Since you are basing your deflation argument entirely on the premis that gold is the money, then shouldn’t you be looking exclusively at annual global mining production and not things like m3? You could ignore fiat money supply completely, and just factor global population and mine supply.

It would in fact support your case of deflation as production is declining.

http://goldnews.bullionvault.com/node/1884/print


As this chart from the World Gold Council [2] shows, global gold mining production has actually declined since 2000, despite the huge run-up in Gold prices.

Annual gold-mining output topped at 2,573 metric tons in 2000, falling to 2,518 metric tons in 2005, then 2469 metric tons in 2006 and finally 2,444 metric tons in 2007 according to the GFMS consultancy – a London-based research group that serves gold mining companies and supplies the World Gold Council with its data.