Federal Reserve Balance Sheet

More free lessons at: http://www.khanacademy.org/video?v=MILF-9GeMDQ Analysis of the federal reserve balance sheet as of Feb 2007.


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  1. that is one of the best explanations for a balance sheet that i have
    watched. I am guessing (i will look at the 2008 balance sheet of the fed
    and compare) that the Fed is claiming to have more "Assets" (worthless
    treasuries) and even more debt (inflation).

    Reply
  2. @dafaucas, I believe in my heart that truth can win, but what matters is
    doing what is right: Obtain pamphlets on jury nullification and hand them
    out in front of court houses, especially tax court. Learn precious metals,
    and buy and sell in silver with anyone who will accept such real
    money(believe me, folks WILL accept silver). Tell people about Alex Jones.
    Keep and bear arms. Associate with intelligent, freedom-loving people. Love
    truth. Come up with your own ideas.

    Reply
  3. Banks may issue gold certificates for gold which is allocated
    (non-fungible) or unallocated (fungible or pooled). Unallocated gold
    certificates are a form of fractional reserve banking and do not guarantee
    an equal exchange for metal in the event of a run on the issuing bank's
    gold on deposit. Allocated gold certificates should be correlated with
    specific numbered bars, although it is difficult to determine whether a
    bank is improperly allocating a single bar to more than one party.
    (Wikipedia)

    Reply
  4. @hwt2009 Sal points that out at the very beginning of the video. He said
    that this would be the balance sheet before all the craziness happened in
    2008. The date on the Balance sheet itself is dated as Feb 14th 2007. So
    how is that 'misleading'?

    Reply
  5. @bhitt99 It can be one of two things (1) he's an idiot or an utterly evil
    person, along with pretty much every economist on this planet or (2) you
    are an idiot who trusts conspiracy theorists and populists who either don't
    know anything themselves or have vested interests in spreading certain
    types of doomsday propaganda to gain votes of people like you. You're free
    to think it over yourself and sort out the contradictions.

    Reply
  6. Wouldn't the reverse repo on the liability side be just an obligation to
    sell back the repo assets to their original owners (holders of "reverse
    repos" on their asset side)? The explanation "fed has borrowed from
    someone" seems very strange.

    Reply
  7. Brilliant stuff. I was wondering if you could do a video on quantitative
    easing, and why it won't work when the banks are insolvent, or when they
    are deemed to be.

    Reply
  8. This is a false Balance Sheet. It is based on a Money Supply of M0
    (currency). If you add M3 to Federal Reserve loans, the Money Supply is $27
    Trillion. That is huge compared to the $800 Billion that they acknowledge
    (and of course the $900 Billion they've printed since 2007).

    Reply
  9. This is a misleading video; the changes occured in 2008 onwards….the Fed
    Reserve now holds over 1 trillion of mortgage backed securities……what
    you are seeing is before the TARP and all the bank failures….

    Reply
  10. Be careful with this video. Although his logic is convincing, the original
    financial statement is politically correct. Thus, the Fed may have assets
    upwards of $100 trillion. No matter where the money gets lost in the system
    or the world, the money always comes back to the Fed.

    Reply
  11. So who does the 30 Billion in equity go to? If the Fed's so called
    "profits" go back to the treasury, why does the treasury need to borrow
    money from the fed? Funny that an ex NY Fed president is running the US
    treasury. They are running such a clever scam, and nobody can do anything
    as the Fed is above the law.

    Reply
  12. forget the balance sheet my friend. GET THIS…YOU HAVE A FOREIGN
    INSTITUTION PRINTING YOUR MONEY FROM THIN AIR AAAAAND THEN REGULATING IT
    WHENEVER THEY PLEASE. NO COUNTRY, EXCEPT A FEW, ARE TRULY INDEPENDENT FROM
    A CONTROLLED MONETARY SYSTEM. i said foreign institution because it is not
    in control by the any gov. It is controlled by its stakeholders and guess
    who those mofos are.

    Reply
  13. @thekid22585 The Fed is like a beast with tenacles extending all over the
    place. They ARE our government even though they technically aren't. They
    have so much power it's ridiculous.

    Reply
  14. sdr's would be how many assets are being held in a savings account at the
    world bank … (sdr's are special credits based on a basket of currencies )

    Reply
  15. Sal, I've 2 Q. If you could help, please… 1. When the fed (i.e) purchases
    in an Open M. Op. it buys to persons or Corps. or even banks, but do they
    always want to sell? I mean, if rates suppouse to lower helped by those OM
    purchases, why would I sell my T securitie with a "higher" rate?? Could you
    give me a little more detail in that point?

    Reply
  16. Hi Petter, your vedios are really great. I wonder how the federal print
    money and sell T-bills against it because the t-bills will also be sold and
    they will get USDollar against. So how that will be offset again? and dont
    you think with issuing $100 t-bill the Fed. ca print $100 and sell the
    t-bills for a hundred so they will get a total of $200?

    Reply

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