Interactive journey through the Federal Reserve: Fed 101

1

2

The Government and Congress

The Federal Reserve Bank

Changing taxes and spending

Changing credit conditions in the economy.

3

President reviews requests for funding and formulates his budget

February–December 2009

Budget preparation and transmittal to Congress

December 2009 -February 2010

Congress reviews President’s budget develops its own budget for the president to sign.

March– September 2010

Fiscal Year beginsOctober first 2010

Agency program managers execute the budget.

October 1st 2010 – September 30, 2011

From February

2009 when the decision is made….

To October 2010 when the

actual spending takes

place!.

Fiscal Policy can not be used for the day to day fine tuning of economic policy because the budget process is too long.

04/11/23

4

5

SenateHouse

53Democrats45Republicans2 independent(Vice-president votes in case of a tie)

200 Democrats232 Republicans0 Independent

100 Senators17 women

435 Members78 women

THE GOOD NEWS IS…

Democratically elected More than 500

representatives from different states and political inclinations.

Fiscal Policy decisions are debated and made open to the public.

THE BAD NEWS IS…

Democratically elected More than 500

representatives from different states and political inclinations.

Fiscal Policy decisions are debated and made open to the public.

6

Rule by the Few: The Federal Reserve System

Created on December 23, 1913 by an Act of

Congress.

Fed District Banks are corporations whose stock

holders are member banks in the district.

Fed District Banks are corporations whose stock

holders are member banks in the district.

Board of Governors

(7)

Federal Open Market

Committee (FOMC) (5)

4 bank presidents and President of the New York Fed

4 bank presidents and President of the New York Fed

12 Regional Bank Presidents

(7+5)

Members are appointed by the President and confirmed by the senate to 14 year terms.

Chairman and Vice-chairman are appointed by the president and confirmed by the senate to 4 year terms.

The president is directed by law to select “a fair representation of the financial, agricultural, industrial and commercial interests and geographical divisions of the country” 10

Board of

Governors (7)

12 Regio

nal Banks

Federal Open

Market Committ

ee (FOMC) (7+5)

Ben S. Bernanke: Chairman

(7)Members of the Board of Governors of the Federal Reserve System Appointed by president confirmed by senate

(1)President of the Federal Reserve Bank of New York.

(4) On a rotating basis: presidents of the eleven other reserve banks. Appointed by the board of directors of each

bank.

FISCAL POLICY MAKERS

Democratically elected More than 500

representatives from different states and political inclinations.

Fiscal Policy decisions are debated and made open to the public.

MONETARY POLICY MAKERS

Not Democratically elected but appointed for 14 years!

12 members all tied to financial institutions.

Monetary Policy decisions are not debated, nor are they open to the public.

12

Decisions are made

very slowlyDecisions can

be made quickly to

respond to the day to day

events as they develop.

Stabilize the business cycle: Promote economic growth, full employment, stable prices and sustainable international trade.

Supervise and regulate financial institutions. The Constitution gives Congress the power

"to coin money and regulate the value thereof." Congress delegated that power to the

when it created the central bank in 1913 Serve as the bank for the U.S. government

13

14

Ben S. Bernanke, Board of Governors, Chairman William C. Dudley, New York, Vice Chairman James Bullard, St. Louis Elizabeth A. Duke, Board of Governors Charles L. Evans, Chicago Esther L. George, Kansas City Jerome H. Powell, Board of Governors Sarah Bloom Raskin, Board of Governors Eric S. Rosengren, Boston Jeremy C. Stein, Board of Governors Daniel K. Tarullo, Board of Governors Janet L. Yellen, Board of Governors

Since January 10, 2000 the FOMC issues a statement on its assessment of risks to stability in the foreseeable future.

Minutes are available after the next regularly scheduled meeting.

In the 1990s after pressure from Congress, the Fed began releasing transcripts of its interest-rate deliberations after a five year lag.

15

16

September 08: The central bank said it was keeping its target for the federal funds rate, at 2 percent.

“Strains in financial markets have increased significantly and labor markets have weakened further."

However, the central bank also remained concerned about inflation pressures.

"The downside risks to growth and the upside risks to inflation are both of significant concern to the committee,"

No change in interest

rates

Unemployment: Cut rates

Inflation: raise rates

Profits of each Federal Reserve Bank are distributed to the U.S. Treasury.

