What I'm squaring off in blue, that's the

This is one of its assets.

And they got an asset called loan to Bank A.

So we could say, well, a new figure comes out ... let's see African debt.

These are deposits that I owe to people.

Well, no, as far as the bank is concerned, I still owe 750,000 to the bank.

However, in a pure quantitative easing regime, the focus of quality is the quantity of bank reserves, which are liabilities of the central bank the composition of loans and securities on the asset side of the central bank's balance sheet is incidential.

So liabilities. Liabilities.

Let's say assets and I'll talk about margin requirements

And forgive us our debts, as we forgive our debtors.

And forgive us our trespasses, as we forgive those who trespass against us.

And forgive us our trespasses, as we forgive them that trespass against us.

So just to understand what he's talking about, the central bank, it has liabilities and assets,

And then we have the debt, the debt of the company, or the

Let's think about its liabilities.

I owe the bank 750,000.

Walk on to the bank.

Let's say I still go to the bank.

This is 120,000 in equity, market value of equity, he has another 105,000 in liabilites.

What are my liabilities?

This was equity.

Bellwether signs again.

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

The bank was profitable.

They said, wow, this is great.

liabilities as well.

It had 5 million of debt.

What are my liabilities?

That assets, A for assets, is equal to

Most times the liabilities are pretty easy to get a handle on.

that rectangle is much larger than it should be relative to 1,000, but I think you get the point then I'll do I'll have a liability here that says five gold pieces bank note outstanding.

And it's often, maybe this debtor right here, he'll hire one bank.

Or the other way to view it is, assets minus liabilities is equal to equity, right?

And what keeps banks from just keep issuing more assets and debts to expand its balance sheet is a reserve ratio requirement.

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

Minus 1.075 that was the max that I could borrow

Everything on the right hand side is equity, so this is all equity.

I still owe 750,000 to bank.

So my liabilities I owe the bank 750,000.

An even bigger picture, if I now look at my balance sheet, what are my liabilities now?

This is the equity...

Well, its assets are let's see one plus 21, 25, 26 billion in assets and its liabilities are 23 billion.

Everything on the liabilities right now is on demand loans, which means whoever has that liability can come back and exchange it for gold at any moment in time, but the bank could've taken just a regular loan

I think I had called it Loan C.

And this is an annual income statement.