable fees relative to my portfolio earnings.
@@checkforme234 I know I've wanted to start investing for a few months, but just haven't had the courage to start because the market has been down for most of this year. Please how can I reckon with such skills and what are his services like?
@@joesphcu8975 She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things like that. You can take a look at her full name on the internet. She is renowned. So it shouldn't be difficult to find her official webpage.
This would make a lot more sense if a printer sound was playing in the background during all of this.
😢
BRRR BRRR BRRR
It doesn't print money, the treasury does, but it will be printing now that it's not getting paid.
It wouldn't make any sense at all since the federal reserve does not create monetary base.
The Fed, along with the Treasury Department print out half a trillion dollars and dump into the global financial market every year.
During Covid era, the Fed also printed out around $7.5 Trillion for stimulus relief.
It's all 'free money'., by the way.
Almost like the world needs money to operate Robbie
@@theman44ful . Clueless!
@@MrSupernova111 am I wrong that the world runs on money
@@theman44ful . Every time the government prints more money your money devaluates. The government isn't helping you when they print money. Printing money only helps the already wealthy. Get it through your thick head.
Finally, a WSJ video of some quality. I get that WSJ is trying to appeal to the masses but at least we got some value out of this video. Now, let's try stepping it up another notch.
“They’re not too worried about it” - this means you should worry about it
Not necessarily, no.
Everyone: Magic isn't real. You can't make something out of nothing
The Fed: 👀 👀 💸💸
Money printer go brrrrrrrrr
Only because the US is the reserve currency, so there is always demand. The US pays for it in terms of deploying troops all over the world and racking up a large trade deficit. It's not strictly "free," or "something for nothing." Most other currencies have been "printing" also.
Our government works for the privately owned "Federal" Reserve.
They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it.
However, this is nowhere near the truth.
The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government.
Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation.
You are being played.
If they took your house and income away you would beg.
These people are planning to make it so difficult for everyone that we accept a universal currency.
They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale.
Our elected politicians do not get into office with our votes.
We are given a few choices, and they already own every politician displayed on their media.
Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time.
We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers.
They decide what they want, and then lie to us about the outcome of the elections.
They think we are too ignorant to realize what is going on.
They divide us through the media that they control.
Please look into this, and also look into "fractional reserve banking".
This is a good start to understanding.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
Good thing they didn't mention that the Fed can never run out of money. That would have been informative.
Overprinting dollars without physical commodities has totally wrecked this economy.
What country are you in? The economy is white hot over here in the US.
Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $400k portfolio is down by approximately 20 %, any recommendations to scale up my ROI before retirement will be highly appreciated.
It’s precisely at times like these that investors need to be on guard against the next certainty. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
Right, I've been in constant touch with a fiinancial-analyst since covid . You know these days it's really easy to buy into trending stock`s, but the task is determining when to buy or sell . My advisorr decides entry and exit commands on my portfoliio, I've accrued over $550k from an initially stagnant reserve of $150K.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
Sandrine Nadege Logan is my portfolio-coach, I found her on Bloomberg where she was featured and at once, I looked up her name on the internet. Fortunately I came across her site and reached out to her, you can verify her yourself.
Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
I'm here to learn how to trade and also to invest. After listening to a guy on a live program about the importance of investing and how he made $410k in 4 months from $145k, somehow this video has helped shed light on key points, but I'm still confused as a newbie and I'm open to meaningful ideas.
The common mistake we newbies make is venturing into the market without help and legit guidance from a professional.
Job will pay your bills, business will make you rich but investments make and keep you wealthy, the future is inevitable.
The market is all about crypto now, you might want to look into it.
Nobody becomes a millionaire or billionaire by working for others and depending on them, good investment brings millions of dollars.
As a beginner who doesn't understand how Bitcoin/forex trading works and you really want to make profit from it. I will advise you to first start working with a professional broker.
Dump the dollar and use silver and gold. Tired of this corruption!!
