While the world's money supply has swelled past $100 trillion, purchasing power has been moving in the opposite direction, revealing a stark disconnect between the numbers on the screen and the reality in your wallet.
Key Takeaways
- Global M1 money supply grew by 7.2% year-over-year in 2023 according to IMF data.
- US M2 money supply stood at $20.94 trillion as of March 2024 per Federal Reserve reports.
- Eurozone M3 money supply increased to €16.2 trillion in Q1 2024 from ECB statistics.
- US CPI inflation rate was 3.4% YoY in April 2024 per BLS data.
- Eurozone HICP inflation stood at 2.4% in April 2024 from Eurostat.
- China's CPI inflation was 0.3% YoY in April 2024 per NBS.
- Top 1% of global population holds 45.8% of wealth as of 2023 per UBS Global Wealth Report.
- US billionaire wealth grew 88% since 2020 to $5.8 trillion in 2024 per Forbes.
- Global wealth inequality Gini coefficient is 0.89 per Credit Suisse.
- EUR/USD exchange rate averaged 1.081 in 2023 per ECB data.
- USD/JPY rate hit 151.97 high in July 2024 per BOJ interventions.
- GBP/USD traded at 1.2700 in May 2024 per Bank of England.
- Global bank assets totaled $183 trillion in 2023 per FSB.
- US commercial bank assets $23.7 trillion Q1 2024 per Fed H.8.
- Eurozone bank loans to GDP ratio 130% in 2023 per ECB.
The global money supply is expanding rapidly, outpacing the persistent inflation that accompanies it.
Banking and Financial Systems
- Global bank assets totaled $183 trillion in 2023 per FSB.
- US commercial bank assets $23.7 trillion Q1 2024 per Fed H.8.
- Eurozone bank loans to GDP ratio 130% in 2023 per ECB.
- China's banking assets reached 390 trillion yuan end-2023 per CBIRC.
- Global non-performing loan ratio averaged 4.5% in 2023 per IMF GFSR.
- US bank deposits $17.9 trillion in March 2024 per Fed.
- Number of US banks fell to 4,577 in 2023 per FDIC.
- India's bank credit growth 15.3% YoY March 2024 per RBI.
- World bank capital adequacy ratio averaged 15.2% in 2023 per BIS.
- UK bank leverage ratio 4.8% in 2023 per PRA.
- Brazil banking system NPL ratio 2.9% Q1 2024 per BCB.
- Global shadow banking assets $67 trillion in 2022 per FSB.
- Japan's megabanks total assets ¥1,000 trillion combined 2023 per BOJ.
- US household bank deposits share 40% of total deposits per Fed 2023.
- Euro area bank profitability ROE 10.2% in 2023 per EBA.
- Fintech lending volume $200 billion globally in 2023 per CB Insights.
- Russia bank assets grew 20% to 140 trillion rubles in 2023 per CBR.
- Australia big four banks assets A$4.2 trillion 2023 per APRA.
- Global cross-border bank claims $35 trillion Q3 2023 per BIS.
- US bank net interest margin 3.3% Q1 2024 per FDIC.
- China's interbank lending rate (7-day) 1.65% April 2024 per PBOC.
- Open banking APIs exceeded 10,000 globally in 2023 per Finextra.
- Mexico bank penetration 42% of adults in 2023 per World Bank Findex.
- Digital payments via banks 65% of global transactions in 2023 per Worldpay.
- EU bank resolution fund reached €65 billion by 2023 per SRB.
- US credit card debt hit $1.08 trillion Q1 2024 per NY Fed.
Banking and Financial Systems Interpretation
So, while the world’s banks sit on a colossal, $183 trillion mountain of assets and appear reassuringly well-capitalized, beneath the surface we find a story of relentless consolidation, a $67 trillion shadow quietly growing, and households clinging to the familiar, even as digital challengers and unseen risks quietly reshape the entire financial landscape.
Currency and Exchange Rates
- EUR/USD exchange rate averaged 1.081 in 2023 per ECB data.
- USD/JPY rate hit 151.97 high in July 2024 per BOJ interventions.
- GBP/USD traded at 1.2700 in May 2024 per Bank of England.
- USD/CNY closed at 7.236 in April 2024 per PBOC daily fix.
- AUD/USD rate was 0.6615 in May 2024 per RBA.
- USD/CAD stood at 1.3645 in May 2024 per Bank of Canada.
- EUR/GBP averaged 0.856 in Q1 2024 per ECB.
- USD/INR rate reached 83.50 in April 2024 per RBI reference.
- USD/BRL was 5.15 in May 2024 per BCB PTAX.
- USD/RUB official rate 88.15 in April 2024 per CBR.
- USD/MXN traded at 18.75 in May 2024 per Banxico.
- CHF/USD was 1.15 in 2023 average per SNB.
- Bitcoin vs USD hit $73,750 peak in March 2024 per CoinMarketCap.
