Sign Oregon Banking IOU Later

Industry sign banking oregon iou later

a center the first semester was Oh connection the first two or three years how many of you were in the supply chain management program half of great I I was actually talking that supply chain management program I am started the international economics of course and I'm very big fan of that program excellent excellent program so good morning and not only happy Veterans Day happy remember this day I'm wearing a copy I'm Canadian in America November 11th is Veterans Day but in most of the rest of the world that's cold remember in this day and it remembers the end of World War one which happened at 11 o'clock in the morning and November 11 11 11 11 and so if you're in virtually any of the British Commonwealth countries or Ireland or many other countries in the world you'd be wearing a poppy this week and so that's why I'm wearing my poppy so today we're going to talk a bit about debt about debt I know when people hear the word debt there's sort of a negative connotation these days oh that's a bad thing I want to talk about debt you know I will call it a more positive light but also a cautionary light as well and then start with a video from an absolutely just two minutes an amazing Spaniards didn't get was that money is only worth what other people will give an exchange fret on the back of the $10 bill it says In God We Trust that's the really gold you're trusting it by swapping your goods or your labor for a fistful of these things you're trusting the US Treasury secretary not to repeat Spain's mistake and produce so many of the damn things that by the time you come to spend them the worth even less than the paper they're printed up [Music] that's what the conquistadores got wrong they fail to see that money is about trust even faith trust in the person they knew the money trust in the central bank issuing the money trust in the commercial bank that honors the check money isn't metal it's trust inscribed and it doesn't much matter what it's inscribed on paper silver clay or a screen providing me the recipe believes it there was one huge possibility created by the emergence of money as a system of mutual trust a possibility that would revolutionize world history it was the idea that you could rely on people to borrow money from you and pay it back at some future date [Music] that's why the root of Chris is Preto the Latin for I believe without the invention of credit the entire economic history of our world would have been impossible [Music] because we take it for granted we tend to underestimate the extent to which our at our civilization is based on the borrowing and lending of money no it doesn't literally make the world go right but it does make vast quantities of people goods and services go around the world from Babylon to Bolivia the puzzle is that so credit debt has been at the heart of our system basically since the creation of money money creation actually started with the Phoenicians but the really credit creation started around ten ever and 1080 so it's been around for a millennium over a millennia so that's something that everybody means everybody does individuals for our businesses borrow and governments borrow what do you and I what are we moral for what kind of things are we up to whatever we get in with a moral life education student one's perfect that that's a perfect idea what else do we borrow money for preciously home purchases what else are purchases what's another way we borrow money and we don't even think about it we use it so credit cards credit cards absolutely right and so individuals borrow money use for student loans credit cards mortgages car loans or leases sometimes we get term personal loans that's a person alone that's paid off you know set monthly amount each each month we can get personal loans check cashing company finance abilities now the thing to remember about individual borrowing individual debt is it doesn't really get rid of the requirement to pay it back so if you don't pay that if you don't pay for it now you're gonna pay for it in the future that's absolutely something you have to remember carefully businesses need to borrow as well businesses need to borrow to finance operations they need to finance trade for those of you in the supply chain management program if you're bringing goods from elsewhere in the world there's a time lag there there's also a risk factor because what if they transmit with the transmission that's worked very well so you need to borrow for trade finance as well and so businesses borrow for just the basic operations accounts accounts payable whether business sells are good to someone else they to another company primarily they don't use a sell it for cash now if they smell it to another individual they'll sell it for cash but if you sold your goods to another business very seldom is our cash payment there's usually terms those terms are usually 30 or 60 or 90 days and so during that period you need to pour the money knew that through something called a republic bank loan you can get term bank loans because businesses need to buy equipment you can have mortgages factors which is a way of getting your money up fast even bad so you basically sell your accounts payable we're going to talk a lot about bonds and businesses issue bonds trade finance letters of credit in private finance businesses can go my money individually from private individuals I'm going to spend a lot of time this morning talking about government world because governments need to borough as well and why do governments need