I also have drawn the balance sheet at the end of month 1 and the balance sheet at the end of month 2.

lining up together. So let's say that this is the central bank's balance sheet right over here.

It's a holiday anyway.

Then on 1 1 2006, I will have used half of the tool.

So every year, you're going to have this asset go down on the balance sheets by 250,000.

Instead of doing that, what you do is I'll put the balance sheet down here so whatever the balance sheet was in so I'll draw both hand sides of the balance sheet.

And they're saying, look, quantitative easing is just this idea of expanding that balance sheet.

And then also how the income statement relates to the balance sheet.

It would be minus 12,500 in each year, depreciation expense, and we would account for it on the balance sheet.

So, just to parse the statement, when he says, credit easing resembles quantitative easing in one respect it involves an expansion of the central bank's balance sheet.

While this is taking into consideration some of the factors on that side of the balance sheet.

So let's say another six months go by.

So if you look at both of these guys' assets so this down here, this is kind of their balance sheet.

And the main thing to realize is the income statement tells you what happens over a time period, while balance sheets are snapshots, or they're pictures at a given moment.

Or you could also view this balance sheet here as the balance sheet at the beginning of month 2.

He's saying it's not quite quantitative easing, although it really is.

So when you use cash to buy an asset, and that asset has a useful life that's more than just that period, you're essentially capitalizing the expense or you're essentially creating that asset on the balance sheet.

So the way you can think about what an income statement is, is it tells you what happens between balance sheet snapshots.

And so what they're doing is, what Bernanke is saying, is he cares more about what winds up on the asset side of the Fed's balance sheet, because it takes these dollars that it printed, and goes and buys other stuff, and it wants to put some mortgage backed securities over here, it wants to put some AAA corporate debt over here.

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They're ways of saying, before you consider taxes, what are your assets doing for you?

How much revenue, how much expenses, and other things this is just a super simplified one, without taxes without interest, without other types of expenses over here.

And we'll learn later the cash flow statement essentially reconciles the income statement with what happens with your actual cash account, or how things actually move within the balance sheet.

Good hash table implementations try to make this trade off in a way that gives you the right balance of performance and memory use.

It's peaceful, like that. (Laughter)

And this stent folds down using an origami pattern, based on a model called the water bomb base.

It's kind of stressful typing out, so if you type on this keyboard, you can, like, balance it out.

Cells that cause the inflammation, cells that try to regulate the inflammation.

Yes. My car cover, darling.

And so the best way, if we don't want all of our Ys to sit on the 1 side, we can remove, we can remove a Y from each side.

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So you're saying look, the Japanese were trying to fight a deflationary bank crisis, they kept printing money so they kept increasing the liability side of their balance sheet, they kept printing money and they did use this money for a bunch of stuff, they did use that money to go buy a bunch of assets, but their focus of their intervention was just, how much did they print?

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Well, if we want to isolate these Ys on the left hand side, these 2 Ys, the best way is to get rid of this 3, to get rid of these 3 blocks.

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Also, when the patient is bleeding, the blood spreads all over the place.

Find your balance, Rick!

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