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

You don't have to be an intellectual property expert to understand the difference between right and wrong.

The advantage the country had was human capital nothing else but human capital.

Today we talk of people as an asset.

Capitalist jihad. Smart.

The Winklevi aren't suing me for intellectual property theft.

What matters here isn't technical capital, it's social capital.

Let's think a little bit about leverage.

That assets, A for assets, is equal to

I think the first point to make is that we need to recognize natural capital.

But we'll do a whole playlist on that.

Where am I taking this money out of?

Supporting financially

like sustainable development targets, natural resource governance targets, access to opportunity, to knowledge, equity, fighting corruption.

It should start to make a little bit of intuitive sense

And that seems like a pretty reasonable proposition.

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

Nothing like the resources of a CERN or a DARPA or an IBM or a Dupont.

Well, they lost, by entering into this transaction, essentially, they lost whatever equity they originally had in their house.

Now, I think this future will be quite surprising to many people.

liabilities plus equity.

Then there is the whole northern India, which is going to be the bulk of the future demographic dividend.

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.

But essentially what happened is the investors in the mortgage backed securities provided the money to the special purpose entity to essentially loan to the borrowers.

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 so with patient capital from Acumen and other organizations,

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

Capitalist country.

From 500, let's say it goes to 1000, then that 1000 is now essentially split among these 5 shares now.

I'll do that in yellow.

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

One, what shares are share of

You love your heroes.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

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

Now, equity might not make a lot of sense to you right now, because I'm just saying, well, my equity is equal to my cash. in general, equity is just what you own.

Capital intensive industries are not necessarily knowledge intensive industries.

But our total assets, or the market's perception of the total assets of the company, are essentially what it's willing to pay for the equity plus the liabilities, so the market is saying that Ben's assets, the assets in that company are worth 220,000.

I have factory tools worth 500,000, and then that cash will go away.

Well financing got easier. Or essentially they lowered their standards.

Countrywide.