In my now, uh, many years of, um, of, uh, teaching economics, I've, I've learned that, um, no matter what time it is, you should always start when the lull, you know, occurs in the crowd. So we're gonna go ahead and start, you sort of settle down, and, uh, this is a good time to, uh, jump in. Um, so in this, uh, session, we're gonna talk about the economics of fractional reserve banking, and I want to emphasize that, uh, we're going to, uh, concentrate our effort on the economics. Uh, the economic theory of fractional reserve banking, we will not, uh, delve into the legal questions, uh, or the, uh, moral questions of fractional reserve banking, all very interesting, uh, areas of, uh, discussion. Um, and if you're interested in reading, uh, something on those, uh, points, I highly recommend, uh, Guido Holtzman's book, The Ethics of Money Production, a very excellent, uh, treatment of all these issues, the economic and the, uh, ethical issues involved. So let's start, uh, what will, uh, the outline here is, uh, we'll start with a, um, a review of the market system of money and banking, and then, uh, and to see how this, uh, uh, integrates into the, the working of the economy, and then we'll introduce fractional reserve banking, we'll give a definition and talk about, uh, you know, what it, how it operates, and then what its, uh, implications are for the working, uh, of the market economy. And then, uh, the third thing we'll do at the end, we'll talk about the, uh, the justifications that have been given, uh, or the main justification, at least it's been given for, uh, treating fractional reserve banking as a part, uh, of the market economy. So we'll deal with this question of whether or not, uh, economic theory would lead us to the conclusion that fractional bank, uh, fractional reserve banking is or is not a kind of natural part of the working of, uh, of a market economy. Okay, so let's, uh, just review real quickly what, uh, what Dr. Englehart talked about yesterday on the, on the market development of money. We know that out of a barter economy, we think about, uh, just to remind you, in economic theorizing, of course, we always think about these things in the, in the structure of logic, right? We're not, we're not interested in the details of, uh, time and place and so on. We're just, we're just interested in the flow of the logic of how, uh, uh, things arise in the market and so on and so forth, right? So we start with a barter economy because that would be the precursor to money. And, uh, we notice, uh, logically the double coincidence of one's problem is, uh, uh, Dr. Englehart was explaining yesterday. And then the solution to this, uh, is just an entrepreneurial innovation. Somebody in the market just hits upon the notion that, um, he can take his goods and trade with a third party who has a general, more generally saleable good that he can then take and trade for what he wants with his intended trading partner. And of course, if one person can see this, it's not a, uh, you know, rocket science. If one person can perceive that a more generally saleable good solves the double coincidence of one's problem, then of course other people can see this too, right? So it's just a question of, um, development of this insight that one person in history would have made initially, uh, that, uh, leads to the development of a general medium of exchange. Again, as Dr. Englehart has already, uh, uh, outlined for us. Now I might add one, uh, one other element to this though. And, uh, this is the, uh, certification of money. So as Dr. Englehart explained, it may have been in history that, um, some of the things that were used initially as, uh, a medium of exchange, uh, were not suitable to be a general medium of exchange.  So another entrepreneurial innovation would have been that someone noticing people using these different various things as a, uh, media of exchange would have, uh, hit upon the notion that there might be just one commodity or just a handful of commodities. They're actually superior in their physical properties as a medium of exchange. They're durable and divisible and, you know, the standard kind of, uh, uh, desirable, uh, elements of, uh, of commodity money that you would read in any, uh, money in banking text. So this too is just a natural entrepreneurial innovation. It's just, it's just the, the natural entrepreneurial inclination to provide a superior product, right? And then to, uh, be a profit, earn the profit from providing a superior product to people. So once this is done, it probably would occur synchronously with certification. That is, you would, an entrepreneur would think, you know, gold is probably the best commodity for medium of exchange for the reasons that, uh, again, Dr. Englehart has already explained, but it'd be even better if I certified it, if I stamped on the gold, if I formed it into a standard, uh, uh, shape and size, and I stamp on it that as the producer of this money, I guarantee the weight and fineness of the gold in this coin. So coinage too would have just been a natural entrepreneurial, uh, strategy, right? It's a business strategy. You can make money, right? You can survive and make a business minting, uh, minting coins, either buying the gold from a mining company and then minting it and earning the fee from minting. And of course the, uh, customers are willing to pay the fee, uh, because having the certification is valuable. Then you don't have to weigh in a say the raw commodity every time it's used, right? So this is a viable business strategy or to put it, to put it in the more general terms. This is how the production of money would be integrated into the, uh, regular system of economic calculation that all goods, the production of all goods is subject to on the market. It's no different. It's just private enterprise, the entrepreneurs in the market, uh, producing a product, uh, and earning a profit. They earn the profit by charging fees for the, uh, differential advantage that, uh, consumers get from having certification of the money. And so that, so that's how money would develop, uh, to its, uh, sort of, um, uh, at least historically known end state of perfection, if you will, or development. Now what about banking? Well, banking, uh, would develop along two lines. There could be other things too, but they're not, uh, necessary for us to go into in this talk. But along two lines that, uh, we need to talk about fraction reserve banking. Uh, the first is what, uh, is sometimes called deposit banking. So we see, again, the logic of how you could establish a business as an entrepreneur by innovating and providing a superior product to the customer, for which the customer will pay a fee that generates revenue so you can cover your costs, right, just like any business. And this is, uh, to deposit banking is where the, uh, entrepreneur who runs a bank would take the certification that's on the coin, and place the certification on a piece of paper, or an electronic ledger. So something like a bank note. Now what's the advantage of a bank note to the customer? Why would a customer pay for a bank note instead of, you know, just using the coins? And hopefully you can see right away it's the convenience and safety.  It doesn't clink in your pocket as Dr. Engelhardt was explaining and alert the thieves among us, uh, to your, to your stash, uh, and so on. So there are various sorts in electronic versions of this course. They're even more, uh, beneficial because we can transfer the, the claim electronically, right? Then we don't even have to carry any, we just, you know, we just, uh, we're just on Amazon.  Here's my debit card number and we swipe our debit cards. So it's that, it's that kind of thing. Of course people will pay fees for this because it's, it's valuable to them. Or to the extent that it's valuable to them, they'll pay fees. And so you can have a, uh, an entrepreneurially run bank that's deposit banking. And, and so this would be the first step. Now the key though, to the, the bank note or this, this certification on a piece of paper, uh, becoming a medium of exchange, the key to this, of course, is the absolute and unequivocal redemption of the bank note for money proper on demand at par. So this is a condition that, uh, Ludy von Mises, uh, emphasized in theory of money and credit is great treatise on money. Uh, so if, if, if customers are to take their bank notes instead of gold coins and spend them, uh, uh, with merchants who aren't customers of the same bank, then the merchant has to have very high confidence that he can take the bank note down to the customer's bank and redeem it for an equivalent amount of gold, right? Money proper. It has to be a firm and, uh, secure, uh, redemption claim. If that happens, then, then, uh, the, uh, the bank note, the so-called money substitute, uh, can be also then a medium of exchange. It can actually be a substitute for money or a companion medium of exchange if you wish to put it this way. Now the natural progression of this development, of course, as, as we're sort of unfolding it, would be for what Mises like to call money certificates, and a money certificate Mises defines as a money substitute, a claim to money, this redemption claim to money, uh, for which there is a 100% reserve of money, um, uh, that the customers can have for redemption. So the deposit bank would first initially start as a 100% reserve bank, not a fractional reserve bank. I mean, it seems the first step would be a 100% reserve bank. This would give, uh, you know, greater confidence to the merchants at large that they could, in fact, redeem these claims on demand at par. There would be no question of this, uh, or at least very little, uh, uh, uncertainty about this if there were a 100% reserve. So we see this then as the initial development of, of a market institution of banking. Now, let's, uh, so here we summarize this, right? The money emerges from the market activity as this commodity, and then entrepreneurs certify the commodity, and the customers get this benefit of standardization of the bank note or the checking account and so on. And the key point that the production of this, uh, money, and then the money substitutes, as we were speaking about, would be integrated into the market. All the production is based upon the same system of economic calculation. Is it profitable? Are there losses? You know, the entrepreneur would adjust production according to the regular pattern of profit and loss. Now, there could be different ways in which the money certificates could be, uh, issued by the bank, and we want to make just a, we want to follow along one line of how this could be done. And the argument that we're making throughout the talk, it doesn't depend on whether it's done one way or another, but I want to do this for purposes of illustration. So once the money substitute is issued by, or the money certificate is issued by the bank, the bank could treat in the sense of its own assets and liabilities. The bank can make a contract with the customer with respect to this bank note in one of two ways. One way would be, as we've, uh, the case that we're taking, is deposit banking. Deposit banking is when the customer would come into the bank and deposit the coins in the bank for safekeeping and deposit them. And then when they're deposited, the bank, uh, the customer transfers ownership of the coins to the bank in exchange for the bank note. That would be one feasible way in which this could be arranged. Uh, and, and I want to do it this way just, again, for purposes of illustration. Uh, Murray Rothbard in his work does it the other way. The other way is to, is