All language subtitles for Money for Nothing Inside the Federal Reserve Jim Bruce 2013

The US dollar is the currency of history
The most significant achievement.

It is a piece of paper, which
Production at no cost.

On the back are just Ben S.
Bernanke and the US Congress.

Yet that piece of paper is
a valuable and respected.

Will the dollar be other than
the world's great financial brand -

the financial world, Coca-Cola?

Soon it will be seen.

Since 1971, -

US dollar
and the world's financial system -

are based on
Only trust.

A guarantee of confidence
has been the guardian of the system:

The US Federal Reserve
ie the Fed.

The US dollar is the world's
the main reserve currency.

We measure the time,
products and own our value.

The system is based on
faith and trust.

They both
began to fall off in autumn 2007.

Interest collapse
triggered the housing boom.

When interest rates are rising again -

many makes tight
to pay back the loan.

14 million people
has taken the mortgage.

As many as seven million of them
losing their homes.

Fed thought it was a minor problem.

At the beginning of the crisis, talking about -

subprime mortgage
problem.

The problem continued to increase.

The mortgage market is a mess.

The authorities are trying to
to save Lehman Brothers.

You have a
electronic bank run banks.

The central bank Fed estimates -

that the American banks' accounts
had lost $ 5.5 billion.

It would have led to the collapse
the country's economy -

and within a day
the entire global economy.

It would have meant the current
the end of the economic system.

The Congress was not able to
to act in time.

That's why we looked Fed -

the stabilization of the economy
is our mission.

It is not part of the central bank
the normal tasks.

When politicians debated,
The Fed took action.

It has used the unlimited jurisdiction
to create money -

and lent trillions of dollars
all types of businesses.

Congressional Support
was small in parallel.

Men across the street and most of the politicians
did not understand -

that if nothing had been done -

mm. General Electric,
Berkshire Hathaway -

General Motors
and Citigroup would be destroyed.

We came to the edge -

and we saw how deep it was.

The Fed was forced to intervene.

The Fed was founded in 1913 -

to improve the financial system
liquidity -

Financial panics times.

"Here rukataan interest rates."

What do you know Fedistä? - I do not much.

The Fed seems to be the people
like a black box.

To take care of the currency?
I do not know.

It has something to do with money.

It regulates the stock market.

We are human mystery.
They do not know what we are doing.

Sounds like
as it would weigh money. Nope.

One myth is that we print
money. We do not print money.

Will the Fed taxpayers' money?

No. It's what we do,
is closer to the printing of currency.

You press the money. - Practice.

What is the Fed's job is?

It controls the money supply, determines
interest rates and regulates banks.

It should ensure that the financial system
security and stability.

The Fed should be safeguarded
financial stability -

and prevent the market
from falling into chaos.

In general, it can do it,
but otherwise it was the summer of 2008.

What followed was chaos.

What caused the crisis?

What took history
prosperous country to its knees?

Many economists
and Fed officials said that -

eye of the storm was the Fed itself.

The Fed kept interest rates
and hold for too long.

It seemed to housing price bubbles.

Warnings included.

When interest rates are lowered until -

will boom and then
is likely to collapse.

The Fed did not stop the housing bubble
and the sub-prime lending.

It failed completely
the fight against the financial crisis.

We are not regulated -

financial system
the most important part.

None of the Fed employs olleista
does not rejoice in the fact that someone mohli.

It is important to recognize,
the big mistakes are made.

Is System of Central Banks
failed?

I know that my time is over,
but I completely disagree.

Things generally intended to remedy,
but now that has not been made.

Everyone wants to say,
that the problems have been solved.

In fact, beg a new crisis.

This is a trial,
which has never been done before.

The Fed operates without preparation.

It is important to consider carefully,
what the Fed did.

The mistakes made, the blame game instead
we need to think about -

the role of central banks
should in future be.

We want to avoid contact
again the same kind of mess.

It is not the first time -

when you protect the economy
within the meaning of the central bank -

has taken us into the brink of the abyss.

