So now let's add another layer on top of that. Okay. Let's see this same hierarchy in terms of the entities that are issuing and holding this stuff. So there's a hierarchy of institutions as, as well. And for that we need, because, whenever we talk about institutions, we're talking about balance sheets, okay? So, we're talking about a central bank, [SOUND] bankers bank, which is issuing currency and holding gold. So, it's holding reserves of the international, of the international money and issuing as its own liability, the national money. Okay. This is what, this is an idealized picture of what a central bank looks like. There's other stuff here. Maybe there's Treasury bills or stuff like that. I'm just going to, I'm going to leave that out now so that we can just see the, the logic of the hierarchy at the moment. Then below the central bank is the banking system which is holding currency as an asset and issuing deposits as its liability. Okay. Again, so this is its reserve which are deposit accounts or, or actual currency at the central bank, okay, and this is its liability, the private money supply, the liability of private banks. Okay, and then, farther down, who is it that holds deposits as their assets, private sector. Okay. And they're holding deposits as their assets. And they're issuing various kinds of credit as their liability so I'll put securities here as their liability. So these are just the same, same entities that I had the hierarchy. And I'm showing the hierarchy of institutions now, okay? and let me just put securities in here too as an asset, okay, because the private sector is holding these securities in your pension funds and insurance companies and so forth as well as, as well as issuing them different individuals who are just aggregating here. There are other assets here, you know, there's loans here, and there is other stuff here. But, and I, I'm even abstracted by the way I should say, the shadow banking system, which is going to be a huge part of this course, is not here at all. We're talking 19th century, gold standard stuff. What I want to draw your attention to, in this picture, is that every, every word, every concept appears twice, except gold. Why is that important? This is the, this is the difference between inside money and outside money. Outside money is an asset that is no one's liability. Gold is an asset that is no one's liability. It's, you know, a piece of gold metal. It's, it's, it's not, it's not a form of credit at all. Everything else is credit. Inside money is some form of credit. When people talked about credit money, maybe they're talking about currency, maybe they're talking about deposits, maybe they're talking about other shadow banking entities, okay? The point is that pretty much all money is inside money. Pretty much all money is inside money. And this is why, this is this other psychological barrier people have, that they're used to thinking of money as stuff. Okay, as an asset. No. Almost all money is somebody's liability, okay? It's not stuff, it's not a heap of anything, okay? It's somebody's promise. It's somebody's promise, somewhere. they're all forms of money. I should just indicate here. This, this language here there's a very famous book from in 1960. Was published called money in the theory of finance by berly and shaw, and they introduced this language; outside money and inside money. We're going to be reading some chapters of that, of that book. they were concerned about banking as inter-mediation about the flow of saving to investment. And even which we won't be so concerned about until we get to reading their, their, their, their passages. When you read it, you will be astonished to discover that they think of currency as outside money. They define currency as outside money. Because, they're thinking, they're not thinking about a global system, okay, they're thinking about nation state. They're thinking about the United States. And so, they're thinking that this is just fiat currency, it's not a promise to pay anything, okay? And well, in some sense, that could be true, if you're not, if your not on the gold standard. If you are on the gold standard, it's a promise to pay gold, okay? And so that's why I'm making it clear by emphasizing gold standard here. So, when you don't have a promise to pay gold, it becomes a little less clear. What is the ontological status of, of, of currency, okay? Is it credit? Is it outside money? Well, they treat it as it's outside money. In this course, we pretty much always going to be treating currency as, as inside money because we're always taking a global perspective. We're thinking about this as a world, okay. But this is a particular nation, state's banking system but it's not autonomous, you know, they're trading with the outside world. There's some international money that they need to make sure their national money is convertible into. Maybe the price moves around. It's not fixed like in gold but there's some, there's some exchange right there that is, that is going to be important for our, for our discussion. okay, so there's now, we've extended this idea a little bit from the hierarchy of financial instruments to the hierarchy of, of financial institutions, okay?