We had a 10 return on assets.

2008 happens.

The economy grows, government accumulates more resources, and the government can invest in infrastructure rather than infrastructure being a cause for economic growth.

And you see, you're very familiar with this.

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

In fact, if you've got good enough governance, there is no resource boom.

But when I talk about the asset, I'm talking about only the operating assets.

So this is just another visual representation that

If we have more profit,

Remember, every time it'd issue a loan, like for right here, it issued a 100 gold piece equivalent loan to D and instead of giving D 100 gold pieces from, say, right here, it just created a checking account for D, which later D paid to A and that's why it's labeled A right here. Let me relabel another thing because the gold is a different color just so you see the gold.

Manage your personal finances

I don't want to draw this box.

In a situation where you have growth, you put the new money into this.

The Hard Path centralized production of energy with continuous consumption and limitless growth or the Soft Path local production of energy, locally owned with resilient and sustainable communities.

So I'm going to give you a little equation, actually, just to take a little bit of a tangent.

And so liabilities plus equity is equal to assets.

We can do this.

Each share in this case once again, if you believe that the assets are worth 1 million are going to be 1 million.

Economies of scale gave rise to this sigmoidal behavior.

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.

let me give you that piece of terminology, it just means net asset value.

It has no liabilities.

I'll draw it a little bit bigger.

...I'm printing the money so that I can buy particular assets,

So they really had, let's see, they had an 80,000 loan, a 250,000 asset, so they really had 250,000 minus 80,000, that's 170,000.

I did some quick calculations.

The real estate market's booming in Rio.

So you have kind of the assets of a company.

Malibu Equity and Investments. Roger Van Zant.

So its assets.

I'll do that in yellow.

The assets are generating this.

And why is that?

Obviously , a machine you can't do all of those things to it, but you can at least touch it and possibly smell and taste it.

It should start to make a little bit of intuitive sense

My liabilities would be 145,000.

So this is the assets.

Growth of use will consume any energy or resources saved through conservation.

liabilities plus equity is equal to assets.

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

liabilities plus equity.

I'm going back now to, sort of, the explosive part of the Web in 1994, when it was growing 2,300 percent a year.

These are my assets, and these are my liabilities.

That assets, A for assets, is equal to

I use 100 gold pieces.