As of July 2016 there were 33.32 trillion dollars in the world but only 1.46 trillion in the MO supply stream as of June 1 2016. (The MO supply includes paper dollars and coins.)
The question we should all be asking ourselves is what happens when the people holding the $33 trillion worth of IOUs make a claim on the $1.46 trillion of actual money that exists?
The answer is… That this can’t end well. The reality is that the dollar is only as valuable as what it is backing it. The US dollar used to be backed by gold, but that all ended when President Nixon took the US off the Gold Standard in 1971. At that point, the dollar was only backed by the United States promise to pay. At the time, the United States was the largest creditor nation in the world so that promise to pay was not questioned. Now (October 2016), The United States is the largest debtor Nation and can only pay its bills by creating more dollars. (Quantitative easing, QE, QE2, QE3) It is only a matter of time before the owners on the United States debt realize that the dollars that they invested by buying the us debt are being devalued such that the money they are receiving back is worth less that the dollars that they invested. As soon as confidence is lost in the dollar and people rush to get their hands on the paper money the system will collapse.