This is the retiree health care benefits.

So it buys, it buys debt.

Over the next few years big decisions will be made in Washington on jobs, the economy, taxes and deficits, energy, education, war and peace.

So we still have the same amount of debt.

But this I just want to show you some data here.

This is the angel investor, and this is all of us down here, and all of this is equity.

That assets, A for assets, is equal to

No matter how bad it was economically, he always got himself paid.

This difference between this AAA corporate debt and the treasury, that is the yield spread.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.

They provide wholesale and warehousing.

It should start to make a little bit of intuitive sense

(Audience cheers) And while my opponent would spend more money on military hardware that our Joint Chiefs don't even want, I would use the money that we're no longer spending on war to pay down our debt and put more people back to work rebuilding roads and bridges, and schools and runways because after two wars that have cost us thousands of lives and over a trillion dollars, it's time to do some nation building right here at home.

And tons of people will buy it, especially hedge funds, and pension funds, and mutual funds, and bond investors.

Traditionally, when the fed is more focused on short term interest rates, on overnight borrowing rates between banks, it will use these to buy shorter term debt that increases the amount of currency out there the amount of dollars out there, and so it will

And in between, there should be a public agency, the Independent Service Authority, which channels public money, and especially donor money, to the retail providers.

You're still solvent.

They serviced the loans.

Well all of our earnings, since our debt stayed the same.

lying about my balance sheet, then I actually am good for the money.

So, jobs, basic services, finally, clean government.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

Liquid means it's very easy to buy and sell those securities in large quantities.

So this is just another visual representation that

Everything to prove what we spent, which is nowhere near what they said.

And then the equity is, essentially we would look at this formula.

Bonds were issued to finance a war.

liabilities.

We would create incentives for securitization.

Payable to the City of San Francisco.

Helps bring it down.

So the only liability is this 5,000.

You have 189,000 as the value of this equity.

Now let's say it gets even worse.

They're giving it to me for safekeeping.

What is your strategy in your household?

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

liabilities plus equity is equal to assets.

Well everyone knows that it's not going to be exactly 10 .

So that's bankruptcy.

You go get bankruptcy protection.

These are my assets.

This guy, he does have interest.

My liabilities would be 145,000.