World real currency
is trust.

When it disappears,
The Fed's ability to learn from past -

and whether it has time to learn from?

None of the big country
has not yet collapsed.

Such a crisis is to be feared.

How strongly believe!
that you will be able to monitor this?

One hundred percent.

Before, it was the United Kingdom.
Now it's England or Britain.

Britain was
tiny place -

a currency tied to gold
was good enough for all around the world.

The Bank of England
exchange of banknotes into gold -

at a predetermined rate.

The gold standard currency, ie tying
Precious metal is a way -

to stabilize the value of the currency and limits
excessive printing of banknotes.

World War I
a collapse of the world.

European powers needed
money to finance the war -

and abandoned the gold standard.

When Britain was bankrupt, and
Germany hyperinflation ravaged, -

USA's new central bank and gold
tied to foreign currency rose by management.

Fedillä has the power to create money.

If I recall the basement of money,
I counterfeiter.

When the Fed to use electronic
printing machine, it is monetary policy.

The Fed conducts monetary policy
creating or destroying money -

calculate
or to raise interest rates.

If it's more money, it will
the introduction of more and interest rates fall.

It promotes
borrowing and consumption.

If the Fed reduces the money -

borrowing and consumption fall,
and saving is increased.

Raising interest rates slowed down
the economy and inflation, -

whereas the fall in interest rates accelerated.

When the Fed change the interest rates,
it presses the gas or brake.

The Fed began to use
new powers in the 1920s -

Control of the economy: the United States.

The Fed moved to control the whole of the economy.

The first trial was a large
during the recession. It was not successful.

Turbulent 20th century took place -

first Fed launched
the rise in drug and collapse.

Low interest rates, the Fed boosted
unintentionally stock exchange and debt bubble.

Speculators took loans
more than the money in circulation.

Fed tightened the reins and the beasts
raised interest rates sharply in 1928.

It laid the foundation Lama
and a stock market crash.

New York City area in its capacity
After the collapse of properly.

It increased the money market
liquidity and stopped the panic.

Washington, DC
functional Board feared -

that stimulus policies would accelerate
while speculation and inflation.

Therefore, the Fed dropped
stimulus policies.

The banks got into trouble,
but the Fed did nothing.

When banks began to go bad,
deposits were transferred shelved.

The banks had no money,
what you borrow.

The economy began to decline.

Due to the gold stock had a difficult
decide what should be done.

We tried to protect the gold; -

which required raising interest rates
just the wrong time.

Additional money supply
would have prevented the fall in prices, -

but the Fed gave
the supply of collapse.

That is why the recession turned into a recession.

Fed by no means caused
Great Depression intentionally.

It wanted to correct the situation,
but it was the wrong diagnosis.

Many people nowadays think.

The Fed's current Director General
Ben Bernanke has said -

that the Fed caused the Great Depression
and not do it again.

The Fed was wrong, what we
all the sufferings of the teaching.

The first big mistake was the Great Depression -

and the second error was high inflation.

The following crisis the money was not
too little, but too much.

1960 mid-term
had a nice time.

There was no inflation
and unemployment -

and Washington, DC
There was self-righteous.

Underneath
However, brewing problems.

President
Lyndon Johnson's reforms -

and the Vietnam War
a major expansion -

increased state spending significantly.

Prices skyrocket In up.

The Vietnam War meant
the government organized by inflation.

The conservation value of the dollar necessitated
Bill Martin from raising key interest rates, -

as he had done
Since 1951, -

but Lyndon Johnson
had a different president.

Johnson banned from raising interest rates and
jeopardizing the reform agenda.

He did not want to depression and stressed
the importance of the war. The Fed gave up.

The results were disastrous.

The Vietnam War
and Johnson reform programs -

were too much for the economy
and created massive inflation.

In 1971, it was clear -

that the dollar could
no longer change into gold.

In the end, Nixon spoke on television.

