This Is Where The Developed World's Households Have Invested Their Money

Tyler Durden's picture

Yesterday we presented what the balance sheet of the developed, or better known as insolvent, world- recall there was over $21 trillion in excess debt as of 3 years ago, looks like, and the curious to some observation that trillions in liabilities also double up as assets, in what is easily the world's most confounding (to central bankers at least) global circle jerk. After all, one can not inflate liabilities, without also destroying the assets these double count as  at the same time. Yet while informative, that chart did not tell us anything we did not already know. However, the next chart we will present today will show a different aspect of the developed world, namely by indicating how the households of the three "richest" economies - Japan, the US and the Euro Area, have invested their money in various financial assets. And while this is merely the asset side of the ledger it shows how distinctly different the approach to capital allocation has been for countries in different stages of growth or ungrowth. What is most notable is the distinct distribution of capital in shares and equities within the three regions: it also shows why a sustained downtick in the US stock market is the deathknell of the modern economic experiment. What is also curious is that the investment of Japanese households into Insurance and Pension reserves, which in turn are then funneled into JGBs, is no larger than the US or European equivalent: it means that the true funding cost of the welfare state is roughly a third of all modern financial assets.

What is different about Japan, unlike the US, is that whereas in the US pension and insurance reserves are recycled into 401(k), in Japan these go to prop up the bond market. In essence, the weakest link for Japan is the bond market, while for US it is stocks. Unfortunately, since the US is now well on its way to becoming Japan, and retail has given up on stocks (just today we had yet another consecutive outflow from domestic equity stock funds, soaring markets be damned) we expect increasingly more capital to be reallocated from equities and into currency and deposits, as the fear of deflation pushes more and more to keep cash well-invested in the First Bank of Mattress City. And as the rotation out of stocks and into other financial assets accelerates, prepare to see what true Japanification means for yet another increasingly aging society.

The assets of the developed world's households:

And the offsetting financial liabilities - nothing but another circular pyramid scheme.

Source: BOJ

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JPM Hater001's picture

Waldo is in the lower right corner

I think I need to buy a gun's picture

abc news(diane sawyer last night) and a few magazines are calling Bernanke an American hero he saved us ALL froma great depression......

bnbdnb's picture

Yeah real genius, Einstein. I will buy your junk and then give you money to pay me back some day...whenever is good for you...oh at no interest too. Forgot!

Vic Vinegar's picture

Well, as we type our tripe tonight, all those magainzes, Diane Sawyer, et. al are correct - Ben B is the greatest central banker ever.  Tall Paul ain't got shit on Gentle Ben.

And yet here's another beautiful Wednesday that has afforded you the opportunity to hug your wife/child/mistress/mother/father/brother/sister/neigbhor and an opportunity to buy physical.  Seems like there is little to complain about as of today.  Perhaps tomorrow will be worse, but today was pretty good.

Oh regional Indian's picture

Great attitude VicVin. 

Now+Here = Nowhere 

Perhaps we all need to be going NowHere fast?

Meanwhile these charts are a real tell. In essence, those sliders are all th eways the Ponzi can continue to... nudge asset allocations till they all meet in the middle. The great stock bonfire soon to come. The greatest destruction of "wealth" in known history etc. Inevitable.

The even funnier thing is, nothing in that whole basket is absolute wealth. Land/Equipment/Intelprop is all a fraction of what is owed in this re-re-hypothecated world.

In a word.... fail.



AssFire's picture


I been meaning to ask you:

Is it true Gandhi was a pedophile??


I have heard lots of sick stuff about him sleeping with and performing enemas on girls routinely... hope he's wasn't a sick bastard.

You tell me, please.


Ahmeexnal's picture

Hey @55f1r3, your avatar/pic reminds me of that invincible spanish galleon, the Nuestra Señora de la Concepción.

If AAPL is such a great opportunity.....why are the top honchos at APPL selling their stock?


