Yes. But the amount of gold in the system is always conserved. Monetarily, the fact that it's borrowed is irrelevant.
Also, if the borrowing is used to increase economic activity, it need not eat into future taxes for anyone. The classic example is borrowing to buy upgraded farm equipment, or to irrigate previously-fallow land.
> Assuming they don't find more gold
Orthogonal and thus irrelevant to the question of whether borrowing fundamentally causes inflation.
Yes. But the amount of gold in the system is always conserved. Monetarily, the fact that it's borrowed is irrelevant.
Also, if the borrowing is used to increase economic activity, it need not eat into future taxes for anyone. The classic example is borrowing to buy upgraded farm equipment, or to irrigate previously-fallow land.
> Assuming they don't find more gold
Orthogonal and thus irrelevant to the question of whether borrowing fundamentally causes inflation.