that this relationship between the customer and the bank could be treated as a warehouse relationship, a bailment contract, where the customer comes in and doesn't, uh, trade the ownership of the money for the ownership of the money certificate, but pays a storage fee to the bank. And the bank is just a warehouse then storing the customer's gold. And the bank note, legally then, is just a, uh, a ticket of ownership. It's just a sign of ownership. So, so we're not going to, we're not going to follow out in that legal path. We're going to follow this other legal path. And the reason to follow the other legal path is because we can, we can, uh, make a nice contrast between how it affects the bank's assets and liabilities compared to fractional reserve banking. So that's the only reason to do this. So this is what it would look like a typical, uh, arrangement between the customer of the bank. This is what the bank's, uh, balance sheet would look like, the T account and their balance sheet would look like. If a customer came into the bank and deposited $1,000 in gold and then gave up ownership of that to the bank, you now own the gold and I now own this, uh, claim. So the claim is in a checking account. So the claim is electronically, uh, recorded in a checking account. That's what the customer owns. In other words, the bank now has a liability. They must pay the, uh, the owner of the checking account funds on demand at par, the money that they're holding in reserve. That's the contract that they enter into. Whoever has the checking account funds present them at the bank and the bank will redeem on demand at par the, uh, the money reserve. Uh, by the way, uh, hopefully you can see right away if the, if this is a warehouse contract that the customer forms with the bank, then it won't affect the bank's balance sheet at all, right? Because the bank doesn't own anything. The bank doesn't own the gold. It doesn't have any liability claim with respect to the, uh, you know, IOUs that it has to other people. So, so it's a different, uh, impact. So we do it this way so that we can, we can make a direct comparison to fractional reserve banking where again it affects the bank's balance sheet as we'll see. Now the other main point though that we want to make here is that, um, this, uh, this production of the money certificate then leaves the total stock of money the same. Nothing has changed, right? The bank has simply replaced one form of the medium of exchange with another. They've taken money off the market and used it now as a reserve instead of a medium of exchange or not using it as a medium of exchange or using it as a reserve. And now they've issued another medium of exchange, the bank note or the, in this case, a checking account that serves in place of or as a substitute for money. So when the banks issue checking accounts, they do not change the total stock of money in society. They just change the form of the medium of exchange from money proper to money, uh, the money substitutes. By the way, just as an aside and before the financial meltdown that began in 2007. If you looked at the M1 money supply in the U.S., um, it was roughly 25% money proper, Federal Reserve notes, and 75% checking account balances. When we got into the middle of the financial crisis in 2009, the balance between the two is 50-50. So this is still a live issue in our economy, right? People choose between the two that they can move their funds between the two forms of the medium of exchange. Sometimes they prefer money proper, sometimes they're more inclined to prefer the money substitute. And it's quite obvious why they, hopefully it's obvious to you at least, why they prefer the money proper during financial meltdown. You don't want to rely upon the redemption claim of the fraction reserve banks. Okay, so anyway, that's the first point to make with respect to the economic consequences of the deposit banking. Now, here's just a quote from a famous economist about 100% reserve banking. And the quote goes, the bank money, the money substitute, or the bank issued money substitute, what this author calls the bank money. Just offsets the amount of ordinary money, gold or currency, placed in the bank's vault. No money creation has taken place. 100% reserve banking system has a neutral effect on money and the macroeconomy because it has no effect on the money supply. Now, that quote was from the great economist Paul Samuelson. So, even the Archkainsians recognize this point, right? This is not a nutty right wing conspiracy argument. This is a well accepted conventional view. Okay, so now let's think about the next step. What about money production? And this here I've just borrowed Rothbard's diagrammatic analysis where he borrows it from Wich's need. Where we have the total stock of money as a vertical line, right? The total stock of money at any given time or the total stock of any good at a given point in time is fixed. So it doesn't depend upon what its price is, right? It's just physically fixed. So that's the amount of money, let's say we start at M zero. That would be the amount of money, a trillion dollars or whatever it is. And then the purchasing power of money would be determined by the extent of total demand for money given that total stock. And the total demand for money is the total demand that people have to hold money or whatever this good is as a good in their stock of goods, as an asset. So we're all holding money balances right now, cash on our person or checking account balances or so on. We're not instantly and completely taking those money balances and buying goods or investing to earn the rate of interest. We're holding money. And again, we're not going to go into the reasons of why this is done, but we'll just rely upon that background for our analysis. Now in the market system that we've described so far where money is something like gold coins and their money certificates issued by banks, then this purchasing power of money here at point A where we begin this dynamic analysis corresponds to a cost of producing the gold coins that generates a stable rate of return, a rate of return on investment that doesn't inspire profit, more production in profit or include losses and then a decrease in production or equilibrium so to speak with respect to the production of money. And then we ask the question, well, what could possibly occur? What would be the cause of an increased production of money? For example, would the miners and the minting companies just sort of arbitrarily increase the money supply? Just, hey, we're producing money. Let's just produce another 20%. Well, no, if they did this, they would drive the purchasing power of money down below its cost and suffer losses, just like if Tim Cook at Apple Inc. decided, so how many iPhones are we producing a month? Oh, it's 12 million. Let's produce 25 million a month. No, he's not going to do that, right? Because if he did that, in order to sell that volume, he would have to lower his price, and presumably that price would be below his cost and he'd suffer losses. So again, this is just a general analysis of how production of any good is regulated by profit and loss. The only way it would be forthcoming for entrepreneurs who are producing money to produce more of it is just like any other good if the demand for it first goes up or they anticipate that the demand for it's going to go up. If the demand for money goes up, then if they don't produce more money, the market value of money is going to be way up here, way above cost, right? So then they'll want to ramp up production, they'll buy more inputs, they'll open up more mines, they'll make more capital investment in new technology to get the gold out of seawater or whatever, and all of this has higher costs. And so their cost structure would increase and their total stock would increase to the point where again there's a balance of the return that's earned on investment in money production that would be similar to the rate of return that's earned in other like production processes, the mining of copper or the timber cutting or whatever other things are in a similar class of investable projects. So that's how the market production of money would function. To say this in a slightly different way, under a system of a market produced gold standard, the supply of money is not fixed. The supply of money expands or contracts according to the demand for money, just like any other good. The production of it expands or contracts according to demand. It's no different. Okay, so that's the gist of the market system for money. Now let's turn to a credit. This is the second function that banks perform that we need to investigate here, that they would perform on the market economy. And this is the intermediate credit. The banks borrow from savers, they pool the funds, and then they lend to investors.  Same thing here. The banks are paying wholesale interest rates to the savers to borrow the money, and then they're making a more efficient use of the money so that they can earn retail interest rates when they lend to investors. So this is how the system of credit intermediation would work. And again, this is even the language of financial intermediation indicates this middleman function, right? It's just that's where the interest spread comes from in a market economy. It doesn't come from leveraging. It comes that is borrowing short and lending long, right? Exploiting the yield curve. It comes from the greater efficiency of performing the lending activity to investors, investigating who are credit worthy borrowers and bearing the uncertainty of making these investments and relieving the savers of these difficulties so that they're willing to accept the wholesale interest rate in lieu of having to do all this themselves. They're just relying upon the division of labor. It's just an extension, if you will, of the division of labor. So credit intermediation, too, would be regulated by profit and loss. If the banks wanted to, I mean, they wouldn't just say, hey, it's nice and sunny today. I'm in a good mood. Let's lend 20% more, right? Because if they did this, again, they would have to move down the demand curve, right? And they'd have to accept lower interest rates from the borrowers. And they'd have to pay the savers higher interest rates to increase the supply of saving and their interest spread would be squeezed. It'd be squeezed to the point where they don't get enough revenue from that interest spread to cover their costs. And that's what we mean when we say that credit intermediation is regulated by profit and loss. It's no different, then, in that respect than the production of anything in the market. It's integrated fully into the market. Okay, so now let's turn to, oh, let me provide this one, again, kind of stylistic example of this just to drive the point home, and then we'll turn to the fractional reserve banking. Now, like my other example, the balance sheet of the bank, this one is an extreme example, right? It's a particular example. It's not meant to be always the case. It's just an illustration of what might happen. So in the extreme case, the bank's balance sheet might look something like this, right? Where they borrow from savers, they pay them certificates of deposit for one year. Savers come in and the bank negotiates and they take in $5,000, and then they make one-year loans equal in the time structure of that $5,000. And then they do the same thing with longer-term loans that savers are willing to grant them, $10,000 in five-year CDs. Now they owe savers $10,000 in five years, then they make a loan, a structure of loans that are five years long