Re: How Much Debt Exists vs. How Many Dollars Exist?

Hi Quinta

Its hard to get the old head around this one, but from what I've learned, they are all arbitrary numbers and derived from how much banks will lend on a discretionary basis based on what they have (from depositors); and what is ciculating is not real wealth, it is lent based on a small fraction of actual wealth.

From my understanding it is impossible to know real wealth as banks can lend on a discretionary basis on their own models and ratios. Tweet