The Federal Reserve paid ~$78.4 billion of their estimated 2010 net income of $80.9 billion to the U.S. Treasury.

17

What does the Federal Reserve Bank consider money?

18

The fed considers money only the most ‘liquid’ assets

19

M1: Most liquid

1,785Billion

M2:less liquid8,752 Billion

Currency (904b)Travelers checks (5b)Demand deposits at banks(495b)Other demand deposits (386b)

M28,752 Billion

M11,785B

Nominal GDP ~ 14,000Billion

Velocity of money: Number of times a dollar bill is

used

M1+Savings deposits Money market deposit accountsSmall time deposits

Dollar value of what we boughtDollar value of

what we boughtNumber of dollars in

circulation

Number of dollars in

circulation

Velocity = Nominal GDP/M1

V = 14,000/1,785 =~ 8Each dollar was used ~ 8

times during the year

21

+All Commercial Banks

Demand Deposits at

banks

Ms = Currency held outside banks + Demand DepositsThe amount of money in circulation is the Money Supply

(904b) (881b)(1,785b)

Total Checkable Deposits

Money Supply = TCD + Currency

23

Goldsmith

Certificate = 5 gold pieces

24

Goldsmith

Certificate = 5 gold pieces

Loan = 1 gold piece

Loan = 1 gold piece

Loan = 1 gold piece

Loan = 5 gold pieces

Loan = 5 gold piece

Loan = 5 gold pieces

Loan = 5 gold pieces

Real Money

Bank A

Loan

Loan

Loan

Loan

Loan $

$ $

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

Loan

Loan

Bank B

Deposit

Deposit

Deposit

Deposit

Deposit

Bank D

Deposit

Deposit

Deposit

Deposit

Deposit

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

LoanBank

C

Deposit

Deposit

Deposit

Deposit

Deposit

Your deposit

= Money

26

First National Bank

Your deposit$20,000

The bank makes loans and holds a portion as reserve in vault.

$5,000

$5,000

2,000Reserve

loans

$8,000

Now you and other three individuals can write checks up to:

27

20,0005,0005,0008,000

38,000

The bank holds only 2,000

If all these payments must be made at the same time, the bank does not have enough in reserves.

Only 2,000 “support” 38,000 in spending!

Banks allow several individuals to write checks on the same amount of money…

28

Lending Create Money

out of thin air…

29

If r = 10%Loans = 90% of

Deposits

If r = 20%80% of

Deposits

A bank

r

30

These loans become deposits at another bank

(r)

Real Money

Bank A

Loan

Loan

Loan

Loan

Loan $

$ $

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

Loan

Loan

Bank B

Deposit

Deposit

Deposit

Deposit

Deposit

Bank D

Deposit

Deposit

Deposit

Deposit

Deposit

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

LoanBank

C

Deposit

Deposit

Deposit

Deposit

Deposit

Your deposit

D

R = D*rR = D*rL =

D-R

L =

D-R

R = D*rR = D*rL =

D-R

L =

D-R

L =

D-R

L =

D-R

R = D*rR = D*r

R = D*rR = D*r

32

Reserves59

Depositsall banks

590

Loans531

59 in reserves allow banks up to 531 in loans

New loans are made.

As loans are paid back,

r = 10%r = 10%

R = D x r

L=D-R

R = 590 x 0.1R = 590 x 0.1

04/11/23© 2002 Claudia Garcia-Szekely

33

Why is secrecy necessary in banking?

34

531B

There are only $59B in banks’ reserves supporting $590B in deposits…if everyone tries to cash $590 at the same time there

is NOT enough money for everyone…

In a business based on confidence, when that

confidence evaporates, so does

the business.

Bear Stearns Press ReleaseBear Stearns was founded as an equity trading house on May Day 1923

35

Monday, March 10/08

On Monday, the firm had about $17 billion in cash.

36

In previous weeks, banks such as Goldman Sachs had agreed to stand in for institutions nervous that Bear wouldn't be able to cough up its obligations on deal.

In the morning, Goldman Sachs sent its clients an e-mail announcing that it would no longer step in for them on Bear deals.

