Where does the money go?

Question

The world's economy has collapsed (The finger points at the USA, but no matter)

Presuming investors are not making a big bonfire of dollar bills, where goes the money go? Assuming someone has made millions or billions or even trillions, where do they put it?

It cannot have escaped off the face of the earth, so it must
be around somewhere....?

Answer 1

in circulation i would say that there is probably only 1-2billion bills out in print. the rest is virtual money. ie that is where the problem comes. if you invest and the money gets lost due to a crash in the market it is lost because it was not really backed up by solid tangible money. if a bank closed it might have about a million dollars in its system that gets removed and spread out but the billions that is virtual just disappears. technically if the government felt like it they could just increase the amount of virtual money. but that is the quickest way to create a crash and huge inflation so they don't.

Answer 2

To the People in those companies that sit in a room voting on if they should give them selves a raise

.

And the same people who make a plan to cut over head cost by outsourcing the production of the company to China or Mexico

.

The same corporate people who get 85 billion in bail out money and go on a $440,000 resort get away the next week

.

So now you know where the money goes to

.

The people who run the countries business

.

Answer 3

Since you are 15 years old (how did I know that?), if you invest that $1000 into a growth mutual fund (something like the Muhlenkamp Fund, MUHX), it will likely earn 14-15% a year over the long-term, so if you forgo any more "eletronics" (not sure what they are, LOL!) your $1000 could easily grow, all on its own, to be $1,000,000 by the time you are sixty, without you doing ANYTHING. Please print this answer out and save it. Maybe you will come across it when you are 60, broke, hating your job and surrounded by old clothes!

Answer 4

A loss or a gain has not been made , until that loss or gain has been crystallised.

If you live in a house and the value of it last year was £200,000 and the current value is £180,000, the £20,000 is a paper loss. It only becomes a real loss if you sell it now. Answer: don't sell it now!

There is a difference between "not getting" something and "losing" something.

Answer 5

Money has become detached from value. Bank notes are just a 'promise to pay the bearer', but have no actual physical value. They're just tokens to be used in this big game where we are the pawns and we haven't a clue what the kings and queens are doing.

Answer 6

Well it's just money on paper, not real money. It's the value of the company that has been lost not actual cash!

Answer 7

A lot of it probably didn't exist in the first place. It was debt and loans, which had no security. That was the problem.