Furthermore, our national deficit as a percent of assets is at one of its lowest levels.
Posted on 01/10/2007 6:55:13 AM PST by OESY
The world's financial system is overflowing with stocks, bonds and other financial assets -- $140 trillion worth, to be precise.
The figure was released in a study by McKinsey & Co. that maps financial assets around the globe and seeks to track the flows of these assets as they move from one region to another, putting hard numbers on the oceans of capital washing up around the globe.
At $140 trillion in 2005, the value of the world's financial assets hit a new peak and was more than three times as large as the total output of goods and services produced across the planet that year.
The study, released today, paints a picture of a world in which investors and the banks that manage their money are spreading their bets more broadly. Flows of investment across borders hit $6 trillion in 2005, McKinsey said, above levels reached at the height of the 1990s stock-market bubble and more than double the figure in 2002.
At the epicenter of these financial flows is the U.S., which takes in about 85% of the flows from countries that are net exporters of capital -- places like Japan, China and the Middle East. "It's a pretty striking thing," says Diana Farrell, director of the McKinsey Global Institute, an in-house think tank that produced the report. "Of all the savings that citizens world-wide are willing to put outside their countries, the U.S. gets 85% of it."...
(Excerpt) Read more at online.wsj.com ...
This cannot be correct.
I have been repeately re-assured by the media and paleo con conservatives that WE ARE DOOMED!
:)
America continues to rock-- as usual.
Yeah, but ... socialism is a better system (they just have to implement it correctly next time).
"World's Assets Hit Record Value Of $140 Trillion"
I wonder which planet is going to buy us?
Where is the ME?
" At $140 trillion in 2005, the value of the world's financial assets hit a new peak and was more than three times as large as the total output of goods and services produced across the planet that year. "
Okay, I'm no economist, but this just don't seem to add up...
There's three times as much "money" (financial assets) as there is "goods and services" to be purchased...
Isn't that the textbook definition of "inflation?"
Or is it, perhaps, that what we call an "economy" is based on smoke & mirrors?
(What colors *are* the "emperor's new clothes"?)
odd they lump australia, new zealand, and canada together.
See how evil democratic reforms and capitalism are??? We should be ASHAMED!!!!
We're rich!
Exactly. Try to find $140T of things that actually exist.
Paging Africa. Hello Africa.
Africa: CAN YOU READ ME?
"Since we have declared tree leaves the local currency, we have all of course become immensely rich. Inflation now being a problem, we have taken up a massive defoliation campaign whereby we will now, um, burn down the forests."
- H2G2 (paraphrased)
Excepting the oil we pump for them, they don't produce anything.
WOW!!! It is really impressive. The power of the US is just beyond belief, the US is the World. No wonder why the Europeans are always jealous. Thanks God that we live in the greatest country in history of mankind, the United States of America.
If you get a magnifying glass, you can see a tiny dot on that graph representing Africa.
I think this might be because there are many assets that are not classified as either goods or services... but I'm just guessing. I do not know how this report organized their numbers.
Yes, but all of it is owned by .001% of Americans, while the rest of us own nothing. And it's your fault.
Assets and annual production are different. Imagine you have a $100,000 back-hoe that helps you earn $30,000 per year. Because the asset endures from year to year, that can be a profitable asset.
The productivity of an asset over an arbitrary duration does not need to equal its value.
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