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US Debt
Greek Debt Crisis
Bank Balance Sheets
World Energy Consumption
Arab Spring
Greek Austerity Plan
Derivative Markets
US Debt
Major Foreign Holders of Treasury Securities, total $4trillion (June 2010) - The U.S. government's debt ceiling has been raised six times since the beginning of 2006 (as of 2010)
- A total of 161,000 tonnes of gold have been mined in human history, as of 2009. This is roughly equivalent to 5.175 billion troy ounces, which, at $1350 per troy ounce, would be $7.0 trillion
- Total US debt as a percentage of GDP (as of 2008)
- According to the 2008 Financial Report of the United States Government, which is an official United States government report, the total liabilities of the United States government, including future social security and medicare payments that the U.S. government is already committed to pay out, now exceed 65 TRILLION dollars.
- Major Foreign Holders of US Treasuries by Region - April 2011
- A trillion $10 bills, if they were taped end to end, would wrap around the globe more than 380 times. That amount of money would still not be enough to pay off the U.S. national debt (as of 2009)
- The United States currently has a $14.3 trillion debt ceiling (as of july 2011)
- On October 18th 2005, the Outstanding US Public Debt rose to $8,003,897,406,911.24 - the first time it had risen above $8 trillion
- The U.S. owes more money than any other nation in the history of the world (as of 2011)
- Foreign Treasury Holders (Billions USD) - Febuary 2010
- Estimated ownership of treasury securities by year (as of september 2008)
- Total Assets of U.S. Economy (12/31/2008) in billions
- Percent increase in US public debt by presidential terms since 1981 (as of April 2011)
- As of December 1st, 2009, the official debt of the United States government was approximately 12.1 trillion dollars
Greek Debt Crisis
- Greece industrial Production (as of Mars 2011)
- The 2009 trade deficits for Italy, Spain, Greece, and Portugal were estimated to be $69.5 billion, $34.4B and $18.6B, respectively
- Gross exposures to sovereign bonds (end 2010)
- Greece's debt/GDP ratio is the highest in the euro block, at about 115% (as of may 2010)
- The Bank of Greece thinks that in the first four months of 2011 Greek banks lost deposits at the rate of €2.8 billion a month
- Credit Agricole spent about 2.2 billion euros in 2006 to amass a controlling stake in Emporiki Bank of Greece SA and then increased its holding over time
- On 27 April 2010, the Greek debt rating was decreased to BB+ (a 'junk' status) by Standard & Poor amid fears of default by the Greek government
- Banks holdings of Greek sovereign debt by country (as April 2010)
- At the end of March 2011, French financial firms had $672 billion in public and private debt in Greece, Portugal, Ireland, Italy and Spain, according to Basel, Switzerland-based Bank for International Settlements
- Fortis, Dexia and SocGen seem to have the highest exposure Greek debt relative to their tNAV, with 64%, 35% and 14%, respectively. (as of april 2010)
- According to BIS, European banks' total exposure to Greece was €165bn at the end of Q3 2010, driven by French banks (€68bn) and German banks (€50bn)
- The Greek government owes more than €300 billion ($435 billion); Lehman’s balance-sheet before its failure was $613 billion (as of end 2010)
- The total exposure of the ECB to Ireland consists of around €20bn of bond purchases and €83bn of repos with domestic Irish banks (as of febuary 2011)
- French financial firms top the list of Greek creditors with about $57 billion in overall exposure to private and public debt at the end of March 2011, according to the BIS
- German banks hold 22% of the Greek external debt load (bank debt + sovereign debt + corporate debt), while French banks hold 32%. Furthermore, German banks accumulated 20% of all Irish external debt, 14% of Italy's, and 21% of Spain's. (as of Q3 2010)
Bank Balance Sheets
- The four largest French banks have 5.9 trillion euros in total assets, including loans and bond holdings, or about three times France’s GDP (as of mid 2011)
- RBS, at the end of June 2008 had a balance sheet of just under two trillion pounds. For reference, UK GDP was around £1,500 bn.
- France provided about 20 billion euros to bolster capital levels at its largest banks after Lehman Brothers Holdings Inc.’s September 2008 bankruptcy. President Nicolas Sarkozy also set up a 320 billion-euro fund to guarantee bank debt
- Lloyds-TSB Group reported a balance sheet as of June 30, 2008 of £368bn and shareholders equity of £11bn, giving leverage of over 33 times. HBOS reported assets of £681bn and equity of £21bn, a leverage of over 32 times; Barclays reported total assets of £1,366bn and shareholders equity of £33bn a leverage of 41 times, and HSBC (including subsidiaries) reported assets of £2,547bn and equity of £134 bn, implying leverage of 19 times.
