Sometimes, when we come across information about the exchange rate of the dollar or euro against the ruble or other currency, different questions come to mind: why is this exchange rate so important to us and why is the ratio to the dollar and euro taken as a comparison? Why does our life depend on this course? And then, as a result of reflection, the question arises - how much money is there on the planet and where is it concentrated?
In order to answer this question, let's make it easier for ourselves and ask: "How much money is in US dollars?", this statistic is easier to track and the question can be looked at from different angles.
The first option “How many cash bills and coins are in circulation, money in accounts, cash registers and safe deposit boxes, bank deposits called money supply - M0.
According to the Federal Reserve, there was $1.2 trillion in circulation as of July 2013. This is an astronomical amount, huge money supply, according to official data, the population of the United States at that time was 316,668,567 people [source: CIA]. If the amount of money in circulation is divided equally among all Americans, it would be $3,800 per capita, including money hidden in glass jars and under the mattress. Some of the money is not involved in the work, but there is a very simple explanation for this (according to the Federal Reserve System) - from half to two-thirds of the money supply M0 works outside the United States.
The money supply held in bank accounts is tracked by the Federal Reserve at three different levels: M1, M2 and M3.
M1 a broader concept that includes the money supply M0 plus money held in current accounts, deposits, short-term government securities. In June 2013, the M1 money supply in US dollars was about $2.5 trillion [Source: Fed].
M2 monetary aggregate including M1 plus large deposits, securities, bills. In June 2013, the M2 money supply was approximately $10,500,000,000,000 [source: Federal Reserve].
From other sources
According to other sources.
From other sources there is information that in the world there is from 4.5 to 75 trillion dollars, if we consider only cash, they are called money supply M0, the amount in circulation in all countries is approximately 4.5 trillion dollars. If we take into account current deposits in banks, which can be exchanged for cash at any time, the joint money supply M1 is estimated at 25 trillion. dollars. If we also take into account urgent bank deposits, the resulting money supply M2 is about $55 trillion. The M3 money supply also includes long-term deposits and government bonds, and is approximately valued at $75 trillion.
There is a lot of money in the world. Have you ever wondered how much exactly? What about cash? The most common hundred dollar bills. What does a billion dollars look like? A short introduction to economic geometry.
This is the starting point, let's start from there. A 100 dollar bill, probably each of you held it in your hands. The bald head of the great founding father and a pleasant greenish tint. The delicate texture rustles in your hands and the anticipation of an unforgettable trip to the store for another portion of shopping.
In fact, one million dollars- it's not that much. After reading the following paragraphs you will be convinced of this. A medium-sized case is completely filled with hundred-dollar bills, although Hollywood films sometimes don’t go into detail and manage to place amounts much larger than this in suitcases.
A standard shipping container holds a fairly large amount of money—about $4 billion. When you think about politicians who take money to offshore banks and Swiss banks, imagine a port crane removing such a container from railway carriage and lifts him aboard a ship departing for distant countries. The Microsoft founder is one of the richest people in the world, with an estimated net worth of $56 billion. That's about 14 shipping containers completely filled with $100 bills.
Do you know how much money there is in the world? About 64 trillion dollars. Cash, bank accounts, deposits. Exchange them for 100 dollars and build a skyscraper higher than the Statue of Liberty. 640,000 cargo blocks, 64,000,000,000,000 smiling Franklins.
The Birth of Six Trillion Dollars
The story began a long time ago, says the so-called “curator,” when the United States and Iran were on friendly terms, at that time the Americans bought oil from the Iranians. In the early 90s, the Americans were tired of transporting them dollars (Iran only accepted cash) and suggested: let us send you two officers of the US Federal Reserve System along with a printing press, give us a cliché, and you will print your own dollars. As much oil was supplied, so much was printed.
This scheme worked until Iran's nuclear program began to interfere with the United States. The Americans immediately terminated all contracts and took away the machine. The Americans did not recognize the already printed dollars and said that they were just paper. Then the Iranians began to think about what to do with these dollars, and there were six trillion of them.
It’s hard to say how much money is in the piggy banks.
