in 2015, the Confederation of Oxfam predicted that next year, the top 1 percent will own
more wealth than the rest of the world combined.
Unsurprisingly, they were absolutely right.
That's precisely what happened.
But it didn’t stop there, it went way further than that!
Today the top 8 wealthiest men hold more wealth than 3.7 billion poorest people combined!
Just imagine that number for a moment.
8 people own more wealth than the entire population of Europe, Africa, both Americas, and Southeast
Asia combined or a combination of 151 countries.
Seems like they are the Rothschilds of our time!
But how much money is there in the world!
What if we take all the money in the world and count them down, how much would there
be?
Unfortunately, We will have multiple different answers, because the numbers will differ base
on what you define as money.
If we are strictly talking about physical money which is cash and coins.
Then that number would be 7.6 Trillion US dollars.
If each square would represent a hundred billion dollars, then this is how they would be distributed
around the world.
It doesn’t look much!
Right?
Because the GDP of the United States alone is multiple times larger.
But What if we include the deposits and all the money that's in our bank accounts, we
would get the sum of M1, which is 37 Trillion US dollars.
But there is even more money that banks usually do not allow to withdraw immediately, such
as time deposits.
So, if we combine all the money that exists in bank accounts, savings, bonds, and banknotes,
we will get the so-called Broad Money - which is All the money that exists in the world
- 90.4 Trillion dollars.
But this number doesn’t even come to close to the total global debt which has risen to
over 233 Trillion dollars.
This is how much governments owe each other, households, and companies.
This number seems way more significant compared to the existing cash!
However, if we take all the existing cash and turn them all into 100 dollar bills and
put them side by side, they will round the earth over 3500 times.
But regardless of how much money you have, at the end of the day, they are nothing but
papers or digits in bank accounts.
That's why when it comes to money, the only thing that matters is what stands behind them,
what are they bucked with?
For example in ancient India, Cowry was used as a mean of exchange or in ancient China,
salt was used as money.
But over time, people moved to gold and silver because they are more convenient.
However as we progressed and built a more modern economy, carrying with you a pack of
gold wasn’t safe, or comfortable, that's why banks came into the picture, who would
give you a piece of paper that would represent your wealth in the bank, in exchange of your
gold and silver.
But today we live in a completely different world.
The value of the money is set by the government.
The government simply says: listen, guys, this is the value of this paper!
And in return, we are like: Alright, uncle Sam!
It reminds me of a game we use to play as kids, we would set a little shop with fake
items, and we would use cards as money.
We use to decide how much each card would worth.
And we would buy with these cards from each other believing in their value.
As mean as it might sound, the modern monetary system works in the same.
During the 2008 crush, the US, Japan, and EU printed 9 trillion dollars to save the
economy.
Now, if you take the total amount of gold that exists in the world, they wouldn’t
exceed 7.5 trillion dollars.
So, our money is backed by nothing like the cards we used to play as little kids.
But don’t worry, it's not a big deal.
Yes, we might experience another crash or two if not more, but we will evolve and move
to a better system such as cryptocurrencies or something else that's better than our current
system.
Because we always have been moving from one system to another trying to make our lives
more convenient.
But you know what's even more convenient, is turning your passion into a business, into
a source of income.
What could be more enjoyable than making money while doing what you absolutely love?
That's why I partnered with Skillshare and created this course for you.
The first 68 people who will use the link in the description will get the course for
free.
It definitely worth giving it a try, the course is short and fully animated like this video.
You will definitely enjoy it!
Thank you for watching, and I will see you in the next one.