I told you
Minister of Finance -

suspend until further notice
dollar convertibility to gold.

That was the beginning
modernization of inflation.

For the first time in history,
the dollar was just a piece of paper.

It was supported by only trust
policy of the central bank.

What does this mean for citizens?
Value of the dollar will remain unchanged.

The promise of the realization of
depended on the Fed's actions.

Fed Nixon bowed to pressure
and clung to false economic theories -

and refused to lifting interest rates.

Cost of living
more than doubled in 10 years -

and the dollar lost
more than half of its value.

At the end of the 70's
The situation was very confused.

Prices rose
During the Carter clouds.

People began to murmur continuous
inflation fueled a policy.

It is terrible when you have to
to pay so much for so little while.

Prices have gone up to the 1979
in the first quarter -

13 per cent per annum.

How long inflation
galloping out of control?

Probably for many years.

President Carter had to squeezed,
because inflation was becoming a bogeyman.

Inflation is our friend.

Then Carter
appointed Paul Volcker.

When Carter appointed me,
he was hard. It was a difficult time.

Raising interest rates
is not popular.

It was opposed
the fear of recession.

Volcker persuaded the Fed's Board of Governors
to raise interest rates, but to no avail.

He experimented with different tactics and presented
intervention in the money supply.

When he slowed down the amount of money
growth rate, interest rate, of course, increased.

No one could have foreseen all the way up the interest rate would rise.

Ten per cent.
- 15.

20 per cent. - 21.

Plants was not
America seen before.

He would not have reportedly believed that
the interest rate should be raised to 20 per cent.

However, he did.
It required courage.

The Fed knew that it would lead to
likely recession.

Volcker said,
attaches of alignment caught -

even when the recession began in 1981,
was the longest in the postwar period.

In the past couple of years -

the world's political vision
The Fed's role changed dramatically.

If those decisions had been lodged
tasks of politicians -

they are not guaranteed to be voted
on behalf of such a deep recession -

lower inflation.

Political systems
is a fundamental flaw.

If Congress representatives
should vote on the measures -

that are
short-term painful -

it does not want to succeed.

Fortunately, sometimes there are leaders
which operate far-reaching.

They could be more.

Paul Volcker is
announced its decision to -

that he no longer continue
Chairman of the Fed's Board of Governors.

When inflation was tamed,
Volcker got to go.

Reagan did not appoint him
for a third term.

Volcker had restored trust
the dollar and the central bank.

He had laid the foundation for an unprecedented period of prosperity.

The successor to the task
was to keep the course.

He looked for a long time
to succeed in it.

America is morning again.

The period from mid-1980
until about 2007 -

had mild recessions
and a reasonable period of growth.

All seemed certain.

Economists were talking about
period of great stability.

The underlying idea is,
that the Fed is up to the task -

and worthy of praise.

It took a thank you receive.

The economy was in top condition.
The stock market was rising.

The Cold War ended.

Most of the world
became interested in the market economy.

The economy grew
and unemployment was low -

and at the same time, inflation
was surprisingly very low.

As a result of all this
it was the Fed's gold time.

Common opinion
government functions changed.

The government has not
the solution to our problem.

The government has a problem.

There was a confidence in the market and
distrust of the state authorities that -

when the state power with suspicion
disposition Alan Greenspan -

was elected State
the leadership of the most powerful institution.

Greenspan was known at that time -

individual praising Ayn Rand
a supporter.

I support absolutely free
and unregulated economy.

When the state is separated from the economy -

the result is collaboration, harmony and
fairness between people.

It is absurd and Greenspan
a career in the USA's point of view -

that although he was in favor of Ayn Rand,
he became a money price regulator.

Greenspan had to test immediately.

Value of the US stock market had more than tripled in five years.

The reasons were the fall in interest rates,
low inflation -

and trust
American capitalism.

The point, ladies and gentlemen,
is that greed is good.

Greed was not a new exchange,
but the means to satisfy it were.

In the past, had not been used
complex financial products -

such as derivatives.