to pull governments need to borrow when they are running deficits a deficit is a situation where the government spends more than it takes in in tax revenue now you might say why would they just have to well one of the rules one of the functions of government actually best how many here have taken the macroeconomics if you're in the supply chain program so I'm talking to a few people here who've done your macroeconomics and you remember one of the rules of government most important role of government is stabilizing the economy and stabilizing the economy means to promote economic growth with low inflation and low unemployment for those you who haven't taken macroeconomics basically make the kind of help the economy grow not make it because private businesses and individuals are what make it grow but provide the infrastructure provide the potential for the economy to grow at the same time keep inflation low well when the economy is in a low part of the business cycle the government therefore is going to need to spend more money to keep that economic activity going while you and I and businesses are not doing not doing that function there's a normal business cycle for those who take the macro though will make sense so when the government spends more than it takes in taxes we call that a deficit now when the government sends less than it takes and in taxes we call this a surplus and you might say well Wayne would the government ever need to take more in in taxes than it spends well the fact of the matter is if you have deficits you're gonna encounter debt we're gonna talk about that in a minute so you have to pay that just like you and I have to pay the debt back business the government and so the government needs to run surpluses to pay back debt they've accumulated when the government spends the same as it takes in in taxes we call that a balanced budget that is each of these things make sense a deficit is appropriate when the economy needs help the government is compensating for weakness in the economy a surplus is necessary when we need to pay back the debt that's accumulated at a balanced budget is it appropriate when we are in a situation where the economy's in pretty good shape and there's not a lot of debt so each one of those things would be an appropriate strategy I want to give you a couple of minutes this is the 30 seconds to think of anything you might want to tweet them you're gonna see a few of these bc smiles they're your chance to to think about anything you want to think about and to prepare any questions they have okay go ahead and ask we don't let those phones someone's actually encouraging you to take out your film schedule yes take out your phone in class it's at Mile so my opportunity Basilica there's a there's an event that's set up so if you go to the @vc south south campus there's an event there and so you can click on it interested going and then that's kind of how that could work and there should be one set up for Twitter as well depending what your and I believe it's to grab to but I'm not an instagramming person for those who took macro was it with professor to call yes because he's been teaching the cohort yeah so as I said you would expect over the course of time governments to have periods where they would run deficits periods where they would run surpluses and periods where they would run balanced budgets that would be a normal course of activity as you look over a period of time I want to look at what we've done in the United States since 1940 1942 2012 and this is actually what the performance has been now the areas in pink are the areas of death are the times of deficit the areas in green are the time of surpluses and whether blue and red lines come together their balance pledges you notice is the dominant color on this red red red red so the theory is we would have times that surplus Ephesus times of surpluses and times of balanced budgets but indeed what happens is that's not what we see that's not the experience that Theory tells us one thing our experience shows us another for those who have trouble seeing we had surpluses in the late 1990s other than that during war - we ran deficits that would be expected and then World War two was an entire mobilization of the American population thereafter till about 1974 73 74 we ran sort of balanced budgets with a little-little deficit from 74 to 80 our economy had great difficulties in the 1970s we actually had two oil price shocks in 1973 than I can in 1979 the price of oil doubled overnight OPEC the oil producing and exporting countries have the had the market power at that point to do that and literally they said one day by the way price of oil is double twice twice on us the economy had a very bad it's hard to react to that it meant to hole in their lecture and so that's what generated this a little bit starting in 1980 you know this the paint explodes and so our experience is that rather than running a cyclical situation where we would see deficits followed by surpluses followed by balanced budgets we're seeing that deficits proliferate now you might ask why well it's actually quite a simple thing the the decision makers in this case are our federal political leaders and this is not about a party by the way you'll notice from 1980 on we've had Democratic and Republican presidents when we bid Democratic and Republican congresses so this is not a statement about by their party but politicians main interest is getting elected and re-elected right if you're not elected to reelect it you have no authority at all you can't affect policy you can't