The Settlement of the Mega Lottery and the Realities of Money Circulation

Recently, a new record was set with the largest lottery jackpot ever in the United States totaling $1.58 billion. The winner of this record-breaking jackpot now controls a significant portion of the circulating U.S. dollars. The question arises: Is it legitimate to assert that this individual controls $1/1275 of all U.S. currency, and where does such an enormous sum of money come from?

Understanding the Circulating Money Supply

According to the Federal Reserve, there are currently approximately $2.07 trillion in circulation. This figure, however, represents just a fraction of the total money supply in the United States. The money supply, commonly measured by M1 (which includes currency in circulation, checking deposits, and other liquid assets), is significantly higher.

The Actual Control over Currency

The individual who won the $1.58 billion jackpot did not receive that sum in cash. Instead, they received a check or electronic transfer, as the cash extraction would have been limited to a mere 60% of the total prize, which amounts to about $948 million. Additionally, taxes were withheld from the total amount, meaning the actual net amount the winner received was significantly less than half of the reported jackpot.

Money Supply Reality: M1 vs. Circulating Cash

According to the Federal Reserve, the M1 money supply is approximately $20 trillion. This figure is roughly 10 times the amount of cash and coin in circulation. Therefore, the individual who won the lottery controls a mere 1/40,000th of the M1 money supply. This brings into perspective the scale of the U.S. money supply and the reality of the situation.

Investment and Fraud Considerations

Given the amount of money involved, it is highly unlikely that the winner would control such a vast sum in cash. The notion that they control such a large fraction of the money supply is misleading. If the winner had any level of financial sense, they would invest the majority of the winnings, thereby further reducing the proportion of the money supply they control.

Conclusion

The apparent discrepancy between the reported jackpot and the true amount of money in circulation highlights the complexities of the modern monetary system. The M1 money supply, which includes various liquid assets and not just cash, is significantly higher than the amount of currency in circulation. Understanding this context is crucial when evaluating claims about the control of vast sums of money, such as a lottery jackpot.