37

Bear again tried to reassure investors: “The rumors are false, there is no liquidity crisis. No margin calls. It's nonsense." CFO Molinaro on CNBC.

38

When word of the Goldman e-mail leaked out, the floodgates opened. Hedge funds and other clients, eventually

running into the hundreds, began yanking their funds.

Bear continued to maintain publicly that all was well.

"We don't see any pressure on our liquidity, let alone a liquidity crisis."

CEO Alan Schwartz

39

A run on the bank

accidentally caused by an email..?

The gravity of the situation finally registered at Bear: Liquidity was plummeting: $2 billion at week's end (from 17 billion on Monday!)

Even as the firm frantically negotiated a rescue package with J.P. Morgan, Bear executives continued to try to convince the world that everything was under control.

That evening Schwartz contacted a well-known New York hedge fund manager to plead with him to appear on CNBC the next morning and express his confidence in Bear. The hedge fund manager declined politely but wondered why Bear needed a client to convince the world of its health…

Fed agreed to provide $25 B loan to Bear Stearns (backed by BS assets)

To provide liquidity for up to 28 days which the market was refusing to Bear.

Fed has a change of heart refused the loan…

41

Fed agrees to loan $30 bill to JP Morgan Chase (backed by Bear assets NOT JP assets!)

To allow JP to purchase Bear for $2 per share! A staggering loss from $62.30 at closing on Monday March 10th.

In addition, Fed provides a non-recourse loan to JP Morgan for $29 bill

42

Government assumes the risk of Bear’s less liquid assets…

Loan is backed by mortgage debt, government cannot seize JP’s assets if mortgage debt becomes insufficient to repay the loan.

If BS assets turn a profit, JP

pockets the profit.

If not, the government

takes the loss…

Heads, JP wins…

Tails, the taxpayer loses

AT 9 A.M., Bear announced $30 billion in funding provided by J.P. Morgan and backstopped by the government.

Schwartz still fighting reality: "Bear Stearns has been subject to a significant amount of

rumor. Customer requests to cash out "accelerated yesterday ... there could be continued liquidity demands

that would outstrip liquidity resources." The new loan facility, he said, would restore calm. Of course, that didn't happen: Bear's stock

dropped nearly 40% in the first half-hour of trading.

Within days, Bear's 85 years as an independent entity were at an end.

In a dramatic meeting on September 18, 2008, Treasury Secretary Henry Paulson and Fed Chairman Ben Bernanke met with key legislators to propose a $700 billion emergency bailout.

Bernanke told them: "If we don't do this, we may not have an economy on Monday.“

The Emergency Economic Stabilization Act, which implemented the Troubled Asset Relief Program (TARP), was signed into law on October 3, 2008

44

By providing these loans to banks, the government expects banks to make loans to the public

45

Bank A

Loan

Loan

Loan

Loan

Loan $

$ $

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

Loan

Loan

Bank B

Deposit

Deposit

Deposit

Deposit

Deposit

Bank D

Deposit

Deposit

Deposit

Deposit

Deposit

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

LoanBank

C

Deposit

Deposit

Deposit

Deposit

Deposit

Total Deposits=8

00

Total Deposits=8

00

Bank A

Loan

Loan

Loan

Loan

Loan $

$ $

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

Loan

Loan

Bank B

Deposit

Deposit

Deposit

Deposit

Deposit

Bank D

Deposit

Deposit

Deposit

Deposit

Deposit

Loan = 1 gold piece

Loan = 1 gold piece

Loan

Loan

Loan

LoanBank

C

Deposit

Deposit

Deposit

Deposit

Deposit

TARP 700BTARP 700B

D D

All BanksReserves

Each bank holds a portion of the new deposit as reserves and makes loans that becomeNew deposits…

Deposit=700

Deposit=700

700

All BanksDeposits

?

49

Deposits

700700(0.9)=630

630(0.9)=567

567(0.9)=510

.

.

.

Reserves

700(0.1)=70

630(0.1)=63

567(0.1)=57

510(0.1)=51

.

.

.SUM of New Deposits = ? SUM of New

Reserves = 700 the original deposit.

