| I'm sorry to say that you are incorrect. There is not a specific number of itemized money units that define a fixed money supply. In fact, not even stock certificates work that way! It's all elastic, and central banks have sophisticated mechanisms to tighten or loosen that elastic band. The entire financial industry exists to think of novel ways to create leverage, stitching together assets and promises into towering edifices of economic power... all founded on the idea/hope/prayer that nobody will call in all the bets at once. Honestly, you might not want to look behind the curtain on this one. It's one of those existential risks you can't effect as a single human. It's a collective suspension of disbelief that allows the modern world to function. If/when the correction happens... it will not be fun to live through. If you're a glutton for punishment, here's some reading: "Chapter 2 studies leverage in the nonfinancial private sector before and during the COVID-19 crisis, pointing out that policymakers face a trade-off between boosting growth in the short term by facilitating an easing of financial conditions and containing future downside risks. This trade-off may be amplified by the existing high and rapidly building leverage, increasing downside risks to future growth. " https://www.imf.org/en/Publications/GFSR https://research.macrosynergy.com/the-global-leverage-proble... https://www.imf.org/en/Blogs/Articles/2021/03/29/confronting... https://en.wikipedia.org/wiki/Fractional-reserve_banking https://en.wikipedia.org/wiki/Money_multiplier https://www.investopedia.com/terms/l/leverageratio.asp https://www.investopedia.com/terms/r/rehypothecation.asp |