So whenever they get this money into circulation they do go out there and they do buy assets usually treasury assets, and then they say even, Indeed, although the bank of Japan's policy, so he's comparing relative to what Japan did when they kind of faced deflationary crisis.

So its assets.

That assets, A for assets, is equal to

Malibu Equity and Investments.

So this is just another visual representation that

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

I don't want to draw this box.

And rich, eh?

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

I'll do that in yellow.

By investing wisely, she accumulated a fortune.

She accumulated a fortune by investing wisely.

It should start to make a little bit of intuitive sense

Malibu Equity and Investments. Roger Van Zant.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

We had a 10 return on assets.

Phuong, I'm not a rich man but I do have assets.

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

liabilities plus equity.

liabilities plus equity is equal to assets.

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

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

And what I wrote here is, it has 4 billion of liabilities.

He is a man of wealth.

He's a wealthy man.

Or across the street from each other.

So the total assets were 5 billion in assets.

You'd have to give up 93 of your net worth.

liabilities.

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

Remember liabilities plus equities are equal to assets.

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

He is a man of considerable means.

(Laughter)

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

All of the assets needed to start the firm, the pizzeria.

Or they just have a super flush bank account.

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

But let's just kind of think about a generic balance sheet for a bank.

So 225,000

I guess you could say non cash assets, right?

Are you a man of means?

And what happens in bankruptcy?

These are my assets, and these are my liabilities.

My liabilities would be 145,000.