This has been the worst day
New York Stock Exchange history.

The Dow Jones Index
fell more than 500 points.

Fear quickly spread.

The Fed cut interest rates rapidly
and increased liquidity in a transparent manner.

Greenspan managed
in that situation as well.

He calmed the market
and eased its monetary policy.

It seemed that just kind of
Monetary policy had to be.

Then it was learned that the crisis
can intervene and stop it.

It was a historic moment -

while
a dangerous precedent.

Fed expected from now on
falling interest rates -

in response not only to the real economy
the stock market problems.

Greenspan did not want to banks
and market regulation -

but she was arranging things
and pulling the strings -

more than any other
Director-General of the Fed.

Greenspan rejected the ideals of saving the market -

and harjaantui intervention champion.

The result was a US history's longest
economic growth and the stock market rise season.

Economist, who had no
banking experience, had become a maestro.

I was employed by the Fed
mid-1994 -

by 1996
the Board of Directors as Vice Chairman.

It is not very awesome service,
when was chaired by Greenspan.

When the Director-General of Greenspan speaks,
the whole world is listening.

Alan Greenspan was in those days
roughly as good as God.

None of the people should not worship
god. Greenspan was worshiped.

People think,
that adored the man knows everything.

They think,
that he will always work correctly.

Within the Fed
it meant -

that the criticism of Greenspan
was almost impossible.

Who would object to God?

Playing God
cyclical co-

brought Fed soon as a new challenge
and a new kind of inflation.

Came a new kind,
inflation-related assets.

The rise in prices
did not apply to goods -

but shares of real estate
and other investment assets.

It means the stock exchange
rallies. All are in favor of it.

It was the first time in the USA -

when the stock market continued to grow
15 per cent a year for a long time.

It was thought to be continuing.

Everyone loves boom.
Who should not?

Greenspan worried,
the boom was perhaps the bubble.

The market did not listen, but
turned against the messenger.

He was instructed to keep
hands off the stock market.

Greenspan is perhaps the most important thing is,
that he held.

So he stopped talking
overheating -

and began instead
encourages the equity markets.

Greenspan did not subsequently reversed
against public opinion.

When share prices
rose into the clouds -

He did not do anything
to curb overheating -

but as soon as the work was reflected in
even the slightest weakening of the character.

Enormous fund
The collapse shocked investors.

Long-Term Capital Management
was a large hedge fund.

Its head was intelligent people,
which, however, guessed wrong.

The Fed held 3.5
billion-dollar rescue package.

This kept Libertarian man -

led in
economy risks socialization.

Do not have a free market?

It is invisible, benevolent hand ... - That's what happens in practice.

Greenspan served
a completely different way than its predecessor.

Wall Street gave it a name:
Greenspan putt.

Greenspan putt idea is that -

that the risk can be taken
and to push the Fed.

"If the markets go haywire,
I will save you. "

Traders interpreted it that way.

It carries them
in difficult times.

If the risks have saved,
high-risk behavior will only grow.

Fed imagined to be able to protect
market easy money.

However, the safety net resulted in a promise
liabilities and risks dizzying growth.

It both moved
that distorted the economy.

During Greenspan's financial sector
share of the economy doubled.

The companies that sold products before,
now sold their loans.

General Electric was
mainly hedge funds.

GM and other car manufacturers do not
earned money by selling cars -

but funding them.

Companies who served
before customers -

Now wrap profits
by trading on their own account.

Their exotic financial products,
such derivatives -

bought and sold in secret
not regulated at all.

Regulators NOT REGULATED

Derivative financial instruments are
has grown at a phenomenal rate -

and increased the financial system
flexibility and efficiency.

Although derivatives were -

as well as the 1987 collapse of the
At the core of the rescue package, -: LTCM

Greenspan was opposed to
their regulation.

What worries me -

we introduce a new kind of
government regulation of shapes -

who are not working.

Greenspan's ideology prevailed.

