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Doesn't it work you that the fundamentals simply don't make sense? Estimates of the entire planets GDP is around $85 trillion USD. Can you shed some light on i
by hactually 5y ago
Doesn't it work you that the fundamentals simply don't make sense? Estimates of the entire planets GDP is around $85 trillion USD.
Can you shed some light on it?
- rfd4sgmk8u 5y agoRehypothecation, Leverage, Derivatives and Debt. Absolute Numbers are meaningless, kind of a fantasy really, and only impact most economic players locally and within the respective market. Occasionally the thing falls apart because there was too much of those 4 things at play. Hmmm.. We can put point in time estimates of how much everything on the planet costs -- what are the desirable assets, that people will want to store wealth in, I think the three main ones in the 21st century are: * Real Estate -- every place you can live or work, provide shelter and a place to store other physical stuff. * Equities, Financial Derivatives, Securities, Funds, weird financial instruments that someone convinced someone else to list on a market * Cryptocurrencies -- distributed ledgers run by computers around the world Everything else is stuff, and is bound by the real estate. Most stuff can be made to a limit bound to the other stuff (resources, minerals). The important stuff like rocks and minerals are tracked by the financial instruments section. We do need to factor in the cost of the stuff, but often this is contingent on the labor that can harness it. Supply chain disruptions in the last 2 years have their cause from people getting sick and unable to work, or transport the stuff. These things need to be bought with 'money', and most people earn money through employment or receive an allowance from the State.