Oleg Makarenko
And why are stupid Americans so worried about their huge debt? After all, their debt is in dollars! At any moment, Washington can give the command to print 18 trillion dollars and distribute it to creditors - after which the debt problem will disappear...
One has to read such arguments every time one talks about the dollar needle on which the United States sits tightly. In fact, colleagues, not everything is so simple in the transatlantic kingdom. Actually, the kingdom is already rotten to the core: the needle has already broken and the dollar Koschey is dying before our eyes. It is precisely this circumstance that caused Obama’s wild threats against Russia: so ridiculous and illogical that even such liberal bison as Mikhail Gorbachev are in a hurry to disown the American president:
Yesterday I briefly described a trick with which Americans could print dollars in industrial quantities without suffering from hyperinflation:
In short, most dollars circulate outside the United States. Therefore, when the printing press turns on in the USA, there are more dollars in the hands of Washington - due to the fact that in the rest of the world they depreciate. That is, the Americans are robbing the rest of the world in this simple way: which is forced to use the falling dollar under the threat of the sixth fleet and burning tires.
Freshly printed dollars enter the American economy approximately according to this scheme:
1. The US Treasury issues government bonds.
2. The Federal Reserve prints dollars and buys bonds from the Treasury.
3. The Treasury sends dollars to the federal budget, which spends them, thereby supporting the US economy.
This scheme is called “debt monetization.” It should be noted that the IMF prohibits the use of this scheme by the countries with which it works, since for any other country - except the United States - such a scheme ends in hyperinflation and a sharp depreciation of its own currency. We saw the results of the printing press in Yeltsin's Russia - inflation of 50-100 percent per annum in the 90s did not surprise anyone:
In 2008, the United States was forced to use the printing press to the maximum: without this, they would not have been able to get out of the crisis. Cash flows at the same time, they were divided into two parts - the Federal Reserve bought from the market not only government bonds, but also “mortgage bonds” that were on the balance sheet of private banks. This scheme is called “Quantitative Easing”. Please remember this term.
For a while, quantitative easing allowed the Americans to stay afloat and somehow breathe. However, by 2014, this scheme was firmly hit by certain limitations, due to which the States had to slow down the printing press. Look at the news over the past year:
January 2014. The Fed will continue to reduce its quantitative easing program.
Federal Committee on open markets(FOMC) began winding down QE in December 2013, reducing monthly bond purchases by $10 billion to $75 billion. At a meeting of the organization in January of this year, it was decided to reduce QE by another $10 billion per month to $65 billion:
April 2014. The US Federal Reserve decided to cut the volume of the quantitative easing program to $45 billion per month:
The US Federal Reserve System (FRS) has decided to reduce the quantitative easing program (QEIII) by $10 billion.
June 2014. The US Federal Reserve has reduced the volume of its quantitative easing program for the fifth time:
From July, the Fed will reduce purchases of US Treasury bonds (US Treasuries) from 25 billion to 20 billion dollars a month, mortgage securities- from 20 billion to 15 billion dollars per month
September 2014. Fed scales back stimulus:
From October 1, the volume of redemption will be reduced by another $10 billion. $5 billion will be allocated monthly for the purchase of mortgage-backed securities instead of $10 billion; for the purchase of treasury bonds - $10 billion, not $15 billion.
Most likely, by the end of this year the Federal Reserve will completely turn off this mechanism. Actually, I've almost turned it off. Why?
Maybe the American economy has recovered? Unfortunately no. Problems in the American economy are only growing, the United States needs money like air. However, printing them becomes more and more difficult every month.
The fact is that not only the Fed buys US bonds: there are still a lot of players in this market who also need to buy bonds. When the Fed actively buys bonds from the market, bond prices go up and bond coupon payments (“interest”) go down. For the government (Treasury), this is good, because you can receive money at a low interest rate, but for other bond buyers, who, unlike the Fed, do not have their own printer for dollars, this is bad.
In addition to foreign dollar holders, who have to receive very low interest For their dollar bonds (China, Japan, Russia, Arab oil producers, India, etc.), three very important domestic investor categories are financially hurt by dollar printing:
1. Pension funds (private and public).
2. Government funds social assistance.
3. Insurance companies.
In the USA there are almost no pensions in the Russian sense of the word. In fact, the federal pension fund only pays pensions to federal employees, who are very few in number. Private sector workers and most civil servants receive pensions from their local pension funds. That is, after finishing service, a policeman receives a pension not from federal budget USA, and from some Pension Fund of the X-County Police Department.
