1. J.P.Morgan Chase Herzliya Conference February 6-9, 2011 S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L The US & the Future of the Global Economic System Prof. Jacob A. Frenkel Chairman, JPMorgan Chase International Chairman, Group of Thirty (G30) Former Governor, Bank of Israel

2. 2 J.P.Morgan Chase 2/1/2011 Global GDP Growth (%)

3. 3 J.P.Morgan Chase 2/1/2011 Real GDP Growth (%) World Economy

4. 4 J.P.Morgan Chase 2/1/2011 Global GDP Shares

5. 5 J.P.Morgan Chase 2/1/2011 World Trade Volume

6. 6 J.P.Morgan Chase 2/1/2011 US$ billions, 2011 Current Account of Balance of Payments

7. 7 J.P.Morgan Chase 2/1/2011 StockStock Flow (2005 – 2010) Flow Accumulation of Foreign Exchange Reserves (Bill. Usd)

8. 8 J.P.Morgan Chase 2/1/2011 U.S.&EU People’s Republic of China Exports Imports Imports Exports Asia China’s Role in Global Trade (bill. Usd)

9. 9 J.P.Morgan Chase 2/1/2011 European Union Exports by Destination

10. 10 J.P.Morgan Chase 2/1/2011 U.S. Exports by Destination

11. 11 J.P.Morgan Chase 2/1/2011 Gross National Savings as a % of GDP (2009)

12. 12 J.P.Morgan Chase 2/1/2011 Coordinated Global Rate Cuts

13. 13 J.P.Morgan Chase 2/1/2011 Total Assets of Key Central Banks (indexed levels)

14. 14 J.P.Morgan Chase 2/1/2011 Fiscal Positions: General Government Balance

15. 15 J.P.Morgan Chase 2/1/2011 Fiscal Positions: Net Debt

16. 16 J.P.Morgan Chase 2/1/2011 Fiscal Position: General Government Balance – Select Euro Area Economies

17. 17 J.P.Morgan Chase 2/1/2011 Fiscal Positions: Net Debt – Select Euro Area Economies

18. 18 J.P.Morgan Chase 2/1/2011 Gross Government Debt and Budget Deficit (% of GDP 2009)

19. 19 J.P.Morgan Chase 2/1/2011 Current Account Balance and Budget Deficit (% of GDP 2009)

20. 20 J.P.Morgan Chase 2/1/2011 Gross National Saving Rate and Budget Deficit (% of GDP 2009)

21. 21 J.P.Morgan Chase 2/1/2011 Source: United Nations Populations Division, Last update 2009 World Demographic Challenge

22. 22 J.P.Morgan Chase 2/1/2011 Developing Countries Demographic Challenge Source: United Nations Populations Division, Last update 2009

23. 23 J.P.Morgan Chase 2/1/2011 Developed Countries Demographic Challenge Source: United Nations Populations Division, Last update 2009