Severely confused on Government Securities and the Federal Reserve

Economics Economics Questions
21

To start, here is a wonderful video well worth viewing:

‘Money, Banking and the Federal Reserve’ viewable at www.youtube.com/watch?v=iYZM58dulPE and video.google.com/videoplay?docid=-466210540567002553 .

And, along with a quality dictionary (like Thorndike-Barnhardt), here are easy to understand yet fundamentally sound books well worth acquiring and reading:

Henry Hazlitt’s ‘Economics in One Lesson’;

E. Edward Griffith’s ‘The Creature from Jekyll Island’;

and Dr. Ron Paul’s ‘The Revolution: A Manifesto’

After that, there are lots of great books that expand upon the topics you expressed interest in available here (as is ‘Economics in One Lesson’) at the Mises.org site store.

22

Great stuff…except I don’t get most of it:) What does bank A 30M net worth has to do with this example? How did bank A got 870M cash on hand when it bought another 1B worth of paper? Why both banks are in debt to fed 1.10B, shouldn’t it be 990M, because they only need to deposit 10M at FED to get 1B? Very good stuff, thank you for providing this info