Twenty nine trillion dollars 2 years ago lol now it's over 35 trillion dollars in 2024. Yet if you tried printing funny money you would arrested for counterfeiting.
Good video. Would have preferred it also covers how debt monetisation flows into bond markets and to answer the classic “if government can print money, why do they need taxes?” Question
Money itself is a debt instrument. It is a credit used to satisfy a debt obligation. USD's are debt and so are US Treasuries. QE does not print money ie add any new money to the banking system. Only fiscal policy does ie Government spending more money than it taxes.
@@Emrico35 not necessarily, because the federal reserve could just print all the money in the world to buy all the bitcoin. You’d have to get rid of the federal reserve and central banks first, then bitcoin could dominate.
@@flintgrain bitcoin is not digital gold. if you won't gonna spend your bitcoin, what's the point of having it? use it too buy goods and services but save some for future, balance is the key. we don't know how long we will live in this world.
SO , I have a question , Why is the central bank on top of the econmy when they arent providing any real value apart from printing money out of thin air , And why do they buy debt? and what causes these printed papers i.e money to have any value>?
Not sure what you mean by why the central bank is on top of the economy. The role of the central bank is to regulate and control interest rates in order to control inflation and unemployment which they believe have an inverse relationship to one another. So, they believe if there is too much inflation, they must raise interest rates to stop people from borrowing from the banks for purchasing things and this will slowdown the economy increasing unemployment. But if they think there is too much deflation then they will lower interest rates to make it easier for people to use bank loans to buy stuff (more sales, more employment, more hiring). So they THINK, keyword think/believe, that using interest rates is like the gas pedal on a car. You want to slowdown the car(economy) you let go of the gas pedal and raise interest rates. You want to speedup the car(economy) you step on the gas pedal and lower interest rates.
They buy debt, which are mostly US Treasury securities otherwise known as US savings bonds from banks. They do this to regulate the amount of total USD reserves in the banking system as a way to control interest rates. This however, is an outdated method as the Federal reserve simply pays interest on bank reserves nowadays. (I know its complicated, probably purposefully complicated) Why do USD's have any value? Great question! They have value because they are tax credits. If you don't pay your taxes to the Fed govt guess what happens? Al Capone found out the hard way! They are worth, what you must do to earn them from the Federal govt. Whether its being a soldier or a maintenance worker at some Federal building. Whether its being a CIA agent or producing and building tanks for the military, that is what defines the value for the Governments money.
Why on earth does this video not get more views? I researched this topic for a long time; however, this is the best short, straight-up-to-the-point video I have ever seen.
Not only central banks but private banks can create money whether there is reserve ratio or only capital adecuacy. Whereas Central bank monetize public debt private banks monrtize private debt.
@@Jack-ox3rdit’s more like lord of the rings. Do the Nazgul own the rings of power? Technically yes, but practically, no, the Nazgûl are controlled by the one ring which answers to Sauron. Private banks don’t tell the Central Bank what to do, it’s the opposite, they must abide by the rules and regulations of Central Bank which ultimately answer to the authority of Congress. Congress is Sauron and the Central Bank is the ring to rule them all.
Pay your taxes, you can only pay them with dollars. What? You don't have dollars? You better find some way to earn them or goto prison for tax evasion. Now they have value don't they?
