Let's say that there's 5,000 of credit card debt.

Because that's essentially what a credit default swap is, it's insurance on debt.

Now when I say credit, you've got to think about debt, because basically they're mounting debt that you will be responsible for.

This is what it looks like, essentially, this credit and debt system, just for the U.K.

Credit

Give credit where credit is due.

We would look the other way when Bear Stearns is creating collateralized debt obligations, or AlG is writing credit default swaps.

What debt?

Lots of credit card debt, huge environmental footprints, and perhaps not coincidentally, our happiness levels flat lined over the same 50 years.

So let's see if we can get a big picture of everything that's happening in this credit default swap market.

Credit Card Tracker

Please, to credit.

Cash or credit?

We strike debt!

But this is debt. 80 million of debt right here.

And let's throw some credit card debt in there, just to make this realistic relative to, I think, a lot of households out there.

Credit card companies are not looking so hard at credit ratings.

And even within the debt, you'll have different layers of debt.

Market

Your credit card, please.

Give me some credit.

Don't buy on credit.

Cash or credit card?

Credit card, investment account?

But, to my credit,

Give yourself some credit.

No taxes, no credit.

'We are debt loaded

He ran into debt.

He guaranteed my debt.

Well, what about debt?

This is the debt.

We have the debt.

Now debt is interesting.

He had no debt.

I had some debt.

Our debt kept growing.

I've paid my debt.

And it's called debt.

You can issue debt.

It's the debt holders.

Thus the national debt.

You're in debt? Yes.

Mickey's more in debt.

And so when the Federal Reserve or any Central Bank prints money, and it buys debt, it goes out into debt markets and it buys it, it usually buys the safest kind of debt, but that affects all of the debt markets, it goes out and buys in the debt market, they're essentially shifting the supply curve of money to the right, they shift the supply curve to the right.