That there are TWO kinds of money, one that…

  • Creates Jobs, improves the GDP, increases manufacturing, or provides a service (like elderly care or gardening or mechanic, etc.) The real money goes here. It builds businesses. Land, factory, plant, and machinery, etc. This is what the 99.9% of the people work for. 

    This is the real world. 

    This is the world’s GDP: about US$ 75 Trillion (give or take a few).
  • Then there is the other kind of money, that is speculative in nature, i.e. the derivatives markets. Where Millionaires and Billionaires make their money. They don’t put up factories. They don’t create jobs per se (expect an occasional wealth management banker or quant for trading), they don’t manufacture products or offer a service. They are speculative in nature.

    They pry and bet on the GDP of the regular world and create bets. Derivatives are nothing but a much more fancier way of betting. These bets create the financial tsunamis when they go wrong. 

    The size of the world’s derivative markets? In excess of US$ 700 Trillion! (some say US$ 900 Trillion).