The dollar's debt trap

Including bonds and other financial issues emanating from the US Government, the individual states, with the private sector and with broad money supply, dollar debt totals roughly $100 trillion, to which we can add shadow banking liabilities realistically estimated at a further $30 trillion.

The origin of all this debt is monetary expansion, mostly from the banking system but topped up by the central banks.

Otherwise, savings in the form of bank deposits and bank notes owe their origin entirely to debt.

Figure 2 above shows the rapid expansion of US dollar money and bank credit culminating at an annualised 25% rate which has taken place since March 2020.

Another aspect of the current situation stems from the leverage given to capital issues of debt outside the banking system by the increase in bank deposits.

Including bank credit, total US dollar debt will shortly exceed $100 trillion if it hasn't already.

A clear illustration would be the issuer of the stablecoin Tether, which runs a balance sheet similar to a central bank, with assets on one side and stablecoin currency tokens, nominally tied to the dollar by being the counterpart to dollar-denominated assets, as liabilities on the other.

https://www.goldmoney.com/research/goldmoney-insights/the-dollar-s-debt-trap