Yeah, send silver and gold across oceans for every foreign transaction every day of every year.... that'll work! 🤦🏼♂️🤦♀️🤦♂️🤦🏼♀️
🤦🏿♂️🤦🏿♀️🤦🏽♀️🤦🏽♂️🤦🏻♂️🤦🏻♀️...
🤦♂️🤦♀️🤦🏾♂️🤦🏾♀️....
🤦🏻♂️🤦🏻♀️...
Say you use actual coins. The amount of silver and gold was also chipped away at by monarchs or governments. Debasing it's called. Say you don't want to do that either. Your system breaks overnight as you can never have enough gold or silver to even use as a currency for the sheer amount of people today. How would you pay for cheap items? A grain of gold sir.... oh it blew away. No you got it! Oh wait it's a grain of sand never mind.
Well made video. Explains things clearly!
Doesn't cover the winners and losers when this happens.
The way they used to get people to work was by making sure a job enabled you to have a home, a family, stability, etc. If that isn't true anymore why should anyone work?
Another way to get people to work is to make them suffer. That's what's in the works now.
I don't understand the point of your hypothetical.
Maintaining perspective while trading requires setting reasonable goals. Going hard in the markets helped me personally pay off $240,000 in debt. In this volatile environment, there are untapped opportunities. What counts most is where you feel most comfortable putting your money, not how well your strategy works or how little money you lose.
Is that $240,000 in stock trading profits? I've been trading cryptocurrency for years, but I haven't been making as much money in over a year, so I'm concentrating on diversifying my holdings
Realizing a person can be a consistent profitable trader with a ~30% win rate completely changed my perspective. it's a very important thing I realized as a beginning trader.
@@michealrubel6759 Diversifying your portfolio is undoubtedly a way to avoid overexposure to any one investment. I’ve taken my mind off my crypto holdings till 2023
@@michealrubel6759 of course, having a portfolio made up of multiple investments protects you if one of them loses money. I made most profits through consistent trading in stocks and crypto with the aid of my trading coach Carol Ann Mcelroy..Carol focuses on achieving more winning trades and ensures consistency in my returns irrespective of the market trends. There’s no way I would have financially survived 2020 without her help, I’m very confident in the future performance of my portfolio
@@joanshulz3938 Yes, I did attempt to maintain a 50:50 profit ratio, and I quickly moved from cubicles with little trading accounts of around $10,000 to higher profits. I believe technical action, and buying at the right time, are all part of the process to succeeding in the stock market
This really helped things make more sense. Thank you.
Our government works for the privately owned "Federal" Reserve.
They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it.
However, this is nowhere near the truth.
The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government.
Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation.
You are being played.
If they took your house and income away you would beg.
These people are planning to make it so difficult for everyone that we accept a universal currency.
They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale.
Our elected politicians do not get into office with our votes.
We are given a few choices, and they already own every politician displayed on their media.
Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time.
We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers.
They decide what they want, and then lie to us about the outcome of the elections.
They think we are too ignorant to realize what is going on.
They divide us through the media that they control.
Please look into this, and also look into "fractional reserve banking".
This is a good start to understanding.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
great information
That’s a good thing though, in very simple terms inflation comes from having too many dollars out in the economy, by essentially lighting money on fire the fed is bring down that money supply, which brings down inflation. The fed isn’t like a private company that can go bankrupt if is loses money, their #1 mission is to keep the currency stable and that’s what they’re trying to do.
This administration has failed us. No one cares thats why we gotta safeguard ourselves. Although I don't know any yet, investing with the help of a seasoned coach I read is a really good technique to create passive income. However, my portfolio contains about $570K in Adobe/Fedex/TSLA stocks. Can you give me some ideas on other equities I should buy in order to spread my savings among different markets and build a well-rounded portfolio that balances my risk aversion concerns with returns that keep up with inflation?
Not fast-moving equities, but rather controlling risk in relation to reward, are the key to high returns. Because creating a great investment portfolio is far more difficult, I strongly advise hiring an investing counselor. Plan development will take into account your individual long- and short-term objectives as well as your financial preferences
When you cut off the main source of the economy is fuel for delivery and everything else that is involved and then still export that product, your an idiot and they don't care what you call them. It's about power, not the people...