- Global forex turnover daily averaged $7.5 trillion in 2022 per BIS Triennial Survey.
- USD share in global reserves fell to 58.4% in Q4 2023 per IMF COFER.
- EUR daily trading volume $1.1 trillion in 2022 per BIS.
- JPY/USD volatility annualized 10.2% in 2023 per CBOE.
- Crypto market cap to GDP ratio 1.5% globally in 2024 per Chainalysis.
- USD/TRY rate exceeded 32.00 in May 2024 per CBT.
- Gold priced at $2,431/oz vs USD in April 2024 per LBMA.
- Real effective exchange rate (REER) for US dollar rose 5.2% in 2023 per BIS.
- CNY depreciated 5.8% vs USD trade-weighted in 2023 per PBOC.
- GBP effective exchange rate index at 88.5 in Q1 2024 per BoE.
- Nominal effective exchange rate for euro fell 2.1% YoY April 2024 per ECB.
- USD/ZAR rate averaged 18.45 in 2023 per SARB.
- Crypto-fiat exchange volume $15 trillion annualized in 2023 per CCData.
- IMF SDR basket: USD 43.38%, EUR 29.31%, CNY 10.82% as of 2024.
- Offshore CNH/USD spread averaged 50 pips in 2023 per Bloomberg.
Currency and Exchange Rates Interpretation
In 2024, while central banks labored over every decimal point of their besieged fiat currencies, the ghost in the machine—Bitcoin—quietly posted a record high, as if to ask, "Are we still doing this the hard way?"
Inflation and Purchasing Power
- US CPI inflation rate was 3.4% YoY in April 2024 per BLS data.
- Eurozone HICP inflation stood at 2.4% in April 2024 from Eurostat.
- China's CPI inflation was 0.3% YoY in April 2024 per NBS.
- UK CPI inflation rate fell to 2.3% in April 2024 per ONS.
- Japan's core CPI inflation was 2.5% in April 2024 per Statistics Bureau.
- India's retail inflation hit 4.83% in April 2024 per Ministry of Statistics.
- Brazil's IPCA inflation was 3.69% YoY in April 2024 per IBGE.
- Russia's CPI inflation rate was 8.2% in April 2024 per Rosstat.
- Australia's CPI inflation eased to 3.6% in Q1 2024 per ABS.
- Canada's CPI inflation was 2.9% YoY in April 2024 per Statistics Canada.
- Mexico's INPC inflation stood at 4.14% in April 2024 per INEGI.
- Turkey's annual inflation rate surged to 69.8% in April 2024 per TurkStat.
- South Korea CPI inflation was 2.9% in April 2024 per KOSTAT.
- Global inflation averaged 6.8% in 2023 per IMF World Economic Outlook.
- US core PCE inflation was 2.8% in March 2024 per BEA.
- Eurozone core inflation at 2.9% in April 2024 per ECB.
- US dollar purchasing power declined 19.7% since 2020 per BLS CPI calculator.
- World average inflation rate projected at 5.9% for 2024 by IMF.
- India's wholesale price inflation (WPI) was 0.73% in April 2024 per OPI.
- UK core inflation was 3.9% in April 2024 per ONS.
- Brazil food inflation contributed 1.2 pp to total CPI in 2023 per IBGE.
- Japan's CPI excluding fresh food rose 2.8% YoY in April 2024.
- Global PPP-adjusted inflation was 7.1% in 2022 per World Bank.
- US housing inflation hit 5.7% YoY in March 2024 per BLS.
- Euro area energy inflation fell to -1.7% in April 2024 per Eurostat.
- China's producer price index (PPI) deflation was -2.5% in April 2024.
- Russia services inflation was 9.1% YoY in April 2024 per Rosstat.
- Australia trimmed mean inflation was 3.2% in Q1 2024 per RBA.
Inflation and Purchasing Power Interpretation
The world is engaged in a frustratingly uneven tug-of-war with prices, from Turkey's staggering 69.8% to China's near-stagnant 0.3%, proving that while central bankers everywhere are fighting the same beast, its temperament varies wildly from one economy to the next.
Money Supply and Circulation
- Global M1 money supply grew by 7.2% year-over-year in 2023 according to IMF data.
- US M2 money supply stood at $20.94 trillion as of March 2024 per Federal Reserve reports.
- Eurozone M3 money supply increased to €16.2 trillion in Q1 2024 from ECB statistics.
- China's M2 money supply reached 298.7 trillion yuan by end of 2023 per PBOC data.
- Japan's broad money supply (M2+J) was ¥1,272 trillion in February 2024 according to BOJ.
- UK M4 money supply totaled £2.98 trillion in March 2024 from Bank of England figures.
- India's M3 money supply hit ₹219.7 trillion in March 2024 per RBI reports.
