I often mention that there are not enough dollars to cover the actual number of dollar credits in the global fractional reserve banking system. But don't just take my word for it, watch this video from CNBC where this same subject is brought up regarding Germany's Landesbank and others.
This is an inverse supply and demand story. Pundits and inflationists tell us there are too many dollars in the system, yet they are misinformed. There are too many dollar credits in the system, while there are precious few actual dollars to back up those credits. As debt deleveraging continues and the velocity of money stays low, the mountain of credit will implode under its own weight because, like a shark must swim or die, it must continue to grow in order to survive.
Understand this one paradox and you will be far ahead of the madding crowd.
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