My Thanks to our friends over at http://www.wealthbuilder.ie/. for sending this article on “Review of World Financial InStability”.
Summary: (World: US Dollars: Approx. 2013).
11. Total Value of Derivatives (Notional): 1,200 Trillion (1.2 Quadrillion).
10. Total Value of All Assets (Fin. /Real Estate): 318 Trillion (8. Plus 9.)
9. Total Value of Financial Assets: 198 Trillion
8. Total Value of Real Estate: 120 Trillion
7. All Debt. (Owned by Banks): 257 Trillion (5. Plus 6.).
6. Total Priv. Debt. (Owned by Banks): 193 Trillion (Priv./Corporate).
5. Total Gov. Debt. (Owned by Banks): 64 Trillion
4. World GDP: 60 Trillion
3. Total Value of Derivatives (Cash Val.): 20 Trillion
2. Total Value of Circulating Currency: 4 Trillion
1. Total Value of Gold Reserves: 1.5 Trillion
When you comprehend the above you begin to understand why many are
beginning to realize the reality behind the “inverted pyramid” below. This is
why it is believed that the current “fiat” (Fiat = let it be) money system favors
the few to the detriment of the many and cannot continue.
Note1: Nearly 16% of world GDP is income earned on dividends, interest and
rent: 9.5 Trillion dollars. A further approximately 15 % is earned by banks
through “fractional reserving”: 9 Trillion dollars. Thus annually nearly 18.5
Trillion dollars, or 31% of world GDP, is income earned but unworked. This is the
financial reality behind the phrase: “the money system is not physically working
and is therefor “virtual”, not “real”.
Note 2: Worldwide the ratio of private debt to public debt is approx. 4:1
Note 3: Total Chinese debt: 18 trillion dollars.
Note 4: Euro Dollar debt: 16 trillion dollars.
Note 5: World fractional cash reserve ratio: 64. (257 trillion dollars, total bank
debt, divided by 4 trillion dollars, total cash).
Note 6: World fractional gold reserve ratio: 171. (257 trillion dollars, total bank
debt, divided by 1.5 trillion dollars, total Gold reserves).
Note 7: Hyper-Inflation Trending: For that last 20 years the level of “cash in
circulation” has doubled every 5 years approx. Cash in circulation as opposed to
debt is a true barometer of hyper-inflation tendencies.
full article in PDF form here:World Economic In-Stability – Copy(1)