so that they can be paid back in a timely way to pay their liabilities, right? Now, of course, they don't have to do exactly this, but they do have to pay attention to the time structure of their assets and liabilities. For example, a more reasonable case would be that a bank finds out that over time that a lot of the one-year CDs roll over. Maybe like 60% of their one-year CDs are renewed or new customers come in and they have this kind of fund that's fairly stable over time. Well, then they could take the entrepreneurial venture of lending that pool out for longer periods of time, right? This would just be another entrepreneurial innovation that would be subject to uncertainty and maybe losses, but maybe profit, right? So there's just a normal business activity for them to try something like this. The point is they have to be sensitive. They're always put under pressure, the banks are, by the market, by us in the market, to keep the time structure of their assets and liabilities in balance. They can't get out of balance. They have to satisfy our time preferences to put it in the theoretical sense. So credit intermediation leaves the bank liquid. It leaves it solvent, right? They're the ones who are making, you know, experts in deciding who to lend the money to and so they're better than the customers are at doing this, the savers. So their loans are good or at least better again than they would be otherwise. And so their balance sheet is intact. There's nothing unusual about this. There's nothing different about the character of their balance sheet relative to an auto company or a tech company or anything else. All businesses in the market economy have to pay attention to liquidity and solvency of their activity. So credit intermediation does not change the supply of credit or the time structure of it fundamentally, right? So it looks something like this. Again, if we were to diagram this, the only way in the market economy, if we start with conditions of demand and supply for credit at point A, the only way for the interest rate to be pushed down or the supply of credit to be increased is for people's time preferences to fall. Now again, we're simplifying from other factors that can affect credit. We'll take this up tomorrow in the time preference lecture. But here the basic point is that time preference would drive interest rates down in the market as a reflection of the fact that savers time preference rates have gone down. And so we would get something like this, I1 and C1. Okay, so now that we've canvassed over how the market would work, let's turn to the issue of fiduciary media and fractional reserve banking. So these are just the terms or definitions. Fiduciary media are money substitutes for which a bank holds only a fraction of money reserve. Dr. Engelhardt referred to the Goldsmiths introducing in England, introducing this innovation of running their reserve. Simply seeing that there was a big pool of funds sitting in their bank vault, they didn't pay much attention to the legal status of, you know, whether it was legally permissible or morally okay for them to lend out these funds, they just started lending them out. And so they run the reserve fraction down. So that's where we get the language of fractional reserve banking, right? So fiduciary issue is when the banks issue checking account balances for which they only hold a fraction of reserve as money. So that's our language. Now, how do they do this? How does the bank issue fiduciary media? And the answer is they just extend credit. They just, they keystroke on a computer, right? They just hit a keystroke. Just like, it's very similar to, and we'll make a few analogies here, it's very similar to the Federal Reserve, they just hit a button on a printing press. And then more money comes out at the end of the process. The bank just hits a key on their keypad and a checking account balance increases of a customer. So a customer goes into the bank and says, I want to borrow money for a new car. And the bank says, yeah, you've been a good customer for us. Sure. We'll lend you the money. They don't borrow the money from a saver. They just write the loan into the customer's checking account. That's how fiduciary media comes into existence. We call this credit creation. The issue of the fiduciary media, we call monetary inflation. And the issue of the credit out of thin air, if you will, we call credit creation. Notice neither one of these phenomena can occur on the market economy that we've described so far, right? We're leaving open the question as to whether this is integratable into the market economy. But so far, this could not happen with commodity money and 100% reserve banking. Okay, so what's the effect of this? How does this look on the balance sheet? So let's say the bank again has a cash reserve of 1,000 that the customer has deposited. And then they opened up a checking account and put the 1,000 in the checking account. And now customers come into the bank and want to borrow money. And the bank says, sure. And they just make $9,000 worth of loans. And they write the loan balances in their customer's checking accounts. Then the customers take the balance and they go out and buy things. By the way, it's no different if the bank, again, there can be various ways in logistically in which this is done. Banks typically would write a cashier's check, right?  Or sometimes they would write the check directly to the home builder if you're building a house or something like this. It's no different though because the merchant's going to get the cashier's check and deposit the funds in his bank, right? And so it's still fiduciary, right? It doesn't matter where the funds are and whose checking account they are. What matters is the ratio between the overall checking account balances and the reserve. If that's a fraction, well, then we've got fiduciary issue. Okay, so this is what happens. Now the first thing we want to notice about this, of course, is that this activity cannot be regulated by profit and loss. And this is our first indication that it's not integrable into the market. It would seem that any process whose production cannot be regulated by profit and loss could not be part of the market. The reason for this, again, is that the bank earns the full rate of interest, the full retail rate of interest on the loan that they make. And yet they don't pay a rate of interest to anyone to borrow the money. In fact, what they do, instead of contractually paying someone to borrow the money and then intermediating being a middleman in between the saver and the investor, instead of doing that, they just create the funds out of thin air. Now again, if you don't see right away that this is different, let me just rely upon the analogy of our friends at the Federal Reserve who just print money. Isn't it similar though, right? They just print money. They don't bear the opportunity cost of production of the money. And so when people who get this new money spend it, who does bear the opportunity cost? Who is the loser of command over resources when the new money is being spent? The answer is, well, it's indiscriminate people who get the new money later in the process, right? It's people who haven't contracted to give up their command over resources. They're just victims of how the process plays itself out. So the same thing here. Nobody borrows these. I mean, nobody contractually agrees to reduce their command over resources by lending money to the bank. The bank just creates money, substitutes out of thin air, lends them to people. Those people have more command over resources. Somebody else has to have less. And the people who have less, of course, are people who get the newly spent money later in the process, right? So that sort of a process is, again, not integratable into the market because if the bank took the rule of production, let's issue all the fiduciary media that's profitable for the bank to produce. If that were their only rule of production, aside from obeying all the general laws of society and so on, they would bankrupt the bank, right? They would instantly drive the bank into non-solvency. They would make loans to any Tom Dick or Harry, walks in off the street, right? They can get maybe one payment out of them, and that's still profitable. So, of course, they can't proceed this way. They have to have a policy. They have to have an arbitrary policy that says, we'll only lend the credit scores that are this high. We'll only lend to these classes of assets. We'll only make collateral loans and so on and so forth. So we have something new here, something different from what we had before. Now, hopefully, regardless of how you absorb that argument, you can see right away that the bank, the issues fiduciary media is illiquid. The bank has instantaneous liabilities. Whoever holds the checking account balance can come to the bank on demand and receive the money reserve at par. It's an instantaneous liability. And yet the loans that balance out that liability on the asset side have a time dimension. So now they've leveraged, right? They've created an interest rate differential by leveraging. And, well, okay, that's different. We saw the banks in the under 100% reserve don't leverage. They're restricted, at least, in their leveraging. Okay, so this is a problem. The banks also become insolvent because, as we suggested before, if they're going to increase their supply of credit by 20%, what kind of customers are they going to lend to? They've already lent to their best customers. They're still economizing, right? Their supply of credit. So they have to lend to customers that they wouldn't lend to before. Less credit worthy customers. So the whole integrity of their asset side of their balance sheet is put in peril. This process of fiduciary issue then provides the monetary fuel for asset price inflation. So how do we get, you know, asset bubbles in the economy? Well, we get the fuel. The cause of it is this continuous increase in, well, in our economy in both fiat money and in fiduciary issue. Without that, if people wanted to finance their investments in one line of production, they would have to draw them out of another line. And so prices would be moderated in some lines when they increase in others. But with asset price bubbles, that doesn't happen, right? We get something new again that doesn't occur in the market as we've developed it so far. It's also true that this makes the whole banking system unstable. And the reason for this is because as asset prices rise, it affects the balance sheet of all the banks, whether they engage in fiduciary issue or not. As all the housing prices rose in the housing bubble in the early 2000s, then all the collateral values of all the banks that were holding loans against these houses improved. And suddenly they had equity on their balance sheet, right? That they could exploit by extending further liabilities, by leveraging even further. And so on this process goes, again, something that would not happen in the unhampered market economy. So this is how we would diagram monetary inflation. So now we can have a system of monetary inflation where the supply of fiduciary issue, the money substitutes, can just be increased ad infinitum. There's no restriction of profitability on the issue. And so we see this progressive reduction of the purchasing power of money or progressive price inflation in the economy. And the same with credit expansion. We get credit creation or credit expansion. This sort of artificial increase in the supply of credit that isn't driven by a lowering of time preference, but is just additional fiduciary issue comes