State social assistance funds provide reimbursement of payments for some medicines and for some essential goods/services for the poor.
Insurance companies pay health insurance, compensate for damage from natural disasters, and so on.
All these significant payments require money, which all these organizations “earn” by buying “risk-free” US government bonds. Bye interest payments on these bonds were high (that is, while bond prices were low), the funds somehow made ends meet.
However, after the Federal Reserve began to carry out “quantitative easing”, all these organizations had to buy bonds from the market at a very high price and be content with very low income.
In 2008, the portfolios of these pension funds and insurance companies were filled with normal-yielding bonds, but five years of “quantitative easing” have turned most of their portfolios into “dummy” companies that earn about 2.5% per annum - while these institutions you need to get at least 5-7% (in some cases 9%) just to continue paying pensions, paying for surgeries, giving medicines and food subsidies.
If the printer continues to spit out new dollars, thereby cutting off bond yields, the American economy will face social catastrophe. Pensions will stop being paid (and this is a significant source of consumption), the healthcare system will collapse completely, a significant part of social programs and subsidies will go unfunded.
Imagine some kind of black ghetto in which tens of thousands of hereditary (!) unemployed live. All of a sudden these people stop getting paid social benefit, they become corny have nothing to eat. What will they do?
A monstrous prospect for the USA.
If the printer stops and bonds rise in price, the government will have significantly less money, and, therefore, it will have to cut back on huge government spending, which, in fact, is the only thing that now supports the economy of the United States.
And so bad and so bad. There is no good way out of this situation for the Americans: so our American partners have to go to great lengths and engage in creative terrorism in the international arena. Setting fire to the planet is the last hope of the Americans. After all, if things are even worse everywhere than in the United States, capital will flow to them in search of a “safe haven.”
The Moody's agency's assessment of the situation is not at all rosy; according to its calculations, the US pension system is now in the red by two trillion dollars - and this is only at the level of individual state funds:
Bloomberg gave this breakdown of the problems of individual states for 2012:
As we see, for example, in Illinois, pension funds have only half the money they need; soon they will have to almost burn furniture to stay warm. But these are data for 2012 - in 2014 the situation is clearly no better.
The two trillion deficit that Moody's calculated is a huge amount. However, these are only statistics for the 25 largest public funds at the state level. But there are significantly more states in the United States than 25, plus there are also numerous private foundations. It is obvious that throughout the pension system the deficit is reaching astronomical proportions.
The question may arise: why not print dollars and distribute them directly? pension funds, funds social support and insurers?
Answer: because then such a significant one-time injection will be required that the balance of dollars outside the US and in the US itself will shift towards America. After this, dollar holders will rush to get rid of them, increasing inflation in the United States. A chain reaction will begin, after which the dollar may depreciate hundreds of times.
Let me remind you that when the republics of the former USSR unanimously introduced their currencies and sent the freed rubles to Russia, the ruble depreciated 25 times in a year. In the US, the fall will be greater: the dollar zone covers the whole world.
The Federal Reserve now has to not only stop buying bonds from the market, but also raise the refinancing rate at which loans are issued. American banks. If you leave this rate low, banks won't pay good interest for deposits of pension and insurance funds: it will be easier for them to receive loans at 0.1-2% from the Federal Reserve. The Federal Reserve needs to force banks to buy expensive government bonds and pay good interest on deposits.
In fact, for a year now experts have been saying that The Federal Reserve will most likely begin to gradually raise rates in the spring of 2015. Here, for example, is the opinion of Forbes and the opinion of the head Reserve Bank St. Louis (this is one of the twelve banks that together form the US Federal Reserve):
The era of the “dollar printer” is gradually coming to an end. First, the Americans will have to turn off the bond redemption mechanism, then they will be forced to raise the refinancing rate. The US's golden decades, during which it could pump unlimited money into its economy, are almost over.
