All Of The World’s Money And Markets In One Visualization

Tyler Durden's picture

By Jeff Desjardins of Visual Capitalist and the Money Project

How much money exists in the world?

Strangely enough, there are multiple answers to this question, and the amount of money that exists changes depending on how we define it. The more abstract definition of money we use, the higher the number is.

In this data visualization of the world’s total money supply, we wanted to not only compare the different definitions of money, but to also show powerful context for this information. That’s why we’ve also added in recognizable benchmarks such as the wealth of the richest people in the world, the market capitalizations of the largest publicly-traded companies, the value of all stock markets, and the total of all global debt.

The end result is a hierarchy of information that ranges from some of the smallest markets (Bitcoin = $5 billion, Silver above-ground stock = $14 billion) to the world’s largest markets (Derivatives on a notional contract basis = somewhere in the range of $630 trillion to $1.2 quadrillion).

In between those benchmarks is the total of the world’s money, depending on how it is defined. This includes the global supply of all coinage and banknotes ($5 trillion), the above-ground gold supply ($7.8 trillion), the narrow money supply ($28.6 trillion), and the broad money supply ($80.9 trillion).

All figures are in the equivalent of US dollars.


Courtesy of: The Money Project

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Soul Glow's picture

Derivatives, the tulips of the 21st Century.

Mr.Sono's picture

Need to get more silver

beemasters's picture

" There were more than 669 cryptocurrencies available for trade in online markets as of 24 August 2015 and more than 740 in total " - https://en.wikipedia.org/wiki/List_of_cryptocurrencies

Me thinks the graphic has 739 items missing?

Occident Mortal's picture

Isn't that the problem with cryptocurrencies?

 

Yes you cannot dilute within the bounds of one cryptocurrency, but you can dilute by just creating more blockchains.

 

In fact once one cryptocurrency becomes saturated, the miners have a motivation to begin marketing a new cryptocurrency.

fiatliberty1776's picture

The important thing to me is the choice outside of the currency of where you live.  Let the market determine the best one.  Bitcoin right now has by far the most security (amount of miners validating transactions) and largest market cap.  Like any investment do your research and choose for yourself and a little diversification never hurts especially in countries like Brazil, Ukraine or Argentina.  In 4.5 years the monetary inflation rate of bitcoin will be less than the 2% of the fed's target inflation.  Let the best currency win. Chart of bitcoin inflation over time:  https://plot.ly/~BashCo/5.embed?share_key=ljQVkaTiHXjX2W41UiqzCn

Pseudonymous's picture

Those other blockchains mostly have no security (those that have relatively little mining power can and occasionally do get easily attacked), few users (very few transactions) and no adoption by businesses. Generally they have no chance to catch up with Bitcoin, and why replace Bitcoin anyway?

No disrespect, but I think you are using words such as "dilution" and "saturation" without having any real, meaningful concept behind them in mind. I don't think you know what you are talking about.

Kirk2NCC1701's picture

Should I sell my 2011-2013 silver, to buy fresh 2015 silver?

Bollixed's picture

Hell yea. That's what I'm gonna do, sell my $42 silver, pick up some $13 silver and walk away with over three times as big a stash.

What could go wrong...

Help Is Not Coming's picture

Well, actually you could do that and what you'd have at the end of all of that is the same amount of silver and a capital gains loss which you could declare on your taxes on the amount between the $42 and the $13. You'd still lose some cash on the spread between the sale and repurchase but that all depends on the amount of silver you have.

secretargentman's picture

I added Sta-bil to my 2009 silver. It's keeping nice and fresh at the bottom of the lake.

junction's picture

What good will money do when a heavily armed Million Man Migrant March moves on Washington, D.C., demanding equal rights for all illegals, especially those in the habit of saying something akin to "Aloha Snackbar" as they kill infidels and rape their women in the name of the Koran?  Obama will issue a stand down, any generals who have opposed plans for nuclear war and a caliphate in America having long been pensioned off.  Of course, those pensions will not have much buying power in a Fusion center (concentration camp).

