Comparing the World’s Money and Markets

Comparing the World’s Money and Markets, by Visual Capitalist. There is an excellent graphic comparing the size of the world’s markets and money at the link. Some excepts (each square represents US$100 billion):

Paper currency is generally created by taking out a loan, and exists either as  notes and coin or as a bookkeeping entry in a bank account (“bank credit”). The amount of “money” is thus roughly equal to the amount of (bank) debt. Normally, in a healthy economy, the ratio of debt to GDP is between 100% and 150%. But the world is currently running huge amounts of debt, about US$215 trillion, which is about 325% of the world’s GDP. Hence the overwhelming economic condition that is almost universally recognized to be weighing down the world’s economies at the moment — high debt levels.

And the world’s biggest non-financial market is real estate: