As economy develops, labor intensive industries give way to capital intensive industries.

Capital intensive industries are not necessarily knowledge intensive industries.

And so we took this number as the numerator and we divided by the number of assets.

I don't want to draw this box.

So this is just another visual representation that

It doesn't sound like we borrowed money or anything.

And this was a home equity loan.

Usage would be proportional users number 7.

Malibu Equity and Investments. Roger Van Zant.

So its assets.

I'll do that in yellow.

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.

And then the very first definition I gave you was operating profit over assets.

That assets, A for assets, is equal to

Or across the street from each other.

Leave you again

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.

liabilities plus equity is equal to assets.

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

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

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

Malibu Equity and Investments.

And what I wrote here is, it has 4 billion of liabilities.

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

All of the assets needed to start the firm, the pizzeria.

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.

But let's just kind of think about a generic balance sheet for a bank.

So 225,000

liabilities.

And we have 23 billion in liabilities.

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

And rich, eh?

We're getting 10 of our asset investment back every year.

I promised that I would.

To get into the crowd

These are liabilities.

The Raider's a military asset.

It should start to make a little bit of intuitive sense

In my opinion, we need to diversify our assets.

It's not like I didn't have any cost here.

Phuong, I'm not a rich man but I do have assets.

And what happens in bankruptcy?

liabilities plus equity.

My liabilities would be 145,000.

So let's say when we liquidate it so we go into bankruptcy and essentially all of the assets are taken into possession by the bankruptcy court they're going to sell these assets.