How can it search inside the directory, if the directory is empty? : I just started learning python and found this snippet. It's supposed to count how many times a word appears. I guess, for all of you this will seem very logical, but unfortunately for me, it doesn't make any sense. 

str = "house is where you live, you don't leave the house."
`dict = {}`
`list = str.split(" ")`  
`for word in list:`  # Loop over the list
    `if word in dict:`  # How can I loop over the dictionary if it's empty?
        `dict[word] = dict[word] + 1`
    `else:`
        `dict[word] = 1`

So, my question here is, how can I loop over the dictionary? Shouldn't the dictionary be empty because I didn't pass anything inside? 
Maybe I am not smart enough, but I don't see the logic. Can anybody explain me how does it work? 
Many thanks