So they all deposit their 1,000 gold pieces into my bank.

All its buildings and its employees and its brand.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

So right now, the short seller, he has assets and

I owe the bank 750,000.

But, unfortunately, let's say that I had

This business is a good business.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

I think I had called it Loan C.

And then we have the debt, the debt of the company, or the

Minus 1.075 that was the max that I could borrow

I still owe 750,000 to bank.

So where does this lead?

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

Everything on the right hand side is equity, so this is all equity.

The hiding

This was equity.

Now you could also have a yield curve for other types of debt.

These are the assets that our five buddies have together.

Now let's go to the liabilities.

So once again they're valuing all of the assets at 225,000.

So once again, if this is a balance sheet, this is the assets, here are your liabilities.

For a total of 5 billion.

It had 5 million of debt.

The government announced that they would pay their debts.

let's say they paid for it with 5 million of debt.

liabilities as well.

I'll draw it a little bit bigger.

like any corporation, and they have to, the liabilities, plus the equity has to match up to the assets.

What are my liabilities?

Jason over here let me do this in an appropriate colour

These checking accounts are demand accounts and these notes are things that can be exchanged for gold at any point in time

So it had 10 million of assets.

Most times the liabilities are pretty easy to get a handle on.

Let's think about its liabilities.

And I'll say, there, I have 250,000 of cash.

I had some debt.

Let's just say it's all of it.

So my liabilities I owe the bank 750,000.

YoOOuse shell corporations to hide your debt.

So that's its reserve ratio.

Now what's different about them is what happens on the other side of the balance sheet and this is what I meant by them having different capital structures so let me draw the liability's side for both of these characters so let's do liabilities

I had 100 of cash, no accounts receiveables,

My assets are 250,000.