I'm breaking my head trying to quantify this. Let's say you have a $10 bill in your pocket. How much of that money isn't ultimately owed to anyone?
We know all debt in our economy cannot be repaid by definition (since most money is created via new debt from commercial banks, however that debt has extra interest so there will just never be enough money to repay it all).
So then, how large is this "phantom debt" (the money that is owed but doesn't exist, *e.g., total debt PLUS all the interests MINUS M2?*) compared to my $10 bill?
I know the standard answer involves comparing M0 (physical cash) to M2 (the broader money supply), but I'm not happy with that. It feels like there's something deeper I'm missing :(