Three Apple executives sold millions of dollars in Apple shares after restricted stock units awarded in 2008 vested. The three executives were Apple CEO Tim Cook, Apple CFO Peter Oppenheimer, and marketing chief Phil Schiller. The sales were disclosed in mandatory SEC filings.

- Tim Cook sold 106,640 shares at an average price of $600.79/share, after having 93,360 shares withheld for tax purposes. He netted $64 million.

- Peter Oppenheimer sold 80,147 shares at an average price of just under $599/share, after having 69,853 shares withheld for tax purposes. He netted just under $48 million.

- Phil Schiller sold 64,151 shares at an average price of $602.66/share, after having 55,849 shares withheld for tax purposes. He netted $38.66 million.


Blowing iBubbles about to burst?

AssFire's picture

That ship was merely stolen from Spain by Drake, not set on fire like my ass in the avatar. Still, jump right in there! I did the same.

Ahmeexnal's picture

yet it is known more by the name of CACAFUEGO (FIRESHIT) than it's original name.

the inquiring minds have wondered for centuries why....

GetZeeGold's picture



We're pretty pleased with our precious metal postions at the GetZee household.


It's pretty much gone down the way we've planned.


Chuck Walla's picture



That sounds like my usual and favorite Saturday night.  What's the prob here?  Enemas are healthy.  Ben's giving your wallet a big one right now,

Vic Vinegar's picture

A reply to my junker:

Rather than giving a random internet red, why not give us:

a) An explanation of how you think the world should be

b) A review of this Lady Gaga song

The cynic in me says both of your potential comments are equally worthless.  As ORI and Lady Gaga each said "we're going no where fast".  LOL

I say buy physcial. It's the right thing to do.  At the very least, you have something to pass onto your kids.

i-dog's picture

Please don't encourage the serial junkers to also have to add yet another load of misguided nonsense to the board!

Just wear the junk and spare us from the drivel. (I got about 30 junks for a comment a few days ago and didn't even bother replying to those who could barely string an ad hominem together...I stand by my comment and they can stand by their ignorance).

Vic Vinegar's picture

My gay brother implores you to quit being a fag.

'Cuz there is so much wisdom yet to imparted upon "this board".  LOL

Buy physical.  Everything else is bullshit.

(Enjoying Katy Perry videos are super-optional.)

i-dog's picture

Having since seen your other grafitti downthread, I can see why your vin is aigre.

*Yawn* ... get a life. Oh, and buy physical ... you really must buy physical ... I really, really, really think you should buy physical !!! Nobody's ever mentioned it here before, so I'm letting you in on the secret ... buy physical, bitch!!

tarsubil's picture

Vic is quite the trickster. He got me a couple days ago.

LoneCapitalist's picture

Vic, I personally agree with youre saying ,for myself. I have been, and will continue to buy physical. But, what about the people who are barely making ends meet and couldnt afford to buy PM even if they knew what was going on. For them, the longer this drags on the worse shape theyre in. Im afraid that by the time this system collapses there will be many destitute people who wont survive it.

MachoMan's picture

What would you do if a booming voice from the heavens told you that modern society was going to collapse and that you were going to die if you did not adequately prepare?  I think that's the gauntlet that's been thrown down.  Simply put, there are a myriad of ways to prepare, most of which do not need any remotely large sums to perform, e.g. learning useful skills or trades (although one must sacrifice time for the pleasure), buying smaller weight PM coins, exercising and becoming more physically fit (again, must sacrifice time), or developing personal relationships with like minded and helpful individuals...

It's one thing if you attempt to exhaust all possibilities after a reasonable effort to determine all possibilities...  it's another to sit in your house (not paying the mortgage no less), idle, and complain.

Sympathy is a luxury of prosperous times.

IrritableBowels's picture

At Vic Vinegar
Your account must be hacked.

r00t61's picture

If by "saved us from a Great Depression," they mean, "helped to bail out, with the politicians' blessings, the most powerful and politically connected vampire squid financial institutions on the backs of taxpayers the world over," then yes, I wholeheartedly agree.