The main intrigue now is whether the American economy will die peacefully, or whether the United States will manage to start a third world war before its death...
What about Russia? Why is the dollar - despite its plight - breaking records against the ruble? Why did the ruble - backed by our oil and our huge reserves - fall to a wild exchange rate of 40 rubles per dollar?
This question should be asked to our Central Bank, which behaves as if it is being given commands directly from Washington. The Central Bank now has all the resources to not only stabilize the ruble and stop the consequences of any sanctions, but also to inject several trillion rubles into our economy in the form of long-term loans for business.
Of course, in the Constitution of the Russian Federation - thanks to the American advisers who wrote it in 1993 - there is a special article according to which our Central Bank is not subordinate to the Kremlin:
However, this article, Article 75, is not protected; this article of the Constitution can be changed relatively easily. I hope the fall of the ruble against the dollar will prompt our government to take the necessary steps.
People utter the phrase “You can’t earn all the money” with enviable regularity, especially during periods economic crisis or during bouts of procrastination. And if you imagine for a moment that one person could get all the money on the planet, then how much would he become the owner of?
The concept of “money” is very multifaceted. These include bills in your wallet, numbers in a bank account, treasury bills, and the increasingly popular electronic money. Regardless of the type, money is united by a common function - a medium of exchange and a measure of value.
Commodity money
The history of monetary relations began with them, when one type of product in a certain ratio was exchanged for another. For different peoples at different times, these were pets, coffee beans, salt, pearls and other valuable things. Today, commodity money is used as a means of payment, for example, in prisons - cigarettes, tea.
It is almost impossible to calculate such a money supply; even estimating it is very problematic due to its diversity. This confusion was one of the reasons for the transition to another type of commodity money - precious metal, which is partly countable. Thus, according to the GFMS agency, which has been reviewing and scientific research In the global market for gold, silver, platinum, palladium and copper, over the entire history of mankind, a little more than 150 thousand tons of the “yellow metal” were mined. Geologists estimate the remains of gold in the depths to be around 50 thousand tons.
Secured money
Or as they are also called, representative money represents banknotes, which, upon presentation, can be exchanged for the equivalent of commodity money (in particular, gold and silver), i.e. based on real assets. In the previously existing economic system based on the "gold standard", when each unit of money issued represented an actual amount of gold, all money was backed.
In such a monetary system, on the one hand, it is easier to make calculations. It is enough to sum up all the minted money. But there is a problem with the choice of currency and time period. You can try to count all the cash on the planet at the moment. There is a special indicator M0, which is equal to the totality of cash in circulation, cash registers, and safe deposit boxes. In its annual reports, the Federal Reserve estimates M0 at more than $1 trillion for the United States and about $4.5-5 trillion worldwide. In these calculations it is impossible to include treasures buried in the ground, money on sunken ships or buried with the owners and simply lost in houses and on the streets. Although the ubiquitous “British scientists” somehow calculated that in England per inhabitant on average there is 14 pounds of lost money.
Fiduciary money
A type of money that has no value or does not correspond to its face value, but is still legal tender. Such symbolic or decreed money includes banknotes, non-cash and electronic money. Their cost is set by the state, but has no real reinforcement.
Different sources give a range from 25 to 75 trillion in terms of US dollars, depending on whether government bonds, bills, and securities were added up or not. In general, there is no point in counting fiduciary money, because its quantity increases due to periodic emission.
Credit money
An even less valuable type of money than fiat. They are a debt formalized in a special way, for example, in the form of a check or promissory note. Credit money has no real value and carries the risk of default, but can be used to pay for goods, services or other debts.
With quantity estimate credit money it's still more complicated. If one person made a deposit in the amount of 100 rubles, and another person took out a loan for 50 rubles, then the bank has the right to issue a loan from the deposit money. It turns out that together these people have an amount of 150 rubles, although in reality it was 100 rubles and remains so.
By the degree of liquidity, i.е. the possibility of quickly transferring money into cash; the entire money supply is divided into four units. Each next monetary aggregate contains the previous one. IN different countries the composition of individual indicators is slightly different.