help your constituents you have to stay in power well it's very easy to stay in power if you make life easy for your constituents it keep taxes low but then you spend a lot of money to spending money in taxing low are very politically popular and that's really what's happened over the last almost 40 years now and so we have this experience where we've had mainly mainly deficits the deficits in the last five years have been comparably large although they are actually tailing off a little bit so what has that resulted in and you might think Oh work where's this talk about that wake up this is supposed to be a dead I haven't I haven't mentioned government debt yet but now all this pink has to be financed government has to pour oh all this pink just like you and me you can't spend money you don't have and so the government when it doesn't have the money when the inflows the tax revenues don't match the outflows you have to borrow the difference now I lived in New York for 11 years and on Avenue of Americas in New York an enterprising businessman in the early 1980s got concerned about the deficit that was just beginning you notice that was the ten minutes just started the pink just started getting bigger and he created something called the debt clock the US National - clock and he put it on his building on the side of his building and you can see it was some of those digital of those pixelated lights with your family share discovered repeated by the replicated all over the country it became very popular I remember taking caps by this so many times there was always sort of interesting because you'd see it move well nowadays we digitized this if this doesn't work than it already loaded it worked this is our national debt clock the u.s. debt clock in the top corner is the u.s. national debt what do you notice about this it's increasing is it increasing slowly no no it's increasing very fast what else do you notice about it does anyone here ever seen 20 trillion dollars written down before that's 20 point five trillion dollars in your face I don't think that I think that's the first time you've actually seen that number curtain now 20 and a half trillion dollars going up very rapidly that's because of those deficits have to fund the deficit now notice that the debt per taxpayer is a hundred excuse me of one hundred and sixty nine thousand and a half each so if we were if you and I were actually asked to pay us bump up for that it would be a mortgage for us right my best bet now fifteen sixty nine thousand dollars lying around the house uh the gross domestic product of the u.s. is nineteen point four trillion dollars so you can see our debt is slightly bigger than the economy as a whole the now the deficit is actually sort of interesting focus on this one just for a minute and what do you notice about this one it's actually been going down for six the free since 2010 we're going to have for seven years but the problem is as long as there's a deficit month pink is getting smaller there is still pink to finance so the fact is just getting the deficit down is not going to pay off this debt we have to start running certain what's easy to do that so this is actually quite a serious issue for our society and for our nation and for the economic health of the country going forward yeah there are many people who would say the government is totally irresponsible I wouldn't blame you if you thought that they wrapped up twenty trillion dollars of debt that's pretty amazing and it's not it's getting bigger but I always caution people to think about this digital debt clock as it tells us a lot more down here is America our American in the citizens American individuals and this is how much debt Americans owe as individuals what do you notice about that figure sorry it's increasing with us to notice about that figure it's not as it's not that chipper by the government right it's not really that far different from the government here's our mortgages almost fifteen trillion dollars in mortgages impair our student loans about a one-and-a-half trillion dollars in student loans credit cards just over a trillion dollars average personal debt personal debt per citizen fifty seven thousand dollars which is just about the size of our GDP per capita the end up with the mythical average American makes just about the same figure so literally our whole income is could be taken up with that now nowhere on this thing do we talk about us it show us business debt but we can easily figure it out we see that the total debt in the country is sixty eight trillion dollars I am NOT writing all this rose we see that the government that is twenty and a half we see that the personal debt is 18.5 US businesses Oh about 29 trillion dollars so they no more than the government or individuals so when people talk about the irresponsibility of the government because of the amount of debt I always caution people people that I say people who live in little glass houses shouldn't throw stones well frankly we're all in the same boat we're all in the same boat debt is one of the reasons our economy is so large and why there are so many wonderfu opportunities but there's a there's a precaution here ultimately it has to be repaid ultimately it has to be repaid so we're doing very well now but that's future future the future payments are gonna have some real implications [Applause] I'm not gonna put the BC smile up right now but its BC smile time just gives you a moment to do some thinking and tweeting or to propose a question to me okay so my question would be so if we're continuing adding to