How many banknotes are in circulation, deposits, assets around the world. The architecture of the system, the bubble of the producers and the most valuable asset. Younger than the world of crypto.
oday we will present the structure of money, debt and assets.
How many banknotes are in circulation, deposits, assets around the world, global debt. With images, so that we can understand the architecture of the system.
We will start with, what else, our "own" cryptocurrencies. Not only was it pricey but because, for the time being at least, bitcoin has very little value. Like the whole cryptocurrency market. Its capitalization is 280 billion. It is a small solar system in the financial universe. Below, we see the total number of banknotes and coins circulating in all countries, which is 6,600 billion.
(Each square is equal to 100 billion dollars)
It is worth noting that the fortune of the 2,095 billionaires on the planet is worth a total of 8 trillion. That is, more than all the money that circulates in physical form.
We continue with gold. In total, the total amount of precious metal mined to date is worth 10.9 trillion. It is estimated that there is still 20-25% below ground level.
The total capitalization of all the shares on the stock exchanges is 89.5 trillion dollars. About half of it is traded on Wall Street.
Gains, banknotes and face deposits are estimated at 35.2 trillion. If we add the remaining deposits, we reach $ 95.7 trillion. The money in the banks is overwhelmingly electronic.
The total global debt is estimated at 253 trillion. In the chart, we have the debts of households, governments, all businesses except banks, and finally, the financial sector.
The most valuable asset in the world is real estate. 78.5% in homes, 11.9% commercial properties and 9.7% plots. Total 280.6 trillion. The total value of all wealth, of all the inhabitants of the Earth, is estimated at 360.6 trillion dollars and is distributed as follows: 29.4% in the US, 25.2% in Europe, 17.1% in China, Latin America and Africa. 3.8%.
But we are not finished. We left your best for last: the derivatives. What is the derivative? A contract between two parties that derives its value from the return of the underlying asset, stock market index or entity. Derivatives are considered futures (futures contracts), options, warrants, swaps. There are the official ones, which are Over The Counter but are easily measurable, and the unofficial ones, which do not meet the liquidation rules. All together they are estimated at the astronomical number of one four million. $ 1,000,000,000,000,000. A number with 15 zeros!
That is why Warren Buffett in 2002, at the annual shareholders' meeting, had stated that they are financial weapons of mass destruction. It was not long before it was confirmed. A few years later, we had a burst of mortgage bubbles.
Since then the problem has been fixed or inflated, you say? Well you guessed it, it swelled. In October 2008 it was 600 trillion and now we see that it has risen to 1,000 trillion dollars. Within a decade.
Are derivatives a threat to the global economy? The theory states that it does not matter how much the traders have in their possession. We should consider opening only at risky locations, not compensatory ones. But this is about normal conditions. When the market is running smoothly, when there are counterparties. If conditions frighten buyers or sellers and they disappear, that is, if bit and ask do not appear in normal spread, then even compensatory positions are worth only a fraction of their estimated value. We experienced such situations in 2008, in the great financial crisis.
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