into existence by additional fiduciary issue over time. Now, as you'll hear in lectures later on, this process of monetary inflation and credit expansion generates the business cycle. So this may generate a boom-like economic environment. It may look great on paper for a while, but it's self-reversing. And you'll hear about this later. At this point, we just want to establish the conclusion that if there is fiduciary issue, if there are fractional reserve banks, then they will put in motion monetary inflation and credit expansion, whereas 100% reserve banks and commodity money system will not do this. So a big difference between the two systems. Okay, here's another quote. Just to again rely upon arguments from authority. The transformation into fractional reserve banks holding fractional rather than 100% reserves against deposits was in fact revolutionary. It led to the leveraged financial institutions that dominate our financial systems today. I can't fool you twice, right? It's Paul Samuelson again. Okay, well. But rather remarkable, okay? That's just helpful to be reminded that we're not right-wing nuts, right? Not like crazy conspiracy theorists when we come up with this. It's just a, it's a logically recognized implication of the difference of the systems. Okay, now let's turn to the last issue, this issue of whether or not an argument can be made to justify the inclusion of fractional reserve banking in the market economy. What sort of, we've already indicated that this seems, it seems like you can't do this, right? The microeconomics of it seem like it's a different phenomena, fiduciary issue from money certificate issue. We get an entirely different dynamic, entirely different economic macro effects. So, but is there a counter argument? Is there some sort of position one could take that makes us think, well, it's still part of a market because it gives us some sort of market result that we can't get with the other system. So that's the issue now. And so that's what those in favor of this fractional reserve banking argue. They argue that this fiduciary media issue would exactly or roughly offset any increases in money demand that if you didn't have this fiduciary issue would lead to price deflation. And we're going to set aside in this talk, we just don't have time to do this. You'll see some of this in other lectures. But there's a presumption that price deflation is damaging to the operation of the market economy. We'll leave it at that, right? This line of argument just assumes that price deflation that's put in motion by an increase in money demand leads to depressing economic results. We'll set that aside. That's a separate issue. There are many of us on our side of this argument to claim that that's not so. But again, we don't have time to run through the arguments at this point. We want to focus on a different question, right? Okay. So this is how the argument would run. If money demand goes up, then this would signal to the fractional reserve banks that they need to issue more fiduciary media and they would issue it. And since the money demand has gone up, this additional fiduciary media, the additional checking account balances and so on, would be held by people and not spent because money demand's gone up. That's the assumption, right? And then the purchasing power of money would stay roughly the same. So we can increase the money demand, roughly commensurate increase in the total stock of money, and everything's wonderful. We get no price deflation. We save the market economy from sliding into this depths of depression from price deflation. So that's the basic thrust of the argument. Now Ludwig von Mises actually dealt with this issue in the theory of money credit, the book he published in 1912, where he said there's a difference in the operation between what he called a banking system, how banks operate in a system of banking, and what he called independent banks. So let's follow out the logic of this. Now we're going to take the independent banks in the second step, but suffice it for the case that I want to make about the banking system itself. If we have independent banks, then independent banks cannot, as a group, issue significant amounts of fiduciary media. We'll see why in just a minute. But let's take that as a conclusion that Mises reaches about independent banks. They cannot. So the only way that you can have a banking regime that has fiduciary issue increasing to meet increased money demand is if you have a banking system. It's the only way it can be done. You have to have a banking system. In a banking system, what happens is in order to absorb the additional fiduciary media, what has to happen is the clientele who are not customers of banks have to be given some kind of a reason to hold the money. Because when the customers of the bank gets the additional fiduciary issue, they'll spend some of it. And while some of it will go into the hands of clients who just turn it back to the bank, right? They redeem it. And then you wouldn't get this expansion that you need. So the argument depends upon some sort of a system of banks agreements among the banks that they will redeem the notes of other banks or something like this. So that the whole system can increase in lockstep. But once you take that step, as Mises pointed out, then the issue of fiduciary media will not be regulated by money demand. And the reason for this is on the chart that we show before, right? It's always profitable for the banks to issue more fiduciary media. They earn interest. And if they issue fiduciary media in excess of the increase in money demand, it will simply push the purchasing power of money down so that the quantity demanded of money will rise. And the entire issue of new fiduciary media will be held. And so the system, you're caught in this dilemma, right, if you take this line of argument. You have to have a banking system for the argument to work. If you have a banking system, well, the banking system can't, in fact, check the issue of fiduciary media in the way that it's been suggested, or at least it's problematic. Now, what about this other claim, though? This all rests upon Mises' argument that independent banks will not issue more significant amounts of fiduciary media. And here the point he makes is, again, a very basic one. If you're in a competitive environment with other banks and they're issuing fiduciary media and you get wind of this, your strategy as a competitor, of course, would be to accumulate some of these notes and then present them to the profligate bank and bankrupt them. So there's this competitive pressure among the banks. They don't cooperate with each other by redeeming each other's notes or anything of the sort. Quite the contrary, their cutthroat, their wildcat bankers who are constantly trying to put their competition at a disadvantage, right, by hoarding up their notes and presenting them en masse for redemption. So we get this almost complete restriction of the issue of fiduciary media as long as banks are independent. They operate with their own reserve, independent of agreements among themselves to have mutual redemption clauses or whatever the legal aspects of this might be. Now, let me just summarize with one last comment, and this has to do with, well, could price deflation be problematic and what would the market, how would the market system react to this if it were? So again, we're setting aside the issue of whether or not it is, let's just assume it is. So let's suppose that we had a commodity like gold produced in a market economy and it didn't expand enough as money demand went up, the production didn't expand enough to prevent price deflation, and let's say for whatever reason this created economic problems. Then are we just stuck in this world? Do we now have to go to fraction reserve banking to solve this problem? And no, we don't. This is just another opportunity for entrepreneurial innovation during profit. The entrepreneurs would just now select instead of gold a different commodity that had similar properties that was more readily producible, like silver, and then the production could be more expandable and the problem of price deflation could be avoided. So I've run over a little on time. Sorry about that. So we'll quit here. Thank you very much.


Let's talk about authentic content creation. What does it really mean? So as you know, I love using social media to build a business to grow a message But some of you don't like to use social media Like Facebook to grow your message to grow your audience to grow your business and I would be really interested to know why that is if you are willing to comment and Let me know let us know what your concern is with using social media to grow your business Or if you're not sure you want to go public with that you can privately message me to kind of give me your thoughts on it I'd love to know not one of the Common concerns I hear from people Some of the clients that I've worked with is George, I don't want to use social media to grow my business because I Don't want to feel like I have to keep putting up an image of myself and to try to maintain that image, right? Another reason is well, I can't imagine having to keep posting content forever like I don't have that much to say I mean, you know, so I'll dress each of these concerns one by one and Let's start let's start with the one about image Are you concerned that once you start you'll have this image you have to upkeep right first of all It's kind of like You get into a relationship And the person that you're you're dating Likes you as a certain way.  What if Now we're talking about authentic content authentic social media. What is authentic social media? What is that? It's like an authentic relationship or an authentic friendship. Let's just talk friendship Let's not even talk relationship. Just talk friendship. Do you have to pretend to be somebody? That you're not in order to continue a friendship If so, is that an authentic friendship? Not the most authentic one the most authentic friendship is where The person that you're your friends with Likes loves you Just as you are You can show up However, you know, you are that day And you know, as long as you're not too mean to them And as long as you're not consistently mean and offensive to them They're going to be they're going to keep being your friend And the truth is you are not going to show up on social media and be consistently mean or offensive There's no point that why would you do that?  