The Change in Deposits = Original Deposit + New Loans

Loans

50

The stream of deposits generated by the original 700 can be written as:

700 + 700 (0.9) + 700 (0.9)(0.9) +

700(0.9)(0.9)(0.9) + …or

700 + 700 (0.9) + 700 (0.9)2+ 700

(0.9)3 + 700 (0.9)4 +…

700 [1+ (0.9) + (0.9)2+ (0.9)3 + (0.9)4 +…]

Factor out the 700:

This sum of terms can be written:D = 700 [1+ (0.9) + (0.9)2+ (0.9)3 + (0.9)4 +…]

1

1-0.9

1

0.1

Since 1 – 0.9 = 0.1We can write:

1

r

Since 0.1= rWe can write:

If we keep adding terms…the limit of this sum is:

1

r

52

Deposits =1

0.1x700

Deposits = 700 x 10 = 7,000

1

r D =New Money X

D = 700 [1+ (0.9) + (0.9)2+ (0.9)3 + (0.9)4 +…]

53

1r D = x Original

Injection

1

r D = x New

Reserves

1

r D = x R

Money

Multiplier

Multiple by which deposits increase for every $1 increase in

reserves

54

1

0.1 D = x 700

L = D - R

Increase in Deposits = 7,000Of these 7,000 in newly created deposits, only

700 is “real reserves” and the rest6,300 are loans: money that does not exist.

L = 7,000- 700 = 6,300

How many loans were created?

55

All BanksReserves

Each bank holds a portion of the new deposit as reserves and makes loans that become $6,300 in additional deposits

Deposit=700

R=700

All BanksDeposits

The “how much money banks create out of

thin air, charge interest and make a clean

profit” multiplier

Multiplier = 10

Loans generate additional bank deposits causing an increase in the Money Supply:

The increase in the money supply ( Ms) is:

The increase in Deposits + increase in the amount of currency held by the public.

56

Ms = deposits + currency outside banks

Ms = Currency + Deposits

Federal Reserve Bank

Bank Reserves R = 80

R = r D80 = 0.1 D

D =800

Bank Reserves increase to

R = 80+700R=780

New Deposit New Loan

R = r D780= 0.1 DD =7,800

Or:D= R (1/r)

D= 700 (1/0.1)D= 7,000

700

New Money Money in circulationDepositsD =800

Money in circulation

New Deposit New Loan

New D = 600+7,000

58

Deposits

Bank OWNS

Loans

Reserves

Bank OWESAssets Liabilities

Capital = Assets - Liabilities

All BanksDeposits

D=800bd1= 200bd2= 180bd3=120bd4= 130bd5= 170b

Ms = Currency held outside banks + Demand Deposits(900b) (800b)(1,700b)

Ms = Currency held outside banks + Demand Deposits

(900b) (7,800b)(8,700b)

+1,000

D= 7,800

New Money

700

+2,000

+2,000+2,000

61

In our story, the original 700B deposit would set in motion a chain of loans and deposits at several banks…

What if part of the loans are kept as “cash” and only part of it becomes another deposit at a bank?

The deposit expansion will be smaller than (1/r )*R

The multiplier: 1/r is the same…but

there will be less money for banks to multiply.

Required Reserves (RR). The amount that must be held by law, the required reserve ratio times deposits:

RR = r(D) Actual Reserves (AR). The amount of

reserves actually held by the bank. This could be higher or lower than RR.

Excess Reserves(ER). Any amount held above required reserves.

62

In our story, banks kept ONLY required amount of reserves (r%)

What if one or more banks in the chain hold more reserves than required?

The deposit expansion will be smaller than (1/r )*R

1. The amount of Excess Reserves held by banks.2. Currency leak: loans leaking into currency held

outside banks

64

The Money Multiplier (1/r)

Gives the largest change in deposits that can occur if there is no currency leak no excess reserves.

All BanksDeposits

D=600b

d1= 100bd2= 80bd3=120b

d4= 130bd5= 170b

When checks are used to make a payment, the money simply changes “owner”

Only new money is multiplie

d!

The FED: Monetary Policy

The public: Deposit money previously held as cash.

Banks: Lend excess reserves.

