[GourmetDan]

"Sorry, maybe you missed the question. Allow me to repeat it. Quick question for you, if you deposit gold based money in the bank and I come to the bank and take out a loan, did the money supply increase?"

Sorry, maybe you missed the answer. Allow me to repeat it.

If 10 oz of gold is all the gold in the world and you borrow 10 oz @ 5% interest, the total gold supply must increase by 1/2 oz or you cannot pay the gold loan plus interest one year later. Either I don't get all my gold back or the lender doesn't get his 1/2 oz of interest.

Get it now?

[Toddsterpatriot]

Sorry, maybe you missed the answer.

Only because you didn't.

Try again, if I borrow gold based money, does the money supply increase?

Maybe it would help if you learned what actually makes up the money supply. I'll wait.