“In some ways the federal reserve is like a company.”
No no you almost had it WSJ. The money supply of the most powerful country in the world is literally controlled by a private corporation.
...What? I don't understand the point you're trying to make here... Is the problem that it's "private"? Fed board members are appointed by and have their salaries set by the U.S. government, the Fed isn't a for-profit organization.
@@KevinChoiboy07 just because they’re not telling you doesn’t mean they’re not! The government is run by private organisations “party donors” so technically these donors pay their salary. Im just putting it out there 🤷🏽♂️
Great Conspiracy, you Ding Dong...
@@KevinChoiboy07 The Fed is not a for-profit organization for itself. It's a for-the-profits of the banking executives organization. The current interest rate hikes will protect their assets from inflation. The massive amount of variable rate debt on credit cards and real estate will generate windfall profits from these higher rates.
The "United States" is a corporation.
However the "United States" corporation works for the "Federal" Reserve.
Our government works for the privately owned "Federal" Reserve.
They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it.
However, this is nowhere near the truth.
The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government.
Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation.
You are being played.
If they took your house and income away you would beg.
These people are planning to make it so difficult for everyone that we accept a universal currency.
They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale.
Our elected politicians do not get into office with our votes.
We are given a few choices, and they already own every politician displayed on their media.
Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time.
We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers.
They decide what they want, and then lie to us about the outcome of the elections.
They think we are too ignorant to realize what is going on.
They divide us through the media that they control.
Please look into this, and also look into "fractional reserve banking".
This is a good start to understanding.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
too much printing, now we all pay for this mess
The currency listed as a liability needs an explanation. It's uniquely weird in a sense if you take the currency notes to the Fed, the Fed will give you another of the same value of the note you gave them. It's doesn't give you anything else. It's a fictional liability.
Yes, a fiat currency has no gold standard. Do you wanna cookie for your adolescent understanding?
@@FourDollaRacing You’re on every comment making smart a$$ remarks. Shut up nerd
That explanation strikes at the heart of the fractional reserve banking system which is a pyramid scheme supported by the US government to increase banking profits.
How could I (a random individual) prevented all this. I feel personally responsible. I apologize to everyone.
We're all to blame. The common American should be out in force voting out the corrupt politicians holding public officials accountable for filling the pockets of the wealthy while the rest of us get obliterated by inflation and other economic forces.
@@MrSupernova111 at this point there are better ways than voting
@@HolbrookStark Yeah, right! Like what?
@@josephhoward4697 for example, while the black panther party hasn't been able to educate enough of their fellow voters to stop misinformation from controlling elections, they have done a lot of good exercising and protecting their second amendment rights.
@@HolbrookStark Yeah, and their exercises are why we wound up with gun control laws. People got scared of them. The Black Panthers ultimately set everybody back.
The lies you tell. . . The USA has been in debt since the 80s and every year it gets bigger
Powell is doing a terrible job at the Fed. He needs to be replaced.
Making the fed reserve a bank was a bad idea with short term gains but long term consequences
The long term consequences have been extremely positive!
It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -Henry Ford
Everyone should researched how the Federal Reserve was created. Basically, in total secrecy and at people's back, because the creators were damm sure everything would opposite it, and how see exactly why.
@@jamesbrown1645 Michael Scott and Wayne Gretzky said the same thing. Weird!
@@Jose04537 That's capitalism for you.
I was at the gas station and noticed a car full of belongings and a lady with her dog. I gave her $20 and she just started bawling and was extremely grateful. When I was in my 20's I was homeless for 2 months and lived in my car. I know how it feels to be in that situation.
The Fed should have never allowed to buy MBS, those were the reason behind 2008 crash.
allowed to buy your debts?
Great video - thank you
referring to the chart, why do currency and bank reserves go up when the fed purchases more treasuries and mortgage securities? thanks in advance for any response.
Coz the have to pay back more interest on all their purchases
Because the Fed is taking those out of the supply. Supply down == price up.