the deficit and now the party in charge wants to cut taxes how is that helping us as citizens where we continue to cut won't that increase the deficit and somebody have to pay for it the Congressional Budget Office has estimated that the tax cuts will add one point seven billion dollars so then it's good to have taxes but then on the other then how do you make it stop you start darvis spending right well you have to do both this is this is the this is the issue this is why it's so very very difficult you can't do one you have to do both and that's that becomes really hard people think cutting tax a take city cutting taxes it sees me raising taxes is hard and politically raising taxes is very very hard do you know there's anyone here remember and only a few of us have even old not to remember the last person who ran for president promising to raise our taxes it was actually well no he he he broke his promise which he broke his promise which is why he got slayed by his own party no it was Walter Mondale in 924 Walter Mondale won his home state and the District of Columbia that's it that was the last person who thought who said I'm going to raise your taxes and he said well the other guy's gonna raise his taxes he's just lying to you and I'm not now it's interesting because the other guy didn't raise taxes but he spent more than we'd ever seen before it was amazing anyway so I'm taking your easy smile I'm also gonna send around an attendance sheet so if you would please son name and your path waiting a mail address so what is this Dec 20 21 is it their homes their bonds and we're gonna talk about what a bond is so that you can understand how they borrow because governments don't borrow like you how do we borrow from the bank or from our credit card or we go to the financial aid from the financial aid office that's how we twirl when the government borrows they actually issued io u--'s they're called bonds and so they issue these IOUs and I'm going to show you the structure of them they're actually not very complicated but they rated this say this blonde and they sell it in the global bond market global bond market is the second biggest market in the world near the end ninety nine trillion dollars in bonds outstanding right now of which America which is both government and business accounts for 37 so America alone is about 30 just over 37 percent of the total market it's funny when you have total market being 99 their percentages are to the actual now this global is exactly global this will be very interesting for those who take in the world geography you and I we could go to a broker and we can buy bonds that are issued anywhere in the world we could buy bonds issued by the Ecuadorian government we could buy bonds issued by companies in Germany but it also means Germans could buy bonds that are issued by American companies or Ecuadorians bonds issued by American companies for the American government the bond market is integrated in global it operates on the 724 basis you do have to go through a broker you can't do it online nothing divided stock i stock online you can't yet buy bonds online the reason is lawns still have aid there's an inventory of bonds that people if you want to buy a bond somebody actually has to have this couple on selling and that we can't do one like so graphically speaking the US about 37 trillion dollars the rest of the developed world - the US has about forty four trillion dollars in bonds outstanding and the emerging markets of the world of seventeen trillion yes the emerging markets are those markets in south america africa parts of asia deep what brings what we used to call will bring some bricks are the best of the emerging markets that's the high end in emerging market on top i thought that explained that exciting we used to in the bad old days call this a third world and that we call it the emerging markets greatest by the way stands her brazil russia india china and those are the four of the biggest emerging economies and they got named that by goldman sachs but you can see that the emerging markets really didn't have much in the way of bonds oats and these countries until the late 1990s and now they're there their share is growing so what is a bond a bond it's a legally binding IOU issued by a government or corporation it's debt if you write a bond you are asking for a loan you are obtaining a loan the bond issuer will promise to pay interest and principal at maturity if you buy a bond you're called a bond forged a bond holder is a credit or a lender you don't own the company you don't own the government if you're a stockholder and you buy stock in a company you are a part owner in that company but if you walk by a bond you are lending that company or that government money and therefore you get paid interest just like the bank gets paid interest by you and me if you own debt of some of a company or a country you get paid interest while holders have a higher claim in a bankruptcy now governments don't go bankrupt if they you reneged on their debt that basically means they're out of the Adept market for long long periods of time Argentina reneged on their debt in the early 2000 2002 or three have forgotten which year now they are just now starting to borrow again Greece has not reneged on anything yet they've been very close they want to renegotiate but they haven't react on anything yet they actually still keep getting loans to pay those debts so they've managed maintain those in a good standing very very difficult very hard that's actually cause some real problems there but if you buy a corporate