All The World's Investable Assets In Context

Tyler Durden's picture

With central bank credibility suddenly on the line once again, following both the Fed's June rate hike punt (so it doesn't disturb "data-dependent" stocks), and with a possible imminent Greek default and Grexit, which will crush the ECB's "political capital" and "irreversible union" propaganda, it is time once again to check what are the safe assets in a world in which nearly one quadrillion in "paper wealth" exists solely due to faith in solvent counterparties, a faith which has been bought by the central banks at a cost of €22 trillion so far, and which is rising exponentially with every passing year.

For the answer, we go to the latest letter by Elliott's Paul Singer which lays out the "size of global markets" just to put it all in perspective.

We decided to do a little research to find out the size of different investable asset classes globally, to try to get some color on the money flows in this extraordinary period. The data is from various dates from 2013 to 2014, but the differences don’t matter much.


Over-the-Counter derivatives, notional amounts: $692 trillion at year-end 2014, per the BIS. For comparison, this figure was $72 trillion in 1998.


Global real estate: $180 trillion, according to global real-estate services provider Savills.


Global debt market, both securities and other forms of debt: $161
trillion at year-end 2014, per the Institute for International Finance’s
Capital Markets Monitor. According to the Bank of International
Settlements (BIS), debt securities make up $95 trillion of this total.


Global equities: $64 trillion, per the World Federation of Exchanges.


Global M1 money supply: $24 trillion at year-end 2013, per the World Bank.


Gold: $6.8 trillion at year-end 2013, according to the Thompson Reuters GFMS Gold Survey.

Which, of course, is just another way of showing the famous inverted pyramid of John Exter, himself a former Fed official.

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VinceFostersGhost's picture



Gold is subsidized currently....get it on sale.

Government needs you to pay taxes's picture

Gold is subsizied . . . by the credibility of .gov issued fiat currency. . . whose governments are DEEPLY in debt.

MonetaryApostate's picture

Gold preachers don't realize that all forms of currencies were created to drive people to slave for them, the elite control the value of all currencies, even gold, and also they control how much you can work for (e.g. your wages), don't you think it's about time people stopped working to make the wealthy rich by working for that which they obtain for free and free themselves by working for things of real value?

greenskeeper carl's picture

WHatever, dude. Wll I be more likely or less likely to be able to use gold to buy food or a roof over my families headthan I will paper money printed out of this air? what you say may be true, but do they have more or less control over gold than they do everything else? If gold was as easy to do that with as paper currencies, they wouldn't fear it and hate it so much. The elite also can't create more gold out of thin air and hand it to themeselves and their cronys. If you don't like it, don't buy any. best of luck with your USDs...

MonetaryApostate's picture

Look, you can park your money in gold, it may go up and it may go down in value, but if it's not making you money, then you are gaining, you are only in a stasis at best, and again I say learn to invest in things of real value, which happnens to be your time & your understanding, increase those and you will be able to easily increase your wealth exponentially...  The wealthy don't work for money, they have slaves that do that, and those slaves make them insanely wealthy.




If you want to end the banks, stop banking, or you can wait for them to steal your money, the choice is yours!!!! (Yes, even your pensions/retirement money too!)

(You have been warned!)

Billy the Poet's picture





(You have been scorned.)

Captain Debtcrash's picture
Captain Debtcrash (not verified) Billy the Poet Jun 20, 2015 2:18 PM

How so many financial advisors and commentators can say the correct allocation to precious metals is zero I don’t know.

It seems ridiculous considering the current environment but seems like a pervasive belief.

ILLILLILLI's picture

They can't rob you if you're not using fiat...

SafelyGraze's picture

the figure is outdated

in the current financial system, gold is merely one of many assets (including petroleum, future earning power of college graduates, mortgage payments, and the taxing authorities at all levels of governments)

moreover, the "base" of the pyramid should be substantially larger now that gold is put to use through rehypothecation and exchange traded funds, which has  effectively increased the amount of asset-quality gold by a factor of a hundreds to thousands

although most people do not understand or appreciate the various new financial technologies that stabilize and nourish the global financial system, we can all agree that we benefit from them

the league of GS interns and new-hires



max2205's picture

Just who pocketed all the interest not paid over the last 6 years.

That's real money.