By my lights, the size of the
Deferred Asset roughly equates to a subsidy to the banking system. The Deferred Asset being the approximate difference between $ paid to banks as IORB (interest on reserve balances) and interest the Fed receives on its asset holdings.
Dude, that comment sounded like it was very smart, but...
Our government works for the privately owned "Federal" Reserve.
They try to lie and say "The Federal Reserve" is not privately owned, and that Congress regulates it.
However, this is nowhere near the truth.
The international bankers that actually own the "Federal" Reserve control everything concerning our monetary system and government.
Our elected government officials unequivocally answer to the "Federal" "Reserve", although there is nothing "federal", nor "reserve", about this situation.
You are being played.
If they took your house and income away you would beg.
These people are planning to make it so difficult for everyone that we accept a universal currency.
They already own everything at large, and a universal currency will further prohibit individual freedoms on a mass scale.
Our elected politicians do not get into office with our votes.
We are given a few choices, and they already own every politician displayed on their media.
Any politician that does not conform to the bankers' agenda is castigated, and therefore receives very little to no air time.
We are given the illusion of choice, then are told which politicians were elected by watching the the media that is owned by the same financial bankers.
They decide what they want, and then lie to us about the outcome of the elections.
They think we are too ignorant to realize what is going on.
They divide us through the media that they control.
Please look into this, and also look into "fractional reserve banking".
This is a good start to understanding.
"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." -Henry Ford
0:50 Why do interest rates go down when people buy more bonds? Don't interest rates go up when people buy stuff?
Ah.. the art of printing money 💰 🤑
What does that have to do with this video?
“This is fine”.
It's not "like a business" it literally is a business. It's a PRIVATE BANK
what is the mechanism of QE and QT actually working?
i don't think anybody knows
Don't worry. The treasury is making money. Literally.
Brian Koble is such an excellent recommendation
Good explanation video, thanks WSJ
This is excellent contents~!
Literally all SHF have to do is cover and close their positions on AMC and GME and half of these problems would be resolved.
Why worry when it's not your money
*Currency(fiat)
It's not a money
Currency losses its purchasing power overtime. It is backed by US military.
Dollar has lost 99% of its value. It's a shtty asset
Looking for you on Patren-hoping for a link! Love your humor
"Japan China are dumping our Treasuries"
How dare they make me pay my debts?
Considering that the Fed currently has ~$3t in MBS, how will they deal with the losses that will occur on those asests over the next few years?
Take a wild guess.
push it down the line
It is paid with inflation since they printed money to buy it.
So we had a financial crisis because of overbought MBS, and now the Fed is doing it.
No wonder aliens won’t visit us, there no sign of intelligent life here.
@@phoenix5054
And funny enough, it's the world that has to suffer because of this yet us non-Americans are supposed to "deal with it" when Uncle Sam is r@ping us because 'Murica is *ALWAYS RIGHT*
I am calling BS. You can't talk about making or losing money when the FED actually creates money at of thin air. Granted, it exchanges this money for Bonds, but its 'Reverses' are created arbitrarily.
Fiat currency in circulation is still considered liability for the Fed? What's the point?
This whole artificially stimulating the economy system is flawed.
1yr TBill 4%+ let’s see those rates on liquid investments rise rise rise baby!
Unlike a business, they have unlimited borrowing and are not responsible to shareholders. They taxpayer is stuck with their incompetence.
Except they've done a pretty good job overall. They got us out of 2008, helped the US weather the storm of a complete halt in US productivity during the pandemic. We now have to pay a price for that bail out. That seems reasonable to me.
@@wilthethrill2000 They helped banking executives with $7.7 trillion beginning in 2008 and the effects of the recession still lasted almost a decade because the executives used the money to gamble in the stock market instead of lending to the middle class.
@@The_Savage_Wombat Careful, the Fed did not do that. The bailout money came from congress as part of the Emergency Economic Stabilization Act of 2008
@@wilthethrill2000 Some of the money came from EESA. The Fed "fed" them everything they could before and after this act.