bond a corporate and the corporation goes bankrupt you actually are third in line when people get paid employees get paid first secured creditors get paid second bondholders get paid third and stockholders get paid last now the interest rate on a bond is based on the current market conditions and the credit worthiness of the issuer based on some very senior independent bond rating agencies and you may have heard of Standard and Poor's and Moody's or you may hear the bond as triple-a well as very few triple-a is left in the world but those are the ratings issued by the agencies now bonds themselves are very simple there's an issuer actually I'm gonna go actually the example part there is an issuer so when my example bond will use Kingdom of sweet there's an amount ten million dollars in this case no in reality this the Swedes minissha their bonds at Swedish kronor but it's easier you and I don't think we don't want to deal with a foreign exchange maturity date November 30th at twenty thirty seven there's an interest rate and there's an interest payment schedule for simplicity I'm going to use interest paid annually and truth they're usually paid quarterly but for the when we do our when asked to do a little bit of math it's easier if I just executed to attend Yule now once this bond is written it's like it's written in stone it's like it's carved on a stone tablet it never ever changes the world will change between now and 2030 7 but this bond won't so nothing will ever change it so why would anyone think this is a good idea any ideas because it locks you into a certain rate and some okay you're right you're right it locks you into a certain rate and it doesn't matter what the other what the economy may do a year from now a tank you can go up but you're no that's your set in amount at that maturity date perfect exactly right the borrower knows exactly how much they are going to pay and exactly when they're gonna pay it the purchaser knows exactly what they're going to receive and when they're gonna receive it now that's appealing that's appealing to the poor work it's appealing to the purchaser in fact you might say well why would I lock myself in but you're not gonna have to look we're gonna get to that point you can do you want necessary have to but for a lot of people that walked in repayment period is very nice retirees loved and know what the flow of income is going to be after they retired no have a paycheck they have a pension but if they have investments they like to know that in January they're going to get X amount of money and in June they're going to get X amount of money in that way they can punch it for the year so this is a very appealing method a very appealing approach for a lot of purchasers and for a lot of more hours now let's see and ask you to figure this one out on November 30th and let's pretend that Wanda's starts on the on December 1st so we haven't written it on yet it starts December 1st on November 30th 2018 how much interest is Sweden gonna pay 3% of well how much is that you can use L good calculators I'm not a math brother you can get you can use calculators for me that's $300,000 good on November 30th 2018 sweeten is gonna pay the buyer of this bond $300,000 now by the way you don't have to buy the whole bond you can buy little pieces of it but let's make it simple and have one pie otherwise to start divvying up percentages so on november 30th 2018 sweetness compatible and they buyer $300,000 on november 30 30 2019 Kingdom Sweden is gonna pay $300,000 on November 30th 2020 Kingdom Sweden is gonna paid $300,000 so you see what I mean the borrower knows exactly what they're gonna pay when they're gonna pay it the buyers know exactly what they're gonna get when they're and when they're gonna get it we go down to November 30th 2037 Sweden's going to pay the last interest payment and they're gonna pay the pull back and so that's how the bond is structured it's actually very simple and the simplicity is what makes it appealing and attractive and what makes it so easy to become an instrument they're 99 trillion dollars of it out there if it was too complicated it would be hard to have a hundred trillion dollars of the stuff around but by having it this way this becomes something that can ultimately we're going to go to another step in just a minute but I want you this is this is what I want to get in this and from here this might be felt now let me take the one more step and then we do our BC smile once now let's say you bought this bond and you don't even think about ten million of it and you decide you actually want the money in a couple you don't want to wait till 2037 you can sell that bond that global bond market you can buy and sell that bond as easy as pie go to your broker say I want to sell the bond broker will sell someone will pick it up sweeties a good credit and so you can sell it problem is that bond is three per smart will never ever be anything but 3% what happens if when you sell it the interest rate in the economy is 5% you're 3% bond is paid we through the $300,000 but if someone has 10 million dollars they could earn what you gonna have to do to encourage someone to buy your ball the truth agents make it effective you cannot change the interest you just have it you're gonna you're gonna reduce the price they're gonna reduce the price now if you're in a finance class and we're not in the finance class we can actually compute how much this bond is gonna be worth but let's just make it really simple if interest rates are 5% you've got a 3% bond your 10 million dollar bond is probably