MonetaryApostate's picture

A correction to my post "then you *aren't* gaining,"

Took Red Pill's picture

gaining what? Fiat? Gold IS money!

MonetaryApostate's picture

Wealth is derived from intelligence, not fiat paper....

All hail the golen calf you serfs!

My gubberment pimp hand is money too, wanna see? 

They're coming to take it away haha hehe!

/end poor attempt @ sarcasm


Tarzan's picture

"easily increase your wealth exponentially" 

Accumulating what, Ducks and Chickens? 

Yes, they control the price, but THEY Can't Fake It!  This limits the ability to manipulate.  I admire your ideal of going back to a more agrarian lifestyle, it's simply not practical for the majority of the people.

Those who can should, but the welder in the city as well as the farmer needs a form of exchange that is stable.  A quarter made in 1964 with real silver is worth $2.91 today.  One made today is worth .25 cents, or .035 in the metals markets.  Fiat will crash and nearly every asset we own is tied to it.  it would be IGNORANCE not to hold at least some Gold and Silver.

I'll keep collecting junk...

MonetaryApostate's picture

Sure, you can diversify, or as some call it, "De-worse-ify", but here's the catch 22....

SO, they collapse the makets, the banks, cash becomes trash, then what?

Well, the only reasonable solution would be of course digital banking, correct?

Since you will NOT be able to take your gold to the store to buy goods, because they will outlaw everything other than digital currency/banking...

What you MAY be able to do is sell that gold for a rather sizeable amount of digital currency, BRAVO!!! You're soooo smart, right?

BUT WAIT!!!  I just simply put some numbers on your bank screen, for free, I didn't hold any gold or money in my bank to do that....

Nope, what I did was, is forced you into my little algorithm stealing hell, where I can do whatever I want at will, and there won't be a damn thing you can do to stop it!!!


And and and!!! Guess what?  Your gold.....   IT'S GONE!!! :D


Wake the flock up sheep.

BooMushroom's picture

Can't trade your gold for food, just like you can't trade your Benjamin's for cocaine.

Tarzan's picture

You assume they are almighty and when fiat crashes around us they won't loose control.  They are just as likely to fail as succeed.  There's no gaurantee that after the dust settles the planned world Government will have the power to dictate how I buy bread.

I don't collect silver to get rich, but simply to hold, one more tool to survive, one more physical asset that can't evaporate over night.

I'm betting a 1/10 Oz silver coin will be worth more then a sack full of green backs after the fall of Washington.  If the world dumps the dollar, over night, the US will be crushed and learn the meaning of the followng...

"You say, 'I am rich; I have acquired wealth and do not need a thing.' But you do not realize that you are wretched, pitiful, poor, blind and naked."

'Woe, woe, the great city, Babylon, the strong city! For in one hour your judgment has come."And the merchants of the earth weep and mourn over her, because no one buys their cargoes any more, cargoes of gold and silver and precious stones and pearls and fine linen and purple and silk and scarlet, and every kind of citron wood and every article of ivory and every article made from very costly wood and bronze and iron and marble, and cinnamon and spice and incense and perfume and frankincense and wine and olive oil and fine flour and wheat and cattle and sheep, and cargoes of horses and chariots and slaves and human lives. "The fruit you long for has gone from you, and all things that were luxurious and splendid have passed away from you and men will no longer find them. "The merchants of these things, who became rich from her, will stand at a distance because of the fear of her torment, weeping and mourning, saying, 'Woe, woe, the great city, she who was clothed in fine linen and purple and scarlet, and adorned with gold and precious stones and pearls; for in one hour such great wealth has been laid waste!'

MonetaryApostate's picture

Yes, I know the difference between their, there, and they're, but I type 90wpm so enjoy your grammar nazi moment of fame... :P

Billy the Poet's picture

I type a thosuand words a minute.


you hjave goty tpot be just a bour the most mghonic idoir eber to set fyjot on the huiedge. I mean  seriously deude w hats up with  yheis sensrte of superitority whyen you ca't ebe  cohjjmunicate propery?


Impressive, huh!


jimmytorpedo's picture

Grammar Nazi fame is eternal, or at least a thousand year fame.

And 4Chan has great tits.

You, you're just some cartoon smaltz.

