The generally accepted medium of exchange for people is cash. It is a kind of liquid good, which is the equivalent of the value of another good or service, and a means of preserving their value.
Cash and non-cash money
Money is just bank receipts backed by gold. To put it another way, these are debt obligations issued by the central bank and paid at interest to commercial banks. There is always less money than debt. Debts are always made in monetary terms. There should be only about $ 60 trillion in bank receipts backed by gold in the world, i.e. in other words, banknotes. But everything happens differently: if you take 100 dollars, you owe 110. If you put your money in the bank on a deposit at 5%, then the bank can lend the same money to someone at 10%. Then this money will be doubled, plus another 15%.
Thus, if we take into account all the bank deposits and loans available in the world on accounts and take into account the emission, then we get an impressive amount - 400 trillion dollars. According to simple calculations, it turns out 60 thousand dollars for every person on earth. Only through the Forex currency exchange, $ 9 trillion passes daily. This is non-cash money, and for the most part they are not backed by anything. Therefore, inflation arises and, as a consequence, poverty and misery. Since all banknotes are for the most part backed by gold, it logically turns out that there should be as much of them in the world as there is gold mined during the entire time of man's existence.
Gold and cash
According to scientists' estimates, over the entire history of human society, 105 thousand tons of gold have been mined. If we take into account its density, then it turns out 19, 3 tons per cubic meter. In volume it will be 5 thousand cubic meters. In order to visualize how much 105 thousand tons it is, then it is possible to imagine a cube with a side size of 20 meters. This begs the question: what is the monetary equivalent to this cube of gold?
You can calculate it like this: a standard diplomat can hold a million dollars in 100 dollar bills. Consequently, 1,000 of these suitcases would amount to $ 1 billion. This is about one carriage. A train of a thousand wagons is a trillion dollars. This means that there are only 60 railway echelons of a thousand cars each on the ground. In reality, due to the different values of currencies in different countries (and there are more than 150 currencies in the world) and the availability of changeable, smaller money, there are ten times more banknotes in the world. In terms of importance in the world, the four largest currencies are: the euro, the dollar, the yuan and the yen. Of these currencies, the largest amount of cash is in euros. This amount is 950 billion.
