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Have you ever stopped to think about how much money actually exists in the world? I mean, if we try to add everything up... it gets pretty complicated because it really depends on how you define "money."
You might be talking about physical cash, those notes and coins we use every day. That alone totals about $40 trillion in global circulation. But that's just the tip of the iceberg.
If you include bank deposits—money stored in your checking account ready to use—the number rises to around $80 trillion. Now it starts to get interesting.
Now, if we start counting savings deposits, investment funds, and other more liquid financial assets, we're talking about $100 to $130 trillion. But there's more to it.
When you consider stocks, bonds, derivatives, and all kinds of complex financial instruments out there, the total value of financial assets worldwide reaches $400 to $500 trillion. And if you include all those derivatives and super complex financial products, the nominal number can even surpass quadrillions.
It's kind of mind-blowing to think about this amount of money in the world when you stop to reflect. The numbers fluctuate quite a bit depending on the market, central bank money printing, and various other economic factors that are always changing. It gives a very different perspective on how the global economy really works.