@@The_Savage_Wombat Do you think Americans are better off with no banking system?
Now days they don't even print it. Its online
Ran out of paper.
End the Fed.
No they aren’t. They’re the market maker. They can’t be in the red.
They’re the people selling the product to the Treasury.
The Fed is always in the red as they have no money to buy things, they always buy with debt. So the title is kinda silly. the red is their P&L in this case.
Feds pays to US Treasury and the latter pays interest to Feds. Such a smart system Treasury paying back to Treasury.
The Treasury doesn't pay the Fed. What are you talking about? 😂
The real Robber Barons…
How?
Free money to the banks as usual. And the taxpayers are on the hook as usual.
Loans aren't free money. They have to be paid back.
@@spacetoast7783 they borrow at 0% or even a negative rate. It’s FREE money to the banks and primary dealers. Or they borrow at whatever rate and get a higher interest by parking that money at the FED.
@@TheMasterhomaster Glad you agree that you lied earlier.
how can someone get to speak with Brian Koble ?
And this is # reason inflation is 15%+
Republicans crash the economy and the Fed tries to fix it so this is why we have inflation. That, and record corporate profits.
Not to mention quantitative tightening which would have the Fed selling those bonds at a discount.
How does the fed buying securities help lower interest rates?
Increased demand for bonds (i.e. from fed) = Increased price of bonds. Price of bonds are inverse of interest rates (i.e. as interest rates go up -> bond prices go down, vice versa).
@@brianok2186 oh ok thanks for the explanation. I understand that bond prices and interest rates have inverse relationship now, but I'm still confused as to why interest rates fall when bond demand is up. Does it fall because the government limits the supply of bonds to sell?
Almighty God bless everyone in the Global World based on Friendship, Mutual Understanding, Peaceful Coexistence,Non Violence And Justice For All.
ok
the good ol' funnel system
wow I wonder why
What a mess
Hey, why cover the losses of private companies
I will forever be indebted to you you’ve changed my whole life I’ll continue to preach about your name for the world to hear you’ve saved me from a huge financial debt with just little investment thanks so much Amy Priscilla Raskin
@@sheliaswelttk2535
@@williamskohler8337 You invest with Amy Priscilla Raskin too? wow that woman has been a blessing to me and my family.
@@gabriellewilson5625 ,I’m new at this, how can I reach your broker?>
@@davidnewbury1721
Now do one about RRP (Reverse repo), and how the FED is leaking 100s of millions of dollars daily in interest rates to private equities.
Powell needs to explain how higher interest payments on credit cards and variable rate real estate loans help the economy. He needs to explain how all the extra income Jaime Dimon and other billionaire bankers get from higher rates helps the middle class. He needs to explain how all the extra interest the government pays out on bonds helps the working poor.
He needs to explain how making mortgage payments higher will help the housing crisis.
Who owns the Fed and why is called "Federal" if it's not owned by the government (hence the people)?
@@caedenw No, it's privately run. The leaders are approved by the government to help banks stay profitable and support the fractional reserve banking pyramid scheme.
This private entity (not Federal) is why we are where we are now! They need to be disolved!
Okay, Ding Dong. The UA-cam will "end the FED" only because of your asinine comment! 🤦🏼♂️🤦♀️🤦♂️🤦🏼♀️
Central banks are crooks! They call themselves independent but they're run by the global financial elites robbing the masses. Decentralization is the way to go.
You won against Post WW2 Japan & USSR.
40% global trade is done in $
80% pil trade is done in $
This gave you the power to sanction the sh** out of any nation.
You sell your debts(Treasury), any countries buy that, as reserve.
You freeze the reserves of any nation🇷🇺 you want. (I am not going to pay the debts I owe to you, & its called Sanction)
You can lower the nations credit ratings, simply by not accept the interest, causing an artificial default.
Banks need to go as well. We don't need their pyramid scheme any more.
@@FourDollaRacing Don't lidten to me DA, do your homework!
Where did all those monthly fed profits go I wonder..
Why are banks keeping their money in the FED when interest rates are at 0%?