In 2008, was used more than 182
a billion dollars of taxpayers' money -

insurance giant AIG
rescuing derivative unit.

Financial market
operators are so adept -

that they can take care of problems yourself.

It sounds pilalta,
but many actually believed that.

Some of them were large
the regulatory agencies in the lead, -

such as Alan Greenspan.

The Fed offered on the market
incredible deal:

no regulation,
which would prevent the risk-taking -

but if the lottery goes wrong,
lower interest rates on rescue.

US equities were soon
overvalued than ever.

STOCK BUBBLE

Share prices rose clouds.

New companies founded
without business plans.

Invest in syytivät for money.
It was ridiculous.

It worried us Fed.
We talked about it a lot.

Should raise interest rates -

in order to break the bubble,
before it would grow too much?

We decided not to bring.

Although the burst bubbles
are not harmless -

the consequences are not necessarily
devastating the economy.

In March 2000,
the stock market began to decline.

IT bubble burst
and 11.9.2001 attacks -

Greenspan was a test strain,
that the bubbles could treat afterwards.

He lowered interest rates
on many occasions -

to mitigate the damage.

After the terrorist attacks feared
left the recession, but it did not come.

Mode
The supporters might -

the outbreak of the 2000 bubble
then as proved -

that the approach made sense.

If this is the crash,
the rise of drug was worth it.

Is not it so? - Oh yes.

Greenspan seemed successful again
once, but in the ointment was complicated.

The Fed had softened the IT collapse
roimilla rate cut in -

that triggered a boom.

When interest rates fall,
mortgages become cheaper.

Which caused an unsustainable housing bubble.

Many American is
applied for financial security -

by investing in the housing sector.

According to the Fed
the housing market is stable -

but others warn.

Housing Market
does not come easily bubble.

Home buyers do not speculative
to the extent that equity investors.

Ventured, nothing gained. The Fed tried.

We ended up with Fed
to promote the housing boom.

Continue to defend
the decisions we -

the fact that employment had not grown
After the bottom of the recession achievement.

The use of the apartment as collateral for loans
has supported private consumption.

Without it -

economic activity
it would have been weaker.

The Fed lowered its prime interest rate -

Always one per cent.

It was almost non-existent.

It was the Fed's side
partly intentional.

It wanted that we take all
more risks than usual.

It is a lovely house.
Koulutkin are good.

The second is three, the second year
old. - And as soon as school age.

So you should seize.
Yes you whether you survive.

Alright. - Are you serious?

By calculating the price of money -

The Fed raised the borrowed money
the price of the products bought.

We prefer, for example, homes -

because we did not want,
that people would be unemployed.

Intention was good, but we created
the same incentives to borrow money.

Household debt rose to a level -

which is not yet 20 years
previously could not imagine.

Bush confirmed
to promote homeownership by law.

He was a good,
that people have their own house.

New construction is more lively
as almost 20 years.

Owner-occupied housing accounted for
is greater than ever.

The apartment is not, however,
had their own.

Property Owners
did not own anything.

They only had a mortgage, -

which was a rainy day when they could
remain outstanding.

Multi-barking Americans
households fools.

The Americans took too many loans.

They did not know how to save wisely
do not borrow responsibly.

They also do not realize that,
housing prices do not always rise.

I disagree.

I do not want to criticize
American consumers' intelligence.

They have a whole
quite reasonable.

Lowered interest rates in 2003
and 2004. They took a loan of course.

The Fed seemed successful
and congratulated himself.

Evidence suggests -

that our decision to intervene in a bubble
nor the consequences of the bubble itself -

has been the right one.

It was not a good year
optimistic forecasts.

Welcome economy grows, so -

that people
earn money and consume.

Unhealthy economy will grow as people
lend money and consume.

Low interest rates
doubled the mortgages.

American dream
became a tragedy for millions of families.

The worst lending craze was
However, elsewhere.

Large banks seized the opportunity
multiply your winnings -

by themselves huge loans.

