All Money on Earth

All Money and Assets in the World shown                                in Physical $100 Bills – Infographic

Ten Thousand Dollars

One Hundred Dollars
$100 – Most counterfeited money denomination in the world. The most widely used storage of value in the world for drug dealers. Keeps the world moving.

Ten Thousand Dollars
$10,000 – Enough for a great vacation or to buy a used car. Approximately one year of work for the average human on earth.

Hundred Million Dollars

One Million Dollars
$1,000,000 – is the cash square on the floor.

Hundred Million Dollars
$100,000,000 – Plenty to go around for  everyone. Fits nicely on an ISO / Military standard sized pallet.

One Billion Dollars

One Billion Dollars
$1,000,000,000 – This is how a billion dollars looks like. 10 pallets of $100 bills.

One Trillion Dollars

One Trillion Dollars
$1,000,000,000,000 – When they throw around the word “Trillion” like it is nothing, this is the realit of $1 trillion dollars. The square of pallets to the right is $10 billion dollars. 100x that and you have the tower of $1 trillion that is 465 feet tall (142 meters).


All Investment Gold and Silver in the World

Gold and Silver are all investments in the World has dedicated articles for all the Gold and all the Silver in the World. This is short summary of the relatively small amount of gold and silver available in the world for investment purposes. The approximate value of all investment Gold in the World is $2.5 Trillion USD at $40/gram or $1250/ounce.

There is significantly more silver in the world than gold, but because silver is multiples cheaper than gold (less than $20/oz in 2017), a lot of silver has gotten lost throughout time. Silver is also used in industrial production. The amount of investment silver available to the public is a surprisingly small amount. World governments do not hold any significant silver reserves, unlike with gold.


The World Money Supply

The World Money Supply:

Twenty eight – $28 Trillion in Base Money
Fifty – $50 Trillion in Bank Money

This is how much money is on the planet. It is not all in physical cash though (as shown above), most of it is digital:

Base Money consists of money held by banks (received from their Central Banks when Banks sold Government or Corporate bonds to their Central Banks, the money is available for lending to the private sector), money stored in bank’s vaults (physical cash) and cash in people’s hands. This money is not available at the ATM.

Bank Money consists of money stored in banks by corporations and people, available for withdrawal at any time.  Bank Money is also lent out by Banks to people and business’. Banks have a minimum reserve requirement (usually 10%) that they must keep on hand. If everyone decided to go to the ATM and pull everything, there would be a run on the bank.


Value of All the Government Bonds in the World

Fifty eight $58 Trillion – Value of All the Government Bonds in the World

The world’s citizens pay interest on this much money because of debts created by their country governments.

Government Bonds (debt) is considered an “asset class” because Bonds (tax payers) pay interest on the borrowed money. The lender gets a certificate (The Bond- a promise to pay $$$ back + interest) in return.

Usually Government Bonds are considered safe investments with little risk of non-payment because Governments can write new laws (increase & create Involuntary Taxes) to take the people’s money by force (in heavy terms: legalized robbery). Another option of re-payments that is NOT so favorable to investors/lenders is to have the Federal Reserve “print” new money, this devalues the purchasing power of money through inflation and the investors gets back less than they put in. This is usually the method of choice for governments.

Why so much Government Debt? Because politicians over-promise to the citizens what they can (NOT) deliver, they do so to win the election. Once Politicans win they borrow money to pay for their promises in order to keep the promises. Often they borrow to enrich themselves and their crony partners in crime.

All the Stocks and Corporate Bonds in the World

One hundred sixteen $116 Trillion – All the Stocks and Corporate Bonds in the World

Corporate Bonds are similar to Government Bonds, but more risky. Many big companies carry far less risk than lending money to individuals– this fact lowers risk and drives down lending interest rates. Big corporations can borrow money fairly cheap compared to private individuals. Sometimes companies borrow money to buy back their stock and push stock value up, by so enriching the investors while financially gutting the company.