Printing Money Via Credit Based Agreements Yes Alternative Electronic Otherwise The Nature of Moneys Form of Existence Is Resource Extensive Think About It All Those Planners & Logistics
my apologies, i know it takes time and effort for someone to make this but almost nothing in this vid is correct. Its just a video parroting common economic myths. If you wanna be able to find common economic myths like this, just remember 3 facts. 1) if its on the FEDs balance sheet, its not part of the money supply. PERIOD. end of discussion! there is no debating it. when the FED swaps securities for bank reserves in QE , that's the same as taking money out of the money supply (this video is BACKWARDS). economies and money supplies grow in tandem. Then when the economy falters, the money supply must be reduced to too. The way the FED reduces the amount of money in the money supply is by chasing bond market to cash then swapping out securities at banks (where that money lives) for bank reserves. ITS A SWAP NOT A PURCHASE. IT USES BANK RESERVERS NOT DOLLARS. 2) Bank reserves are not money. For any of these claims to be true bank reserves would have to dilute the dollar but they cant because they are not dollars. They are interbank tokesn used only by banks. Banks DO NOT LAON OUT BANK RESERVES!!! that was painful to have to watch that part of the video!! 3) Bank Reserves are not part of the money supply. For any of this to be true bank reserves would have to be money and it would have to be part of the money supply diluting the dollar. None of that is true. The video above is parroting right-wing tabloid economic myths. Use my 3 rules above to itemize every way this video is wrong and you'll end up with a long list. The FED creates liquidity by putting REAL interest rates in the dirt and chasing the bond market to cash and equities -essentially closing up shop on one of the 3 financial markets. The M2 increased rapidly becasue the bond market went to cash. for the last 4 years they only been selling 2 year treasuries becasue there is no bond market!!! NO ONE PRINTED MONEY! They sent to bond market to cash!
We can use this money printing to evolve economy to the next level if we consider the proposals of C.H. Douglas Social Credit, (different from Chinese communist social credit)
So if all this is all doomed to fail with almost 100% certainty and printing money being the end stages of capitalism and artifical growth. Why would as they say want to "stay the coarse" in thr stock market.
@@yungfi Felt different. I think it's manly the slapstick conversational narrative from your two pink stickmen protagonists that can't stop flailing for some reason. Gone was the great visual effects from previous videos. To my mind, how governments issue T bills and buy bonds is well understood in the public consciousness, whereas the technical topics explored in earlier videos like how bitcoin and blockchains work, and how the narratives you present challenge people's thinking, are much more suited to your style
@@manickronic I can tell you in no uncertain terms that most people don't understand economics beyond being able to pay their bills at the end of the month. This is one of the clearer videos to describe how this debt system works. As far as the constant wobbling goes. I don't have anything for that but the last video was like that as well.
Our goal is to reach the largest audience in the most engaging way. Finance is boring for most people. Dialogue & conversation is a better way to engage (better watch time & audience retention & storytelling). As for animating, I can kill the swaying for the next video. We are just testing things out. As much as our team is pro bitcoin & freedom, we are going to do less videos on those topics. Our focus is on topics people would want to click on. As more people watch the popular topics, they will be recommended our bitcoin videos. BTW our next two videos are still Bitcoin but in the conversational style. Thanks for the feedback!
Extremely underrated video, unreal
Commenting for the algorithm because your channel is super underrated
Thank you! It helps out alot
You are the olny one who tell the thruth tank you 🔥🔥
That was the most on point explanation I've heard to date. This video should be a mandatory watch in all high school economics classes.
I'm on fourth year of Business Economics and I just realized they don't actually print the money 😅
Will never happen, the government does not want people to actually know this stuff
“Noooo ofc not. Because then we’ll wake up the slaves” is the thoughts that cross the elites minds.
This video is so uncannily resourceful. I do not have words for it.
Twenty nine trillion dollars 2 years ago lol now it's over 35 trillion dollars in 2024. Yet if you tried printing funny money you would arrested for counterfeiting.
I like this explanation. Thank you for making heavy topics become acceptable to everyone!
Good video. Would have preferred it also covers how debt monetisation flows into bond markets and to answer the classic “if government can print money, why do they need taxes?” Question
Amazing. Helps me understand these terms when I see them on the news
"How do you plan to pay it back?"
Yes."😆
Money itself is a debt instrument. It is a credit used to satisfy a debt obligation. USD's are debt and so are US Treasuries. QE does not print money ie add any new money to the banking system. Only fiscal policy does ie Government spending more money than it taxes.
This video should have more views... It's insane
This video is criminally underrated, such a wonderful presentation, job well done Sir
By far best explanation I’ve seen
Great video as always! Keep it up
Thanks! Will do!
Stuff like this is blackballed from TH-cam algo
Theres Hwak Tuah now!
It’s unbelievable that this system is real😭💀😂
Bitcoin fixes this 😉
@@Emrico35 not necessarily, because the federal reserve could just print all the money in the world to buy all the bitcoin. You’d have to get rid of the federal reserve and central banks first, then bitcoin could dominate.
