The Coming Collapse of U.S. & World Conventional Paper Assets
This is up from $87.2 trillion in 2012. These global conventional assets are broken down into the following investment classes shown in the chart below:
Here we can see that the world has $26.5 trillion invested in mutual funds, $26.8 trillion in insurance funds and $33.9 trillion in pension funds. Total global conventional assets under management grew 9.5% in 2012 compared to 2011 and are forecasted to grow an additional 8% in 2013. Of course the majority of the gains in these global assets are due to the massive amount of monetary printing by the Fed & Central Banks. The world believes it’s a lot richer only because the digits in these accounts have increased. However, as I have mentioned before these assets are really not assets at all, but rather liabilities I label as “Energy IOU’s.”