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.

That assets, A for assets, is equal to

But we'll do a whole playlist on that.

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

It should start to make a little bit of intuitive sense

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

liabilities plus equity.

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.

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.

I spent 60,000 on Capital Expenditure sometimes it's property plant and equipment .

Manage your finances, accounts, and investments

He has no claim to the property.

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

Capitalist country.

JSTOR was launched in 1995, with an extraordinary amount of funding from the Mellon Foundation.

So how much wealth is gone from each person's perspective?

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.

So we thought, okay, well, let's try out this send books to India thing.

liabilities.

In return on equity, the numerator is the net income that we got, so it's 350,000.

like an equation, but it's assets is equal to liabilities plus equity.

By investing wisely, she accumulated a fortune.

She accumulated a fortune by investing wisely.

Good health is his capital.

So the only liability is this 5,000.

It's good for you.

That just comes out of the definition of what equity is.

And so liabilities plus equity is equal to assets.

I'll draw it a little bit bigger.

So 26 billion of assets minus 23 billion of liabilities means that we have 3 billion of equity of shareholders' equity.

I spent our entire life savings on these things.

So he owns it outright so all of the 100,000 of asset value is actually his equity.

We need flat land, we need 300 days of sunlight, and we need to be near a gas pipe.

You can pass it around.

So let me do that in a vibrant color.

That's 11,000.