"Your point is well taken, but you made one small mistake there, JP. 
1mdc does NOT expand the money supply in any way.
-- Patrick"

In a way it actually does. Much in the same way a bank deposit or holding
a <plug type="sales"> balance in a CF$ customer account </plug> does.

You see, when you 'deposit' your e-gold into the 1MDC account, and your
1MDC account is credited, your e-gold is still there as well. When you
then use your 1MDC account to pay for a purchase to another 1MDC account
you are using FastGrams, rather than e-gold. While your FastGrams change
hands, the e-gold doesn't.

Hence, theoretically if all e-gold was depositted with 1MDC, then the
money supply would double.

Although in this particular case there is the 1MDC caveat that the e-gold
shall never leave the 1MDC e-gold account, and hence have of the doubled
money supply would not circulate.

At CF$ things are entirely different of course, but we are USD based not
AUG.

Cheers,
Robert.

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