Kobe Beef's picture

And since those same politically-connected institutions own the MSM, that's exactly whose opinion will be presented on the TV.

I can't believe people still watch that shit.

Ahmeexnal's picture

Seems like Diane Sawyer just earned herself a lamp post and some rope.

uno's picture

around a year ago I forced myself to watch the MSM 6:30 news spin, Diana Sawyer 's first story was about Gabbi Gifford and her amazing recovery, THE FIRST STORY.  good thing we only have 2+ wars ongoing with Iran on deck,police state, economy 22% unemployment etc.  Yep, some thing never change, I can't imagine the Trayvon MSM jihad.

vast-dom's picture






DormRoom's picture

Japan exports helped its economy get back on track after the 1990s collapse.  However, the US cannot export its way to health, without paradoxically causing a global recession.  And the Answer  lies in our old friend, the Triffin dilemma.


If the the US has a trade surplus, it means less USD (reserve units) in the global system.  And a shortage of global USD will cause other economies to contract.


So the US is not like Japan.  it can not export its way out of deleveraging, and a balance sheet recession. It needs China to orient itself to consumer society @ the same time. good luck with that, if China has a hard landing because of its own infrastructure malinvestment over the last decade.

lasvegaspersona's picture

Dorm room

are you familiar with FOFOA's dillema and the fact that physical gold as a wealth asset solves both?

can't be sterilzed though

tempo's picture

Japan we have a even bigger problem..RADIATION (

lolmao500's picture

Do I look fat in this dress?

Jendrzejczyk's picture

Never answer that question.

Anyone seen a cat roaming around? I smell vaporization. Here Kitty, liberal kitty, where did you go?

GMadScientist's picture

Only with the lights on, bitch.

innertrader's picture

The biggest news in 4 years!!!!

ABSOLUTELY everything barack hussein obama has done as President of the USA is a fraud and invalid!!!


Dr. Sandi's picture

Wow, I guess that means we get a free do-over.

GetZeeGold's picture



I believe that well be the ruling of the SCOTUS.


citta vritti's picture

geez, not again, I thought we were all done over already

Clockwork Orange's picture

Doesn't matter.  The damage has been done.  

And it won't get any coverage anyway, so its a not event.  If by wild chance, it amounts to anything it will just be more theater for the left/right sheeple.

The right sheep will get the nod this time, and Obamney, Fed-blower and Wall-Street whore will not fix anything other than business deals for his group of corrupt blood-sucking cronies.  

The same group of elitist con-artists will be pulling the levers, and the elephant vampires will get more blood than the donkey leetches.  

The f-ing guy invented Romneycare, which was bankrupt in less than 2 years.  He is John Kerry with an elephant pin.

This sickening vaudville act needs to get the hook, and soon. 

Freddie's picture

I went to a well known retailer for ammo and they now sell guns online too.  I went to check on ammo and guns.   They are a big retailers.  Just about everything is sold out.  Ruger - everything sold out.  AR 15s. The cheap ones sold out.  Cheap and lower priced ammo - sold out.

Gun and ammo sales are going absolutely ape shit again.

r00t61's picture

It seems that ammunition is one of the few robust American-based manufacturing sectors left in the nation.

gwar5's picture

I'd love to see Obama standing in front of a gun shop with a long lines promoting how well the economy is doing.

Maybe WM Banzai will favor us with such an image.

r00t61's picture

When I was at the local shop the other day, they had a funny poster on display: Obama's official White House portrait, with the caption, "Gun Salesman Of The Year."

rosiescenario's picture

Ruger should be donating millions to his campaign....he has single  handly brought them to a sold out condition....perhaps the only manufacturer who can make that claim.

Freddie's picture

Ruger just recently sold out of all production I think.  I would guess the shooting in FL will drive sales into outer space.