66

New Money

700

+1,000

D= 7,600

+2,000

+2,000+2,000

1.The following is the “T-Account” for the entire banking system. Banks are fully loaned

up r= 7%

Reserves = D= 1,000

   Loans =  

The money multiplier isa)Reserves for the entire banking system are

a)Loans for the entire banking system are

b)If the amount of currency held outside banks by the public is 600,000, the money supply is:

1.The following is the “T-Account” for the entire banking system. Banks are fully loaned up r= 7%

Reserves = D= 1,000

   Loans =  

The money multiplier is 1/0.07 = 14.28a)Reserves for the entire banking system are 0.07*1,000=70b)Loans for the entire banking system are D-R =1,000-70=930c)If the amount of currency held outside banks by the public is 600, the money supply is=Deposits + currency = 1,000+600=1,600

1.The following is the “T-Account” for the entire banking system. Banks are fully loaned up r= 10%

Reserves = D= 600b

   Loans =  

a) Reserves for the entire banking system are _____b) Loans for the entire banking system are ________c) If the amount of currency held outside banks by

the public is 700b, the Money Supply is __________

D = 700

Currency = 800

r=10%

R=70

L= 630

1b previously held as currency by

public is deposited into the banking

system.

D = R x (10)=10

r=10%

R=1

L= D – R = 9

Ms = 800 + 700=1,500

R = 71 D = 710

L = 639

Ms = (800-1) + (700+10 ) Ms = 799 +

710Ms = Currency +D

1509

Ms = -1 + +10+9

R=?

L= ?

Ms = ?

2. The following is the “T-Account” for the entire banking system. Banks are fully loaned up. Currency held outside banks = 500. r = 8%

Reserves = D= 1,000

   Loans =  

Suppose that the public deposits in the banking system 100 previously held as currency outside banks.a)Reserves in the banking system (Increase/decrease/remain the same)__________ by ____________ b)Loans in the banking system (Increase/decrease/remain the same)__________ by ____________ c)Deposits in the banking system (Increase/decrease/remain the same)__________ by ____________ d)The money supply (Increase/decrease/remain the same)__________ by ____________

2. Currency held outside banks = 500. r = 8%.The public deposits in the banking system 100

previously held as currency outside banks.

a) Reserves in the banking system increase by 100b) Deposits in the banking system increase by 1,250 c) Loans in the banking system increase by 1,150d) The money supply increase by 1,150

Reserves =80 + 100 D= 1,000 + 100(1/0.08) = 1,000+ 1,250= 2,250

   L = 920 +(1,250 - 100) = 2,070

 Ms= 1,250 +(– 100) = 1,150

R= 80 D= 1,000 

Loans =920  R=New

$D= New $*(Money Multiplier)

L=D-R Ms=D + Currency Ms= 500+ 1,000

Ms= 400+ 2,250

D = 700

Currency = 800

r=10%

R=71

L= 629

1b held as excess reserves by banks is used to make loans

D = 1 x (10)=10

r=10%

R=0

L= D – R = 10

Ms = 800 +700=1,500

R = 71 D = 710

L = 639

AR=71RR=70ER=1

Ms = 800+700+10 Ms = 800 +

710Ms = D + Currency

1510

Ms = +10 + 0+10

10 – 0

3. The following is the “T-Account” for the entire banking system. 

r= 10%Reserves = 190 D= 1,000

   Loans =  

Suppose that banks decide to hold only the required amount of reserves.a)Reserves in the banking system (Increase/decrease/remain the same)__________ by ____________ b)Loans in the banking system (Increase/decrease/remain the same)__________ by ____________ c)Deposits in the banking system (Increase/decrease/remain the same)__________ by ____________ d)The money supply (Increase/decrease/remain the same)__________ by ____________

810

3. The following is the “T-Account” for the entire banking system. 

r= 10%

Actual Reserves = 190Required Reserves = 100

D= 1,000 + 90*10 D =1,900

Excess Reserves = 90  

Loans = 810 + 900 = 1,710  Ms=900

Suppose that banks decide to hold only the required amount of reserves.a)Reserves in the banking system remain the same.b)Loans in the banking system Increase by 900c)Deposits in the banking system Increase by 900d)The money supply Increase by 900

Reserves = 190 D= 1,000

   Loans = 810  

D= New $*(Money Multiplier)R=0

L=D-R

Ms=D Reserves = 190

D =1,900

 

Loans = 1,710

 