@@thegoat1261still bitcoin would nowhere near have the same legitimacy or stability of the fed
@@flintgrain bitcoin is not digital gold. if you won't gonna spend your bitcoin, what's the point of having it? use it too buy goods and services but save some for future, balance is the key. we don't know how long we will live in this world.
@@thegoat1261that's the point, they can print the money, but not the bitcoin. Meaning intrinsic value cannot be manipulated
Great video !
Thanks for the video!
Fantastic work!
Thank to my feed 👍🏻
Is the central bank the FED in the usa?
SO , I have a question , Why is the central bank on top of the econmy when they arent providing any real value apart from printing money out of thin air , And why do they buy debt? and what causes these printed papers i.e money to have any value>?
Not sure what you mean by why the central bank is on top of the economy. The role of the central bank is to regulate and control interest rates in order to control inflation and unemployment which they believe have an inverse relationship to one another. So, they believe if there is too much inflation, they must raise interest rates to stop people from borrowing from the banks for purchasing things and this will slowdown the economy increasing unemployment. But if they think there is too much deflation then they will lower interest rates to make it easier for people to use bank loans to buy stuff (more sales, more employment, more hiring). So they THINK, keyword think/believe, that using interest rates is like the gas pedal on a car. You want to slowdown the car(economy) you let go of the gas pedal and raise interest rates. You want to speedup the car(economy) you step on the gas pedal and lower interest rates.
They buy debt, which are mostly US Treasury securities otherwise known as US savings bonds from banks. They do this to regulate the amount of total USD reserves in the banking system as a way to control interest rates. This however, is an outdated method as the Federal reserve simply pays interest on bank reserves nowadays. (I know its complicated, probably purposefully complicated)
Why do USD's have any value? Great question! They have value because they are tax credits. If you don't pay your taxes to the Fed govt guess what happens? Al Capone found out the hard way! They are worth, what you must do to earn them from the Federal govt. Whether its being a soldier or a maintenance worker at some Federal building. Whether its being a CIA agent or producing and building tanks for the military, that is what defines the value for the Governments money.
Makes so much sense!
such a great video thank you for this
Keep it up. Finally I understand
Why on earth does this video not get more views?
I researched this topic for a long time; however, this is the best short, straight-up-to-the-point video I have ever seen.
Excellent content!
Much appreciated!
omg this is the best video
Not only central banks but private banks can create money whether there is reserve ratio or only capital adecuacy.
Whereas Central bank monetize public debt private banks monrtize private debt.
This is why I try my best to not spend on stupid crap…just my way of being a socially economic troll 😂
💀🤣🤣🤣🤣
Where does the central bank get its money to buy debt?
Commenting to help this channel out
Wait, is FED a central bank or private company?
It’s a private company. Banks are the private shareholders
@@Jack-ox3rdit’s more like lord of the rings. Do the Nazgul own the rings of power? Technically yes, but practically, no, the Nazgûl are controlled by the one ring which answers to Sauron.
Private banks don’t tell the Central Bank what to do, it’s the opposite, they must abide by the rules and regulations of Central Bank which ultimately answer to the authority of Congress. Congress is Sauron and the Central Bank is the ring to rule them all.
What is the Govt spending problem exactly?
Great vid
Nice video
Great video lml
What are the assets the federal reserve purchases to inject money into the economy? Does anyone know?
I believe something like stocks which might be considered an asset as it is part of a company although is not a physical asset
Keep up the good work ! +1 for the algorithm !
Appreciate it!
And people say crypto is hard to understand
great video
The central bank doesn’t buy debt directly from the treasury though. Seemed like the video says that in the first minute…
Truth
Printer prints money with no value it
The end
Pay your taxes, you can only pay them with dollars. What? You don't have dollars? You better find some way to earn them or goto prison for tax evasion.
Now they have value don't they?
Yes
Printing Money Via Credit Based Agreements Yes Alternative Electronic Otherwise The Nature of Moneys Form of Existence Is Resource Extensive Think About It All Those Planners & Logistics
Corona it’s the perfect example for that fear
cool!
my apologies, i know it takes time and effort for someone to make this but almost nothing in this vid is correct. Its just a video parroting common economic myths. If you wanna be able to find common economic myths like this, just remember 3 facts.
