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

But they're unsecured.

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

It couldn't pay it's debt holders.

So it would be patent amortization.

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

Maintenance, same thing.

So this is really the key step. It is finding the distance of the shortest path.

One of the viewers pointed out not incorrectly that one definition of return on asset so this whole video's going to be on return on asset that one definition of return on asset, and if you look it up on some of the finance sites or even some finance textbooks, they'll tell you it's net income over total assets.

I'll do that in yellow.

like an equation, but it's assets is equal to liabilities plus equity.

So its assets.

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

liabilities plus equity.

It should start to make a little bit of intuitive sense

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.

That assets, A for assets, is equal to

He lives here in sausalito, has an estimated net worth of 100 million.

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

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

Or they just have a super flush bank account.

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.

Malibu Equity and Investments.

Remember liabilities plus equities are equal to assets.

I don't want to draw this box.

And rich, eh?

And it's worth 100 gold.

These are liabilities.

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

And we said it has these assets.

Libertarian man Copyright policy isn't just about how to incentivize the production of a certain kind of artistic commodity.

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.

Oh yes, no gun was ever found.

Malibu Equity and Investments. Roger Van Zant.

liabilities plus equity is equal to assets.

I use 100 gold pieces.

It's the same plot.

So I'll write that up here.

I won't use the square tool.

Let me fill this in.

I have in my house.

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

And so you create a derivative asset.

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.