It means showing up as I am You know, as you see, I wear the same thing every day pretty much, you know I don't I don't try to pretend to be somebody. I'm not Yes, other people might enjoy chaining out their shirt every day Like screw that. I don't have I don't have energy for that. I don't care if you don't like see there There are authentic friendships and authentic social media, right? It's like I don't care If there are certain things you don't like about me I don't care if you don't like me because I wear the same shirt all the time Leave it's okay. There are plenty of I I am only one of Tens of thousands of marketing experts that you could listen and watch and listen to and watch and and many of the Million marketing experts out there out of the million. Maybe there are a thousand who are very authentic Or like has the kind of value set that I do go go and watch them, you know Don't have to watch me. I had the same background all the time You don't like it. No worries. There are plenty of other things you could do with your time, you know, don't have to watch me Okay, and some people in fact don't like to watch me and they just like to read my articles great No problem. I try to show up authentically on my articles too And some people don't like Watching me nor reading my articles. No problem They there's tons of things you could do with your time to learn marketing and to learn business and all that stuff, right? so I don't have the energy to do certain things But I do have the energy to do other things. I have the energy to Show up with as much passion and heart as I can. I have the energy for that or I can build up the energy for that Um, I have I can build up the energy to study in my field and get as excellent at marketing Certain things again marketing is so many things including Switching up your background all the time changing shirts, you know Making video editing really cool making everything really fast and interesting. That's marketing too. I don't have the energy for that Right, but not marketing is so many things. I'm going to just focus on a few things. I have energy for and And show up and whoever connects with me. There's enough going to be enough people. That's a thing about online marketing There are enough people for you No matter who you are No matter how you want to show up as no matter if you never change your background video background You know no matter if you never change your shirt no matter if you're you know You look a certain way that people don't like I don't doesn't matter There are enough More than enough people for you to build a full thriving business for the rest of your life That's really that's amazing thing about online marketing and As I've said many times the easiest way to do that is through facebook ads Which is why I teach it and people love taking that from me. So Bottom line, all right Think of social media Authentically authentic social media like an authentic friendship. How would you be in an authentic friendship? Do the same thing on social media in an authentic friendship you would Enjoy the person, you know Show up as you are they enjoy you You try to help them you share the thoughts that you're going on when you go hang out with a friend Do you go I got to prepare Okay, I got to be funny today with my friend I got to like Yeah, there's an order of topics that I should talk to my friend about first I need to talk about this and then and then and then and then next time I meet with him. I should talk about that and then next Some of you are so worried about the order of topics. Oh my god George should I do this talk about this first and then this and then this and then this I don't so in fact when I was As I started talking about this, I'm like, oh the video I just made previously was kind of on the same topic I should have switched it up. So this order of today's topic is not the right order either So I should have there's lots of topics I could have talked about. I should have talked about another one So I so even the order of topics is wrong in what I do So it doesn't matter and like the books that I release the order is not perfect Now I'm reading principle. I'm releasing principles of authentic business now that probably shouldn't have been my first book It doesn't matter Like you worry too much if you're thinking about these things What you need to do is show up and run facebook ads And that's what you need to do first and then you look back on on the on the data and then you can organize better But if you don't have any data yet from your audience, how do you even plan your business? You don't plan your business without data. That's I think that's probably the biggest misconception that so many of you have Oh, I got to plan my business or I got to plan my content You don't plan in advance The whole point of authentic business is that you can be yourself And build a six figure seven figure whatever eight figure. It doesn't matter how how much money you want to make You can do that being yourself. Did you know that? Without using funnels and what I mean if you like using funnels do it, but you don't have to either Right, you could be yourself and as long as you distribute your content enough But you can't just show up on facebook and expect that People millions of people will find you you can't put a blog up and expect people will find you You have to know how to distribute your content. That's part of the game The strip the easiest way to distribute your content is through facebook ads the easiest way Search engine optimization is not that easy um, although That's something I've taught a class on and you could take that class if you want to do that way Doing interviews is another way to distribute your content being interviewed by other people you can trade interviews But anyway, it's just It's that's it authentic social media is like an authentic friendship Think about that and and work on that and show up as you are again Like I said with a friend. I don't think okay I gotta I gotta like think about these things to say No, I show up to the to the to the meeting with a friend and I just say here's what's in my mind today You know, I was thinking or like hey, I'm so glad to see you know, I have something that I want to I want to work through with you I'm like I have this this particular topic. I'm so passionate about I want let me let me talk about it with you And see what you think of it, right? So see see what you know, let's have a conversation about it That's authentic social media right there You don't plan so much you show up And show up that day with whatever is alive For you right now And you just do that That's it. You don't think with your friend, right? You don't think oh my god I gotta have stuff to talk about with my friends for the rest of my life for the rest of this friendship like I don't have There's not much to say On social media, it's even better because it's not it's not one authentic friend It's you know, first it's one and then it's five and then it's 250 and then it's 5,000 or lots of authentic friends and and and you have lots of things to talk about for the rest of your life You don't have to plan so much and worry so much that you don't have enough content for the rest of your life You just show up today Even if you set the same thing last video like I did The last video was the same thing same basically just set slightly different order of words, right? You just show up Be your authentic self now as I said Before you show up and start the video before you write you do one minute of energy reboot I have talked about my energy reboot before those of you don't know It's basically four breaths. That's how I do it. You might have a different way of grounding yourself But you just you know, I hold literally this is what I did before I started this video and it only takes me 20 seconds This is this is literally what I do. I breathe in love Breathe out total security Which I believe is a reality for you and me total security And that's part of authenticity. I mean, let me finish the energy reboot And I'll talk about the my total security is part of authenticity So first one is breathe in love breathe out total security second one breathe in love Breathe out playfulness or joy. It's or or you know gratitude It's basically one of those words that has a second out breath and playfulness is great And that's part of total security and then third breath is I breathe in My sort of the virtue focus of the week today this week. It's joyful discipline. So I breathe that out into my life And then the final one I think about what I'm going to do next and I breathe in And then I breathe out love and wisdom into that thing I'm going to do next Tech takes 20 seconds and now I'm ready to do my video or write my article even though I didn't feel like it before And even when I started recording this, like I said, I didn't feel like doing it I am like, oh my gosh, you know, my my wife is going on a trip today and I I just I'm not in the right mindset But I'm here because otherwise I'll keep putting it off. That's what I know to be true about me, right? so Total security why so to show up. So so authentic friendship, right? You can only have authentic friendships when Genuinely authentic friendships happen when you are a secure person And yes, all of us are on the spectrum of feeling secure or feeling insecure And there's days when we're not and days where we are and so I'm not saying that you're Insecure forever or you're secure forever depends on the situation But it is something that we all I think need to work on every single day. What is your practice? to To to become more and more secure psychologically and spiritually emotionally mentally every day and That leads to financial security too, but that's another thing Total security to me means that no matter what I do. I've said this before I'm not afraid of death I'm not. Um, I think it's because of my faith. It seems because of what I believe about the afterlife and the spiritual world I believe it's so much. I mean it is so real to me That I I literally I don't believe that death exists. I think it's just a a change of consciousness It's the consciousness state this this vehicle that called the body dies and then the consciousness keeps going You'll see yourself up if you've seen your death experiences or you heard about them You see yourself above your body you float into the tunnel the blah blah You'll see your loved ones who passed on and on to the next stage of evolution So I I'm not I'm not afraid of death and I know that this life is only one of you know 100 years of 5 billion trillion years.   So we're here to play I mean, we're here to play in a sense, but we're also here to grow. That's primarily I think we're here to grow And not grow in more money more power more prestige more pleasure but to grow in psychological security essentially and playfulness and grow in virtues and so All of it all of this business building all of it to me is just about spiritual growth None of it really matters. None of it really matters whether business goes up and down whatever Am I growing spiritually? Am I taking that situation and finding finding benefit in it finding finding joy in it finding The next step to of courage in it, you know And am I serving am I serving my highest good my highest and your highest good? You know, so it's like none of it really matters. So so when you show up when you show up With your videos or with your writing or whatever whatever content you're creating You are giving yourself that opportunity to to to explore to get to know yourself better And so that's what the friend does either authentic friend You know, you are there for him or her To explore him or herself And you are there and and they are there for you to explore your your your your greatest and deepest and highest self too And then you know and same thing with social media. That's what we're here for I don't this is a this might sound interesting. It's strange. I don't like using facebook I don't like using instagram. I don't like any social media if I if I if I Could serve you all without using social media. I would I don't like social media. I don't enjoy it I mean I do it for business. I do it for I do it only for business I don't I don't go on social media in my spare time. I only look at my clients stuff And so I only do this stuff for business. I don't Yeah, I minimize my social media because I don't like it. I don't enjoy it I mean, you know, I'd prefer to like watch youtube videos or whatever, you know So so I I only do this for business And when I say business, I mean spiritual growth I only do this to explore What I'm thinking and to then to serve you and to figure out what you're thinking so I can serve you better and as I I explore in a way that's useful for you. I might say that Okay, I explore in a way that's interesting and useful and helpful to you That's why I use social media. I don't do it for fun There's lots of other fun things to do. Why am I doing this? So use social media for your business and knowing that business is really for your exploration your inner exploration and growth That's it and service to the highest good of all That's it. So, um I was I didn't even say that the main thing I wanted to say today Which is document don't create.  