Let's start at the beginning.

Which is essentially the same thing as printing money.

And that's what the reserve ratios were all based on, based on the bank notes themselves.

Little bit of silver paper you get inside

let's say that they're printing some money right over here, so that's money that they're printing, so this is literally, it would be federal reserve notes being created, so these are notes, which are essentially dollar bills.

I'm in banking. In banking? How'd you get into that?

What bank?

Bank?

OK, so now we're in an interesting situation.

What about the platinum thing?

His own bank?

From a bank in Burundi.

So at some point, they give up.

So in part of this negotiation process

Let's call this Bank A.

And let's say that Bank A

BANK OF VENICE...

Yes. Banking section.

Which bank?

It's a bank.

B...

Banker?

A banker?

And if this is a loan from Bank B, Bank B would have an asset called loan to Bank A.

Like a bank, you know, except better than a bank, cos, you know, banks always get knocked off.

Now we're not as familiar with the term bank note because we only see one type, or at least one type per country.

I grabbed a piece of graph paper I'm a physicist. (Laughter)

I suppose you ought to write to the banks and tell them everything is quite in order.

It's not safe inside my house.

If people can find that that sub prime product has been transferred across nations many, many times until it ends up in banks in Iceland or the rest in Britain, and people's ordinary savings are affected by it, then you cannot rely on a system of national supervision.

It's in our bank in Century City.

Bank account card?

Where's the bank?

Yo, that's my bank. So?

Three banks.

So you're saying look, the Japanese were trying to fight a deflationary bank crisis, they kept printing money so they kept increasing the liability side of their balance sheet, they kept printing money and they did use this money for a bunch of stuff, they did use that money to go buy a bunch of assets, but their focus of their intervention was just, how much did they print?

I'll go get a home equity loan.

The Bank of Tokyo amalgamated with the Mitsubishi Bank.

Tomorrow i'll be able to buy honolulu!

He works in a bank.

Banking.

so you stop at a bank?

Then we saw that could create a whole chain of events.

And those loans from other banks, those are assets of other banks.

Maybe a billion of these are a loan from bank B.