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.

And I don't hand that person gold.

He opened a checking account with the bank.

I'll open a bank account.

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?

I just give them a checking account.

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

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

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.

I can make a checking account, 100.

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

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.

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,

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

A 5year old bank account opened with cash.

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

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.

check account

So?

I can just create a checking account for Entrepreneur C.

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.

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.

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

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.

From your account.

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

Which is his right.

Account code 6514346.

No, we are talking about 10 million, 20 million dollars on the Swiss bank accounts, on the bank accounts of Liechtenstein, of the president's ministers, the high officials in the para statal sectors.

Here's the transfer request. It's all yours now.

Oops... I pressed the wrong button.

The money has been wired to your account.