Al Gore or George Bush,

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

And it's legitimate monopoly of means of violence, administrative control, management of public finances, investment in human capital, provision of citizenship rights, provision of infrastructure, management of the tangible and intangible assets of the state through regulation, creation of the market, international agreements, including public borrowing, and then, most importantly, rule of law.

And what is required is a combination of physical capital, institutional capital, human capital and security, of course, is critical, but so is information.

It should start to make a little bit of intuitive sense

And then on the equity side, because we have no liability, so in this case assets will be equal to equity.

liabilities plus equity.

Ancillary would be number 2 referred revenue.

That professor is an authority on Shakespeare.

In a world without leverage so if I didn't have all this

So this is just another visual representation that

less capital intensive that there's less money that's required

It doesn't sound like we borrowed money or anything.

And here is an example of one of her analyses

Givin' up tenure... a decade of professorship,

But let's say its assets are worth 1 million.

Capitalist country.

I'll do that in yellow.

Let's figure it out. It's equity.

One, what shares are share of

You love your heroes.

Maybe I can get 20 a year.

Yeah. shouldn't we have a say in how to build our investment portfolio?

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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

liabilities.

There had been something lost in translation.

In return on equity, the numerator is the net income that we got, so it's 350,000.

like an equation, but it's assets is equal to liabilities plus equity.

Good health is his capital.

So the only liability is this 5,000.

It's good for you.

So everything we have so the assets are equal to our equity and I'll do that in a brown color so there's no liabilities and we just have equity.

Duncan Watts is one of the world experts in analyzing social networks and learning about what's going on inside of that.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

So 26 billion of assets minus 23 billion of liabilities means that we have 3 billion of equity of shareholders' equity.

I do, there's a particular pebble in my shoe, who represents my investors.

So he owns it outright so all of the 100,000 of asset value is actually his equity.

We need flat land, we need 300 days of sunlight, and we need to be near a gas pipe.

You can pass it around.

So let me do that in a vibrant color.