Didnt understand a thing, sorry. Is it me stupid or the explanation wasnt clear enough?
It´s you.
I am afraid - it's you
It's definitely you!
Thats on you.
It’s all you. Remember that when you look in the mirror.
the federal reserve literally is a company.
They want that pivot so bad lol
Don't the Banks have to pay interest to the Fed, when they borrow money from it?
Yes, but that’s not what was happening. Banks were getting paid interest for storing their cash with the fed. They do this to reduce their liabilities to meet the reserve requirement in a safe and profitable way. It’s called a reverse repo.
@@c87kim so with hikes they will loose money or find out they have weak balance sheet
Sounds a 2008 or worseis about to come.
@@c87kim But in sum, the Fed must have made more money from the banks than what it was paying them. Because the total volume of the Reverse Repose is smaller that the total volume of money lent out to the banks
@@kilikilian5540 yeah well the fed sets the rules so it’s just how it goes
How can a central bank lose money other than bad investments
There is a portal into the Archives of the Congressional Record. A Portal does exist. And these are the dates in the period between 1910 and December of 1913, when the Elder Lindbergh made his historic Critique of the legislation that resulted in the Federal Reserve System - as that legislation was being fine - tuned by the Senators & Congressmen who were in the pocket of the Wall Street Bankers.
Lindbergh in Congress June 16, 1910
Lindbergh in Congress June 13, 1911
Lindbergh in Congress February 24, 1912
Lindbergh in Congress February 27, 1912
Lindbergh in Congress September 11, 1913
Lindbergh in Congress December 22, 1913
Here is one such Portal. It leads to a very important speech that the Elder Lindbergh made on the Floor of Congress on September 11, 1913 - ninety years ago.
At that point in Time, the U.S. National Debt stood at roughly One Billion Dollars. On that day, the Elder Lindbergh introduced a Bill in Congress which he proposed as an alternative {italics) Bill to the Federal Reserve Act. It was "the path not taken."
Had that Bill passed the House and the Senate, the National Debt of the United States would not have grown to the astronomical Sum that it has reached today, because the Lindbergh alternative would have created Debt - free Currency, issued by a "Sub- Treasury Central Bank of Issue."
archive.org/details/sim_congressional-record-proceedings-and-debates_1913_49_appendix
The Fed is undoubtedly responsible for the Rate Cut. I consider it to be a very serious issue since it will undoubtedly cause more investors to withdraw their money from the stock market. But then I'm still aware of certain investors that continue to earn over $365K. Wish I could accomplish that.
Then there's the BOJ...
The Fed should not raise rates too quickly now.
You must control the speed.
Today, mankind is going through a special situation, a special time.
Assuming the economy is strong, don't raise interest rates too sharply.
It's important to stay alive until you win.
So, you have to take a long view, raise interest rates slowly, or apply another method.
Above all, we need to help people actively participate in economic activities and do their best.
It should inspire people to work and encourage innovation.
It is important to increase the productivity of the industry.
Humanity has already suffered a lot due to corona, war, inflation, etc.
Rather than aggravate this pain, it is necessary to relieve it.
In this way, various side effects and disputes can be prevented...
So don't milk the cows too quickly and they'll keep providing milk?
It's hard to take any of this arbitrary bond buying, interest rate setting, and irrelevant balance sheet stuff seriously when the entire system is built on numbers created from nothing. I'm just saying, let's not pretend that this stuff is somehow rooted in some kind of fundamental reality, it isn't. Its foundation is purely imaginary and it should be treated as such.
It's rooted in the allocation of finite resources. The system is an abstract 'agreement', yes. But the numbers are based on the existence of material goods.
@@SquizzMe The numbers are based on the preservation of the capitalist class hierarchy. If the workers are too comfortable to work it means that there are too many numbers in circulation. If the workers would rather riot than work it means that there are too few numbers in circulation. The sweet spot for maximum production is right in the middle.
@@NumeroSystem the numbers are based on the availability of physical resources. Everything else is your biased embellishment.
