VENTURE CAPITAL

Help finding risk capital through international network.

LOGISTICS

Provider of consultancy services for cargo handling.

COMPUTER NETWORK

Working through national and international partners.

BEHIND THE NEWS

Analysing future risk in logistics & geopolitics.

ECONOMIC SANCTIONS & TRADE EMBARGOES

How companies can develop a sanctions compliance program.

 

The homepage was last updated September 2022.

The $100 Trillion World Economy In One Chart : (US Dollar)

A country’s Gross Domestic Product (GDP) is a general gauge of its economic health. It calculates the entire monetary value of products and services generated in the private and public sectors over a specific period of time. This chart presents the $100 trillion global economy, all in one chart. (Visualcapitalist.com).

The world's ever-growing and unserviceable debt has now (Sept./2022) grown to a staggering 304 trillion US dollars, that is, more than 3 times the world's combined gross domestic product. (GDP).

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Debt crisis: Which countries are at risk of defaulting ?

Lebanon, Sri Lanka, Russia, Suriname and Zambia are already in default, Belarus is on the brink and at least another dozen are in the danger zone as rising borrowing costs, inflation and debt all stoke fears of economic collapse. These countries are Argnetina, Ukraine, Tunisia, Ghana, Egypt, Kenya, Ethiopia, El Salvador, Pakistan, Equador, Nigeria. (Reuters, July 2022).

 

The financial derivatives market, "financial instruments" is now an incredible 1000 trillion dollars, which is more than 10 times that of the total world gross domestic product (GDP).

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Derivatives are financial contracts that derive their value from an underlying asset. These could be stocks, indices, commodities, currencies, exchange rates, or the rate of interest. These financial instruments help you make profits by betting on the future value of the underlying asset.
Derivatives can be used to hedge price risk as well as for speculative trading to make profits. The four major types of derivative contracts are options, forwards, futures and swaps. 

 

 

"The Derivatives Time Bomb" refers to a situation where the securities you bought have dropped drastically in value.

In the derivatives market, there will be demands for additional security for the increased risk exposure held by investment banks, financial institutions and investors. They now sit on huge derivative portfolios. Typically, this will involve a requirement of 5-10 % additional security to avoid default, so-called "margin calls". Whitch means that these institutions must "cough up" between 50-100 trillion dollars in a very short time. None of these are able to provide such amounts to day. If you fail to pay the margin call, the broker has the right to begin liquidating your assets. (Sept. 2022).