Old man Ruger was pretty much against carry guns and he kept a lid on new guns.  Their range was pretty tired.  After he died they came out with new stuff and lots of carry guns plus a nifty AR. 

Dugald's picture

You  may yet have to exchange bullets for beans.....yes you can eat a bullet, but it oft tends to be terminal

Edelweiss's picture

  Some items are a little more scarce (or pricier), but I can find what I want.  For example, I remember around the time of O's election a box of 20 5.56mm mil spec was around $8.  I can find it now at the same price, and lower.  The same is true of other common calibers such as 7.62x39 which can be had for around $4 per box of 20 rounds.  Some retailers cap the amount you can get at 1,000 rounds.  As for guns, if you can't find what you want on Gunbroker, you're doing something wrong.  Regardless of what any of you buy, do yourself a favor, and learn to use it.  Otherwise you're one jam away from holding an expensive club. 

Freddie's picture

Good advice and info.  Don't forget to buy a few parts  like srpings and firing pins too.

The site I was checking was cheaper than dirt.  They sell guns now and they are big.  Loads of stuff is sold out especially cheaper ARs.   I am looking for something in cheaper Russian calibers like 7.62x39 myself.   If I had any guns - I might have some extra cheaper Russian non-corrosive ammo for extra back up. 

I lost my guns in a boat accident and guns frighten me, so I will stick to a bat, pepper spray and a whistle. (sarc)  If things get really bad - I can wear my "can't we get along" T shirt.

Edelweiss's picture

  I can't advocate the ownership of guns in any way, but....  an AK variant in 7.62 is affordable (around $600-$700), and the ammo is still one of the least expensive rifle calibers to shoot.  A web search like "most reliable AK" should turn up a website with scores based on owner's reviews of those particular rifles.  Lots of good info for prospective buyers.  A good way to not waste your money on a piece of crap. I can't remember the name of the site.  Like you, I think a loud whistle and a T-shirt with an effective slogan is all I need to stay safe though.  Thankfully, we live in a civilized country!  

Bear's picture

Every phony or boloney, right or left must be shown the light of day. If we say oh well ... we lose any claim to be heard. Obama is a fraud ... he should be prosecuted just as Nixon should have been prosecuted for the Watergate. We can’t just say everyone is doing it and … oh well.

Al Gorerhythm's picture

I gave you an uptick and have forwarded it off to london to be rehypothicated. It's endless there. Well said.

gwar5's picture

Kenya believe it?  Pretty incredible, huh?  Way bigger than Watergate. It looks to be true.


I was previously an agnostic on Obama's fake documents, but the forensic evidence is in --- and the docs presented by Obama are fake, and not even good fakes. The Birth Certificate is a poorly done forgery done with Adobe software traced to a computer with an IP address known to be in the White House. 

Thousands of people have already found on their own that they can download the document from the WH website and can cut, and paste, and move the elements on the document around --- which you are not supposed to be able to do with a copy of a scanned original. You can only do this from a digitally manufactured document that was clumsily posted directly on the Web by Obama last year.

They never even bothered to print out a hard copy of their fake tto scan and then post on their website. Just the digital seals and stamps alone prove its a digital forgery and fake. Stamps and seals are never digital, always must be hard copies, this is why.  

The Selective Service Card forgery was so poorly done it didn't even use the four digit '1980' format known to be used. It just used "80", which appears to be made by using a 2008 stamp, cutting it in half and turning the "08" upside down to make a crude "80". The original 1980 stamps are no longer made and in use, so somebody improvised.

Obama's Connecticut SS# does not pass E-verify either. It gets kicked out as a mismatch for fake use wih an alert that says it needs to be reported.

Forging fake official dates and seals are all felonies which necessitates an ongoing thorough investigation. All acts by his president are suspect.

Army Physician Lt Col Lackey needs an apology and a medal for having spent 6 months in Leavenworth trying to force Obama to present legal documents. Nobody in the MSM seems to notice while the foreign press is reporting and going nuts. We are a laughing stock.