How much money is there in the world?
Discussion
Just a ‘basic’ question really…....but when you think about it, it quickly becomes quite complex.
Money in terms of paper, coins and electronic funds in bank accounts (and the like) is what I’m talking about.
Assuming this value is a finite value at the moment what would the likely figure be?
Not talking about the money tied up in shares, goods, minerals etc. as this is determined by market value. Impossible to easily arrive at any ball park figure for all of this I'm guessing.
Money in terms of paper, coins and electronic funds in bank accounts (and the like) is what I’m talking about.
Assuming this value is a finite value at the moment what would the likely figure be?
Not talking about the money tied up in shares, goods, minerals etc. as this is determined by market value. Impossible to easily arrive at any ball park figure for all of this I'm guessing.
This fact was actually released in the press at the beginning of the year. I want to say it was something like 30 trillion, but will go off and check!
Huge amount of info here;
https://www.cia.gov/library/publications/the-world...
Huge amount of info here;
https://www.cia.gov/library/publications/the-world...
Edited by TonyHetherington on Tuesday 10th May 14:13
http://economicobjectorvism.wordpress.com/2007/09/...
A bit out of date and completely warped by Central Banks QE I & II, but indicative of the breakdown.
A bit out of date and completely warped by Central Banks QE I & II, but indicative of the breakdown.
ok, so there is a lot of money in the world.
Correct me if I'm wrong.
The money that is 'current' in the world can only be transfered back and forth via transactions etc.
ie. people in business will do transactions and exchange products for money.
And for person 'A' to become rich it means some other people have to become a bit more poorer in order to fund said person 'A'.
ie. they pay for products being sold by person 'A' for example.
As the population gorws in the world does this mean the money per head of individual has to become less?
And final question for now..... is it only the mining companies that are able to increase the global amount of money in existence?
ie. an insurance company for example can only exchange money for a 'product', where as a mining company can 'dig money' from the earth in effect?
Is the above the only explaination of why the global amount of money increases with population? Or is this way off the mark?
Correct me if I'm wrong.
The money that is 'current' in the world can only be transfered back and forth via transactions etc.
ie. people in business will do transactions and exchange products for money.
And for person 'A' to become rich it means some other people have to become a bit more poorer in order to fund said person 'A'.
ie. they pay for products being sold by person 'A' for example.
As the population gorws in the world does this mean the money per head of individual has to become less?
And final question for now..... is it only the mining companies that are able to increase the global amount of money in existence?
ie. an insurance company for example can only exchange money for a 'product', where as a mining company can 'dig money' from the earth in effect?
Is the above the only explaination of why the global amount of money increases with population? Or is this way off the mark?
AJI said:
And final question for now..... is it only the mining companies that are able to increase the global amount of money in existence?
ie. an insurance company for example can only exchange money for a 'product', where as a mining company can 'dig money' from the earth in effect?
Money is not a commodity. Mining can increase the availability of precious metals but that does not increase the amount of money in circulation.ie. an insurance company for example can only exchange money for a 'product', where as a mining company can 'dig money' from the earth in effect?
Quantitative Easing was creating 'new money' by typing +£Xmillion into the Government's bank account. Easy as that.
AJI said:
The money that is 'current' in the world can only be transfered back and forth via transactions etc.
ie. people in business will do transactions and exchange products for money.
And for person 'A' to become rich it means some other people have to become a bit more poorer in order to fund said person 'A'.
ie. they pay for products being sold by person 'A' for example.
In the simplest terms, a business is simply a vessel through which money flows but one that is designed to keep as much of the money flowing into it from flowing out.ie. people in business will do transactions and exchange products for money.
And for person 'A' to become rich it means some other people have to become a bit more poorer in order to fund said person 'A'.
ie. they pay for products being sold by person 'A' for example.
There is no business or organisation in the world where the money flows into and stops - it is simply a constantly flowing thing.
Guam said:
madbadger said:
Round.
I Reckon the Centre one is probably Japanese (chinese coins more typically have Square holes). Not sure on the other one will see what I can turn up 
Guam said:
madbadger said:
Sorry - should have made it clearer. There is 1 coin. The 5 cents is for size comparison and the right image is a stitched on pic of the underside.
OK never saw the flip side before From memory Japanese I would reckon (cant tell you the demonination will see if I can find out)
I wonder if it's pitiful value is included in the worldwide total?
Money supply is always growing isn't it? As banks can effectively "create" 80% or whatever the figure is of every loan/mortgage etc that they give.
So other people don't have to get poorer to make other people richer but capitalism only works as long as everything keeps moving and expanding?
Can an economist tell me I'm kind of slightly right please?
So other people don't have to get poorer to make other people richer but capitalism only works as long as everything keeps moving and expanding?
Can an economist tell me I'm kind of slightly right please?
AJI said:
Just a ‘basic’ question really…....but when you think about it, it quickly becomes quite complex.
Money in terms of paper, coins and electronic funds in bank accounts (and the like) is what I’m talking about.
Assuming this value is a finite value at the moment what would the likely figure be?
Not talking about the money tied up in shares, goods, minerals etc. as this is determined by market value. Impossible to easily arrive at any ball park figure for all of this I'm guessing.
It depends upon what you mean by "money".Money in terms of paper, coins and electronic funds in bank accounts (and the like) is what I’m talking about.
Assuming this value is a finite value at the moment what would the likely figure be?
Not talking about the money tied up in shares, goods, minerals etc. as this is determined by market value. Impossible to easily arrive at any ball park figure for all of this I'm guessing.
So, what do you mean?
There is no practical limit to the amount of sovereign paper bills that can exist.
There is only ever a set amount of productive output in the world. That output relates to paper money, gold, or whatever to varying degrees based on the amount of the reference paper or metal etc and its perceived value to those wanting to obtain some of that output.
In effect the paper is a demand for a set amount of output. So more paper money, less demand on output per paper sheet. Less paper, more demand per piece of paper.
Gold et al generally maintains its value and claim on output remains pretty static over time.
You have to increase paper money as population and output increases otherwise you get deflation. Then there is the money supply M1, M2 etc.. do a google on that for some more fun.
There is only ever a set amount of productive output in the world. That output relates to paper money, gold, or whatever to varying degrees based on the amount of the reference paper or metal etc and its perceived value to those wanting to obtain some of that output.
In effect the paper is a demand for a set amount of output. So more paper money, less demand on output per paper sheet. Less paper, more demand per piece of paper.
Gold et al generally maintains its value and claim on output remains pretty static over time.
You have to increase paper money as population and output increases otherwise you get deflation. Then there is the money supply M1, M2 etc.. do a google on that for some more fun.
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