Hypothetically - actually not so much - this was one of the issues in 2008. If the financial system creates such quantities of debt, that the regular capital a

Hypothetically - actually not so much - this was one of the issues in 2008. If the financial system creates such quantities of debt, that the regular capital and interest repayments exceed the available money supply, that would be a hard threshold. This is quite a large number if you calculate, even with high interest rates, so highly unlike in practice. Plus bank lending has a side effect of money creation, which stops it happening within the banking system. However government debt and company bonds are non-bank debt, and securitised loans also don't have the money creation property, so one of the issues in 2008 can be presumed to be that the expansion of the debt supply relative to the money supply probably did become an issue in some countries.