A Visual Tutorial On Money from The Money Project

What Is Money? Infographic #1

Courtesy of: The Money Project

The Money Project acknowledges that the very concept of money itself is in flux – and it seeks to answer these questions.
__ http://money.visualcapitalist.com/what-is-money-infographic/

The Properties of Money: Infographic #2

Courtesy of: The Money Project
  1. Divisible: Can be divided into smaller units of value.
  2. Fungible: One unit is viewed as interchangeable with another.
  3. Portable: Individuals can carry money with them and transfer it to others.
  4. Durable: An item must be able to withstand being used repeatedly.
  5. Acceptable: Everyone must be able to use the money for transactions.
  6. Uniform: All versions of the same denomination must have the same purchasing power.
  7. Limited in Supply: The supply of money in circulation ensures values remain relatively constant.

__ http://money.visualcapitalist.com/infographic-the-properties-of-money/

All of the World’s Money and Markets: Infographic #3

Courtesy of: The Money Project

In this data visualization of the world’s total money supply, we wanted to not only compare the different definitions of money, but to also show powerful context for this information. That’s why we’ve also added in recognizable benchmarks such as the wealth of the richest people in the world, the market capitalizations of the largest publicly-traded companies, the value of all stock markets, and the total of all global debt.

The end result is a hierarchy of information that ranges from some of the smallest markets (Bitcoin = $5 billion, Silver above-ground stock = $14 billion) to the world’s largest markets (Derivatives on a notional contract basis = somewhere in the range of $630 trillion to $1.2 quadrillion).

In between those benchmarks is the total of the world’s money, depending on how it is defined. This includes the global supply of all coinage and banknotes ($5 trillion), the above-ground gold supply ($7.8 trillion), the narrow money supply ($28.6 trillion), and the broad money supply ($80.9 trillion).

__ http://money.visualcapitalist.com/all-of-the-worlds-money-and-markets-in-one-visualization/

A basic knowledge of money and credit is a basic building block of intelligent awareness for anyone who lives in a world based on capital flows.

History of Money in US by Murray Rothbard 512 pp PDF

A History of Money from Ancient Times to Present by Glyn Davies741 pp PDF

Much of the Dangerous Child Method is based upon teaching money, entrepreneurship, credit, banking, investing, etc. using games. These “money games” aid in teaching maths, history, geography, and other basic subject areas — and help provide the foundations for entrepreneurial and money management savvy that later allow Dangerous Children to master at least 3 different means of achieving economic independence by the age of 18. These games begin no later than age 3, and often earlier.

The failure to prepare children for the adult world — in this and many other realms — amounts to parental and societal malpractise.

It is never too late to have a Dangerous Childhood. But the earlier the better.

This entry was posted in Economics and tagged . Bookmark the permalink.

4 Responses to A Visual Tutorial On Money from The Money Project

  1. Will Brown says:

    Some early thoughts of mine on this question can be found here.

    I continue to think that establishing a directly tracable link between a trulu universal standard like energy with an admittedly arbitrary economic faluation would satisfy all the requirements that the “gold standard” supposedly supplies, while avoiding the manipulations and frauds it also permits. One hydrogen atom can theoretically be converted into x amount of energy; this amount of energy is the standard for y amount of money. The political entity that prints currency possesses the capacity to generate z amount of energy, thus anyone can determine the value of said currency in its own right as well as in comparison to other’s currency.

    I would love to read the thoughts on this from some actually economicly literate people.

    • alfin2101 says:

      You raise an interesting and important question. Energy is of value to human societies and to potential societies run by androids or machine intelligences. As such it could provide a common basis for trade between the two types of societies.

      Not all forms of energy are of equal value, of course. The sheer volume of balderdash piled around “renewable energy,” for example, illustrates how units of power and energy can be used to misrepresent reality — much as statistics themselves are common means of deception. In China, for example, massive amounts of energy and materials have been wasted in a nation-wide bubble of excess production and ghost infrastructure.

      Reliable data can be hard to come by from relatively closed places such as Iran, Russia, China, North Korea, etc. We simply expect governments of such places to lie about their capacities and capabilities. And so they do. At this point in time, such governments attempt to bully others based upon the amount of devastation they can exact upon them — witness the endless amount of nuclear sabre-rattling and threats of annihilation that flow from such corrupt bastions of sheer shite-headedness. Intimidation of that type is a form of “currency” as well.

      A space-going economy might value delta-v, water, other volatiles, other life-supporting substances etc. Agreeing on one particular unit of exchange in such economies might require dynamic exchange markets based upon multiple competing standards. Verification of stockpiles is key, and may require more advanced accounting structures than we have currently.

      • Will Brown says:

        Thank you.

        As I mentioned in my referral to the gold standard, there is no practical way to systemically prevent attempts at cheating or manipulating a financial system, other than prohibiting its use by anyone at all, of course. My objective here is to attempt a mechanism whereby users – all users – can determine whether or not, or even to what degree, manipulation of a national currency’s valuation has occured, and that can be structured to create an audit trail of the manipulation process as an inherent part of the attempt. Any mutual agreement between competing parties assumes all will at least consider transitory opportunities of relative advantage; a truly universal monetary standard would necessarily have to be independent of external valuation manipulations (fiddling around with atomic weights and measures would be difficult to conceal) and have independantly established and universally acknowledged calculation mechanisms that are themselves universal in application (Ohm’s Law, the various formulea for calculating Power and Work, etc). Such a mechanism for calculating a universal monetary value can equally be used to calculate a value for any component of any given national economy’s floating valuation at any given moment.

        Such a calculation would extend to assigning a valuation to a national (or systemic or galactic even) economy quite as well, I submit. It isn’t just “energy” per se that needs measured; how reliable and transportable is the quantity of wattage available, over what time scale, being only one example of a host of potential metrics. As should be clear, a universal monetary valuation standard acts as a transfer mechanism between disparate economic structures, be they in Africa or Alpha Centauri, and whatever their individual physical structure might be at that particular time (time/distance constraints have always been one of the most demanding of financial transactional considerations and I suspect always will be to some degree). How much Swedish Kroner can I get for US$100 of .99x pure titanium, delivered to an orbital manufacturing facility from an asteroid belt mining vessel, can be as equally objectively calculated as can a direct currency valuation between Swedish and USA national currency by such a universal transaction standard.

        You can’t keep a cheater from trying to cheat (or a bully from making a threat), but we can build a better mechanism for calculating the value of such efforts, as well as the cost of our response.

        The biggest problem I see with economics generally is that people don’t realise the implications the idea of money entails, and thus fail to recognise the opportunities that idea creates.

  2. Acres of Statuary says:

    All of the World’s Money and Markets: Infographic #3 says that there are a billion ounces of silver in existence. Here is a reference that states that there are 22.6 billion troy ounces in existence:


    See very bottom of page. There are links there with considerably more analysis.

    At $14/toz that would be valued at US$316 billon.

Comments are closed.