But it is just like a stock.

I'll open a bank account.

And then instead of giving them actual gold,

At the beginning of the week,

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

I only have 1,000 of cash.

So how can we do that?

And I don't hand that person gold.

So a security in the equity world is a stock.

When you go long a security, you're buying the security.

He opened a checking account with the bank.

I have a lot of money in my savings account.

I'd like to open a savings account.

I opened an account in my daughter's name.

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.

That means as long as at any given moment in time, more than 20 of these people don't demand their money back, the bank's going to have liquidity.

The prize will go to the man who is to write the story of Suvorov's campaigns.

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

And then I can create a checking account for him.

And also, just so you know, as opposed to being short the company, they're long.

Even if you think that this company's going to make 0.35 forever, the other reason why you might prefer to have a bank account over Widgets Inc. is because you're guaranteed to get 102 back for your bank account at the end of the year if you wanted.

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

Well this guy's expecting a 5.00 check.

I just give them a checking account.

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

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

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

He deposited 100 dollars in his saving account.

Everything on the liabilities right now is on demand loans, which means whoever has that liability can come back and exchange it for gold at any moment in time, but the bank could've taken just a regular loan

Word is that davis' fund has taken some big hits on mortgagebacked securities.

They'd start with your bonds preferred stock, and then move on to real estate.

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.

And I'm doing this just to show you a point

Once I verify the validity of the item, the funds will be wired to an account number you provide.

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

And the loans are just the right on these 10 payments.

over the total amount of

I can make a checking account, 100.

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

So the central bank goes out, and let's say they go and buy 1 liquid security for 4, so this is the security right over here and the person they bought the security from decides to deposit it in a bank.

Annual rate of security

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

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.

But regular cash deposits were made to your personal accounts, somewhere upwards of 5,000.