1) if its on the FEDs balance sheet, its not part of the money supply. PERIOD. end of discussion! there is no debating it. when the FED swaps securities for bank reserves in QE , that's the same as taking money out of the money supply (this video is BACKWARDS). economies and money supplies grow in tandem. Then when the economy falters, the money supply must be reduced to too. The way the FED reduces the amount of money in the money supply is by chasing bond market to cash then swapping out securities at banks (where that money lives) for bank reserves. ITS A SWAP NOT A PURCHASE. IT USES BANK RESERVERS NOT DOLLARS.
2) Bank reserves are not money. For any of these claims to be true bank reserves would have to dilute the dollar but they cant because they are not dollars. They are interbank tokesn used only by banks. Banks DO NOT LAON OUT BANK RESERVES!!! that was painful to have to watch that part of the video!!
3) Bank Reserves are not part of the money supply. For any of this to be true bank reserves would have to be money and it would have to be part of the money supply diluting the dollar. None of that is true.
The video above is parroting right-wing tabloid economic myths. Use my 3 rules above to itemize every way this video is wrong and you'll end up with a long list. The FED creates liquidity by putting REAL interest rates in the dirt and chasing the bond market to cash and equities -essentially closing up shop on one of the 3 financial markets. The M2 increased rapidly becasue the bond market went to cash. for the last 4 years they only been selling 2 year treasuries becasue there is no bond market!!!
NO ONE PRINTED MONEY! They sent to bond market to cash!
I never understood that how money actually multiplies
Damnn so good
Some segments in the video are stamped not adjacent to each other
what do you mean? :)
We can use this money printing to evolve economy to the next level if we consider the proposals of C.H. Douglas Social Credit, (different from Chinese communist social credit)
Bitcoin fixes this
So if all this is all doomed to fail with almost 100% certainty and printing money being the end stages of capitalism and artifical growth. Why would as they say want to "stay the coarse" in thr stock market.
So in short no country in the world has been able to solve this issue yet.
Nice
👏👏
central bank is not happy with this video
This video is complete BUNK from the junk. Currency issuing governments can’t borrow in the currency they create.
Lmao how is there not more views on this video
35 trillion now:))
The day the dollar collapses will be absolutely awesome.
W
I don’t believe that such good explanation deserves such low watching
ponzi scheme run by every goverment around the world as long as investor willing to buy the goverment bond. In ponzi we trust.
Why do people in power are acting like fools in 21st century
A British telling how US work.
👍👍
Under raded
Not really, go outside and ask the normal Americans about how much they spend on their groceries
U.S did it.
Why is everyone British?
yes!
@@yungfi why is the girl mic so trash?
@@LOKI_42069 Yes.
This video is very different and I don't like it
what don't you like? the analytics are far better for this video
@@yungfi Felt different. I think it's manly the slapstick conversational narrative from your two pink stickmen protagonists that can't stop flailing for some reason. Gone was the great visual effects from previous videos. To my mind, how governments issue T bills and buy bonds is well understood in the public consciousness, whereas the technical topics explored in earlier videos like how bitcoin and blockchains work, and how the narratives you present challenge people's thinking, are much more suited to your style
@@manickronic I can tell you in no uncertain terms that most people don't understand economics beyond being able to pay their bills at the end of the month.
This is one of the clearer videos to describe how this debt system works. As far as the constant wobbling goes. I don't have anything for that but the last video was like that as well.
Our goal is to reach the largest audience in the most engaging way. Finance is boring for most people. Dialogue & conversation is a better way to engage (better watch time & audience retention & storytelling). As for animating, I can kill the swaying for the next video. We are just testing things out. As much as our team is pro bitcoin & freedom, we are going to do less videos on those topics. Our focus is on topics people would want to click on. As more people watch the popular topics, they will be recommended our bitcoin videos. BTW our next two videos are still Bitcoin but in the conversational style. Thanks for the feedback!
amazing content
Yes