They are therefore used financial leverage.

Interest obscenity
became a glaring highlight just that.

The Fed's prime rate was
Only one percent.

Large banks gave a mortgage
five to six per cent interest rate.

If the borrowing rate is one of the
and the lending rate six -

it wraps tumbled profit.

There was
low interest rates, a problem.

Financial institutions
took too many loans -

and gave a loan
on flimsy grounds.

With the money received for free
and lending earning plenty -

Money started
even belch who are interested.

Lehman Brothers
took a cheap loan -

mortgage-made
securities -

and spread them around the world.

Growing and family in debt.
Young couple with no down payment.

The entrepreneur, who had a hard
to prove their income.

Three financial institutions
denied these people the loan.

My employer Countrywide gave them a loan.

It did not make the Fed
but banks -

but the Fed should have been prevented -

mortgage
reckless grant.

The Fed could have
cut off the speculation -

but the atmosphere in Washington
was quite different.

We take too much care -

owner-occupied housing
the importance of the economy.

This is not about the IT bubble.

Housing prices
can rise and fall -

but no bubble
belonging to collapse does not arrive.

Mortgage loans regulators would have been
contrary to the political climate.

The Fed would be doing so
was brave. It should have been.

Fedillä had full powers
to regulate mortgage lenders from.

It took them finally in 2008.

It could have been abolished
Lehman's subprime unit.

You had the power to prevent
reckless lending, -

which led to the subprime crisis.

Multi-advised you to do so.

Now the whole economy to pay for it.

When Alan Greenspan's season came to an end -

he had received
completion of the reform of the economy.

The financial sector was oversized -

as loans swollen
the housing market.

Deregulation had.

All lived in the illusion of power, that all is well.

Where you made a mistake? - I had a false assumption.

I assumed incorrectly banks
and other vested interests in such a way -

that they would be able to self-
to protect themselves the best.

They assumed that it is private
market principles -

and that the people know
what they are doing.

Historians
ponder for a long time is one thing.

If Greenspan and the Fed really believed in such a way -

why tapahtumainkulku
shaken that faith?

The most important appointments of the President is
Chairman of the Fed's Board of Governors.

For me, the most important thing is to follow
continue to the principles and the means -

which was drawn up
During Greenspan.

Ben Bernanke of the Fed's Board of Governors
While a member of -

supported by counselors,
loose monetary policy.

He had no idea,
that should reap what you have sowed.

Many economic experts talk
bubble and its outbreak.

What could
at worst happen -

if prices collapse
all over the country?

I like it
highly unlikely.

There has never been
a nationwide decline in house prices.

Bernanke should have said,
that there is no bubble else has been before.

Robert Shiller collects in
Data is displayed -

that housing prices takes place
After one hundred years of steady -

frenzied rise in three years.

Bernanke is a pure theorist.
He did not look at housing prices.

He believed blindly
market efficiency.

Housing bubble could not have been,
so why look for it?

Bernanke's Fed made a mistake.
They did not see what had to come.

The subprime market problems
is likely to remain under control.

Upcoming issues
belittled greatly.

At some point
people dawned -

they were
have taken themselves too large a burden.

Share prices plummeted. - Financial companies are hard pressed.

Bank of America fell 40% in the red.

This market is controlled by fear.

Greenspan recommended
low rates of interest for everyone.

Bernanke only theorize.
He does not know anything about reality.

When the crisis erupted, there were only Fedillä
vague idea of its size.

A bank run was
quite different than before.

It concerned the banks, which the Fed
was established to protect, -

as well as hedge funds,
investment banks and insurance giants, -

that the Fed was not being monitored at all.

AIG is in serious trouble.

It is in dire need of money,
which no person has now given.

AIG's bankruptcy
would have meant -

deposit exodus
the world's 50 largest banks.

That would not have survived.

We saw what happened when a couple of big
the company was on the verge of bankruptcy.

What if they would have been 15?
So it was about to happen.

The work needs credit.

