What you're saying is, if someone owes you $10,000 and they die leaving you only $6,000 in their estate, your money supply is still $10,000 because they still haven't repaid you the missing $4,000.
According to your math there's still the $4,000 out there that was spent AND the $4,000 owed to you by a dead person you'll never collect. So there is no $4,000 reduction in the money supply, only a $4,000 increase in the money supply when you first lent them the money - according to you.
You can believe this if you wish, but it's not mathematically correct, nor does it make any sense. When your money is gone, it's gone, even though no one paid you back.
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