M0= all cash from wallet to safe deposit box; near $5 trillion;
M1= M0 + money for debit cards and current accounts of organizations, checks; near $25 trillion;
M2= M1 + time deposits population, time deposits of organizations; near $60 trillion;
M3= M2 + savings deposits, certificates of deposit, government bonds; near $75 trillion;
M4= M3 + total amount loans; not used in all countries.
Have you ever wondered how much money there is in the world?
The American dollar is the most popular currency around the world. According to the Bank for International Settlements, the total amount in circulation is about $5 trillion. According to the CIA, this figure is much higher - approximately $80 trillion. This figure is obtained if we take into account the so-called broad money.
Money supply
To find out how much money there is in the world, it is necessary to distinguish such a concept as the money supply (all issued money in the form of coins and banknotes) - M0. It is their sum that amounts to 5 trillion dollars. If we also take into account current bank deposits, we get the M1 money supply - its size is equal to 25 trillion dollars. If you add bank time deposits, you get an M2 money supply of approximately $50 trillion. But the M3 money supply includes long-term deposits along with government bonds. Its size is 75 trillion dollars.
Money of the whole world
Currently, there are more than 150 types of currencies from different countries. The most common ones are the American dollar, euro, yuan, pound sterling, Canadian dollar, franc and yen. Their share is 70%.
If you divide all the money ($75-80 trillion) by the number of all the people living on the planet, you get almost $10,000 for each person. About 80% of all money is in the hands of 20% of people. It turns out that the remaining 80% of the population are content with a measly 20% of all the money in the world.
Exact amount
Unfortunately, it is impossible to calculate how much money there is in the world. If only because it is necessary to take into account all their varieties, which include cryptocurrencies. In addition, one should take into account precious metals and stones, treasures hidden in the bowels of the earth, industries, bank deposits, etc.
Behind last years quantity dollar bills in circulation has doubled. All this means is that the United States has printed as much money in recent decades as it has in the last 150 years.
- The euro is the youngest currency in the world. It appeared in circulation on January 1, 2002.
- Apple Company has the largest capitalization - $616 billion.
- All mined gold in the world is valued at approximately $8 trillion.
- In some countries, you can easily pay in two currencies.
- According to Forbes, richest man world leader in 2018 is Jeff Bezos, whose net worth is estimated at $112 billion.
This information allows you to get an idea of the gold and foreign exchange reserves of the whole world.
Money is just bank notes backed by gold. To put it another way, this is debentures, released central bank and given at interest commercial banks. There is always less money than debt. Debts are always made in monetary terms. There should only be about $60 trillion of bank receipts backed by gold in the world, i.e. in other words - banknotes. But everything happens differently: you took 100 dollars - you owe 110. If you put your money in a bank on deposit at 5%, then the bank can lend the same money to someone at 10%. Then this money will be doubled, plus another 15%.Thus, if we take into account all the bank deposits and loans in accounts available in the world and take into account emissions, we get an impressive amount of 400 trillion dollars. According to simple calculations, this amounts to 60 thousand dollars for every person on earth. Only through the Forex currency exchange, 9 trillion dollars pass through every day. This is non-cash money, and for the most part it is not backed by anything. Therefore, inflation occurs and, as a result, poverty and... Since all banknotes are mostly backed by gold, it logically follows that there should be as many of them in the world as there is gold mined during the entire existence of man.
Gold and cash
According to scientists, over the entire history of human society, 105 thousand tons of gold have been mined. If we take into account its density, we get 19.3 tons per cubic meter. In volume it will be 5 thousand cubic meters. To visualize how much 105 thousand tons is, then you can imagine a cube with sides measuring 20 meters. This begs the question: what is the monetary equivalent of this cube of gold?You can calculate it like this: a standard briefcase fits 100 dollar bills. Therefore, 1000 such suitcases will be 1. This is approximately one carriage. A train of a thousand cars is a trillion dollars. This means that there are only 60 railway trains of a thousand cars each in cash on earth. In reality, due to the different values of currencies in different countries (and there are more than 150 currencies in the world) and the availability of small change money, there are an order of magnitude more banknotes in the world. The four largest currencies in terms of importance in the world are the euro, dollar, yuan and yen. Of these currencies, euros have the most cash. This amount is 950 billion.