On Wednesday, October 29, 2003, at 03:27 PM, [EMAIL PROTECTED] wrote:
Your point is well taken, but you made one small mistake there, JP. 1mdc does NOT expand the money supply in any way.
I'd have to think about that one....tricky!!
(We're used to thinking about fractional reserve type banking -- ...
but does egold expand the gold available? ...
All I know is that e-gold claims that if I bail a gold bar into the e-gold system, that gold bar sits in a vault and is not used to make a loan or purchase of any kind. Thus, the gold bar itself no longer functions as money except in the form of the e-gold grams representing it, and therefore there is no increase in the money supply.
Does 1mdc expand the egold available?)
All I know is that 1mdc claims that if I bail an e-gold gram into the 1mdc system, that e-gold gram sits in an account and is not used to make a loan or purchase of any kind. Thus, the e-gold gram itself no longer functions as money except in the form of the 1mdc gram representing it, and therefore there is no increase in the money supply.
Assuming that both claims are valid and perfectly reliable, neither of these scenarios increases the amount of money available for use in trade.
I assume your questions refer to some motivational effect, where the existence of a system prompts more people to find assets to bail into that system, or something along those lines, am I right?
-- Patrick
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