I think he's a little bit too attention hogging That's not that's not a great thing. I think he has enough money. He has enough attention He's just trying to be like the most famous person in history. Um, that's not necessarily a good thing I think chasing money dominant being dominated by money chasing is is I think just as inefficient for spiritual growth as being dominated by attention seeking so it's like Money is important attention is important, but when we're dominated by either one It's not the most efficient use of our life purpose, right? so, uh, I think so um So I'm all about efficiency, but when when it comes to spiritual growth, right and the highest serve so Um document don't create but I like this phrase from him Which is the idea that Some of you are just getting so nervous about creating content because you got it Yeah, you're are you thinking you got to be perfect. You get thinking that it's got to be good You don't want to offend people. You don't want to turn people off You don't want to make a good first impression all these things that are stopping you and Gary Vaynerchuk says listen stop that And just document your journey. That's it And by documenting your journey is what I what you see me doing all day long, you know every time I show up here I'm talking stuff through I'm like saying this is alive for me right now or this is what I know This is alive for you right now and then let's explore this together I'm documenting my journey as I go along document and just like my secret side project Which I'm I'm due for another video and blog post in the next couple weeks. I'll tell you about that It's ongoing obviously I'm documenting my journey. I'm telling you what's going on and what I'm learning and documenting Uh, I think what Gary the way Gary talks about it is a little bit too frequent He says oh, you should be doing multiple things every single day You should be making a video of multiple things on social media every single day That's a little bit much for me. Like I said, I don't like using social media. I just do it I just do I just do it To to grow personally, you know to do it to grow professionally. That's it um So what about you? Are you documenting your journey?  You're going to be so glad that look I was there before and now I'm here And and some of you already do this through journaling through private journaling and that's wonderful Now I'm I'm interested in having you do public journaling And no I'm so scared of public journaling because what if I could turn people off people don't like me It's not as good. I I I did damage my reputation for the future Forget all that You know, this is something I've been around I've been around the internet for a long time ever since, you know The late 90s and something I've learned about the internet is that memory Yes, you could say the memory the internet some memories very long But at the same time really for audience building and and business building the memory is very very short You don't have to worry about public journaling being somehow bad for your future Um, and you can always move it too. Okay, you can always remove stuff in the future But as long as you're not Out there to offend as long as you're being honest and you're trying to be helpful People will sense that and people will will forgive you till the ends of the earth Uh, you won't damage your future reputation.  That's You know, use your common sense, right? You don't want to one thing I I I also say about public journaling is Vulnerability is good. Uh, as you can see I'm vulnerable in a lot of my videos But but there's a there's a formula to vulnerability that is beneficial and not beneficial, right? If you just say woe is me, I'm having a bad day. This bad thing happened to me I'm feeling sad. I'm feeling angry, blah, blah, and that's all you say People think that that's authentic social media. I think that's just saying too much I think that's just being that I think that's just polluting the consciousness of the world with negativity So so be vulnerable, but do it this way woe is me But that's the first part of the formula the second part of the formula And this is what I did to recover or this is what I'm doing now to go to the next level Okay, you can say woe is me. Oh, I I made a mistake. I I failed doing this I this is not working well for me and this is now what I'm doing to go to the next step This is now what I'm learning from it that may be helpful for you as well So if you do authentic social media that way Share what's really on your thoughts be vulnerable sometimes, but woe is me, but this is what I'm doing about it Okay, that's a good formula for vulnerability And just share what's really real for you right now. That's all you've got to do You've got to do that Enough where you become that's become normal becomes normal for you. You no longer worry and fear and Perfectionism about showing up. You just got to show up. Just got to show up. You will get stronger over time You'll get it become a better communicator over time You'll get more confident over time and being confident makes you a better communicator Make sure a more interesting communicator Whether it's in writing or whether it's in videos or whether it's a podcast or whatever photos, whatever you whatever you're doing so Document your journey. That's all you that's all gary vanerchuk asks of us to do and that's a great idea Documentation rather than creation. Don't worry about creating. It's got to be in order. It's got to be this Forget all that just document what's real for you in a lie for you and might be helpful for the audience right now and then the other the other dichotomy to think about this Presence over perfection All I want is your presence. All I want is you to show up. You don't have to be perfect at all because guess what? The whole journey is perfect That's the secret the secret is perfection is already here The secret is you don't have to try to be perfect because you already are Not that when I say you're perfect. I don't mean that you don't grow anymore You're going to grow infinitely forever keep growing and learning and becoming more wise Becoming more loving becoming more powerful But what I mean is you as you're perfect in a sense of you don't have to try to to Do something to be secure you Metaphysically spiritually Foundationally there is a perfect security that's already there And you don't have to try There's a wonderful song look look this up by daniel namod and a h m o d. That's his last name daniel first name last name namod and Oh, and a h m o d and the song is called the race is over He said what if the race is over and we've all already won? You know The race is over. You don't have to try to race and everything. It's already over. Everybody's already won And now we're just here to play to grow to explore to become better versions of ourselves Not because then we'll be more secure Psychologically and spiritually but because it's fun to become a better version of ourselves It's it's enjoyable. We become more powerful and creative and loving and wise Document don't create just show up and say what's what's what's important for you now And what you think might be useful and interesting to your people without having to plan so much You can plan when you look back on the data Of what posts are working Look back on my previous video on that But um, I hope this is helpful gone on long enough. See this is partly also what happens without planning as I go on too long But that's okay. That's okay, too. All right. Um, thanks for those who are joining me live here captain Dan Roberto Maryam Gudrun Kiem Tucker Linda Steve Isabelle Carissa Who else Arturo? Shweta Thank you all for your for your presence here. I appreciate you very much Yeah Yeah, and Carissa says yeah yikes public public journaling that does scare me Um, you know get used to the plat maybe part of what you need to get used to is just the technology itself Right, that's part of it. So start a a secret Facebook group with three supportive friends. Ask them first, of course Start with two or three supportive colleagues friends Whomever, uh, maybe people from this community from people from my community Hey, who wants to start a secret Facebook group where We are accepted for the content we put up there public journaling in that secret group Then you again to get at least get used to that the platform The the technology of putting yourself out there on the technology in a secret group with a few people And you'll see that people are supportive of you and now you'll get a bit more bold and and start doing a bit larger group And then maybe publicly so maybe start that way. This is a good idea Thank you everybody and uh, I wish you I wish you playfulness. I wish you joy as you step out and Share your journey, which is a unique one. Your journey is certainly unique Nobody has lived the life that you have. Trust me on that one Nobody has had the exact thoughts that you have you need to be out there. You need to share those. All right blessings


Hi and welcome to the session, let us discuss the following question, question says, find the area of the triangle whose vertices are 2, 3, minus 1, 0, 2, minus 4. First of all let us understand that if we are given a triangle ABC where coordinates of A are x1, y1, coordinates of Br, x2, y2 and coordinates of Cr, x3, y3 then area of triangle ABC is equal to half multiplied by x1 multiplied by y2 minus y3 plus x2 multiplied by y3 minus y1 plus x3 multiplied by y1 minus y2. We will use this expression as basic idea to solve the given question. Now let us start with the solution. Now we are given that vertices of the triangle are 2, 3, minus 1, 0 and 2 minus 4. Now let us assume that triangle is ABC where coordinates of A are 2, 3, coordinates of Br minus 1, 0 and coordinates of Cr 2 minus 4. Now using key idea we get x1 is equal to 2 and y1 is equal to 3. Here x2 is equal to minus 1 and y2 is equal to 0 and here x3 is equal to 2 and y3 is equal to minus 4. Now we can write area of triangle formed by vertices A, 2, 3, B minus 1, 0 and C 2 minus 4 is given by half multiplied by x1, x1 we know is equal to 2 multiplied by y2 minus y3 we know y2 is equal to 0 and y3 is equal to minus 4. So we can write 0 minus minus 4 plus x2 we know x2 is equal to minus 1 so we can write minus 1 multiplied by y3 minus y1, y3 is equal to minus 4 minus y1, y1 is equal to 3. Now next term is x3 multiplied by y1 minus y2 we know x3 is equal to 2 and y1 is equal to 3 and y2 is equal to 0. So we can write 3 minus 0 here now this is equal to half multiplied by 2 multiplied by 0 plus 4 we know negative negative signs form positive sign plus minus 1 multiplied by we know minus 4 minus 3 is equal to minus 7. So we can write minus 1 multiplied by minus 7 plus 2 multiplied by 3 minus 0 is 3 so we can write 2 multiplied by 3. Now simplifying it further we get half multiplied by 8 plus 7 plus 6 now simplifying it further we get 21 upon 2 square units so the area of the triangle is 21 upon 2 square units this is our required answer this completes the session hope you understood the session take care and have a nice day.