First rule of fight club is great tits win.

(or is that the second rule,...)

Slomotrainwreck's picture

They control PM's as long as they can, then they can not.

CPL's picture

No it's not .gov issued currency to begin with, no NATO agency controls their own money supply.  They haven't for a while.  Not even the pound is worth a fiddlers fuck based on the private issue of their currency.  Now work backwards on the problem and think about WHY governments are deeply in debt and flogging gold at discounted rates if they have no control over the economic mechanisms that regulate the economies of their own countries.

Who offered the debt?

Who sets the price of the capital?

Answer those two things and you will see the crystal clear picture on the situation.  The governments stopped being governments around the 1950's and instead opted to be extensions of central banks...which are not government agencies.  In the process the governments gave up their sovereignty and rights.  Not some rights.  All rights.  At this moment in time even the Queen of England is someone's prison bitch for going along with a really, really dumb plan.  NATO a coalition of slaves and prison bitches to private banks that follow 'who'?

MonetaryApostate's picture

If you want to end the banking empire, stop banking, it really is that simple.

OC Sure's picture



Banking is good. It is the counterfeiting empire that is the problem.

In a banking system no new currency is required to be introduced. The value is in the productive work performed, not the medium that conducts its current. The lender, the borrower, and everyone else trading values must do productive work in order to obtain their share of the existing pool of currency. Value, naturally, and necessarily rises everywhere.


In a counterfeiting system new currency must always  be introduced. The value is, as always, in the productive work performed, not the medium that conducts the current. The lender, the borrower, and everyone else trading values do not have to do productive work to obtain their share of the existing pool of currency if they introduce new currency themselves. They introduce it and steal from other's productive work. 

MonetaryApostate's picture

Keep telling yourself that, one day you'll wake up when they ban cash and start terroirzing people financially electronically...

But whatever you believe is true, so keep believing banking is good, the foxes will love you, and one day they'll have a dinner in your honor, but you will be the main course.

OC Sure's picture



That is quite a presumption that you believe I am identifying fractional reserve counterfeiting as banking. 

MonetaryApostate's picture

Let's not assume for a minute that the greed, corruption, bribery (to pervert justice), and injustices instituted by the very one's seeking to keep everyone living under their con job called the banking system will ever go away or end, however I'm here to tell you that everything changes.

The will of the people is being usurped by the very same people who are perpetuating all of these evils upon the world, however what it will lead to inevitably is massive social unrest, a depression like the world has never known, rioting, and worse, world war, which so happens to be upon the horizon, but believe whatever you want, the future will soon show everyone that the truth in the end is the only thing that will stand.

Billy the Poet's picture

So far so good but you still haven't provided the specifics on how individuals can interact economically without some kind of currency whether it's someone's paper, precious metals, beaver pelts or wampum.

Remember that economic interaction is not some esoteric goal. Without it most of us will starve to death.

jimmytorpedo's picture

I favour BEAVER.

But I'm Canadian eh?

Who needs money when you have Beaver?

Billy the Poet's picture

Describe the simple way in which you live your life without currency.

MonetaryApostate's picture

What do you need to survive?  Does money help you suvive?

Or is your belief that money is needed in order to survive why you can't understand?

Or are you just asking because you want to prove me wrong?

Or do you think I'm a pretentious idiot lacking understanding?


Either way, if you can't think for yourself, no amount of money will help you, because those who can think will simply find a way to legally steal it from you, and it happens every day I assure you.

Billy the Poet's picture

Those with jobs get paid in currency. Those who have retired recieve currency from SS and IRAs. Are you suggesting that these individuals should quit their jobs and abjure their investments, roll up their sleeves and start growing vegetables and weaving baskets in order to barter with each other?

Seriously, dude, describe your vision of a world inhabited with real people who interact economically without currency.

MonetaryApostate's picture

You're smart, why don't you figure it out?  (If you can)

Billy the Poet's picture

So the guy with all the answers suddenly runs out when asked a question? Now that's insolvency.

MonetaryApostate's picture

So, the guy wanting to prove someone wrong so he can feel good about his own opinion tries to encourage him who doesn't want to waste his time arguing with someone who obviously knows far more than anyone else, because what good will it do with someone who only seeks a debate, yet stands nothing to gain from it other than to puff up his chest with a little pride?  Are you really that dense or do you honestly think I'm a pretenious idiot?

