And this notion which I just did here, this is actually called simple interest.

And that's called a repurchase agreement. I'll do a whole other video on that.

And think carefully about the policies that you attach to that content.

Which is essentially you take the original amount you borrowed, the interest rate, the amount, the fee that you pay every year is the interest rate times that original amount, and you just incrementally pay that every year.

I also want 100 of that.

We borrowed money at high interest.

This is actually the power of compounding interest.

And this is the rate that you always hear talked about on the news, and it's essentially a target rate that the Fed wants to see banks lending money,

lower the interest rate for people buying and selling dollars, or I should say borrowing and lending dollars, not buying and selling.

We know now that there must be a single purpose, a single norm, a single approach, a single entity of people, a single virtue, a single morality, a single frame of reference, a single philosophy of government.

So anyway, I will talk about interest, and then simple versus compound interest.

That's 100 , right?

We all have heard of it.

Well the first thing that you would do is that you would lower the

So these are kind of the important numbers in the home buying scenario.

So 259 and some change.

Right, but I think this make sense to you.

Remember, this is the annual interest rate but this is an overnight loan.

It's just about money, isn't it?

And they want to do two things they want to inject this money into the banking system, which essentially will, hopefully, find its way into the economy, and they also want to lower the interest rate, especially the short term interest rate, this overnight borrowing.

We borrowed money at high interest.

And over time, the interest component becomes less, and the principal becomes more.

Before Interest and Taxes.

So now, by essentially printing money, buying debt, increasing the supply of money, two things happen.

Oh, my rate right.

And this is the same thing as what?

(Applause)

Single Page

Single Instance

Single transactions

Single transactions support

100 interest.

So we'll say Hey this is your cash for tonight, if you need it for the next night, we'll talk again.

Order The YouTube Collection on DVD

What gets raised? A noun phrase, a vital role to announce here interest rates.

I guess you guys might have Fast Pass here or Easy Lane that are single purpose devices in these closed networks.

Interest on loans is high at present.

So let's say I'm charging r percent.

And of course the difference is the money that he had to spend on tax.

OK, so let's say I borrow 1,000.

The price of money will go down, that's what the federal funds rate is, it's the target rate, so I'll say Fed Funds Rate, it's the target rate that the Fed sets for the overnight borrowing of reserves between banks, that's the Federal Funds Rate, and it will go down and that's how the Fed tries to set the Federal Funds Rate.

Single File

Single Articles

Single Characters

Easy Gold