- In July 2007, with a market capitalization of US$254 billion, Industrial and Commercial Bank of China (ICBC) became the largest bank in the world by market capitalization
- At the end of March 2011, French financial firms had $672 billion in public and private debt in Greece, Portugal, Ireland, Italy and Spain, according to Basel, Switzerland-based Bank for International Settlements
- The Top Five U.S. Bank’s total assets of $8.29 trillion represent a staggering 62.3% of total U.S. banking industry assets (as of June 30, 2009)
- At the end of 2010, France’s three largest banks had at least 500 billion euros of short-term and interbank funding rolling over within three months or less, according to a Barclays Capital note dated Sept 7, 2011
- Total bank assets as % of nominal GDP, End 2010
- Gross exposures to Greek government bonds (as of end 2010)
- Five banks — JPMorgan (JPM), Morgan Stanley (MS), Goldman Sachs (GS), Bank of America (BAC), and Citigroup (C) — write 97 percent of all credit-default swaps in the U.S., according to the Office of the Comptroller of the Currency (as of 2011)
- Top five US banks by assets, 2Q 2009
- The five U.S. banks — JPMorgan (JPM), Morgan Stanley (MS), Goldman Sachs (GS), Bank of America (BAC), and Citigroup (C) — had net exposure of $45 billion to the debt of Greece, Portugal, Ireland, Spain, and Italy, according to disclosures the companies made at the end of the third quarter 2011.
- Percentage of Total Credit Exposure to Risk Based Capital, Top 5 Commercial Banks by Derivative Holdings, 2007 Q4 to 2010 Q1
- Gross exposures to sovereign bonds (end 2010)
World Energy Consumption
- Developed industrialized countries consume around 43 millions oil barrels daily on an average while developing countries consume 22 million (2008)
- As of 2005, oil remains well ahead of other energy sources (35%), coal meets 25 percent of the world's energy needs, natural gas is next (20%), and nuclear power meets 6 percent of the planet's energy needs
- Per capita total energy consumption (as of 2001)
- The Middle East holds 62 percent of the world's proven oil reserves (2008)
- In 2008, demand grew in countries subsidizing oil by nearly 1 million barrels per day, despite high prices
- China oil demand (2007)
- Angola exported roughly 465,000 barrels of oil per day to China in the first six months of 2007
- Just before the beginning of the 21st century, oil average $16 a barrel. By July 2008, less than 10 years later, oil hit a high of $146 a barrel - a stunning rise of more than 800%
- US energy usage in 2007
- The G-20 accounts for over 80 percent of the world's energy use (2008)
- World energy consumption by region (as of 2004)
- In 1973, oil accounted for 46 percent of the world's total energy consumption; by 2005, its share had declined to 35 percent
- During the Oil Crisis of the 1970s, oil spiked at a nominal peak of $38. In today's prices (adjusted for inflation), that is $106, a figure that we blew past in early 2008
- In 1999, the total supply of primary energy in the world was 9,744.48 MTOE (Million Tons of Oil Equivalent). According to estimates of 1999, it is projected to be 11,500 MTOE in 2010 and 13,700 MTOE in 2020
- The world crude oil production grew from 21 million barrels per day in 1960 to 56 mbd in 1973, a growth of 166%
Arab Spring
- The popular protests in 2011 in North Africa and the Middle East - known as the Arab Spring - have cost the region more than $50bn. The report, by consultancy group Geopolicity, says Egypt, Syria and Libya paid the highest financial price.
