Chinese Central Bank Buying Treasuries

Learn more: Chinese Central Bank Buying Treasuries

Why Do We Need a Central Bank?

Alan Greenspan addresses the question, ‘Why do we need a central bank?’ in a FOX Business interview.

Tags: , , , ,

50 Responses to “Chinese Central Bank Buying Treasuries” Subscribe

  1. legoman762005 November 29, 2012 at 2:23 pm #

    come at me bro~

  2. galanoth17 November 29, 2012 at 3:14 pm #

    I’m a noob at economy because I don’t have any background in it. Does printing more yuan by the Chinese Central bank and putting it into circulation cause inflation and lower the value of their currency? Or is it balanced out by the fact that their production is massive so that the supply of goods also keep increasing to balance out the supply of money?

  3. galanoth17 November 29, 2012 at 4:07 pm #

    I concur

  4. Jonathan Maddison November 29, 2012 at 4:49 pm #

    yeh, I found that a little annoying too so I just read the transcript because it’s much quicker.

  5. aenigmate November 29, 2012 at 4:57 pm #

    I also think Salman was too slow and repetitive, even tedious, in this “Currency” serie. But this is an old serie, in newer ones I see him much more live, and i like it.

    I apreciate this guy a lot in general.

  6. ezach127 November 29, 2012 at 5:48 pm #

    Legoman762005′s comment is NOT silly.
    The constant breaking of the flow actually stops me from learning anything.
    It’s purely frustrating.
    I would say that we learn all differently.
    To me it’s like reading a book, but stopping for 10 seconds after each fullstop.
    It actually makes me lose the context of whats being said, as i only hear it once.
    On that note: Is there a similar video without the repetition? It’s an interesting topic.

  7. David Zhang November 29, 2012 at 5:55 pm #

    1 assessment might be wrong, after China receive the dollar, why are they required to convert it to Yuan? USD is currently the world reserve currency, it means they can use USD to buy many commodity goods in the international market, such as oil, mineral etc. they can also use USD to conduct trade with 3rd nations as well. I understand if USD is only accept in US, then China need to convert back to Yuan but that is not the case, that means China will not print Yuan every time when they earn USD.

  8. lespaulbass November 29, 2012 at 6:19 pm #


  9. nokkont November 29, 2012 at 6:43 pm #

    Gays check out how to become popular Russian invention

  10. Thegamemakur November 29, 2012 at 6:55 pm #


  11. CassandraAbbey November 29, 2012 at 7:46 pm #

    Chinese are hard workers. They are prosperous.

  12. Randy Lin November 29, 2012 at 8:18 pm #

    Yeah… you deserve a Nobel Prize for your efforts.

  13. Randy Lin November 29, 2012 at 8:42 pm #


  14. piotr kamieniak November 29, 2012 at 9:28 pm #

    and the american government very corupted

  15. 0584ish November 29, 2012 at 9:31 pm #

    the chinese are veeeeerrrryyyyyyy smart

  16. 146tiansheng November 29, 2012 at 9:48 pm #

    is there a difference between national brought Treasury bond and individual brought TB?

  17. 2leet2cheet November 29, 2012 at 10:39 pm #

    This scenario also played a roll in the housing boom, via ultra cheap borrowing rates due to the demand from the Chinese. I hope you mention that in your next video.

  18. 2leet2cheet November 29, 2012 at 11:31 pm #

    Im not sure if you were trying to simplify the example. However, to buy Chinese goods, a US firm would need to SELL US dollars and BUY Chinese dollars before it could buy the Chinese goods. Likewise the Chinese firm would need to sell Yuan and buy US dollars before buying US goods. The end result is the same, as the demand for Yuan is greater then the supply, so the supply is expanded to meet demand, and therefore keeping the price of Yuan unchanged.

  19. Bosskane November 30, 2012 at 12:23 am #

    isnt it unethical for china to peg its yuan and then invest it in u.s treasuries when essentially what they are doing is making yuan out of thin air, then convert to us and then loan money to us… wtff

  20. deefromott November 30, 2012 at 1:03 am #

    Why would the U.S. government borrow u.s. dollars when it can print its own for free?