Hey everybody Bob Trossett here post game with coach Miller coach the score really did not indicate how this one went Talk to me through how how that second half went in your mind. Yeah, you know, I just told the guys You know, it was one of those hard things, you know for 81 minutes, you know, we competed with the national ranked team I thought we had them on the ropes after that goal.  So for 81 minutes. We were we were in this game How about the physical play both teams with Double digits and fouls. What were you telling the guys in terms of physicality?  They were getting a lot and that's what I thought when it was 1-1 and they were getting a lot of yellow cards and freekicks You know against them. I thought that's when we had them on the ropes But you know, obviously the defending led us down But yeah, it was it was a physical battle and we expect that every time against like homie a couple yellow cards are issued DR gets the PA key PK kick he converts it momentum really seemed to shift at least from up top Did you feel that at all? Yeah, we did and that's what I was saying like we you know We when we scored that PK we had a two chances before that We just missed wide of the post so we knew that we were in the game and we had an opportunity You know and we really felt the same way we did, you know after the Lebanon Valley first goal that we were back in the game You know, we felt felt confident. We felt good. We kept the guys on that we you know We didn't make any we didn't go to defensive shape We wanted to go win the game and in the 90 minutes and unfortunately We just you know let ourselves down with some of our defending last note I'll allow you to give you the floor for your seniors. Yeah, you know, I've only been here, you know It's in April but you know these seniors and eight of them One that isn't able to play but you know all of the seniors I can't you know, thank enough for their support They've bought into what we're trying to do with this program We're we're gonna make this program better because of what these guys did this year We still get a chance of the playoffs that those eight seniors, you know, they they have been you know They've been through a lot over their four years, you know with the program three different coaches and but they didn't they didn't give up You see there, you know their work rate.  They are, you know inspirations for future, you know You know Stevenson soccer players and I'm I'm proud of all of them and we're gonna go and celebrate up at the you know Senior tailgate and I'm just you know proud of every one of them.  All right coach. Thanks for your time. Best luck on the road Thanks, man. He's coach Miller on Bob Tross and saying good night from Mustang Stadium


Good afternoon everyone. We are going to present to you the Anudino which is a low-cost equivalent of the Arduino. First of all, I will introduce myself and my team members. I am Parishmita, Ms. Chandana, Yush, Samreth and Harish. We would like to thank all our mentors for their constant support and guidance throughout these two months. The overview of the project, we first created a repository of hardware interfacing using the Anudino board. After that, we went on to developing a relatively low-cost home automation system using this board. We want to release a book for learners with some detailed instructions about the Anudino board. The book is already under processing. The experiments have been documented and it's going to be released soon. This is the book which is going to be released. What is Arduino? Arduino is an open-source electronics prototyping platform. Lots of Arduino-enabled boards are available in the market already. The most common one being Arduino Uno. This is the board. People from the electronics background have already used this extensively to develop various projects. Now, what is Anudino then? It is a micro-sized Arduino-enabled USB board. It's very low-cost compared to Arduino. It uses 80 tiny, 85 microcontroller and the familiar Arduino ID is used for its programming. This is the board. Now, we will see the differences between Arduino and Anudino. First and foremost, the most important point is the cost. Arduino costs around 1500 and Anudino has been developed at less than Rs. Rs. 100, around 80 Rs. Person starting in the world of electronics, it's not practical for the person to buy a 1500 board and then start off with the project. So, it's better for the person to buy just 80 Rs. board to start off in this world, to interface devices. So, that is the first and foremost difference. Next comes memory. Anudino has a memory of 8 kb. 2 kb of it is occupied by its boot loader. So, 6 kb is remaining for its programming purpose. Arduino has a memory of 32 kb from which 5 kb is occupied by the boot loader. Anudino has 8 pins out of which 6 are IO pins and 2 are VCCN ground. Arduino on the other hand has 32 pins out of which 23 IO pins are available. From this difference, it is clear that Arduino, it's quite easy to interface devices with Arduino. It has lots of pins, lots of memory. But, we have successfully interfaced a large number of devices with the Anudino. This is our interfacing board. We've interfaced LEDs. The intensity of the LEDs can be changed using the potentiometer. This is the piezoelectric sensor. This is the relay, the servo motor, the photocell, the hall effect sensor, the thermistor, push button. So, these are the basic elements that have been interfaced. This is the Arduino experiment board that we used. After interfacing the basic sensors and motors, we went on to establish various communication equipment with the Anudino. I will pass on to Chandana to explain about the experiment. After interfacing the environmental sensors and motors and motion detectors, we explored the wireless communication devices. This is the Bluetooth module HC06. As you have all used Bluetooth, you know that it's used to control devices through wireless communication. Our primitive experiment was to control an LED to switch it on, off and flash it. Then, we used LM35 sensor to record the temperature measurements and display it on the blue term app that is already available on Play Store. This is the DHT11 module which displays the dew point humidity and temperature. Next is ZigBee module. This is an RF module that works at 2.4 gigahertz frequency. This is a co-ordinator XB at the microcontroller and then there's a router XB. Again, we used it to control an LED. GSM. We interfaced GSM module as well. There's a great challenge with this because it occupies a lot of memory as Anudino doesn't have hardware serial possible with it. GSM module is just like a mobile, for a mobile operator, you insert the SIM and you can send and receive SMSs through that. What we did was to switch it on at home and, I mean switch on an LED at home and send an acknowledgement to the user to his mobile. A GPS. GPS stands for Global Positioning System and GPS modules are used everywhere for navigation purposes, distance measurements and vehicle monitoring and that. We tried to obtain the values of longitudes and latitudes, places and display and again we used a Bluetooth module to display. RFID Reader. RFID stands for Radio Frequency Identification Device. Basically, each user has a unique identification number. The RFID tag has an RFID chip in it and the RFID Reader sends carrier signals and the modulator impinges the data commands on it generated by an oscillator and the RFID tag detects the radiations and then sends back the signals which is demodulated by the modulator on the RFID Reader. So it detects the tag number. These are used in various places such as companies to monitor the entry and exit of persons and to allow access only to the authorized people. It's also used in various farms. So what we did was to display the RFID tag based upon this we can develop various experiments. Axelometer. Axelometer can be used in various gesture controlled robots and for gaming purposes. We just try to calibrate the axelometer and obtain the accelerations of X, Y and Z axis through Anodino. We have also interface the 7-segment display using the Anodino. We have used the 7447 decoder for this purpose. 7-segment displays are nowadays widely used in many applications and especially students find them very useful in their projects. So they need not use Arduino in every case to drive the 7-segment display. It can be done using the Anodino board. We have tried to show that. The DC motor. We have interface two DC motors with the Anodino board. DC motors are nowadays widely used for by the students to develop robots. Making robots is now a craze in students. So we interface two DC motors using the Anodino board. As you already told, various sensors can also be interfaced with the Anodino. So the Anodino has the power to drive a complete robot. Automation. All the experiments we have done with all the experiments here to show the power of Anodino. We have also developed a room automation project using the simple board. The medium of communication that we have used is the infrared. Various home automation systems already exist in the market and they use Zigbee, Bluetooth etc. but it's very costly. So we have done it with the simple 80 rupees Anodino board and the medium of communication is the infrared which is very cheap. Again, one major advantage of our system is that we have developed readymade modules as can be seen here. They can be directly plugged into 3 pin plugs. So many times when people install the automation systems, they have to call an electrician who tampers with the wires he has to do the wiring and all the stuff. These 3 pin models we can directly plug into the 3 pin plugs and they'll work for devices like ACs, TVs, anything. The working will be demonstrated by somebody. As you can see, this is just a sample of a room in which you have a number of appliances that require to be interfaced using a single application. So in that application you can add as many modules as you want and each module is given a unique address. So through which you can activate any modules found in the room. So I would just, these are the hardware requirements. Actually I relate to activate any module, voltage regulator, batteries and along with this we need the Anodino board. So the cost of entire thing is quite lesser than using the conventional Arduino board. I have got a question at this point. When you are putting the circuit into the power itself, why you required the extra external battery to operate on? Yeah, actually we had tried it using adapters as well. Actually we had tried it. Why didn't you add a SMPS in between and get it processed? Yeah, actually we wanted to make the module more or less this. So for which if we used the SMPS it could not fit inside. So for the purpose of demo we had used an external battery. But it required different hardware. Yeah, it requires to be... For getting the power from this socket and pushing it to your circuit. Second thing when you add on the external battery, the life of that circuit will entirely depend upon the life of the battery. Yeah, like we wanted to redo it but since we wanted to show it just for a demo we had used a battery. Actually we had given the same, we had thought about same thing. And this is the block diagram of what we have done is the room automation. We have an application in user's tablet or mobile which is connected to the server. So we can send either commands to turn on or turn off a device, add a device, delete a device, anything in this application which is connected to the server. That server is connected to the client's home PC which is connected to the master module. The master module is the one that sends commands received from the computer to the slave module. And the commands are received through serial communication. That clients, I have written laptop or PC, it can be, this is just done to show here but it can be either a single board computer like Raspberry Pi and so on. We have not used it. But the server is mandatory, server is needed for executing all this. Actually we wanted to expand this for multiple rooms. But see when we are saying that we are reducing the cost to 80 rupees or 100 rupees on the interfacing circuit, if you add on the cost of the server bandwidth and other parameter, the ultimate product acceptability and the ecosystem logistic will all again go into the luxury lid segment. So whether the server is mandatory or we can get rid of the server and get the connectivity by some other way. If we want to access from our mobile phones, which we have to get connected through a network to the local, without any network we can't send data. So the master module sends commands to the slave and the slaves sends an acknowledgement to say if it is turned on or turned off. And we, so the communication between the master and slave is through infrared and as you all know wireless communications are usually done with digital modulations.  