People say the phrase “You can’t earn all your money” with enviable regularity, especially during periods of 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. U different nations at different times these were pets, coffee beans, salt, pearls and other valuables. 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 became one of the reasons for the transition to another type of commodity money - a 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, are banknotes that, upon presentation, can be exchanged for the equivalent of commodity money (in particular, gold and silver), i.e. based on real assets. In the pre-existing economic system based on the "gold standard", where 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.
Estimating the amount of credit money is even more difficult. 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.
According to the degree of liquidity, i.e. the possibility of quickly transferring money into cash; the entire money supply is divided into four units. Each subsequent 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 on debit cards and current accounts of organizations, checks; near $25 trillion;
M2= M1 + time deposits of the population, time deposits of organizations; near $60 trillion;
M3= M2 + savings deposits, certificates of deposit, government bonds; near $75 trillion;
M4= M3 + total amount of loans; not used in all countries.
Sometimes, when we come across information about the exchange rate of the dollar or euro against the ruble or other currency, what comes to mind is various questions: 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 is called the money supply - M0.
According to the Federal reserve system There was $1.2 trillion in circulation as of July 2013. This is an astronomical amount, a huge money supply, according to official data the US population 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 money supply M0 operates outside the US.
The money supply in bank accounts is tracked by the Federal Reserve in three different levels M1, M2 and M3.
M1 a broader concept that includes the money supply M0 plus money held in current accounts, deposits, and 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 time bank deposits, we get the money supply M2—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 takes him aboard a ship heading to distant lands. 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 printing press, we’ll give you a cliché, and you’ll 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.
If you count all the money printed and cast in metal, and also add to it all the electronic ones, experts say that you can get a sum with fifteen zeros. How much money is there in the world? The answer to the question depends on what humanity considers money. The more global our calculation is, the more inflated the amount will be.
How much money is there in the world in dollar terms?
If money is just cash in wallets and bank accounts, the total would be approximately $81 trillion.
If we add to this amount gold reserves, various types of investments, electronic money, in this case we get an amount exceeding a quadrillion dollars. This is the cherished number with fifteen zeros.
So how much money is there in the world in dollars?
It is estimated that this moment the amount of investment obligations is approximately equal to 1,200,000,000,000,000 conventional units.
Let's calculate in more detail
Let's consider as money the reserves of silver and gold, Forbes list data, shares, investment obligations, the cost and turnover of cash, deposits, global debt and other components that are integral participants in money circulation.
- The amount of bitcoins is 5,000,000,000 USD.
Bitcoins are electronic money. They have no material form. Such capital is not issued by certain banks, but any computer user can be involved in the process of issuing it.
- All banknotes and monetary cash are worth 5 trillion USD.
Another $23.6 trillion is short-term deposits.
- 70 trillion is the sum of all shares.
Of these, more than half are from American companies.
- The entire money supply is equal to 81 trillion cu.
- The global debt is almost 200 trillion USD.
At the same time, global debts are growing very quickly. A third of this huge amount is the US national debt, another 26% is the public debt of the European Union.
Not just money
If we talk about financial resources in a less traditional sense, then other types of money can be included here. Of course, they differ from the usual banknotes, but they constitute an impressive mass of capital.
- The cost of silver is 14,000,000,000 USD.
This takes into account silver that has already been mined and used.
- The world's gold reserves reach $7.8 trillion.
How much money in the form of solar metal is in circulation in the world? Only a fifth is in bank reserves. The rest is used by people.
- According to Forbes, the fortune of the planet's famous rich is almost 80,000,000,000 conventional units.
- The most expensive corporation, Apple, costs $616,000,000,000.
- Commercial real estate is worth $7.6 trillion.
At the same time, almost 40% is located on the American continent, and a third is in Europe.
- The market for investment obligations is estimated from 630 trillion to 1.2 quadrillion. These are astronomical amounts in terms of ordinary people.
These include futures, swaps, options, securities and forwards. Such derivatives make up the lion's share of the money.
Visual mathematics
To understand visually how much money there is in the world, you first need to imagine a standard stack of bills.
For example, a pack of hundred dollar bills will cost 10,000 USD. The thickness of such a pack is 1.3 cm.
There are only 100 such packs in a million dollars, but the amount is 100,000,000 USD. its volume is almost one cubic meter.
One billion conventional units will fit in the volume of an average room.
A trillion dollars, respectively, is a thousand billion, so he will occupy a thousand rooms.
And considering that the total global debt amounts to two hundred trillion?
A task with the condition: “how much money is there in rubles all over the world?” It is quite possible for anyone to solve it by performing simple mathematical operations. It is necessary to sum up the value of all given monetary assets without taking into account the total global debt and multiply by the current exchange rate.
In a word, it turns out to be an impressive amount.
Unfortunately, no one can calculate exactly how much money there is in the world, because here you need to accurately take into account all the factors, and there are more than a dozen of them. Moreover, all derivatives can be increased to infinity. For example, to conduct theoretical calculations of mineral reserves with their possible monetization, up to accounting for humanity’s funds hidden for rainy weather.
You may have wondered: How much money is there on Earth? Data will help us answer this question American research, there is also an infographic at the end of the article.
- The value of the total number of coins and banknotes in the world is approximately 5 trillion. Doll.
- Global gold reserves are estimated at 7.8 trillion. Doll.
- The global value of the money supply, if we include more than just cash cash, but also non-cash amounts to 80.9 trillion. dollars - that's about $11,000 for every person on Earth.
- Global debt is 199 trillion. dollars is approximately $27,000 per person.
- And the largest estimate belongs to the derivatives market, whose value is 630 trillion. Doll.
Infographic: “How much money is there in the world”
1. Bitcoin
The approximate value of all bitcoins is $5 billion. This cryptocurrency reached its highest value in 2013 and was estimated at $14 billion.
2. Silver
The value of all silver on the exchange is $14 billion (using $14 per ounce).
3. The richest people in the world
According to Forbes richest Bill Gates is recognized as the man in the world; his fortune is estimated at $79.2 billion.
4. The largest companies in the world
Apple's total capitalization is $616 billion.
5. Fed balance of payments
From 2008 to 2014, the Fed's balance of payments grew to $4.5 trillion (the BOP was originally estimated at $1 trillion, but as a result of the quantitative easing program it grew by $3.5 trillion)
6. Coins and banknotes
Total value of coins and paper money in the world is $5 trillion.
7. Commercial real estate
Institutional investors own approximately one-third of all commercial real estate in the world, valued at $7.6 trillion.
8. Gold
Global gold reserves of 183,600 tons are valued at $7.8 trillion (spot price $1,200).
9. Fast cash
Approximate cost fast money in the world is estimated at 26.6 trillion. dollars (includes coins, notes and confirmed deposits).
10. Stock exchange
The total capitalization of the stock exchange is estimated at 70 trillion. Doll.
11. Money supply
The global value of the money supply is 80.9 trillion. dollars (includes coins, notes, money market accounts, checked and time deposits)
12. Total debt
Global debt is 199 trillion. Doll.
13. Derivatives
A rough estimate of the value of the lower end of the size and volume of global derivatives markets is $630 trillion. dollars according to the terms of concluded contracts and agreements.
The article was prepared based on research conducted in the USA and infographic data.
How much money is there in the world? was last modified: February 12th, 2016 by Forex Advisor
