The Flow of Value The journey of value from the moment it leaves the planet to the moment it churns in the markets, in one flow: resources start as small streams (Layer 0), joining into a river, the economy (Layer 1); the river widens over time into a lake, where value accumulates as wealth (Layer 2). Then a whirlpool forms over that lake: wealth begins to turn over in the markets at many times its own size (Layer 3).
up to here, each material traveled 1.566 km on average Longest / shortest journeys Copper 12.735 km Soybean 11.620 km Other Minerals 7.491 km … Limestone 95 km Sand, Gravel & Crushed Stone 90 km LAYER 0 (Resource) Raw material pulled from the ground, still at the source - valued only at production cost Agriculture 8,90 Gton/yr 2,51 T $ Livestock 1,60 Gton/yr 1,87 T $ Energy 17,43 Gton/yr 1,14 T $ Construction Materials 51,36 Gton/yr 0,39 T $ Minerals 3,16 Gton/yr 0,37 T $ Forestry 2,62 Gton/yr 0,21 T $ Resource Value 6,49 T $/yr Based on production cost, stripped of speculation (Layer 0) 955 million people work in this layer LAYER 1 (Market to GDP) The resource gets priced in the market here, then enters production - services meanwhile are a fresh flow born without material 6,49 T $ → 13,19 T $ price jumps ×2,03 here oil ×20,34 coal ×8,94 Iron Ore ×8,87 … Poultry ×1,10 Other Agriculture ×0,77 Market Value 13,19 T $/yr The same material, as traded in the market as a commodity Production · Processing · Transport 28,33 T $ Turns material into a usable product → Resources Reaching Consumption 6,49 T $ → 28,33 T $ from soil to shelf, value grew ×4,37 Biggest contributors to production (post-Markov) Energy 14,37 T $ Agriculture 5,21 T $ Livestock 3,62 T $ … Service Sectors 81,64 T $ Creates comfort and quality of life directly → Services Reaching Consumption not material - labour Biggest service sectors Real estate services 14,72 T $ Professional, scientific, technical services 13,25 T $ Financial and insurance services 12,59 T $ … 6,49 T $ → 81,64 T $ ×12,59 the raw material Tax 8,21 T $ Tax 8,21 T $ World GDP (Annual Flow) 118,18 T $/yr Resources reaching consumption + services + tax 2,5 billion people join the workforce in this layer LAYER 2 (The Accumulation of Years) This is no longer a flow - it's savings stacked up over generations, a snapshot of one moment 79 million people work in this layer (finance + real estate) Income Statement (World, Annual) 118,18 T $ Raw Materials 6,49 T $ Wages (D1) 57,93 T $ Depreciation (P51C) 21,23 T $ Taxes (D2X3) 10,03 T $ Net Profit 22,51 T $ Biggest contributors 80 countries · Layer 1 estimate United States 29,11 T $ China 19,38 T $ Japan 4,54 T $ Germany 4,33 T $ India 3,57 T $ … Net Profit by sector Corporate Profit (S11/S12) 51% of GDP · 27-28 countries Non-Financial Corporations 12,63 T $ Financial Corporations 5,54 T $ different measure from TLS see: Methodology → 118,18 T $ → 1.906,87 T $ ×16 the wealth ASSETS: What Exists? 1.906,87 T $ Financial Assets 1.235,50 T $ Real Assets 671,37 T $ 671,37 T $ → 1.235,50 T $ paper is ×1,84 the real thing Equity and Investment Fund Shares 416,63 T $ Loans 225,64 T $ Currency and Deposits 194,67 T $ … Gold/SDR 14,00 T $ Real assets breakdown Land 227,22 T $ Other Buildings and Structures 128,51 T $ Housing 125,28 T $ … Agricultural/Biological Assets 0,29 T $ FUNDING: How Was It Financed? 1.906,87 T $ Equity 734,39 T $ Financial Debt 1.172,47 T $ this equity generates 22,51 T $ in net profit per year financial debt is ×1,60 the size of equity Equity and Investment Fund Shares 384,24 T $ Loans 211,79 T $ Currency and Deposits 180,54 T $ … Gold/SDR 1,50 T $ LAYER 3 (Market Flow) This vast balance sheet doesn't sit still - it keeps churning at a volume many times its own size daily average 38,94 T $ 9.735,00 T $ ANNUAL TRADING VOLUME 5 million people work in these markets 118,18 T $ → 9.735,00 T $ ×82 the economy 1.906,87 T $ → 9.735,00 T $ ×5,11 of ALL assets!! Interest Rate Derivatives 6.317,80 T $ Foreign Exchange (FX) 2.429,40 T $ Government Bond Trading Volume 342,20 T $ Equity Trading Volume 184,52 T $ Commodities 158,60 T $ … 6,49 T $ → 9.735,00 T $ (yr), ×1.501 to markets 6,49 T $ → 38,94 T $ (day), beats it ×6,00 DAILY the whole story began with each person securing 11 tons of material just to survive... 6,49 T $ → 9.735,00 T $ a story that began with pulling food and shelter from the earth - humanity turned it into a financial cycle ×1.501 times its size