Okay, I just uploaded my copy of The Financial Modelers’ Manifesto. After years of on and off research, I am still dumbfounded by how the Wall Street Bailouts in the Great Recession had been allowed to happen. I mean, is anyone aware of the fact that the “Collateralized Debt Obligations” are part of the Implicit Intent behind why there is over $1.3 quadrillion USD in existence. So much of it is being created out of thin air through the Fractional-Reserve Banking System. So much more is being created of thin air by the personal opinions and speculations of the Last Men and the Financial Markets believing them.
As of March 31, 2021, there was nearly US $2.1 trillion in circulation, including Federal Reserve notes, coins, and currency no longer issued.
If you are looking for all the [Physical Kapital] (notes and coins) and the [Kapital] deposited in savings and checking accounts, you could expect to find approximately $40 trillion. This figure represents only ‘[Narrow Kapital].’
However, if you add the ‘[Broad Kapital],’ the amount rises to over $90.4 trillion. This amount further increases when bitcoins and other cryptocurrencies are included.
[Kapital] in the form of investments, derivatives, and Cryptocurrencies exceeds $1.3 quadrillion. This is what it looks like written out: $1,300,000,000,000,000.
This is a much more significant amount compared to the total money in the stock market, which is a mere $95 trillion. Leading tech companies such as Apple, Alphabet, Microsoft, and Amazon contribute a lot to the stock market.
The value of all cryptocurrencies in circulation (over $2 trillion) and investment in commercial real estate ($30 trillion) also represent a small portion of the total money in the world. Bitcoin, for example, accounts for less than 1% of the world’s money.
In the 2021 list of the world’s billionaires, Forbes included 2,755 billionaires with a total net wealth of $13.1 trillion. Surprisingly, the top 26 billionaires own as much as the poorest 3.8 billion.
In closing, here is my favorite scene from “Thus Spoke Lenin“:
Flee, [Comrades], into your [Solidarity]! I see you deafened with the noise of the great men, and stung all over with the stings of the little ones. Forest and rock know how to be silent with you. Be like the tree which you love, the broad-branched one — silently and attentively it overhangs the sea.-Friedrich Nietzsche, “Flies in the Marketplace,” from Thus Spoke Zarathustra, ca. 1883
Where [the Solidarity of Socialism] ends, there begins the [Liquidity of Neoliberalism at the Financial Market]; and where the [Financial Market] begins, there begins also the noise of the great actors, and the buzzing of the poison-flies. In the world even the best things are worthless without those who make a side-show of them: these showmen, the people call great men.
Little do the people understand what is great — that is to say, the creator. But they have a taste for all showmen and actors of great things. Around the creators of new values revolves the world: — invisibly it revolves. But around the actors revolve the people and the glory: such is the course of things. The actor has spirit, but little conscience of the spirit. He always believes in that with which he most strongly inspires belief — in himself!
Tomorrow he has a new belief, and the day after, one still newer. Like the people, he has quick perceptions and fickle moods. To defeat — that means for him: to prove. To drive to frenzy — that means for him: to convince. And blood is to him the best of all arguments. A truth which glides only into refined ears, he calls falsehood and nothing.
Categories: Blog Post