Summary: <br> Announcer (<a href="https://www.temi.com/editor/t/v9ayhCa11A102XN49u2E7chTwggTb7XzznD5o_aD0gRvr0WqPlViwD-0INpJFJGOVvNYMZ0aETx4SjEqCD7uWqZqqJs?loadFrom=DocumentDeeplink&ts=0.66">00:00</a>):<br> <br> <br> <br> You’re tuned in to the Investing for Beginners podcast.<br> Finally, step by step premium investment guidance for beginners led by Andrew<br> Sather and Dave Ahern. To decode industry jargon, silence crippling confusion<br> and help you overcome emotions by looking at the numbers. Your path to<br> financial freedom starts now.<br> <br> <br> <br> Andrew (<a href="https://www.temi.com/editor/t/v9ayhCa11A102XN49u2E7chTwggTb7XzznD5o_aD0gRvr0WqPlViwD-0INpJFJGOVvNYMZ0aETx4SjEqCD7uWqZqqJs?loadFrom=DocumentDeeplink&ts=36.751">00:36</a>):<br> <br> <br> <br> Welcome to the Investing for Beginners podcast. This is<br> episode 47 I’m in the driver’s seat right now, but don’t worry, Dave is right<br> here. We’ve got a lot to talk about and I’m going to be asking him a ton of<br> questions because he’s been watching this particular topic, especially closely<br> and knows a ton more than I do about it. And so it will be a good episode for<br> me to ask questions because I’ll be coming at it from the mindset of a<br> beginner. And I’m hoping that a lot of people are feeling that way too. And<br> you’ll be able to answer a lot of our questions. So what’s up with the fed?<br> First off, tell us what the fed has been doing lately and then maybe we can<br> explain what they are and what they’ve done lately in respects to like the<br> 2008, 2009 great recession and some of the events since then, but whether<br> they’ve been doing and how is that affecting the economy and the current virus<br> and everything like that?<br> <br> <br> <br> Dave (<a href="https://www.temi.com/editor/t/v9ayhCa11A102XN49u2E7chTwggTb7XzznD5o_aD0gRvr0WqPlViwD-0INpJFJGOVvNYMZ0aETx4SjEqCD7uWqZqqJs?loadFrom=DocumentDeeplink&ts=104.57">01:44</a>):<br> <br> <br> <br> Boy, that’s a good question. So the, the fed has, for<br> those of you who are not familiar with what we’re talking about, the, the, what<br> we’re referring to is the federal reserve bank. So this is the central bank for<br> the United States. And in essence what they do is they are there to help<br> stimulate the economy or slow down inflation. So their basic two rules are they<br> want to create more jobs and they want to, they want to control inflation as<br> best as they can. So the way that they do that is they use funds with the banks<br> to try to create more money or reduce money in the economy. And now does that<br> mean that they physically print more money? Not necessarily. They do. Do some<br> of that. But the majority of what they do is they create money by creating money<br> with the other banks in allowing them to buy bonds from the federal government.<br> <br> <br> <br> Dave (<a href="https://www.temi.com/editor/t/v9ayhCa11A102XN49u2E7chTwggTb7XzznD5o_aD0gRvr0WqPlViwD-0INpJFJGOVvNYMZ0aETx4SjEqCD7uWqZqqJs?loadFrom=DocumentDeeplink&ts=161.63">02:41</a>):<br> <br> <br> <br> <br> <br> <br> <br> So treasuries, and then that money is is taken away. It’s<br> not taken away. It’s used as deposits to lend out to us to buy stuff, cars, you<br> know, buildings, restaurants, whatever it may be, houses, all those kinds of,<br> and so that’s how they put more money back into the system. So what they’ve<br> been doing recently with the coronavirus hitting us, the pan Ana that has gone<br> through the world, they have taken their balance sheet and basically exploded<br> it. They’ve just kind of opened everything up and said, whatever it is, we’re<br> going to buy it. So the first thing that they did was they lowered all the
