And to lose touch with the basic rhythms of our biology and our health.

liabilities.

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'm pulling out of his scheme.

'Mr Darcy', as he calls himself, is not worth our concern, though he may be the richest man in Derbyshire.

It couldn't pay it's debt holders.

Now, this idea was tested in 1919 through astronomical observations.

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

And so that cash ended up here.

These are my assets, and these are my liabilities.

So it's a liability to me.

It should start to make a little bit of intuitive sense

liabilities plus equity is equal to assets.

The kids make up the names of the countries some are rich some are poor.

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

And let's say our debt is 6 million.

Because in the last video I talked a little bit about return on asset, where we just took the operating profit, and we divide that by the assets.

So this is assets.

I still owe 750,000.

So this is just another visual representation that

And, but it really it got the electricity. It took a long time.

And our cash is now at 0

So obviously there's no two companies that are identical in this way, but let's say that they are.

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

So maybe because of that, I'm in bankruptcy.

And then my university education as an ecologist reinforced my beliefs.

Bank B has borrowed money from Bank C.

But the truth is

Let's say this is Company x.

That crosses out. a squared minus a squared crosses out. a to the third, it'll all cross out.

I'll do that in yellow.

He retreated into silence.

So its assets.

Remember liabilities plus equities are equal to assets.

I'll draw it a little bit bigger.

2008 happens.

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.

Things like that.

liabilities plus equity.

I've gone over all of it with your money managers.

I remember first feeling slight surprise.

The lilies have been beaten down by the rain.

The left hand side, we're just left with the 3x.

I won't use the square tool.

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