Global Money Supply

I've been doing some research on global money supply and I came across this article and found it very useful. Some of the data may be a little behind but I still found it a very useful article.

In this article it talks about how we define money first and that is the point I would really like to discuss. Personally I define money as currency and wealth as assets such as real estate or businesses.

Wealth can be exchanged and represented in currency but never fully defined by a currency numerical value.

I found this article a little surprising as I was under the impression there is more currency in circulation than there actually is. They value the broad money supply at 90.4 Trillion globally. Maybe someone will have a better understanding of this than me but I thought we had Quadrillions in currency circulation due to central bank printing.

And the crazy part about money is debt. There is more debt than there is money. Have you ever stopped to think about that?

Debt actually creates money and many don't understand this. How I always had to break it down and simplify it to understand is suppose you have 3 people; a person with $1, a banker and a borrower.

Now the person with $1 deposits his dollar into a bank. (For simplicity assume no deposit interest) The banker takes the $1 and lends it out to a borrower with interest. For simplicity let's assume the $1 is lent out at 2% interest.

How much money is now in the financial system?

We started with $1, now we have $1.02??

The depositors $1 has become $1.02 via lending with interest.

This took me a while to understand and I'm shure you may be scratching your head realizing a new financial paradigm. I for one was angry when I found this out.

Once the lending contract is settled, there is still only $1. You end up with an impossible situation, to settle $1.02 with $1. Someone has to settle for less and the banker will take his cut first, so that's most likely you.

This is why in modern money, we continually print more and more money to service the debt load and keep the economy churning forward and not resetting to the fact that more money is owed than in existence.

Modern finance is really a well designed ponzi scheme.

Just another case for crypto, bitcoin and immutable ledgers.

I hope you learned something and if you have a comment or disagree with this in any way, feel free to let me know. I also updated the crypto market cap bellow.

Derivatives markets are staggering ????

Narrow money: 36.8 Trillion Broad Money: 90.4 Trillion

Derivatives: 544 Trillion-1.2 Quadrillion

All stock markets: 73 Trillion

Commercial Realestate: 29 Trillion

Debt: 215 Trillion (33% borrowed in last decade)

Bitcoin: 500 Billion (article says 100)

Total crypto market: 1.1 Trillion

https://www.marketwatch.com/story/this-is-how-much-money-exists-in-the-entire-world-in-one-chart-2015-12-18