The Price of Borrowing Money

In return for that they're going to give me some interest rate. So if I buy US government bonds or I'm getting two and a half percent, now that becomes what's known as the risk free rate because the government can pay you back always. And so just because it's the government, it's actually what everything is benchmarked of. Everything's priced off that, which is why it's so important. The single most important factor within how economies play out is the price of which money gets lent and borrowed.