Part 4/10:
The question emerges: how did we reach this point where such colossal debt levels were accrued despite the apparent scarcity of dollars? The answer lies in rehypothecation, a process in finance where a dollar can be leveraged multiple times. For instance, an initial deposit of $1,000 can be borrowed by banks, re-lent, and cycled through numerous financial transactions without the actual cash ever changing hands. This system allows debt to proliferate, outpacing monetary growth and contributing to the overarching crisis.