And to stop it crashing over the last two to three decades, we've expanded the money supply, expanded credit and debt, so that people can keep buying stuff.

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

I know I've overdrawn this picture a little bit too much.

So now I have this liability.

The yield on the bond is 6 .

You're not a homeowner until you don't have debt.

So this is my vault.

Let me draw that. My equity... I have 100 gold pieces.

So I have my bank like I always did.

liquidate it.

It was 1.6 million in bearer bonds.

Bonds together with some money was stolen.

The money was stolen along with the bonds.

There might be different debt holders who have different

I, uh, I was just going to say I've been cashing A lot of bonds lately, haven't I?

Do it anyway. Who's moving the bearer bonds?

Currency and bond markets are relatively calm.

Interesting.

And that makes sense, right?

They said, wow, this is great.

So to build that irritation canal, they take those 900 gold pieces, and they pay a bunch of workers.

For the liability side of my balance sheet

Investing abroad on your national currency basis will not always be profitable.

The exchange rates for foreign currency change daily.

Bonds, you become part lender to the company.

I said, who gets the money?

So what happens when you go into bankruptcy?

And so we had 810 gold pieces from the contractors, 900 gold pieces from the ditch diggers, and then 1,000 gold pieces from the farmers.

You could do it with corporate debt.

Oops.

Nevertheless, we will be eventually heavily rewarded from doing this.

And let's say that's all of their liabilities.

If you're hosted by the Pirate Party you get political protection.

And just to contrast this with bonds, because they are often used in the same phrasing, oh I'm going to go buy some stocks or bonds, or I deal with stocks and bonds.

So for example, if you by a well I'll just say a face value bond of, let's say it's a thousand dollars, and there's a thousand people who do that.

This is better than buying treasuries.

You can kind of view this as the liabilities of which debt is one of them.

Morningstar type.

They go to 0.

That's better than putting it in the bank.

You ripped off his bearer bonds.

Maybe he buys his bonds back from us for 60 percent of their value.

At 2 15 p.m., a radiogram was received, placing the freighter under jurisdiction of the United States government.

You have no jurisdiction here. Hold it there.

(Laughter)