Friday, April 16, 2010 11:31:22 AM
GDP and money supply are pretty closely related.
World money supply numbers.
Notice that the world M3 number is $60 Trillion
Now look at world GDP
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
The whole world GDP is about $60 Trillion
So you would thnk every country should have a money supply about equal to their GDP, and that's basically true. But in reality it's not.
A country like the US is going to more because the dollar is used world wide for many things.
Countries like Iraq will not have 100% because most of Iraqs GDP is from oil sales which are dollars. Iraqs economy that requires dinar is pretty small.
Iraqs GDP can fly up and down based on oil prices. That doesn't change the dinar part of the economy that drasticaly.
World money supply numbers.
Notice that the world M3 number is $60 Trillion
Now look at world GDP
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
The whole world GDP is about $60 Trillion
So you would thnk every country should have a money supply about equal to their GDP, and that's basically true. But in reality it's not.
A country like the US is going to more because the dollar is used world wide for many things.
Countries like Iraq will not have 100% because most of Iraqs GDP is from oil sales which are dollars. Iraqs economy that requires dinar is pretty small.
Iraqs GDP can fly up and down based on oil prices. That doesn't change the dinar part of the economy that drasticaly.
Dow Jones Newswire: A current 25,000 Iraqi dinar banknote will become IQD25, and a dollar will equal only 1.17 dinars.
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