And the acknowledgement travels in the reverse direction. You have got lot of receiving modules available in the home. They are being identified by unique number or something you have told, correct? So whether they are IP addresses or whether they are your own numbers or mapping things. Each module has a controller inside and we know controller. The controller will encoder with the address. Hardcoded? Yeah. So we have used four hex bits which means the first three bits are used for addresses, three digits. So three hex digits correspond to 12 bit binary address. They are not configurable. They are not configurable. They are hardcoded. Then address is hardcoded. It is not configurable. It can be made configurable from the, from the. Because I am just imagining a system everybody has got it is in home. So the numbers will exceed very soon. Yeah. As of now we have used 12 bits and expanded further to 32 bits which kind of assessment has 4 billion devices. If we use 32 bits. But still hardcoded is not a good strategy. Yeah. Okay. This is the module. We may now pass it to Samrit to continue. This is the slave module which we have prepared. The image shows the front view of it. The back end of it has three male pins which directly go to the wall socket. In the front end we can connect any electrical appliance like refrigerator, laptop charges or anything. The slave module also, the slave module as you can see has a TSOP receivers to receive the IR signals from the master module and it also has an IR transmitter to transmit the acknowledgement back to the master module whether the appliance has been turned off or on. This is the internal circuitry of the slave module. This is the master module which we have prepared. The master module similar to the slave module also has an IR transmitter and an IR receiver. The transmitter will transmit instructions to the slave module in the form of PWM signals and the receiver will receive the corresponding acknowledgement back from the slave. The master module is connected to the home PC or laptop through USB. This is also the internal circuitry of the master module. The circuitry of master and slave are pretty much the same. Now, coming to the limitations of our project, the first limitation is the line of sight problem. As you know, the IR transmitter needs to be pointed directly to the IR receiver to make it work. As such, if we employ this kind of automation in a room, then if a room suppose has multiple wall sockets, suppose it has two three wall sockets at different locations, then the master module needs to have two three transmitter all pointing to that direction. This is one of the limitations. Again, another limitation is the transmission distance issue. IR can only give a range of about 30 feet. Our setup which we have developed, it works well for about 15 to 20 feet but above that the liability gets very low. So, these are two things which we are planning to fix and we will overcome these problems in our future enhancements. How we will do that? Piyush will explain now. Talking about the future enhancements, the first one is the multiple slave modules. Right now, we have just shown two slave modules but as we said, we have a 12 bit device that corresponds to 2 S to 12 devices. So, for 2 S to 12 devices, it can be operated. We have just shown it for 2 right now. Longer transmission range and reception range. As I said, right now it's just working for 15 to 20 feet but through some hardware modifications, it can be easily extended to about 30 feet and I guess that will automate any room. The concept of repeaters now, what we have done right now is a room automation system. If it does not automate any room, all 5 star orders are more than 30 feet long. We can make, at max, we can get 30 feet. In case the room is bigger than that, like suppose this hall. But suppose there are walls and obstacles in between them, the concept of repeaters can be used, it goes in the future enhancement. The repeaters will be simple modules which will contain just IR transmitters and receivers. They will serve the purpose of receiving the IR from one room and transmitting it to the other room. This will solve the line of sight problem. So, we can extend the room automation to a complete home automation. Then goes the check status signals. We have connected a check status LED on these modules which will indicate to the user whether his device is on or off and he can check it anytime wherever he is in the world. And the concept of universal remote. What we have done right now is developed our own protocol for IR transmission and reception. But for controlling devices like TVs and ECs, they have their own protocol. So, if we know their protocol and feed it in the master, all types of devices can be automated. Now, we will go with the demo now.


news update. Good morning folks, Steve Rhodes coming to you live from the shores of sunny Delray Beach, Florida. This year 11 a.m. update and currently have a sea of red out there. All the U.S. indices trading the downside. All the sectors with inside the S&P 500 doing the same. You got the Dow down 137 points. The S&P 14 NASDAQ 153. Russell's down six. Semis are off 21. Gold is off seven bucks. Silver's off a nickel. Lights recruit back 11 cents. Natural gas is off a nickel. And the 30 Treasury printed out 134. 13 that is up 11 ticks. Let's try to figure out what all that means by taking a nine panel market update chart. We've got a confirmed sell the D point pattern. This is in the S many that confirmed two days ago when we had that bearish and golfing key reversal bar out there. Now we've got a new profile yesterday. We had one that was attempting to form now it's solid support 40 76 resistance 40 71. I would expect to anticipate that the S many will make its way down to that 40 76 level. However, maybe it don't. Maybe it won't. Why? Because the spot ball to it's still below its 50 day expense moving average. The spot is at 20 93. I'm sorry. The 50 days at 20 93 the spot ball to next at 19 34. You still got that a to b equal CDT upside inside the end queue that pattern is still in place. But there is new profile that did form yesterday. A price close below 13 0 62. We could see a move down to the 12 705 level. US dollar index confirmed a by the D point pattern yesterday created that bullish dark cloud cover. Yeah, I'll even know you don't see the a to b equal CD drawn there. It's there and it has a new profile. Now this new profile attempting to form a support of 101 25 resistance 102 58. Odds would favor close above 101 75. Would I go ahead and suggest that the US dollar next will go tackle that 102 58 level. Goldilocks has made it be equal CDT upside. It's got a couple of them and it's got a new profile is attempting to form that is below price. That is a bullish signal. Silver which completed a TD nine count top yesterday is also trying to form a new profile. Again, we won't get confirmation of this now until Monday, Sunday. Actually, but right now the message is that's so we're really neutral here. You got to be got a top in silver price above a new profile. It's attempting to form out there. We're going to go with the neutral call likes recruiters got a TD nine count top. It just led to sideways will but also a new profile attempting to form which is below price. Again, another bullish signal out there and that natural gas contract it needs to close above 21 90. We want that. Otherwise, natural gas is subject to fail. Folks, they do for the trader said show. But if I have to start your Thursday, please have a terrific one. Remember tomorrow's a holiday. We'll be back with you on Monday. Take care, folks.


Hi and welcome to the session. Today I am going to help you with the following question. Question says the general solution of the differential equation dy upon dx is equal to e raised to the power x plus y is we have to choose the correct answer from A, B, C and D. Let us now start with the solution. Now given differential equation is dy upon dx is equal to e raised to the power x plus y. Now this implies dy upon dx is equal to e raised to the power x multiplied by e raised to the power y. We know e raised to the power x plus y can be written as e raised to the power x multiplied by e raised to the power y. Here we have applied this rule of exponents. Now separating the variables of this equation we get dy upon e raised to the power y is equal to e raised to the power x dx. Now integrating both the sides we get integral of dy upon e raised to the power y is equal to integral of e raised to the power x dx. Now we know 1 upon e raised to the power y is equal to e raised to the power minus y. So here we can write e raised to the power minus y for 1 upon e raised to the power y and we get integral of e raised to the power minus y dy is equal to integral of e raised to the power x dx. Now first of all let us evaluate this integral. Now we will find this integral by using substitution method. So we can write put minus y is equal to t. Differentiating both the sides with respect to y we get minus dy is equal to dt. Multiplying both the sides of this equation by minus 1 we get dy is equal to minus dt. Now substituting t for minus y we get integral of e raised to the power t and we will substitute minus dt for dy. So here we will write minus dt. Now this is further equal to minus integral of e raised to the power t dt. This is further equal to minus e raised to the power t plus c we know integral of e raised to the power x dx is equal to e raised to the power x only. So integral of e raised to the power t with respect to t is equal to e raised to the power t. So here we can write e raised to the power t. Now substituting minus y for t we get minus e raised to the power minus y plus c is equal to integral of e raised to the power minus y dy. Now clearly we can see this integral is equal to minus e raised to the power minus y plus c. We will write this is equal to sign as it is. Here we will write e raised to the power x we know integral of e raised to the power x dx is equal to e raised to the power x only. Now this implies c is equal to e raised to the power x plus e raised to the power minus y. Adding e raised to the power minus y on both the sides of this equation we get this equation or we can write it as e raised to the power x plus e raised to the power minus y is equal to c. So the correct answer is A. This is the required general solution of the given differential equation and our required answer is A. This completes the session. Hope you understood the solution. Take care and have a nice day.


A new pan-sharpening method is proposed based on convolutional neural networks. We adapt a simple and effective three-layer architecture recently proposed for super-resolution to the pan-sharpening problem. Moreover, to improve performance without increasing complexity, we augment the input by including several maps of nonlinear radiometric indices typical of remote sensing. Experiments on three representative datasets show the proposed method to provide very promising results, largely competitive with the current state of the art in terms of both full reference and no-reference metrics, and also at a visual inspection. This article was authored by Giuseppe Massi, Davide Cotzolino, Luisa Verdeliva, and others.