  21. custer264 November 30, 2012 at 1:24 am #

    Actually if you feel confused stop over thinking it!!! A three year old can understand it. it’s just hard to accept that we let them get away with it. The free market wouldn’t. I don’t know where the academy stands on political issues but I’ll give lots of credit for being as honest and analytical as one can be about this subject.

  22. Leobons November 30, 2012 at 2:16 am #


  23. RoobieRhoo November 30, 2012 at 2:22 am #

    Listen up folks, you’re getting a fundamental level understanding of QE2.

  24. drzakir123 November 30, 2012 at 2:54 am #

    i agree with u legoman.but there is a purpose to the end it manage to push something into my confuse sallu mian for graet video

  25. MarvelsofaLifetime November 30, 2012 at 3:35 am #

    @Ilikemeows: I didn’t realize it was that!!!! funny…

  26. evilzzzable November 30, 2012 at 3:41 am #

    I’ve never heard so much sh1t spouted from one individual.

  27. Kyle Skullz November 30, 2012 at 4:29 am #


    The central bank is a creation of government, it was brought into existence through an act of government, it’s board members are appointed by the government, etc.

    The Central Bank, like all government institutions, socializes losses and privatizes profits for politically connected interests.

    You’re right to say that it’s technically private and serves private interests, but to be perfectly clear… the FED is a creation of government, not the market.

  28. Kyle Skullz November 30, 2012 at 4:40 am #

    Ayn Rand would be ashamed of this monster, if she lived to see his reign as the Central Bank chairman.

    A free-market Central Bank Chairman is the equivalent of an Atheist Pope. A total contradiction in terms.

  29. Deveran November 30, 2012 at 4:43 am #

    stupid distracting music!!!!

  30. stevencowley1980 November 30, 2012 at 5:12 am #

    USA greed caused the problems, simple. 

  31. NWOisherenow November 30, 2012 at 5:51 am #

    Why would anyone believe a word out of that reptiles mouth???? The music is too loud. Sorry.

  32. rogerlk53 November 30, 2012 at 6:34 am #

    I like the loud and distracting music in tne background! Greenspan has nothing truthful to say anyway! Who is the artist playing the music?

  33. Demontechnology November 30, 2012 at 7:06 am #

    hmmm. Interesting.

  34. KritikalDimensions November 30, 2012 at 8:03 am #

    i think the music fit perfectly, and i could hear the dialogue fine.

  35. Brian McConnell November 30, 2012 at 8:46 am #

    hmmm . . . the second comment posted to this thread by jinjin16 five months ago expressed the same sentiments.

    Since this was the first video I’d ever produced, it was something of an experiment in my own learning. While I certainly didn’t intend for my meager creative effort to annoy anyone . . . whether the music serves any purpose or not, is debatable. Except for Ron Paul’s passing mention of it, I assumed the original clip would otherwise receive little attention from the public.

  36. Brian McConnell November 30, 2012 at 9:43 am #

    Yes dsvet, that’s a great suggestion for students interested in contrasting an ‘alternative’ background and view to ‘traditional’ Economics.

    In fact, I’d strongly recommend taking the time to visit and familiarize one’s self with the Mises Institute’s online library. It represents a vast storehouse of material and resources on the subject.

  37. JonDavidson November 30, 2012 at 10:13 am #

    Was inserting the loud and distracting music in the background (or should I say the foreground, since it was louder than the dialogue) really necessary? It was very annoying, and didn’t serve any purpose…

  38. dsvet November 30, 2012 at 10:43 am #

    I guess you could read Murray Rothbard’s What has Govt done to our money. It’s available free online in pdf.

  39. Brian McConnell November 30, 2012 at 11:02 am #

    Thanks, Trentacus. Whether you agree with my views or not, I appreciate the fact that you’re thinking for yourself. I’d like to address a couple of misimpressions though.

    First, ‘debt’ and ‘money’ are not synonymous (the same thing). ‘Money’ or ‘currency’ is a representation of ‘value’. Contrastingly, responsible economics can effectively utilize ‘debt’ to facilitate production.