- Cost of arab spring
- Number of years in power as of July 2011 : </br> Tunisia : Zine al-Abidine Ben Ali, 23 years in power - Egypt : Hosni Mubarak, 30 years - Bahrain : King Hamad bin Isa al Khalifa, 12 years and counting (His family has ruled for 200 years) - Yemen : Ali Abdullah Saleh, 33 years - Libya : Muammar Gaddaffi, 42 years in power - Syria : Bashar Assad, 11 years and counting (His father, Hafez, ruled the country for 29 years)
- Libya, Syria, Egypt, Tunisia, Bahrain and Yemen have all been hit hard economically during the arab spring. Their costs to GDP amount to $20.56bn while costs to public finance total $35.28bn (as of oct 2011)
- Number of people killed in protests during arab spring (as of July 2011) - Tunisia: nearly 300 killed, 700 injured - Egypt: nearly 900 killed, 6,500 injured - Yemen: at least 320 killed - Syria: protests continue, at least 1,486 civilians killed since March 2011 and 10,000 syrian refugees in turkey by July 2011 - Bahrain: at least 30 killed in protests up to June 2011
- During the arab spring in Yemen and Libya, public expenditures have fallen alongside public revenues as government collapsed. There has been a 77% fall in revenues in Yemen and an 84% fall in Libya. In Saudi Arabia the impact on public revenues is positive, increasing by 25%. In UAE public revenues have risen by 31%
Greek Austerity Plan
- €14,1bn is what it hopes to raise from tax hikes over five years. (as of 29 June 2011)
- €850m is what public investment will be reduced by in 2011. (as of 29 June 2011)
- €50bn will be raised from privatising state assets, such as ports, water and telecom utilities. Mining rights and state land will be sold. (as of 29 June 2011)
- 65 not 60 will be the new retirement age and 40 years of contribution are required to qualify for a full pension. (as of 29 June 2011)
- €770m will be cut from the public-sector wage bill this year and €1,4bn between 2012 and 2015. (as of 29 June 2011)
- 30% is the expected reduction in the wages of employees of state-owned enterprises. A cap on wages and bonuses will be introduced. (as of 29 June 2011)
- €14,3bn in public spending will be slashed by the Greek government as part of greek austerity measures (as of 29 June 2011)
- 1976 schools will be closed, or merged with others. (as of 29 June 2011)
- €200m of defence spending will be cut in 2012 and €333m each year from 2013 to 2015. (as of 29 June 2011)
- 23% is the VAT rate for restaurants (from 13%). Levies on luxuries like yachts will apply. (as of 29 June 2011)
- 1 in 10 civil servants retiring this year will be replaced. (as of 29 June 2011)
Derivative Markets
- The Over-The-Counter (OTC) derivatives stood in notional or face value at USD 596 trillion and included: - Interest Rate Derivatives at about USD 393+ trillion; -Credit Default Swaps at about USD 58+ trillion; - Foreign Exchange Derivatives at about USD 56+ trillion; - Commodity Derivatives at about USD 9 trillion; - Equity Linked Derivatives at about USD 8.5 trillion; - Unallocated Derivatives at about USD 71+ trillion (as of December 2007)
- Securitizations in Europe increased almost sixfold between 2000 and 2007, from 78 billion euros ($98 billion) to 453 billion euros ($575 billion), according to the European Securitization Forum, a trade organization (as of 2007)
- The big banks alone own about USD 140 trillion in derivatives (as of December 2007)
- The Bank of International Settlements, which seems to be the only institution that tracks the derivatives market, has recently reported that global outstanding derivatives have reached 1.14 quadrillion dollars: $548 Trillion in listed credit derivatives plus $596 trillion in OTC derivatives (as of December 2007)
- The outstanding amount of OTC and exchange traded derivatives rose by mid-year 2004 to $269 trillion
- According to various distinguished sources including the Bank for International Settlements (BIS) in Basel, the amount of outstanding derivatives worldwide as of December 2007 crossed USD 1.144 Quadrillion, ie, USD 1,144 Trillion. The GDP of the entire world is USD 50 trillion. The real estate of the entire world is valued at about USD 75 trillion.
- A quadrillion is a big number: 1,000 times a trillion. Yet according to one of the world's leading derivatives experts, Paul Wilmott, $1.2 quadrillion is the so-called notional value of the worldwide derivatives market. To put that in perspective, the world's annual gross domestic product is between $50 trillion and $60 trillion (as of December 2007)
- The BIS reported that the notional amount of outstanding credit derivatives rose to $4.5 trillion in 2007, up from just $0.7 trillion in their last survey in 2001
- Wall Street's "over-the-counter" financial derivatives market is currently estimated to a size of $596 trillion. By comparison the entire financial wealth of planet Earth is estimated at $167 trillion `
- Credit derivatives composition by product type - U.S commercial banks - Q1 2010
- When Lehman Brothers defaulted the firm had around $600bn in debt. This would have been the maximum loss to creditors in the case of default. (September 2008)
- Based on surveys conducted by the Bank of International Settlements (BIS), the global derivative market as at June 2009 totalled $605trillion in notional amount (up from less than $10trillion 20 years ago). The outstanding amount compares to global gross domestic product of around $60bn
- The bundling of consumer loans and home mortgages into packages of securities - a process known as securitization - was the biggest U.S. export business of the 21st century. More than $27 trillion of these securities have been sold since 2001, according to the Securities Industry Financial Markets Association, an industry-trade group. That's almost twice 2007 U.S. gross domestic product of $13.8 trillion (as of 2007)
- The population of the whole planet is about 6 billion people. So the derivatives market alone represents about USD 190,000 per person on the planet (as of December 2007)
- According to market estimates, there were CDS contracts of around $400-500bn where Lehman was the reference entity (September 2008)
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