Tuesday, November 14, 2017

One Graph of All the Money in the World

I like to take a look at this graph every time it is updated. It provides an interesting perspective on the world's money and debt situation. A few interesting facts on this latest update:

- Bitcoin has hit the $100 Billion mark

- All of the above ground silver in the world is worth only $17 Billion at the current price of silver. This simply cannot continue as the world's silver mines are already starting to decline in production even as the demand for silver continue to increase (solar power, medical uses, etc). 

- While we often hear talk about a coming "cashless society", this reports states the total global value of coins and notes in circulation is about $7.6 Trillion

- this reports says global total global debt is now $215 Trillion (325% of GDP)

- about 1/3 of all this debt ($70 Trillion) was added in just the last decade alone

- the total notional value of all global derivatives is estimated at somewhere between $544 Trillion on the low end and $1.2 Quadrillion on the high end. No one knows for sure what the true number is since many derivatives contracts are not transparent

The graphic includes this interesting quote from Jeff Greene:

"If there were not derivatives, there would be no bank loans at all today, because people want to get fixed-rate 30-year loans, but banks don't want to keep 30-year loans on their books."

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