By Vern Gowdie – The Daily Reckoning (Australia) –
Can you fathom $50 trillion in cash?
Bill Gates is worth US$70 billion…which in itself is hard to comprehend.
Therefore, $50,000 billion (that’s another way of saying $50 trillion) is a mind-blowing amount of money.
What could you do with that sort of money?
According to a Business Insider article, ‘$50 trillion of cash on the sidelines could be good news for stocks and gold’, published on 5 November 2016:
‘What Will It Take to Move Cash Off the Sidelines?
‘The key question of course is what it will take to get this $50 trillion back in the game again. That much money would boost the financial markets a lot if it were invested. But what will it take to tempt conservative investors to deploy their cash?’
Imagine that amount of cash — or even half of it — unleashed on the markets? What impact on asset values would that have?
Bet you’re thinking that it would have a ‘huge impact’.
Not so fast. Let’s peel back a layer or two.
What constitutes cash?
Money in your wallet or purse? In the bank? Term deposits?
It’s not quite that simple.
There are four official measures of ‘cash’.