Increasing the money supply does not necessarily imply increasing the amount of monies circulated. The fact that JP' 1MDC does not 'use' the e-gold we deposit with them, doesn't change the fact that it exists.
Say you buy a house and and rent it out. You then proceed taking out a loan and buying a second house of equal value. The rental income of the first house is just enough to pay the upkeep of the house and the interest of the loan. So the first house it not generating anything beyond covering your monthly costs related to same house. And you don't even live in it. Does that mean it doesn't exist? Real estate speculation and rising prices aside (although the gold price could rise just as well), You have one house that is dead capital and if you sold it all you'd end up with, is enough to pay the loan. And you have a second house of equal value. So you own the value of two houses minus the loan, which is the same amount you started with. Nothing changed for you. But, both houses exist. Total number of houses equals two, not one. e-gold > 1MDC is the same thing. Indeed, we are actually looking at tripple the original money, because of the real gold > e-gold > 1MDC factor. To add the other 2 thirds which are dead or dormant monies to the supply that is being used (ie. turn them into currency of sorts) e-gold as well as 1MDC would need to do something with them, which they are not, but it doesn't change the fact that all three amounts exist parallel from each other. If JP chose to use the e-gold to buy TGC shares, then that part of the portion would indeed be activated and we would suddenly be looking at the perceived inflationary tendencies I ahve been talking about for three days now. If the e-gold decides to lend the gold in storage to a mining company that wants to benefit from the high spot rates and undertakes to return any portion of the gold equivalent to the borrowed bars without notice whenever e-gold asks them to, then we have trippled the money supply. No need to quote TOSes or ensure me of the honesty and repuation of JP and e-gold, I know they'd never do it - but they are capable and all three, the real gold, the e-gold and fastgramms exist, in equivalent amounts, at the same time. Just like both houses exist. Cheers, Robert. budget & privacy website hosting http://www.cyberica.net start a profitable online business http://www.cyberfrontier.biz budget domain registrations http://www.u2planet.com --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