Soul Glow's picture

That'll never happen.  The oceans are too big.

Ms No's picture

On the bright side of things there is still a lot of space in the US where you can scavenge wild vegetables,grubs and such things.

ZerOhead's picture

The Antiscavenging Act of 2016 will take care of that little loophole...

PacOps's picture

My DTR and her BF did Denver to SF - off-road last summer in a Pinzgauer. They lived off the land. Carried no food. She commented that the amount and varity of wild edibles available was astonishing.

JustPrintMoreDuh's picture

But but Gold & Silver aren't money ... uncle Ben said so.

kralizec's picture

LOL! Didn't your momma ever tell you not to listen to village idiots?!

What do you have in your wallet, er, lake bottom?

 

yellensNIRPles's picture

Awesome graphic. That really puts things into perspective. If you're playing around in 'the markets' or anything intangible, you're fucking around in that giant mess and it's all connected. It's a literal connect the dots.

FX223's picture

...and casino chips not on the list?

ZerOhead's picture

That's probably covered under derivatives...

Stormtrooper's picture

Only hard assets are money.  Land, buildings, commodities, any stuff that requires labor to take from the ground and turn into finished products.

Financial products do not qualify as money because they are based on "confidence" which tends to evaporate quickly.

So, actual money is very limited.

pull-it's picture

bullish for bitcoin,  5% of "suckers" deposits and boom... seriously, just put 1% of your net worth in BTC... it's worth the gamble

Grave's picture

smart people diversify and have at least 1% in bitcoin

i mean really, its just 1% if it goes nowhere, but if it becomes the fintech backbone, expect roi in the orders of magnitude range :D

pull-it's picture

yep no-brainer... so much being invested in the infastructure and it's better money, eventually even the subhumans will see the benefits

OregonGrown's picture

Fuck bitcoin..... buy POTcoin....  Good for doobage the world around!

Grave's picture

is that you, master of viacoin? :p

explosivo's picture

Put 1% in ostrich meat. I mean, it's just 1%. If nothing happens, you're not in any pain, but if ostrich meat becomes the new steak, the sky is the limit!!!

phatfawzi's picture

where is the bullet count?

Salzburg1756's picture

Calling derivatives "instruments" is like calling shit "produce.

rapetrain's picture

Derivatives are wonderful. They are voluntary business contracts. Let's not blame the problems caused by State coercion on morally-netural constructs like derivatives.

Womb Service's picture

But would derivatives (in their present form) exist in a world without debt money backed by coercive force? In a truly free market, the derivatives complex would be very different and much smaller, I think.

artless's picture

oh rapetrain and womb service you might want to take this out over a beer.

In a truly free market a lot more than just derivatives would be diferent. Goldman, The JP Morgue, Citi would have ALL gone the way of Bear & Lehman. GM would have been liquidated all of which would be good things. Painful for a bit but ultimately beneficial as capital misallocation would begin to correct.

IN a FREE market fiat currency would not survive. Why? Because the force and coercion provided by government would not apply (remember we are talking FREE MARKET folks) and it's monopoly would disappear. So long perto dollar.

And with that so long MIC bidgets like the last 2000 page bill of theft and deception passed by The House under that new criminal in charge of Congress Paul Ryan. What was that song called again? Wont get fooled Again?

Back in 2002 I had a cycling teammate who was a lawyer by trade but who worked "on Wall Steet". One day I asked him what he did. He said he worked in derivitives. I sheepishly asked him what he meant, what THAT was. He paused and then said "I'm not actually sure I KNOW what it is"

And therein lies the problem. The willful ignorance of the population. Hey so long as my 401K is strong, I can make my monthly mortgage, and I can get a wide screen HDTV it's all good, right? Nevermind your "investment" might be funding endless war, the financial ponzi scheme, the health cartel, etc.

Good luck with that when it all goes POOF! Which it will. Because math is a bitch and she cannot be bargained with.

