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Unformatted text preview: borrowers-do so because They want to invest today in order to have additional capital in the future to produce goood and services. Thus well-funcitoning finacial market is only for the current gneration, not the next one Who will inherit many of the resulting benefits. Notes for viedo #3 (Keiser Report:Build More Teactors,Not!) This years increase in food prices is mentioned, the worst since 1974 Inflation reduces a debt burden-oil crisis of 1973 Inflation rate- based on a proce index Core inflation-excludes most volatile components fom amarket basket Zimbabwean inflation rates (~100% per day in 2008 = ~79600000000% a year) Also mentioned a relationship between inflation and a need to rise interest rates (abundance of loans from China has allowed the US not to raise interest tates so far -> Chimerica)...
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- Fall '08