The visualisation given below gives detailed information about the world’s money and markets and where they’re heading.
Government officials have been attempting to stimulate the world economy for 15 years using measures like money creation, zero interest rate policies, and more recently, strong COVID fiscal stimulus.
Investors began to value future cash flows more because capital was available at almost no cost during this time. Money inexorably sought increasingly risky assets like NFTs, cryptocurrencies, or unproven venture-backed firms as assets rose and balance sheets increased.
The free money party has since come to an end, however, as will be shown below, as a result of persistent inflation forcing a swift change in many of these measures. And as Warren Buffett famously put it, you can only tell “who’s been swimming naked” after the tide is out.
Measuring Money and Markets in 2022.
Our standard unit of measurement is a two-dimensional box with a value of $100 billion, which we use for all publishing of this visualisation.
It’s fascinating to consider what truly fits within this tiny building block of measurement, even though you need several of them to convey the assets on the balance sheet of the U.S. Federal Reserve or the private wealth held by the world’s billionaires:
Our tiny unit of measurement is enough to buy every NHL franchise, pay for the building of the Nord Stream 2 pipeline, and help FTX several times over with its financial problems.
An summary of all the items in this year’s visualisation can be found here:
Has the Dust Settled Yet?
Apple’s market capitalization in our 2017 version of this depiction was just $807 billion, while the total value of all crypto assets was $173 billion. $215 trillion was the total amount of global debt.
And in only five years, Apple almost quadrupled in size (it reached a height of $3 trillion in January 2022), and cryptocurrency also grew into a multi-trillion dollar market until the 2022 crisis and following FTX implosion brought it back to reality.
In the meantime, the total amount of debt in the world has increased by $85 trillion over the last five years.
Today is yet another exceptional moment in time because interest rates are predicted to climb further, businesses are cutting costs, and politicians are controlling spending and borrowing.
Where do things go from here now that the easy money era is over?
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