- Brazil's M2 money supply grew 10.5% YoY to R$5.2 trillion in 2023 from BCB data.
- Russia's M2 money supply was 99.5 trillion rubles in April 2024 per CBR statistics.
- Australia's M3 money supply reached A$3.1 trillion in March 2024 from RBA data.
- Canada M2 money supply was CAD 2.3 trillion in February 2024 per Bank of Canada.
- South Korea's M2 money supply stood at 3,778 trillion won in March 2024 from BOK.
- Mexico's M4 money supply (broad) reached 18.5 trillion pesos in Q1 2024 per Banxico.
- Saudi Arabia M2 money supply was SAR 2.6 trillion in 2023 from SAMA reports.
- Turkey's M2 money supply grew 78% YoY to 13.5 trillion lira in April 2024 per CBT.
- Global narrow money (M1) supply exceeded $50 trillion in 2023 per BIS estimates.
- US currency in circulation hit $2.34 trillion as of April 2024 from Fed data.
- Euro area currency in circulation was €1.5 trillion in March 2024 per ECB.
- Velocity of M2 money in US fell to 1.22 in Q1 2024 per FRED database.
- China's cash in circulation (M0) was 10.8 trillion yuan end-2023 per PBOC.
- World total money supply (M2 equivalent) surpassed $100 trillion in 2023 per World Bank.
- India's currency in circulation reached ₹34.5 trillion in March 2024 per RBI.
- UK notes and coins in circulation were £92 billion in 2023 from BoE.
- Japan's yen in circulation totaled ¥112 trillion in Feb 2024 per BOJ.
- Brazil broad money growth averaged 9.8% in 2023 per BCB.
- Eurozone monetary base expanded 2.1% YoY in Q1 2024 per ECB.
- US M1 money supply was $18.1 trillion in March 2024 per Fed.
- Global digital money transactions hit 1.2 trillion in 2023 per BIS.
- Russia's broad money supply velocity was 2.1 in 2023 per CBR.
- Australia's currency in circulation was A$102 billion in March 2024 per RBA.
Money Supply and Circulation Interpretation
Global money supply figures show we're collectively printing and digitalizing our way into a new era of abstract wealth, where trillions flow with a velocity of sigh and even 'narrow' money feels impossibly wide.
Wealth and Inequality
- Top 1% of global population holds 45.8% of wealth as of 2023 per UBS Global Wealth Report.
- US billionaire wealth grew 88% since 2020 to $5.8 trillion in 2024 per Forbes.
- Global wealth inequality Gini coefficient is 0.89 per Credit Suisse.
- Bottom 50% of Americans hold just 2.6% of total US wealth in 2023 per Fed SCF.
- World's 2,781 billionaires control $14.2 trillion as of 2024 per Hurun Report.
- US top 10% owns 69% of household wealth per Fed Q1 2024 data.
- Global millionaire population reached 62.5 million in 2023 per UBS.
- India's wealth Gini rose to 85.4 in 2023 per Oxfam Inequality Report.
- China top 1% holds 30.6% of national wealth per Stanford study 2023.
- Europe ultra-high-net-worth individuals (>$50m) number 22,000 in 2023 per Knight Frank.
- US median wealth for Black households is $44,900 vs $285,000 for white in 2022 per Fed.
- Global wealth grew 4.2% to $454 trillion in 2023 per UBS report.
- Brazil's top 1% captures 28.4% of income per World Inequality Database.
- World's richest 1% emit twice carbon of bottom 50% per Oxfam 2023.
- UK top 1% wealth share is 20% as of 2023 per ONS Wealth Accounts.
- Number of US decamillionaires ($10m+) hit 36,000 in 2023 per Henley Report.
- Russia Gini coefficient for wealth is 0.87 per Credit Suisse 2023.
- Global female wealth share is 40.5% per UBS 2024 report.
- US wealth gap between top 1% and bottom 50% widened 30% since 1989 per Fed.
- Asia-Pacific wealth grew fastest at 6.3% in 2023 per Capgemini.
- South Africa wealth Gini is 0.92, highest globally per World Bank.
- Number of global centi-millionaires ($100m+) rose 12% to 28,420 in 2024 per Henley.
- US corporate stock ownership: top 10% hold 93% per Fed 2023.
- Mexico top 1% wealth share is 47% per WID 2023.
- Global adult per capita wealth averaged $84,718 in 2023 per UBS.
- Australia top 20% hold 63% of wealth per ABS 2023.
- World's 10 richest men doubled fortunes to $1.57 trillion since 2020 per Oxfam.
- US household debt-to-wealth ratio for bottom 50% is 25% vs 5% for top per Fed.
Wealth and Inequality Interpretation
The sheer scale of global wealth concentration is such that, if capitalism were a board game, the top player would be building hotels on Park Place with a golden Monopoly piece while half the other players are debating whether to mortgage their last utility just to afford a get-out-of-jail-free card.
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