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I want to do an experiment okay this is my this is my world now this is my country well path of you are going to be my country this is the country of Cal tonyia I am the government I have the taxing authority I also have a standing army courts prisons and so forth half of you are my domestic private sector you're the households and the businesses in the nation of Cal tonyia you're all subject to attacks in this great country and so let's say 200 Cal Tony's you have to pay me 200 Cal Tony's this year okay what does that mean if we record this on balance sheets it means now you're in debt to me right I have an accounts receivable I have taxes do you have a debt and I just reduced your net worth now let's settle the obligation go ahead and pay your taxes you can't what do you mean you can't you can't because I haven't spent any Kel Tony's into existence yet the money to pay taxes comes from government spending I'll hire some of you you'll build roadways for me and I'll pay you kill tony's then you can pay your taxes okay I'm gonna pay 500 now you're gonna pay your taxes see I credited your account I gave you 500 but now let's settle up taxes are paid what are your net financial assets 300 kill Tony x' this is a simple fundamental accounting truth this is not gimmickry this is not a theory this is a matter of accounting it is a fact okay when the government spends more than it takes back in taxes you end up with the difference you the non-government right it went somewhere you got it right my deficit is your surplus or my red ink is your black ink why don't you buy something important this is the foreign sector you might decide to spend part of your income buying goods and services produced abroad you can do that you can import from them as long as they want kill tony's which they'll want as long as you produce something of value in your country that they'll want to exchange tell Tony's for later right so let's say you spend 200 buying great things from the foreign lands go ahead so now there are me who's holding the internees with three senators the government sector the domestic private sector and the foreign sector the rest of the world where are they you've got 100 you've got 200 and I'm the source of all that I have the minus 300 my deficit is the non-government surplus right the world as a whole is a closed system every financial payment comes from somewhere and it goes somewhere there are flows and there are stocks payments accumulate they pull up if we stop the clock at any point in time we can figure out where they are right those blue lines...