And then instead of giving them actual gold,

Let me do that I'll do that in purple. These are checking accounts or notes deposit accounts for people.

At the beginning of the week,

I only have 1,000 of cash.

And I don't hand that person gold.

I'll open a bank account.

He opened a checking account with the bank.

although this would be an asset for him is a checking account.

And then I can create a checking account for him.

So how can we do that?

Now the natural question is, how far can this process continue?

I could have also issued notes and all of that, but let's say

I just give them a checking account.

I have a lot of money in my savings account.

And then I have checking accounts for these people who deposited them.

Joint account was opened. Only two people could draw on it.

I'd like to open a savings account.

I opened an account in my daughter's name.

I can make a checking account, 100.

I owe them 1,000 gold pieces that they can come and get at any moment

Checking,savings took out about 125,000 in cash.

He deposited 100 dollars in his saving account.

I could've actually issued bank notes, same idea.

Maybe I didn't put enough money in the joint account.

He's a little bit richer, gives 200 gold pieces.

Microsoft makes a lot more than that, but I make a billion dollars.

What I could do is maybe 100 of it,

check account

So this is the account of B. The account of Villager B.

So?

It's the savings accounts versus the debit accounts with no deposits.

This is essentially a way of keeping the gold here and we just use these checking accounts and these bank notes as a way of transacting instead of the gold itself.

Let's say I take a 100 gold piece deposit, and of course I have an offsetting checking account that those people can at any point use either to write checks or at some point they can come back and demand their money back.

Leamas opens joint account, same as married couple does, in two false names.

I can just create a checking account for Entrepreneur C.

We open a new account, or I add you to my account.

So, he starts off with a negative balance, so a negative balance means that he's overdrawn his checking account.

That would be total bank notes in this case and bank notes are also something we'll later leave a world where every bank is issuing bank notes, but I just wanted to give you that kind of historical context, how bank notes even started off.

Everything's plain... taxes, bank accounts.

Which is his right.

And then when A takes this check that he got from D, brings it back to the bank.

Fifty percent of all the money that they earn or get gifted, 50 percent goes in their house account, 50 percent goes in their toy account.

Account code 6514346.

Please authorize my fiancée access to my account.

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