worth nine million dollars it's not really good just keep that in mind so the interest rate went up your bond isn't that's attractive you have to reduce the price on the other hand if interest rates went down to 1% and the rest of the economy your bond is a superstar it pays 3% and everything else is earning 1 you'll be able to sell your bond for 11 or 12 million dollars so this is how they become tradable commodities bond prices change not because the interest rate not about it not because anything in the bond changes but the interest rates in the economy change which changes the value of that bond and so there are people who make a lot of money trading bonds now you and I as investors usually when we sell a bond us because we need the money but there are people out there who are bond traders this is their livelihood it's a very interesting and it's a very interesting environment applause so is this why when I bought a house all of a sudden I get a letter that like a month or two later that says you for your mortgage dissident soul - yes somebody else yes my mortgage I'm two years ago my mortgage has been sold three times - three times in two years yeah every time I turned around I took my mortgages with with Wells Fargo but now it's owned by Fannie Mae and but I still pay well as far as weird yeah well the other yeah a par value would be would be ten million dollars below par with the same things just kind of hard yeah the yield the yield and the price actually when you when you trade it you're actually looking at the price of bonds but the price of bonds is affected that's a really good question well if they default in the pond it's gonna be the result of a bankruptcy if it's the governor oh what cooking once once it goes into government pimply there's gonna be no valued want to accept the face value well ultimately at the end of the day whoever owns the pond the November's pretty in 2037 it's the face amount whoever has it the last date gets ten million dollars even if you only paid eight million dollars for it to still get ten million dollars on two thousand ten thousand thirty seven but if there's the default leaves the market becomes a legal matter I'm sorry yes you can hedge it you can have any tradable commodity so you'd probably buy if I was in a hedge a bond I would hedge it with an option and that's a very big no we're not gonna go this way no I quit choices I could but I'm not going to that would take me I can I could talk for that as you can see I can talk a long time anyway let me just I don't want this to be much longer because the other guys have other things to do but just the government US government Oh things to I'm going to talk about who the government knows things soon they're going to get the global context so who does the u.s. everyone knows things to most people tell me China because that's what was reach Idaho I mean we don't China olace throw money well there's China seven point nine percent there's Japan 6.8% 29.7% of the bonds or of US bonds are held by us individuals or institutions pension funds hedge funds in our retirement plans 15% of the US bonds or owe are owned by the Social Security trust fund our Social Security or FICA contributions your FICA contributions by law have to be invested in US government bonds 13.8% bones by the Federal Reserve the central bank of the United States biggest single holder individual holder of US securities the US government securities 4.5% to the Civil Service Retirement Fund 2.9 percent to the military retirement fund so if you're a veteran this is your retirement fund and it's held in you it's held in US government securities this is the rest of the world except for this is China Japan Belgium what help producers Brazil and the United Kingdom this is the whole rest of the world and so 66 percent of the US government bonds are actually owed within the country 66 percent of the bonds are owed within the United States so it is a lot of money believe it 7.9 percent of 20 and a half billion dollars is still a lot of weight don't get me wrong but in terms that when you hear those people say that china owns all our debt not even close not even close so what the Federal Reserve says that they're unwinding the dead sheep they mean they're reducing their they're reducing their Holdings here and what the Federal Reserve can do is actually which is actually really neat to say just sort of make things go away they have they have unique powers is that helicopter money powers I don't know what helicopter money is a helicopter money recipe with the federal government when they look with the feds when they pre ty much with qe3 when they doubt when they release a lot of money into the economy yes okay quantitative easing they bought government bonds that's what they that's how they release the money what they do is when the when the Federal Reserve is it is adding money to the economy they purchase bonds under the economy and pay for them in money that's how they release money and that is when the inflation started what you've done your if if if if the economy the answer is yes if the economy is not weakened in some other way the problem with the with most of the quantitative easing it happened when the economy was so weak it didn't have any inflationary impact at all I mean when the economy was barely on life-support they could buy so many bonds as they want it wasn't going to lead to inflation but right now what they're doing is of course they're worried about there's a concern that worries a bad word but they're concerned about our current inflation range so that's why