It did not pause
the past interest rates.

When faced with an emergency situation,
where the heart had stopped beating, -

we had to get it back to hit.

American taxpayers
heard this morning -

that the Fed's rescue package to AIG
consists of their money.

The Fed pumped over crisis
trillions of dollars in emergency loans -

banks, enterprises and governments
in every corner of the world.

Measures were natural
an extension of the Fed's ideology -

but they were unheard of.

Do you undertake, the fact that these
banks will not be allowed to bankruptcy?

It was their balance no matter what,
they do not go bankrupt?

They do not go bankrupt.

Bernanke stopped the run on the bank.

When the rescue package is launched
recovery, the Fed increased the stakes.

Interest rates were already at zero -

the remainder was not so
than printing money.

It used a technique called
QE, or quantitative recovery.

The Fed bought since 2009 -

more than $ 1.3 trillion
housing and other loans -

Fannie hill and Freddie Mac.

It meant the housing market
temporary nationalization.

It was followed by the largest shares rally
since 1932.

When the markets froze in 2010 -

The Fed launched
the second QE-operation.

If Greenspan putt
had been subdued -

Bernanke putt
was crystal-clear.

Hedge Fund Expert
David Tepper -

wrap
impressive US $ 7.5 billion.

How do I predicted it in 2009? - Easily.

The government told its intentions.

If the Fed says it will do something, Do I say, I do not agree?

There are two different situations.

The economy can be remedied by itself.

Or maybe the Fed for more money.

Until the Fed for more money,
the market may fall, -

but not much, because
I have a putt (= put option).

Fed putt to save.

Bernanke had saved
system. Or was it?

Recycle Loans and institutions that were too big to fail -

were kept in the liberal
luonnonvalinnalta market.

At the moment the consumer
can not continue borrowing -

and banks can not give loans.

I think that the banking system is still
insolvent. It is out of order.

Ben Bernanke has led the Fed -

in this country and around the world
through the worst of the financial crisis.

Great Affordability was the top
the praises of the free market.

Now it could not be
further away.

These both parties
Presidents of the appointed men -

created the country's history
centrally planned economy.

The economy is in full
supported by the Central Bank of cheap credit.

Interest rate drops from 20 to zero -

Rescued investorsnumerous times.

The solution is always debt
Adding to promote growth.

At the same time increased its debt mountain
housing and financial markets -

Overall growth slowed.

A large number of resources were used
medicine or engineering rather than -

financial speculation
a zero-sum game.

Rahoitustapahtuminen
Creating is not production.

It does not affect the standard of living -

with the exception of those few,
who may be working at one site.

They see share prices
rise, sell and prosper.

They need it for
to sell the shares.

When shares
and housing prices rise -

it is more
our prosperity.

It will help those who have shares,
and hurt others.

Financial markets
was a huge amount of wealth.

Alongside that did not show up
a major improvement in the economy -

and other people's income.

That's what kept
wealth increase -

is only a transition to wealth
those who own, -

away from those who do not own.

We had the illusion of prosperity.

It went
part of the Fed's population face value.

We underestimate -

the impact of share prices
economic activity.

I do not know,
what happens to the stock market -

but if their growth continues,
it will stimulate the economy -

more than any other.

Buumeista, rescue packages
and in spite of the easy money -

The USA has not come in the 2000s net jobs.

Private sector growth spirit
each is stuck at zero.

The Fed's line does not take effect.

The current crisis can not say
only that here we go again.

The Fed announced today -

the acquisition of 40 billion dollars
mortgage papers a month.

It calculates the interest and influence
prices of shares and housing.

If people are satisfied
apartment value growth -

consumer desire to grow.

Can the free money
created to solve the problem -

by extending only the same model?

Large banks collect profits.

Yet lending to small businesses decreased
in the third quarter.

Someone will pay lower interest rates.

It will pay us, which we
deposits 0.27% in the interest rate.

I've done work for saving the yen.

