If there's only $1.5 trillion of currency at any given time...

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>>2721802
1.5 trillion is in actual physical bills and coins you fucking ugly retarded anime posting faggot loser.

lets say there is 1$ of currency in existance and only two of us.

I have 1$ and i pay you to slap you in the face, and then reverse 10 times.

Gdp is now 10$ but still only 1$ in circulation.

>>2721810
>1.5 trillion is in actual physical bills and coins

So there's money that never had physical form? Where does it come from?

because the same dollar could be used multiple times at multiple places in the economy you retard.

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>>2721825
Know nothing, goyim. Oh look its a cute anime girl, isn't it about that time for your favorite anime show?

>>2721810
https://fred.stlouisfed.org/series/WCURCIR
>Currency in circulation includes paper currency and coin held both by the public and in the vaults of depository institutions. The total includes Treasury estimates of coins outstanding and Treasury paper currency outstanding. This definition of currency in circulation differs from the currency component of the money stock, a measure of currency used in some other Federal Reserve reports (for example, the H.6 release), which excludes currency held in vaults of depository institutions.
You are wrong

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>>2721850
you are extremely stupid.

>>2721854
>proven wrong by the Federal Reserve
>y-y-you are stupid!

>>2721826
>>2721822
So what's stopping a banana republic from doing this to inflate their GDP?

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>>2721825
https://www.khanacademy.org/economics-finance-domain/macroeconomics/monetary-system-topic/money-supply-tutorial/v/money-supply-m0-m1-and-m2
Here you fucking mong

>>2721908
see >>2721850

>>2721825
kys

>>2721802
GDP = ~flow of money within an economy (not 100% but pretty much)

it doesn't take into account the WEALTH at all. if everyone in a society of 1,000,000 people owns $1,000,000 but they only 'spend' (i.e. transfer money between each other) $50,000 annually, they'll have roughly half the GDP of a society of 1,000,000, where everyone owns $100,000 and also spend $100,000 annually.

>>2721802
so the trick is, GDP != The economy
it has correlations, but it's not an actual measurement of economical POWER in any sense

>>2721932
see >>2721850

>>2721802
You and me start a country, op.

I have a dollar, you have a donut.

I pay you for the donut.

Before I eat it, we agree to terms that you want it back for a dollar

We now have a completely unchanged starting position of 1 dollar on hand, and a GDP of 2 dollars

>>2722012
Not to mention wasted time

Sure, OP, two countries could swap the same currency indefinitely, but that doesn't generate any real goods or services for either.

Additionally, these countries have to pay someone to make this exchange. Your entire "banana republic" hypothetical would be pointless

>>2721802
i mean yeah, duh. it extends to more than just currency.

here let me explain things in simple terms you understand. if you put 5 dollars you dont anticipate needing in my bank, and then i lend out 3 of those dollars, how many dollars are out there now? 8. 3 in the possession of the person i lend to, and 5 in your possession in my holdings. but theres really only 5 dollars. repeat ad infinitum and then theres more stock market value than the estimated value of the entire earth (in both created wealth and ungathered resources) several times over.

Its called "credit" and its a disastrous thing.