Federal Reserve - Repo Market - Fed Funds - QE : Explained (Simple & Fast)

A lot of info here but it is all accurate and well explained . Really good job on how the Fed controls interest rates and the players involved inside and outside the banking system. I have read many explanations on reverse repos without understanding what they really do until this video. Just shows you what a well thought out presentation can do.

100th COMMENT.

Thanks for the vid, such a bummer that this sort of thing isn't a standard part of network and cable news. Would love a video on the money supply events of spring 2020 too.

One the best explanation of money creation on the web. Could you kindly redo this piece and speak a bit slower. It is very important topic and very very useful. Unfortunately because of rapidity of the delivery, it can be totally absorbed. You are a real gem. Thank you and hope you would redo this piece with a little bit slower pace to help us get a fuller understanding. TIA

Amazing explanation !!!

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Si

The whole time, only I saw the fern infiltration. The ferns did not count 🌞n🏖

I know🐔🦏

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My 8 th cartoon 🧛‍♂️🕳💦😹

This clown thinks fed controls so big treasury market 🤡

Your explanation of the system was spor on. I just think it is so important to illustrate 2 thing. The Fed does not print money. Money is created when the banks lend money. The second point is that there is no money in monetary policy. It is disheartening to listen to people talk about the Fed printing money and the inserting in what whatever financial instrument that has increased in value and saying that it was inflated by the Fed. Milton Friedman said Inflation is always and everywhere a monetary phenomenon,. Which is so apropos for the debate we are having today about our economy. What the Fed was calling transitory was not even inflation we had prices rising for reasons other than monetary inflation. What is so sad it that the Feds only solution to this perceived inflation is going to be the crashing of the economy so stop comsimer demand.

Fed doesnt buy reserves technically from banks outside of system , they sell them treasuries and than repurchase them later at higher price with higher price being like interest on collaterized loans called the repo rate Correct?

Please clarify Who are the banks and institutions that cant get interest at 4 % on excess reserves at the fed? And does fed set repo rate with them at 4% to match ioer or do they set at maybe 3 % so fed funds is now between 3 a 4 ?THANKS

Also u say the fed buys the reserves for 4 % of banks that cant keep excess reserves at fed for 4% at fed but why cant they keep them there to avoid the reverse repo stuff?

Who are the institutions who cant get 4 % at the fed Any names for reference and who do they lend to at 3.5%,? Thanks

George please..infographics..use them an retire that damn white board

I wish they could explain this for dummies ..like dumb dummies

2 years later this is relevant to my interests.

Richard Cooper and Robert Kiyosaki talked about you this week on the podcast so I’m going back and trying to learn as much I can thank you for breaking this down for us Regular Folks

What's up George I've been tuning in for a while love your style Bang on buddy!

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Greenery

very solid video, thanks for making it!

Please SLOW THIS DOWN. Make another video that compares this against Richard Werner's banking theory of credit creation. PLEASE SLOW DOWN, my brain hurts when you talk about REPOs.

Wow! you are great

The way you describe money being created by the Fed in the first minute is completely wrong. The Fed doesnt print money, it doesnt buy bonds unless its doing QE

Fractal banking is the biggest Ponzi scheme ever created.

If reverse repos increase by a lot, what does that actually signify in terms of the economy? (R. Superstonk brought me here!)

Thanks for the vid! Very informative.

Recently the reverse repo market has been skyrocketing. What does that entail? Are the banks flush with cash but no collateral? By them doing a reverse repo, that means they are buying back the collateral they originally transferred in the initial repo agreement? Am I understanding it right?

Thanks!

George is amazing content. Best learning method is teaching.
Success is for rent and a due date is everyday day....

Thank you for sharing! “Cool kids,” 😂

thanks. very informative. concise. to the point. great video

Thank you , George Gammon, you were recommended by Robert Kiyosaki (Rich Dad, Poor Dad)

Im confused about Reverse Repo.. Is the fed the initial seller of the securities then in this scenario, and thus agreeing to pay the buyer more back for the privillege of selling them that security ? Cause this is just nuckin futs :-/

When the fed prints money and gets treasury bonds in return does the US government then have to pay the fed the interest on the bonds and the face value when the bond reaches maturity? Or has the fed erased the government debt?

The first 33 seconds. The government sells bonds to a PD, who gives the government money for the bonds. (Where does this PD bank get this money from in the first place ?) Then the PD sells the bonds to the FED and then you say the Fed gives the money for the sale of the bonds to the government. I would think the PD would receive the money ??? I don't understand this , the government receives money twice for the sale of the bond and the bank gets nothing !!

I love your videos and appreciate them so very much. However, I am slow to understand economics. I think the problem is this--it doesn't make sense, but I think that it's because the system doesn't make sense and my mind wants to reject it. Do you think you could inject some commentary on the absurd aspects of all this debt lending back and forth so I could make more sense of it? Thank-you again so very much.

Can the US gov't confiscate stock holdings of a citizen?

Brilliant presentation 🙏🏾 yet scary as Fvk 🥴

I noticed 12 thumbs down on this video isn't that the exact number of Fed Governor's at the Regional facilities ?

Great channel but as a high school teacher, don't use green markers... just saying! 😁

Wow, great job George. First video I watched of yours.

The new system puts eurodollar physical senior to t_bills promised?

The federal reserve has to allow the TED spread to go negative meaning deflation?

George, Lotta bad news on all of your videos. Now, please, tell us what we should do and, how should it be?

I'm learning too much sir. Stop it.