The Enigma of Money in the United States: Wealth, Federal Reserve and M3
When we ask, 'how much money is there in the United States?', we're confronted with a deceptively difficult question. The answer depends on our definition of money and the perspective from which we approach the query. Let's delve into the intricacies of the U.S. monetary system to uncover the truth.
Money Supply in the United States
Money, in its most basic form, is a means of exchange. However, modern financial systems include not just currency but also a variety of complex financial instruments. The Federal Reserve tracks several definitions of the money supply, including:
Monetary Base (MB): This includes currency in circulation and Federal Reserve deposits. As of October 2020, the Monetary Base was $4.917 trillion. This figure was $3.476 trillion in November 2018. M1: This comprises funds that are readily accessible for spending, such as currency, traveler’s checks, and money in checking accounts. As of November 23, 2020, M1 was $6.231 trillion. On December 12, 2018, it was $3.832 trillion. M2: A broader measure that includes M1 plus savings deposits, small denomination time deposits, and balances in retail mutual funds. On November 23, 2020, M2 was $19.120 trillion. In December 2019, it was $14.394 trillion. MZM (Money Zero Maturity): This is M2 less small denomination time deposits plus money market funds. As of November 23, 2020, MZM was $21.687 trillion, compared to $15.699 trillion in December 2019.Wealth in the United States: A Deeper Look
But the conversation about money in the U.S. doesn't stop there. It's also pertinent to consider the total wealth of the nation. Here are some key figures from the U.S. National Debt Clock.
Small Business and Corporate Assets: As of 2018, these assets amounted to approximately $38.189 trillion, with a significant portion held in corporate assets ($25.120 trillion). Household Assets: In 2018, household assets were estimated at $132.213 trillion. Total National Assets: In 2018, the total national assets were $157.895 trillion, with a large portion coming from intangible assets like real estate, stocks, and real business investments. Debts: The U.S. national debt was $27.404 trillion in 2018, with state government debt at $1.193 trillion and local government debt at $2.131 trillion. Total personal debt was $20.909 trillion, bringing the country's total debt to $86.031 trillion in 2018. Net Wealth: To balance the equation, we subtract total debt from total assets. In 2018, this net wealth was approximately $71.864 trillion.Money Held by Super Wealthy American Oligarchs
A significant portion of this wealth is concentrated in the hands of the super wealthy. The true amount of wealth and money in the United States is often kept secret. The quantity is known as M3, but it can't be reviewed by Congress. As of February 10, 2021, the currency in circulation amounted to $2.10 trillion, with $2.05 trillion being Federal Reserve Notes and $50 billion in coins and older-style United States Notes.
Investments and derivatives further inflate the total wealth, sometimes reaching quadrillions of dollars. This complexity highlights the need for a deeper understanding of the U.S. financial system.
Conclusion
The question of how much money there is in the United States is not as straightforward as it may seem. The monetary base, M1, M2, and MZM offer insights into the current state of the U.S. money supply, while the national assets minus the total debt give an estimate of the net wealth. This comprehensive view helps us understand the complexities of the American economy and the ways in which wealth is distributed and managed.