Apparently, the book value of derivatives, as tracked by the BIS, is $285 trillion. Total world economy is about one sixth that size, I'd guess. The size of the U.S. economy is about $12 trillion currently, for comparison's sake, the official national debt is about $9 trillion, and the actual (GAAP) national debt is about $50 trillion.
So if you're wondering why you get three letters and four phone calls per day from investment and mortgage companies, but can't find a decent pastrami sandwich (or a pair of sweats that actually fit), this is why. The deli owner wisely figured out that the real money isn't in producing useful goods and services, but rather in shuffling around piles of worthless fiat money. You're stuck paying $7 for a sandwich that is a pale shadow of that elegant creation your granddad got for a dime or so as a result.
How to fix it? Pay off your debts and use the interest money you save to order some of the good stuff from New York. Open your own shop and offer two sandwiches for a dollar. This kind of dollar.
And of course, a decent pastrami sandwich is an excellent way to help keep your wife happy. If she likes pastrami, of course.
Podcast #1047: The Roman Caesars’ Guide to Ruling
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The Roman caesars were the rulers of the Roman Empire, beginning in 27 BC
with Julius Caesar’s heir Augustus, from whom subsequent caesars took their
nam...
6 hours ago
3 comments:
If you've noticed, "hard" currency values have sky-rocketed the last few months. Confidence in the dollar has wained and many people taking the "flight to quality" in real money.
One day all the dollar will be good for, will be limited to the bathroom.
Quite right--hopefully I won't need to use it to feed my family in a Weimaresque hyperinflation!
Well past time to change the 1935 rules of accounting !
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