when they started to unwind they're reducing that exposure now where I want to get to when ask you three questions again if these links this these links go the CIA handbooks so if they don't work I've got them all invoked what three countries are the what is evening what countries are the world's biggest borrowers who do you think will be on this list your us will be on this lesson who else do you think might be on this isn't India who else might be on the little China cool I'm just give me a couple of names I'm missing Brazil let's take the Kingdom UK let's take let's take I don't think that link is gonna work so let me go here well here they are your United States is the biggest for work now this is both government and corporate by the way the European Union 13.9 now I must say this is a net and I hope I didn't have time so I left a piece out this is net debt the the debt that's owed to other parts of the government if you take that out because it let's say it's like it's saying one part of the government is another part of the government money if the Social Security trust fund or the attention of the military pension where the Federal Reserve owns dead it's one part of the government oh in another part the government money they take and just watch that and they call that with that so isn't that figured your communion second you paid third France fourth Germany fifth an OCR communion on its own s obligations isn't that it's not weird when you've got European Union and then look at the next list is all your eliminate all EU countries Japan Ireland China way down here number 15 so those are the world's biggest debtor countries would countries do you think have the world's largest public debt this isn't this is government debt and this is as a percentage as a percentage of the economy so the net debt to GDP who do you think is the most indebted country in relation to the size of the economy accent African country any other ideas America Argentina Argentina Japan by a bomb by a longshot Japan has more depth than ever but inside even close Greece there is our greatest number to Lebanon Italy Portugal to make their way up it Jamaican economy very small and the debt is so the debt is equal to the size of the economy now you might say well gee where's the US but remember our economy is huge remember this is so we're talking about debt in relation the size of the economy and so we're sitting down here at 43 so in terms of the size of the debt to the size of the economy China is on this list there's India by the way I know they're on this list I saw them oh wow he's really well why's he think no one will in my it doesn't get for know they can't borrow on the market no one will lend them money right now it's just it's too it's too risky I promise you China is here somewhere there it is 109 and the same good Russia I take it Russia Russia's not as lobia Russia's very low to last question from this set is what countries have the largest foreign exchange reserves now foreign exchange reserves are usually held as security so this is soon who are the countries its own the most China China Switzerland good these are good ideas China Japan the EU Switzerland Saudi Arabia so the Hong Kong so South Korea so notice these are the countries that basically own all that who owns that debt these are the countries that own all that debt so I've taken an hour of your time I just want to show you one more quick thing and that is if you're looking for some input so for a good source of international information two websites I heartily recommend to you the CIA the Central Intelligence Agency yes that Central Intelligence Agency has a world factbook absolutely amazing and the Michigan State University has published as a website called global edge that I use all the time I absolutely love this website and so if you're looking for information on any country in the world let me show you I'll leave this slide up and I'll show you what I assure you these works so this is the global edge by Michigan State University literally every country in the world pick a country let's pick Argentina because it's a high up in it and then we visit the country and now you Kentucky have history government economy statistics traits this is for those in supply chain that you're doing things on trade I know that if you're in the bachelors programming supply you have to do International Economics I love this set for that course so what stick with treats this next Argentina so biggest trade partners here the country in the countries of Argentina trades with and here they who are the countries they import from here's what they Archon tina exports here's what argentina imports so I mean in literally every country every country I love that site and then the world that handbook that's great for business yeah it's great and this is the World Factbook and it basically the same thing you can pick a country any country in the world or you can do country comparisons I really like this featured country comparisons and this is where I had those lists that I just showed you are there any questions thank you so much for your attention and your participation okay you enjoy this morning I hokay hope there's something say hey I'll leave those sites up sick yes [Music] [Music] [Music] [Music] skip the question you sure it does if I don't know every time I would have talked about okay - caucus for the appreciation is like you buy it at $10 to share because you think it's gonna go 15 right and so you sell it to the higher amount and that equality directors billion in revenue in our last box let's go