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How much money is there on Earth?

How much money is there on Earth?

(15:32) Vsauce Michael looks at the many aspects of money.

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cengland0 cengland0 (1668 days ago)
Wrong. He says Kevin can spend 3 pounds and Michael can spend 5 pounds for 8 pounds total. That's not right because if Michael spends his entire 5 pounds, he will have to withdraw it from the bank and the bank will need to recall some of the outstanding loans or take reserves from someone else. So not everyone would be able to spend all the money they have deposited because most of it is loaned out. This shows that the majority of people out there still do not understand how fractional reserves work. It does not create money. In the example he used, he failed to show that Kevin who borrowed 3 pounds has a balance sheet that shows 3 pounds of assets and 3 pounds of liabilities for a net value of zero (0).
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Wrong. He says Kevin can spend 3 pounds and Michael can spend 5 pounds for 8 pounds total. That's not right because if Michael spends his entire 5 pounds, he will have to withdraw it from the bank and the bank will need to recall some of the outstanding loans or take reserves from someone else. So not everyone would be able to spend all the money they have deposited because most of it is loaned out. This shows that the majority of people out there still do not understand how fractional reserves work. It does not create money. In the example he used, he failed to show that Kevin who borrowed 3 pounds has a balance sheet that shows 3 pounds of assets and 3 pounds of liabilities for a net value of zero (0).
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Guest: guest123456789 (1667 days ago)
cengland0 is technically right. For those of you who want to learn about banking and money and the credit crisis, here are some playlists from the Khan Academy: banking and money LINK and the credit crisis LINK . Do you agree Cary?
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cengland0 is technically right. For those of you who want to learn about banking and money and the credit crisis, here are some playlists from the Khan Academy: banking and money LINK and the credit crisis LINK . Do you agree Cary?
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cengland0 cengland0 (1667 days ago)
I agree that I'm right on this subject but I don't have time to watch all those videos you created a link to so I'm not sure if they are telling the whole and correct story.
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I agree that I'm right on this subject but I don't have time to watch all those videos you created a link to so I'm not sure if they are telling the whole and correct story.
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Guest: guest123456789 (1667 days ago)
Latest comment: just go by the reputation of the Khan Academy if you can't watch them all. LINK . Five star rating here LINK and here LINK
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Latest comment: just go by the reputation of the Khan Academy if you can't watch them all. LINK . Five star rating here LINK and here LINK
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