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All right folks, welcome to Investing for Beginners Podcast. This is episode 151. Tonight Andrew and I are going to continue our discussion on the economy.

This is going to be the economy 101 part 3 and tonight we're going to do kind of a wide range discussion of a variety of different topics.

The first one we're going to start off talking about is a little bit about government debt and Treasury bonds and bills and teat and T-bonds and kind of how all that stuff works.

So I'm going to talk a little bit about that and I'll turn it over to Andrew. So let's talk about government debt. So government debt is basically when I'm referring to government debt, I'm talking about two different aspects of it.

So the first part I'm talking about is there's the Federal Reserve balance sheet

which we've discussed in length in the past and that is more about the Federal Reserve

Bank of the United States taking on debt to try to infuse money into the system to try to create more liquidity, which hopefully will

stimulate the economy. With what's going on with a pandemic and the lockdowns and most of the economy being shut down.

30 million people I believe are out of work right now,

which is a staggering number.

The Fed has been trying to pump more liquidity into the system by creating money

for the reserves as well as buying T bonds and T bills back from banks to put on their balance sheets to give the banks

talking commercial banks like J.P. Morgan, Wells Fargo, Bank of America, U.S. Bank

and on and on, more liquidity to win to us to be able to buy things as well as businesses.

So the other aspect of the debt is the Treasury. Now the Treasury is those are the people that sell us the

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