How about...
I think she is dumb.
↓
She thinks that I think she is dumb.
↓
I think that she thinks that I think she is dumb.
↓
X thinks that I think that she thinks that I think she is dumb.
X
↓
Y thinks that X thinks that I think that she thinks that I think she is dumb.
XY
↓
... and it can go on and on...