Nevertheless, let me encourage you to continue your shallow charade in my absence.

Billy the Poet's picture



First off, this is Fight Club. Surely you know that.

Secondly, I'm here to learn from others and to share what knowledge I have. If you know of a simple way for the average guy to live without currency then I'd like to know the specifics so that I can judge that idea for myself and see if it holds any advantages for me.

I fail to understand why you'd claim to have a simple plan to escape the tyranny of bankers, call those who don't implicitly understand this plan "ignorant" and then run off in a huff when others become interested in sharing the knowledge you claim to possess.

I also don't understand why you are so sensitive to the thought that your idea might be tested and challenged.  That's what we do in Fight Club and that's pretty much how life works in general.

Bill of Rights's picture

Hey cave dweller answer the FUCKEN question instead of lip flapping... So far you're coming across as a nut job.

tired1's picture

Might be a good idea to see how Russians survived post USSR. Hint: many didn't,especiall those on pensions with no gardens.

realmoney2015's picture

And the silver market is even smaller than gold, thus has bigger swings up and down. It has potential for bigger gains than gold.

“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.” - Norm Franz

I'm trying to help wake people up to the value of real money. These candles with silver coins help ( Once someone holds real silver in their hands they realize it is real money. The hard part is getting some of them to realize that if they have debt, that they are essential slaves!

Consuelo's picture

Being a peasant can be a good thing indeed.

withglee's picture

Money is "a promise to complete a trade." A trading promise is a "debt" until delivery is made. So money is "obviously" debt ... and that's not bad. What is bad is "failing to deliver" which we call default.

Traders "create" money by making trading promises and getting them certified. You do it when you take a mortgage to buy a house. These certificates then trade as the most desirable items of simple barter. They allow simple barter to take place over time and space. In this medium, the certificates are simply objects of trade ... just like precious metal coins are (a very distant second choice for simple barter trade). On delivery (or over the promised delivery schedule), the certificates are returned and destroyed. That's what constitutes delivery. Anything else is default.

The issues are with management. If you have a default, you have to reclaim the certificates. That's what interest collections are for. The governing relation is INFLATION = DEFAULT - INTEREST = zero.

Among other things, our current Medium of Exchange (MOE) manager (the Fed) doesn't get the "INFLATION must be zero all the time everywhere" part. They claim to strive for 2%; have delivered 4% over their 100 years; claim less than 1% now by fudging numbers; and anyone who buys stuff knows it's close to 10%.

INFLATION can and should be guaranteed to be zero. Properyly managed MOE makes money always in free supply ... anyone can make a trading promise any time and anywhere and get it certified. That takes the supply and demand for money (properly managed ... always in perfect balance ... it's the nature of a trade) out of trading equations. It also eliminates the "time value of money" which capitalists require to take their pound of flesh out of every trade.

We're about to have a reset. We need to institute proper MOE management to recover and avoid this continuing farming cycle our controllers have hobbled us with.

Todd Marshall
Plantersville, TX

OC Sure's picture




That money can store the "promise" to complete a trade is only a characterstic and not definitive.

No one has ever defined the concept of money better than Aristotle:


The definitive identity of Money is that it was invented as the means to equalize the disproportionate value of productive work. 

withglee's picture

No one has ever defined the concept of money better than Aristotle:

Your link illustrates the same kind of nonsense Mises wasted his time with. It deals with how traders value things. That's totally irrelevant. What is relevant is that they agree. Once that agreement is made, they deliver. Money thus serves in a minimum of two transactions. First where A trades goods or services to B for money. And second where A trades money to C for goods and services. The result is that A trades goods or services to C for other goods or services.

How these trades are measured is not the job of money. It's the job of traders. Traders, however, can enjoy zero INFLATION of the money in a properly managed MOE which removes one unnecessary degree of freedom from the process (and one source of income to the opportunist and manipulator).

No one (or everyone) says what a dollar is worth. You go to work and exchange your time for dollars. You go to the grocery and exchange your dollars for food. You make both those trades with a pretty good awareness of your own worth and the worth of the groceries ... both in dollar terms ... and you're constantly adjusting that awareness.