2. The following is the “T-Account” for the entire banking system. Banks are fully loaned up. Currency held outside banks = 700b r = 10%

Reserves = D= 600b

   Loans =  

Suppose that the public deposits in the banking system 50b previously held as currency outside banks.a)Reserves in the banking system (Increase/decrease/remain the same)__________ by ____________ b)Loans in the banking system (Increase/decrease/remain the same)__________ by ____________ c)Deposits in the banking system (Increase/decrease/remain the same)__________ by ____________ d)The money supply (Increase/decrease/remain the same)__________ by ____________

3. The following is the “T-Account” for the entire banking system. 

r= 10%Reserves = 70b D= 600b

   Loans =  

Actual reserves =______; Required reserves= _______;Excess reserves= _________Suppose that banks decide to hold only the required amount of reserves.a)Reserves in the banking system (Increase/decrease/remain the same)__________ by ____________ b)Loans in the banking system (Increase/decrease/remain the same)__________ by ____________ c)Deposits in the banking system (Increase/decrease/remain the same)__________ by ____________ d)The money supply (Increase/decrease/remain the same)__________ by ____________

The reward for those who give up spending today in order to spend tomorrowThe cost paid by those who want/need to spend today money they will make in the futureThe return the bank earns on a loan

78

Car loans

Current law requires the Fed chairman to report to Congress on monetary policy and the economy at least twice a year, and he testifies far more frequently than that.

The Federal Banking Agency Audit Act of 1978 put most of the Fed's operations under Government Accountability Office (GAO) purview (bank supervision, consumer regulation, payment systems.)

81

Congress gave the GAO authority to audit emergency credit facilities (designed for the rescue of individual institutions such as AIG and Bear Stearns)

Congressional auditors have been blocked from reviewing the Fed's monetary policy operations, direct lending to banks, loans to foreign governments and other international financing organizations since 1978, when a law was passed to shield the central bank from politics.

82

83

The House Financial Services Committee approved (43-26) a measure (sponsored by Texas Republican Ron Paul) that would direct the congressional GAO to expand its audits of the Fed to include decisions about interest rates and lending to individual banks.

were

Requires the GAO to conduct an audit by the end of 2010 and report findings to congress.

Overrides a law that shields the Fed's monetary-policy decisions from GAO inquiries.

The Comptroller General may now audit actions taken to extend credit to a single and specific partnership or corporation.

84

The audit would detail who the Fed lends to, how much it lends and what agreements it has with foreign central banks and financing organizations.

Proponents want the Fed to be audited at least annually.

GAO audits could publicly reveal reams of information that now remain private, sometimes indefinitely: The Fed doesn't identify banks to whom it lends directly for fear of sparking a run on the bank.

85

“It would be a major loss to the country if the Fed were incapable of running an independent monetary policy. If you have the GAO, after the fact, offering its opinions on whether a certain monetary policy action is correct or incorrect, the active deliberations that are so critical to building a meaningful consensus at the FOMC will begin to become unhelpfully cautious.”

Former Fed Chairman Alan Greenspan

86

Threatens Fed’s ability to make monetary policy without political

interference.

87

Support OpposeCampaign for LibertyPublic CitizenAmericans for Tax ReformU.S. Public Interest Research Groups

Wells FargoMorgan StanleyJ.P. Morgan Deutsche BankFord Motor CompanyComerica Bank

The transparency Act was combined into The Wall Street Reform and Consumer Protection Act of 2009 .

Passed the House on December 11, 2009 on a vote of 223-202.

The vote was mostly along party lines, with no Republicans voting for the bill.

Paul, objecting to some of the provisions of the combined bill, voted against passage despite the inclusion of the audit provisions he had been proposing for years…

88

“While I respect his independence … I hope that independently he will consider that my views are the ones that should be followed."

89

Central Bank Independence

0

1

2

3

4

5

6

7

8

9

0 1 2 3 4 5

Index of Central Bank Independence

Ave

rag

e In

flat

ion

Rat

e 19

55 -

198

8 Spain

New Zealand ItalyUK

AustraliaFrance/Norway/Sweden

Denmark

JapanCanada

NetherlandsBelgium UNITED STATES

SwitzerlandGermany

Less More

Where does it come from? Who controls it? Why it has value? Why it loses value?

91