Giant Pool of Money

Finally got around to listening Giant Pool of Money last month which I found very entertaining but left unexplained was the origin of the giant pool of money. In some sense this giant pool of money subscribes to the global savings glut hypothesis. Menzie Chinn argues that this hypothesis should be put to rest and that it was mostly a mirage of the data. Macro & Other Market Musings expands on this.

If there was no global savings glut then where did this giant pool of money come from? Perhaps the global savings glut is no different then assertions that the world is awashed in liquidity and that money was sloshing around the globe pre-crisis. There is still much that I don't understand about this.