And so that cash ended up here.

But it's roughly the right number.

Bank B has borrowed money from Bank C.

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

So what I'm squaring off in magenta, that's the assets of that bank.

For whatever reason, that person wants their gold back.

Business is business.

And then the offsetting liability for me,

So how does that work?

They'll often say just like a big bucket of, they'll call them level three assets.

In fact, probably from other banks.

And once again, this is a non liquid loan.

Check.

So let me delete this.

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 essentially I'm broke.

I had 250,000 and I got another 750,000 from the bank.

Smelly.

And let's say Loan C comes due.

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

So it would be patent amortization.

Check, please.

So now the Special Purpose Entity is the owner of the mortgages .

They'll sell the loans to like, let's say, Bear Stearns. So that's an investment bank.

What's it like being an investment banker?

But they're unsecured.

Bank D had loans to Bank A.

We're now going to make all of our mortgage payments, the 10 payment, to this bank, this investment bank.

Maintenance, same thing.

So essentially, these banks have a bunch of assets.

And then you can imagine now Bank C is worried because now

And this guy's an investment bank instead of a commercial bank.

So Pal Bok Guksoo (Korean noodles)

At your service.

Can I have the check, please?

So its assets.

I can do is... So he needs 100 gold pieces.

Whether people will continue to loan them money.

If you have a 10 year loan, you'd put 10 here.

You don't have to be an intellectual property expert to understand the difference between right and wrong.

So how much wealth is gone from each person's perspective?

And of course, everybody who had loans to Bank A, maybe

Here is your bill.

All finished, frisby.

I make the calendar. I pay the expenses.