💀
“The problem is, there are only about $5.8 trillion base dollars in existence. Just in terms of loans and securities (i.e. excluding the more opaque derivatives market), there are about 20x as many liabilities for dollars, as the number of unlevered dollars that exist. All other types of broad dollars are fractional reserves built on fractional reserves. It’s like a game of musical chairs where there are 20+ kids for every chair, and the music can never be allowed to stop for very long.”