down receivables, but not receivables to pay down bank loans). Regarding 2, your point is not insignificant, but we tend to think of it this way: for the govt sector to expand its liabilities, it creates assets for the non-govt sector, but for the banking sector to expand its liabilities, it creates liabilities (loans) for the non-govt sector (i.e., no net financial asset creation). Just to add, although banks are not part of the public sector, they do occupy a special position in the private sector due to their access to reserve accounts. Sometimes you will see PK's specify "non-Govt, non-bank" sector. It gets tricky because the Chinese Govt, and state Govt, counts as non-Govt! And to a newbie this stuff is hard enough to understand in the first place! ttp://www.youtube.com/view_play_list?p=\\... Money as Debt II Promises Unleashed Bailouts, stimulus packages, debt piled upon debt, where will it all end? How did we get into a situation where there has never been more material wealth & productivity and yet everyone is in debt to bankers? And now, all of a sudden, the bankers have no money and we the taxpayers, have to rescue them by going even further into debt! Money as Debt II Explores the baffling, fraudulent and destructive arithmetic of the money system that holds us hostage to a forever growing DEBT...and how we might evolve beyond it into a new era. The second link doesn't work now -- though I downloaded the file a few days back. The