Re: (OPE-L) Re: Realisation an seigneurage

From: clyder@GN.APC.ORG
Date: Tue Apr 29 2003 - 16:56:20 EDT

Quoting gerald_a_levy <gerald_a_levy@MSN.COM>:

> Paul C wrote on Tuesday, April 29:
> > I want to consider the obverse situation - what validates
> > the money issued by the state bank and or the credit system.
> Exchange.
> The state bank can issue promissory notes, but  those notes
> must still pass the "test" of exchange to be socially validated
> as money.   If, for whatever reason,  those notes are not
> accepted as a medium of exchange and if those notes are not
> able to serve the other functions of money,  then they don't
> become, or continue to be, money and revert to what they were
> before being issued by the state bank, i.e. just pieces of paper.
> In solidarity, Jerry

This is not adequate Jerry.

The point I am making relates to the general phenomenon of
inflation, where state bank notes continue to function as money
but depreciate. I am not concerned with the rare situations in
which the currency becomes completely worthless - but the more
mundane phenomenon of monetary inflation.

A dollar is still accepted as a medium of exchange in the US
but it is worth significantly less than it was 30 years ago say.


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