What you can't do is take your dollars and put them under a mattress for 20 years; take them out; and make the same exchanges. This is because of the 4% INFLATION leak our MOE steals from us. Under a properly managed MOE, you could keep your dollars under a mattress for any length of time and lose nothing to INFLATION. In other words, a properly managed MOE ... one where INFLATION = DEFAULT-INTEREST = zero ... is a perfect store of wealth.

I would say your "definitive identity of money" is abject nonsense. In fact it is the opposite of what you say. Money equates indirect trades. Money need not deal in work at all. When it comes to investors(OPM people), it clearly does "not" deal in work.

OC Sure's picture

If how traders value things is totally irrelevant, then what exactly is it that is  the object of relevance that they are agreeing upon?

Aside from an evasion of the first principle as to why money was invented at all, we may both agree on this as it seems akin to what you mean; that voluntary demand determines value. As this is true, then what or who is responsible for "managing the currency supply "properly?" How is a "proper" management determined if it is not by voluntary demand?


If money equates indirect trades, then trades of what? Goods and Services? How are goods and services produced? By work?


Money always deals in work. If what you are referring to cannot be attached to the fact that productive work is being performed then what you are referring to is counterfeit, not money.

realmoney2015's picture

I like your little wtrite up here. I really do. Except that one key concept is missing. One characteristic of money is a store of value. If the certifcates or dollars are losing 10%, 4%, or even 1% of its value consistantly, then it is not a store of value and therefore is not money. It is only currency. With true, real money you do not need the managment of it. All you need is free market supply and demand. That will correct any 'errors in the valuation' of real money in the long term.

withglee's picture

Except that one key concept is missing. One characteristic of money is a store of value. If the certifcates or dollars are losing 10%, 4%, or even 1% of its value consistantly, then it is not a store of value and therefore is not money.

You're not paying attention. Under a properly managed MOE, the governing relation: INFLATION = DEFAULT - INTEREST = zero is not negotiable. It is firm and transparent ... all the time everywhere. If a trader creates money and fails to deliver as promised, that DEFAULT is reclaimed instantly by an equal amount of INTREST collection guaranteeing INFLATION at zero ... all the time ...everywhere.

When INFLATION is guaranteed to be zero, you have a perfect store of value. It is trivial to properly manage any MOE and guarantee zero INFLATION. That we don't do this is obvious. It requires monitoring and making visible DEFAULTs. We have "never" done that. I challenge you to produce a DEFAULT time series though its measurement is trivial and necessary to all  business, yet you can produce innumerable series of GDP, INFLATION, INTEREST, GROWTH and myriad other unmeasurables.

realmoney2015's picture

How do you garuntee inflation to be zero? Money managers will always be corrupted and inflate away the value of the currency. It has happened to every currency in the history of the world.

withglee's picture

How do you garuntee inflation to be zero?

If traders create money by getting their trading promises certified; if they return the money as promised on delivery; if the money is then extinguished; if the trader defaults and the default is met with an equal interest collection which is extinguished; how can inflation be anything but zero?

It has happened to every currency in the history of the world.

That is correct. But name me one currency in the history of the world that has ever been properly managed. All MOEs I know of are managed as people at ZH propose ... using Keynesian, Mises, or some other philosophy ... basically wet finger, stab in air, make up size of print run; claim backing by precious metal or capitalist or saver; let insiders in formerly smoke filled rooms called LIBOR manipulate the interest. Historically, proper management would be difficult ... but not impossible. We have had proper insurance management for a very long time. With today's technological advancements, where most transactions are just accounting entries and everything can easily be made transparent, it's a walk in the park.

MOE management is no different than management of a mutual insurance company except in one important aspect.

With an insurance portfolio, you collect premiums in anticipation of what you expect claims to be. You make money on the investment of those yet unclaimed premiums. Presumably, a mutual insurance company owned by the insured is not in it for the profit. They are in it to spread the risk, so ideally investment income just allows slightly lower premiums.

When you manage an MOE, you issue certificates in exchange for trading promises. You can't invest these promises so there is no investment income. You have a slight cost of keeping score and collecting interest to match defaults. This "cost" is met as part of interest collections.  When you're talking about all of an MOEs market, these costs are trivial and don't show up in the rounding.