Now the Fed decides to deprive benefits
from me, so that banks will be saved.

It is outrageous.

Even within the Bank began
criticized Bernanke companies -

a hero
financial markets.

Printing money does not produce
goods and services.

It does not increase employment.

It can affect the right
short-term medicinal product -

but the drug may be
Sometimes the disease worse.

We can borrow money rovioittain
cheap rate of interest -

and we can continue to do so for some time.

There will be problems in the long term.
When the game ends, and how?

Gold portfolio restrictions are gone.

Government opportunities
to borrow money and print money -

limited only by the size of the world
seteleihimme confidence.

The country credit rating drops
for the first time -

AAA to AA + of.

How long will the dollar-based system
take if the trust will wear off?

The United States can pay
any debt -

because we can always print money.

Of loans outstanding retirement
the probability is zero.

How the dollar may be more than
the world's largest financial brand -

the financial world, Coca-Cola?

If these notes
produces enough -

and if the world's only superpower,
succumbs to exercise his powers too much -

things go wrong.

Land, that is beyond their means for years.

When the debt crisis began in Greece
threatens the whole of Europe, we see -

that loose money is
governments just as painful -

as it was to homeowners.

United States of America is not Greece, -

but the lesson is a warning.

How was the land of the mighty any,
it may collapse.

Then comes
the mother of all crises:

big countries do not collapse
unable to rescue the system.

It is a crisis we should be afraid of.

Good choices to be made time was
In the 1990s and early 2000s.

The United States did not
where good choices.

Now we have in front of
a bunch of bad alternatives.

If we do not do
difficult choice now -

there is still a
uncomfortable options.

How many times -

have you heard someone say:

"If I had
money than he -

I could live the way I want. "

We have over the last 20 years
forgotten who we are.

We are mainly focusing on
what kind of houses and cars we have.

The United States has spent
produced more than -

at least a decade.

Which country will be able to continue it?

The Board of Directors and the Fed
encourage people to consume.

Such an economy is not stable.

The US economy probably will not grow
at great speed. How about it.

We should learn to be
satisfied with what we have.

Under the current system
seeks to -

that people want
more than they have.

If they can not always just
more, they are unhappy.

They do not know -

that it is difficult to find -

a rich man in ten, -

which is also satisfied.

When the road has been a long time -

and bias
are grown up -

what means a bad way
get better?

We need to create something,
what the world wants.

We must
return to the United States to do so.

Long-term growth
Behind the real world -

training, investment,
labor quality, expertise.

Among the issues should worry about. - We are still the world's largest exporter.

We have the people and expertise.
We just need incentives.

We need to get the economy -

which uses its resources
and which has full employment.

It must do so,
that there is no need for any bubbles.

Resources should be used
firmly and responsibly.

Interest must be such as to
that they do not take up säästämishalua.

We need fewer subsidies
housing, loans -

and domestic consumption.

It means to achieve
healthier growth -

and the burden of debt is gradually reduced.

The transition process
becomes painful.

Then the question arises, how much
Now may suffer tomorrow.

Inflation ran out, because people
wanted it to end.

This is a democratic country.

What do we want the Fed to do to us?

We want as little inflation
and relatively stable growth.

We can expect that it will work
will be better than before.

It is tempting to think,
that the crisis is over -

but we may have
getting eye of a storm.

Access to the boom
and the collapse of the spiral -

Fediltä requires a new approach.

We make a choice.

Do we want to support the Central Bank,
when it increases to much interest, -

that saving
value rises again -

and society can
begin to build for the future?

Easy I have
this dish out advice.

Their implementation
it is difficult for anyone:

Congress, the President of
and the US central bank.

More than ever
During the century-old history -

Fedillä is in his hands
The future of our economic system.

Can the Fed to promote
a sustainable economy?

An economy that is not based on
equity and asuntokupliin -

but reasonable,
productive investment -

that do not enrich
, few, but for all?

Or provides further
empty promise of free money?

Hacked by Carlos Meinhof