Lore's picture

You've opened a can of worms. Did you read the critical quote in the margin of the infographic?  What we need is MUCH more discussion of the variety, uses and abuses of derivatives.  Who is taking what kind and amount of risk?  Most importantly, how is the public protected against attempts by psychopaths to socialize that risk?

ThirdWorldDude's picture

Robert Michels gave a good answer to those questions some 100 years ago...

Like the Architect told Neo - you can't beat the system by fighting it with its own means; the most you can achieve is to press the metaphorical "factory reset" button...

Mankind is doomed to keep on repeating the same mistakes over and over again unless it takes the needed evolutionary leap forward.

Lore's picture

Interesting. The writing is very careful, like something by Northrop Frye.  It will be a pleasure to read.  I don't expect to like it, though.  I feel the psychopathic stratum is neglected far too often, as such people are innate masters at blending into whatever group suits their purposes.  I'm convinced at this point that the common enemy of humanity is not man, but psychopaths.

Political Ponerology:  A Science on the Nature of Evil Adjusted for Political Purposes

"If the many managerial positions are assumed by individuals deprived of sufficient abilities to feel and understand the majority of other people, and who also exhibit deficiencies in technical imagination and practical skills - (faculties indispensable for governing economic and political matters) - this then results in an exceptionally serious crisis in all areas, both within the country in question and with regard to international relations. Within, the situation becomes unbearable even for those citizens who were able to feather their nest into a relatively comfortable modus vivendi.  Outside, other societies start to feel the pathological quality of the phenomenon quite distinctly.  Such a state of affairs cannot last long.  One must then be prepared for ever more rapid changes, and also behave with great circumspection." (2nd. ed., p. 140)

ThirdWorldDude's picture

Thanks for the reply. It would be interesting to hear/read your thoughts on Michels' "Political Parties" once you've read the entire book.

Kirk2NCC1701's picture

Sorry for shouting, but it needs to be said...

DERIVATIVES ARE HIGHLY LEVERAGED SIDE-BETS ON ANYTHING YOU CAN THINK OF IN THE FINANCIAL WORLD, AND ARE 'BACKED' BY COLLATERAL THAT IS PRIMARY, SECONDARY OR TERTIARY WEALTH.  

Note that, given that absolute value of Derivatives swamps the absolute notional value of everything else, it is not the Absolute Value that is being 'backed', but the statistically-projected CHANGE in Value, i.e. the dV/dt and d2V/dt2.  

These changes must be kept in a dynamic balance, or a Margin Call is triggered in an adverse situation.  As long as the DYNAMIC BALANCE of P & L is kept in narrowly-controlled chanels, "all is well".  If however an external shock perturbs the Dynamics in a way that it cannot compensate, then the Avalanche starts and all hell breaks loose.  

One of the tricks that is used in the Ponzi Casino, is to halt "trading" (gambling!) in the Casino, until things can be juggled to restore gambling order.  Any and all Trouble Makers of said Perturbance are then taken to the back, worked over, or taken out to the desert for termination and disposal. 

Casino Management makes the rules, and its Owners make the profits, no matter the weather, season or biz cycle:  "Allow me to control the issue of Money of a Nation, and I care not who makes its laws".  

MasterOfTheMultiverse's picture

Interesting; could you give some examples of "adverse situations" that could affect "dynamic balance" and seriously destabilize the current financial system? That way one knows when a "crisis" is serious or just scaremongering clickbait/headline to sell more newspapers.

Arnold's picture

Gated Redemption s.

 

'I want my money back, as per contract'

'Well when we get some, after bonus and lawyers, you may have some.'

'But we are a large city Pension fund!'

'Good thing we have lawyers then.'

IED's picture

Money is not a commodity. It is only a way of keeping score.

 

homebody's picture

A good pictorial depiction of why the (cough ) markets can be manipulated no matter what the so called mom and pop investors do - until the world economy goes completely crazy.  

Dirtnapper's picture

The 2015 CR-Ominbus had directed FDIC to cover US Bank's derivative.  That still goes for 2016?