Stocks can fluctuate greatly in value, because their value is more abstract- the value is determined by P/E (Price to Earnings) ratio and anticipated stock dividend payments.

Two hundred ninety $290 Trillion – Value of all Private Business and Real Estate in the World

If you would want to buy the entire world, this is how much money you would need.

$180 Trillion is for Real Estate
$100 Trillion is for Registered Private Business
$10 Trillion is for Extralegal entities.

This specific pile of money is enabled by private ownership and private enterprise through Capitalism.

Democratic Capitalism is considered to be the worst economic system before taking a look at the alternatives.  Democratic Capitalism was promoted by the Founding Fathers of USA. Some call the Founders Heroes, meanwhile some call them “Slave owners who did not want to pay taxes to the UK”. Choice is yours.

Corporate Capitalism is considered to be the dominant system in United States currently.

Communist government would seize control of all this money (Business and Real Estate) on the basis that the government knows better than you where to invest your savings,  and the government would run all business and own all real estate.

The road to hell is always paved with good intentions.  A fool who thinks he knows is much more dangerous than a fool that knows he knows nothing.


Value of all Derivatives in the World

One $1 Quadrillion – Value of all Derivatives in the World

This shows the total notional value of all the Derivatives in the World (Casino style bets in contract form, made by banks). Derivatives are a dangerous mess. They are imaginary but yet very real. Derivatives are casino style bets on value of whatever they choose to bet on, in contract form, made by banks, overseen by no one (because no one clearly understands the intertwined web & mess of Derivatives).

Pick “something” of value, make bets on the future value of “something”, add contract & you have a derivative. Banks make massive profits on derivatives, and when the bubble bursts chances are the taxpayer will end up with the bill. This visualizes the total coverage for derivatives (notional). Similar to insurance company’s total coverage for all cars (does not mean all insurance on all cars will be paid out simultaneously).

Sometimes Banks make self-cancelling Derivative contracts. Example: 2x Banks enter 2x Contracts:
Contract1 = Bank1 pays $10M to Bank2 if price goes up
Contract2 = Bank2 pays $10M to Bank1 if price goes up.
This 1000x and then they go brag to each other about the size of their derivative portfolio.

No one can really track who owes what to whom in Derivatives, it’s a vast confusing mess, but an unannounced event such as Fed Chairwoman Janet Yellen suddenly raising interest rate to 5% would very likely implode the entire Derivative System and the Banks along with that, because cascading domino effect and some bank likely would have a bad hand on Derivative bets and go bankrupt.

Some fool (maybe another bank) would own the bankrupt bank’s stocks and assets, and also face bankruptcy. This would cause a loss of confidence in banks and everyone would start pulling their money to safe-guard it, causing a cascading effect of bank insolvency.

$1 Quadrillion = $1000 Trillions = $1 Million Billions or $1 Billion Millions


The Liquidity Pyramid

The Liquidity Pyramid

The Liquidity Pyramid was created for visualizing the organization of asset classes in terms of risk and size. The Liquidity Pyramid was created during the time in United States, when each dollar was backed by Gold. Gold forms the small base of most reliable value, and asset classes on progressively higher levels are more risky. The larger size of asset classes at higher levels is representative of the higher total worldwide notional value of those assets.

As financial risk increases, money tends to move from the more risky assets (Derivatives), to the least risky assets (to physical cash and then gold). Nothing is without risk, but risk is relative. The issue is that there is very little physical cash and even less Gold compared to the more risky assets, this makes for a crowded trade in times of high risk when everyone wants to jump into cash and gold, pushing up the price.

The little yellow rectangle on the left front is all the gold in the world in physical form. All the gold in the world is NOT all in “financial investment grade” form.

The $1 Quadrillion Derivatives cash wall fades into the distance, because $1 Quadrillion is an estimation by the best analysts and truth is no one really knows the true size of the Derivatives Market.


Completely original in English here: