[GourmetDan]

"Only because you didn't. Try again, if I borrow gold based money, does the money supply increase?"

Sure I did. Your failure to admit it notwithstanding.

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

Think about it some more...

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.

[Toddsterpatriot]

If 10 oz of gold is all the gold in the world and you borrow 10 oz

Then the new money supply is what? Come on, you can add two numbers together.