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The Importance of Investment in Capitalism
Never before in the history of capitalism have we had such high levels of savings and such low levels of investment. Savings in the developed world, let's put it this way, exceeds investment by 7 trillion. When there is excess supply of money, when savings is there and investment is there, what happens is the price of money must drop. So that this happens, except the price ofmoney drops to below zero. This gap is not ameliorated, it doesn't go away. And why doesn't it go away? Let's go back to the bedroom of the entrepreneur who is tossing and turning at night.