IF you wanted to get a handle on all the money in the world, you need
to know what money is made up of. It's not just cash. MO, M1, M2 etc.
Most people don't understand that money is not just money. It's also
what is held in various ways. "M0", includes only physical money, paper
bills and metal coins that constitute currency. That figure is around 5 trillion dollars.
The next step up is M1, which includes all the physical money, plus quickly accessed money like that in checking accounts, and comes in at $25 trillion.
M2 includes M0 and M1, but also pulls in stuff like savings accounts and CDs under $100,000. That figure is around $60 trillion.
The last figure, the $75 trillion M3, is much more abstract and not often cited in official figures. It includes institutional money market funds, long term deposits, and other stuff rich people possess that can somehow be spent but confuses the rest of us.
This does not include non money assets held that has value. Houses, Land, Estate, Inventory, crops and cattle and even gold and sliver.
There is a finite amount of money as you have in your pocket. The rest is a matter of trade. Are you richer if you trade two 5 dollar cats for a ten dollar dog or if you trade two $25,000 cats for a $50,000 dog? And there is the greater fool theory which after the housing crash of 2007-9 we all know well. Defined here: http://
I only publish this because people don't really understand money. One more thing, Currency is only worth what you can convince others to give you for it in exchange. Faith in currency is unstable and transitory. Every time I use paper money to buy something, I am amazed. That's another story. http://www.kwaves.com/fiat.htm
The next step up is M1, which includes all the physical money, plus quickly accessed money like that in checking accounts, and comes in at $25 trillion.
M2 includes M0 and M1, but also pulls in stuff like savings accounts and CDs under $100,000. That figure is around $60 trillion.
The last figure, the $75 trillion M3, is much more abstract and not often cited in official figures. It includes institutional money market funds, long term deposits, and other stuff rich people possess that can somehow be spent but confuses the rest of us.
This does not include non money assets held that has value. Houses, Land, Estate, Inventory, crops and cattle and even gold and sliver.
There is a finite amount of money as you have in your pocket. The rest is a matter of trade. Are you richer if you trade two 5 dollar cats for a ten dollar dog or if you trade two $25,000 cats for a $50,000 dog? And there is the greater fool theory which after the housing crash of 2007-9 we all know well. Defined here: http://
I only publish this because people don't really understand money. One more thing, Currency is only worth what you can convince others to give you for it in exchange. Faith in currency is unstable and transitory. Every time I use paper money to buy something, I am amazed. That's another story. http://www.kwaves.com/fiat.htm
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