L10 - borrowers-do so because They want to invest today in...

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Notes for video #1 (Kaiser Report) Goldman Sacks, JP Morgan (mentioned in the “Chimerica” article, too) Financial leverage Fiat currency Fractional reserce banking system Kleptocracy (rule of faith) , plutocracy (rule of wealthy) Tony Blair Notes for video 2 (Kaiser Report-- Messt Democracies E128) Recall how a market economy is traditionally viewed as pooseite to a command economy Markets like totalitarian govt Muammar Gaddafi and LIBYA ( a SUPPORTER OF THE Pan-African govt ideas “Casino-Gulag model” Gulag-people who dimly disagree will be sent to a far place “Savers VS speculators” “Savers VS speculators” From Gregory Mankiw’s testbookd”Principle of Macroeconomix”—financial markets serves the important role of linking the present and the future, Those who supply money for loans-savers-do so bacause they want to convert some of their current income into future purchasing power, Those who demand loans-
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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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L10 - borrowers-do so because They want to invest today in...

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