@@SquizzMe The issuer determines when, in what quantity, and to who the numbers are issued. There is no tangible connection between the numbers and physical resources that regulate their choices. They do what they want.
@@NumeroSystem right, but it's based on real things. Actual physical material goods. Goods that YOU want.
That graph doesn't look good
You're about 50 years late on this.
PS. You have a total misunderstanding of the phrase, "The Fed makes money".
So this all went over your head.
@@saahiliyer11 Half of all USD ever created, created in the last 3 years.
That's what I got from it.
A negative balance sheet would mean the taxpayer would have to come in and bail the fed?
I always thought government bonds were a neutral asset (worth 0) on the fed balance sheet since it represents a liability to itself.
What this video is saying is that the fed gets a positive income shown on its balance sheet from collecting interest on treasury bills, but then if it makes a profit from that, sends that profit right back to the treasury anyways.
So am I correct in my understanding that if you were to merge the treasury and the fed's balance sheets into one, government bonds would be a neutral asset?
In simple terms, yes.
There are non-treasury assets on the fed sheet, but other than that, you're basically correct. The video did not explain well how the Fed was still making a profit though. Buying short-term bonds by creating money, or selling bonds and destroying money is essentially the Fed's entire job. It's called open-market operations and that's how the Fed will actually enforce the interest rates they set: the Fed can pretty effectively control how much money banks will ask from it by just controlling the supply of competing short-term government debt. This creates effectively no profit, as the video said was the case before 2008. QE after 2008 focuses on buying LONG-DATED debts, like government bonds and mortgage-backed securities. This is useful if setting short-term borrowing costs to 0% is still not enough to start economic activity. But the issue with long-dated bonds is that their interest rate is set when the bond was issues, and the price was set when the Fed bought it. So effectively, the assets will always generate a fixed amount of money, but the money you issued to buy it is a liability you gotta pay a variable interest rate on. The value of your balance sheet is thus now largely out of your control. The Fed has to increase its liabilities because fighting inflation is its primary job, but it cannot simultaneously increase the value of its assets because the fed locked that in when they bought the bonds in the first place.
It's two pieces of paper. One for poor people which pays no interest. One for wealthy people which pays interest.
@@The_Savage_Wombat I'm not sure what you're referring to, but if you're talking about bonds, your understanding of how they work is not correct.
@@zhang_han Dollars vs T-bills, two pieces of paper issued by the government, one pays interest, the other doesn't
A comment section without bots 🤩
If federal reserve is private so anyone can open one , free market rules
If economy crash and dollar exit from reserve currency, and what happens to all the asset Fed bought it will be their then?
Guys the stock market knew beforehand the CPI numbers would be low (and surged of course), the MACD positioned itself in the Futures markets. On 10/13, 10/21, and 11/10 it shows the same MACD Futures pattern before markets surged those days. I discussed this last night
Thats why i need people to helping and to translator to explain for me the good and what is the right and what is the best way and i always respect the decision of any person who helping me they all peoples who support me is all my boss to feel them that i appreciate all things that can help me of everyone i want them to feel my kindness and respect for their sacrifising and to put my situation in the right way
And I treat those people is my true family I dont have any secrets I open all my information and I give them a special treatment I give all my respect and I always pair to everyone all of them is my favorite and I treat all people are my friends because I giving importance all who giving me a big support honesty is best policy respect is the best way and number one people like it
Thats why those transactions are very important that why i always ask i don't get trouble or any problems i cant decide if my self only cause i dont understand about the policy and rules of our government
If MBS are assets then why are they trying to sell them?
watch the movie big shorts
Honor people say the thruth
Sometimes the Fed owes money - to itself. That doesn’t matter, does it? The Fed is the source of money.
Scary
We’re screwed
Thanks a lot I just sent her a message
The average FICO score mortgage rate will get to 10%?
We lost 7.5 MILLION jobs JAN. 2009 and had been in crisis for over a year?
The M2 money supply growth turned negative while at one point the 3 month treasury bill / 30 YEAR TREASURY BOND INVERTED!