Once people start using shares as a means to trade other stuff, we have a fiat economy alongside the e-gold system.
Robert there is just one mistake you are making dude ...
it is true that things like stocks, bank accounts, "1mdc-like" things (derivatives of money), and any and all financial instruments EXPAND THE MONEY SUPPLY. Very few people know this, but it's true.
However, Roebert, this has utterly nothing to do with "fiat money". You are just using the wrong term. Fiat money (as opposed to .. "gold") is just money issued by fiat, ie, by the government. This is utterly unrelated one way or the other to the fascinating expansion-of-money issue.
For instance, lets say we lived in a universe of Fiat money (we do in many ways!), issued by say the New Zealand government. So just forget about gold and the like for now. NOW ... the NZ gov issues say $10billion. It is true, as Robert says, that bizarrely all things like building houses, making companies, and creating financial instruments expands the money suipply of $10billion. (For instance, say someone suddenly builds $1b worth of houses - those houses are now things that can factually be used "like money", like the NZDollar - so you have expanded the money supply.) Then you have someone who starts doing fractional reserve banking in NZD - again the money supply is expanded, etc etc.
Now in the example in the previous paragraph, takle some *different* type of money. Let's say, "stone coins". All of the exact same applies, just cut and paste the paragraph and replace "NZD" with "stone coins". And then again, use "gold" as the money and again cut and paste the paragraph, all of the same applies.
So Robert, your use of the term "fiat" is incorrect, it has utterly nothing at all to do with what you are talking about.
But YES for sure, things like 1mdcGrams, every company that exists that works with e-gold (TGC would be included in this, same as all the rest), each market maker's existence, people who write private notes and so on in e-gold, PVCSE, DBourse, etc - Robert's right that they do expand the money supply, they multiply it !!!!
This is not necessarily a bad thing, it is organic multiplication of a money supply. Say the money in the uniuverse is "one ounce gold coins" - and say i start using millions of FAKE counterfeit one ounce gold coins! That is expansion of the money supply in a bad way! Similartly, given a fiat currency (let's say, USD) if the government in question just starts printing the money, that is expansion of the moneys upply in a bad way (phew, what a silly example, thank God that will never happen with the USD!), that would be a not very good expansion of that money supply.
So those of you who are thinking Robert is mad, no, he's perfectly correct Instruments like in the example TGC shares definitely DO expand the money supply, bizarrely, in practice of in this example "digital gold currencies". This is sort of obviously how the world economy works although it takes some thinking about.
(Bu the language to desribe this Robert has utterly nothing to do with "fiat" currencies, you are wrong there my crazy pal.)
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