[antidisestablishment]

While I don't pretend to be an expert, your statement is completely ludicrous. The FRS, while sold as an insurance scheme, quickly became a fractional repository. To put it plainly, if you can loan out 90% with a 10% deposit, what could you loan out if you deposited 90%.

It's not rocket science, and the actual amount of global currency held in derivatives is in the quadrillions. The purported 16 or 17 trillion US debt doesn't constitute a significant fraction of the liabilities in the market.

[Toddsterpatriot]

While I don't pretend to be an expert, your statement is completely ludicrous.

Which statement?

To put it plainly, if you can loan out 90% with a 10% deposit, what could you loan out if you deposited 90%.

You can loan out 90%, while holding 10% in reserve.

So a single $1000 deposit allows $900 in loans.

It's not rocket science, and the actual amount of global currency held in derivatives is in the quadrillions.

Derivatives are like options, currency is not "held in them".

The purported 16 or 17 trillion US debt doesn't constitute a significant fraction of the liabilities in the market.

Liabilities are offset, one for one, by assets. Not sure what you're trying to say.