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Category

😹
Fun
Transcript
00:00So what we see is an argument between the president of the United States and the head of the Federal Reserve and others about the independence of the Federal Reserve and the monetary policies that are being pursued.
00:15And so that argument is a general belief, a historic belief, that by having a central bank that is independent of the government, there is a greater willingness to not do the politically expedient things of making credit too available.
00:39And they will defend the value of money and they'll defend the value of the bonds that people are holding.
00:46On the other hand, there is a concern that the central banks are losing money doing these activities and also that that stands in the way of dealing with the debt situation and the economic situation well.
01:01So that's what central banks do. And that's the nature of the debate.
01:05Naturally, holders of the debt and borrowers all have their own vested interests.
01:13So those who are holding the debt assets want the Federal Reserve to keep that money tight and keeping them have a good return on that money, while those who want stimulation in the economy want the opposite.
01:29That's the nature of what's going on now.
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