GEOG 216 Lecture Notes - Global Recession, Baby Boom, Eurodollar
5 Dec 2012
School
Department
Course
Professor
Document Summary
Shows how the global economy can work around one commodity. The us does not get large quantities of oil from the middle east. The us is the largest consumer of oil, and then china. The middle east is the largest producer: 265 of course pack oil crisis to debt crisis map. Lender: charges the borrower interest" on a % of the outstanding loan each year. Borrower: pays back part of the money borrowed, principle" plus interest. Concessional lending: loans at below-market rates of interest or interest free loans and grants: typically goes to poorer countries, stabilize financial situations, development money. Fdi: does not create debt, not part of this story. 1970s: opec cartel decreases oil supply an increase in oil prices. Opec surplus 31978 is deposited in the western banking system. Some 31978 ended up in an unregulated offshore banks: in american dollars, couldn"t be traced, america couldn"t trace their own money supply.