    Richard C. Cook has posed alternatives to current improprieties in recent discussions of C.H. Douglas.

  40. Trentacus November 30, 2012 at 11:24 am #

    While I may not agree, gospelnous is the only one making sense. Everyone else is ranting one dimensionally sided single argument. Many people don’t understand the need of one but can anyone give me reasons on why one is better? It’s simple, no debt=no money

    The Depression is part linked with a fall of new loans, since it’s part of the monetary theory of creating more money. Before it was in play there was no limits. Please read -all- the facts before forming an opinion. I think it is fair.

  41. 5ptCALVIN November 30, 2012 at 12:14 pm #

    yep and to all who hate Bush and think hes the worst , well the worst was Wilson . That guy gave us the Federal Reserve and the IRS , and he himself said he had unwittingly ruined America . We have no choice but to change this crap or we will fall , anyone seen the value of a dollar lately ? CMON PEOPLE ! Ron Paul was the only one close and everyone thinks Obama is the savior , OH MY ! We’re doomed !

  42. 5ptCALVIN November 30, 2012 at 12:49 pm #

    yea , the ONLY thing that ever creates inflation is the over printing of money . PERIOD

    The Fed is a sham , VOTE RON PAUL !

  43. ENJOYOURMATRIXX November 30, 2012 at 12:57 pm #

    Yeah i know the gov gave them power to print the curency trough the federal reserve act of 1913. Everyone need to know this its so important. And also the fact that the gov had already the power to print it without the interest. THIS IS economic 101 and should be teach in every school so people may one day realize the scam the feds are up to. VOTE RON PAUL 2008 FOR THE END OF THE FEDERAL RESERVE.

  44. Brian McConnell November 30, 2012 at 1:50 pm #

    As far as ‘the lie’ goes . . . I’d challenge Mr. Greenspan’s views about how, or why, inflation occurs.  Examining the historical record of the relationship (see my, “A Crisis in American Leadership Part 3″) between the (central) bank and our government, you’ll notice its power to regulate the money supply was granted in reaction to the financial problems the bankers’ themselves, devised. This travesty though, only compounded the role of U.S. involvement in WWI, the Great Depression, and WWII.

  45. Brian McConnell November 30, 2012 at 2:25 pm #

    I appreciate your comment because you’ve zeroed in on ‘the lie’. Mr. Greenspan is not however, lying in answer to the question, ‘Why do we need a central bank?’ in saying that fiat money is printed by our government (it is) but, at the central bank’s authorization to do so.

    When the Federal Reserve (U.S. central bank) was created in 1913, our government not only gave them the power to ‘create’ money, it also introduced taxation to repay the interest we’re charged when we borrow it from them.

  46. ENJOYOURMATRIXX November 30, 2012 at 2:44 pm #

    at 2:00 Greenspan says: its the government that print the money!! NO its not! liar! its the central bank. He said so to make you believe that the central bank is OWN BY THE GOV. witch is not true! ITS A PRIVATE INSTITUTION. It makes is own rule and is has no oversight by anyone. Greenspan is such a crook new world order scum!

  47. ENJOYOURMATRIXX November 30, 2012 at 3:06 pm #

    they ALL need to be in jail for TREASON! we dont need interest on our system of exchange [money]! Money was design to facilitate the transfer of goods not to enslave population with a interest rate!

  48. Brian McConnell November 30, 2012 at 3:40 pm #

    Ron Paul’s proposed legislation (Federal Reserve Board Abolition Act) is a simple dismantling within a year’s time. Although the practical logistics of doing this are mind boggling, the nation would be taking a significant step in reestablishing its Constitutional integrity.

  49. forgiste November 30, 2012 at 4:30 pm #

    I’m in a weird place right now. I’ve been an advocate of eliminating the Federal Reserve for a while, but I started to realize I didn’t really know how we could work without it. I’m trying to see someone with a pro-Fed argument, so I can see if there’s any merit to it. Apparently even Alan Greenspan doesn’t have one.. can anyone point me in the right direction? Thanks.

  50. jinjin16 November 30, 2012 at 5:29 pm #

    no sorry my man i am not. just hard to hear content. good video tough. cheers

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]