Re: (OPE-L) recent references on 'problem' of money commodity?

From: Paul Cockshott (wpc@DCS.GLA.AC.UK)
Date: Mon Nov 15 2004 - 05:49:43 EST

Paul B

Dear Fred,

Just a couple of related questions to your idea that gold has been
de-monetised, since this seems to be your view.

Why is it that gold is retained as part of the reserves of all central
banks? Why is it that  eg the Swiss Franc is still backed 40% ( I
by gold, and it was 70% until very recently? Why do most central banks
periodically issue  gold coin , issued in various quantities, if only in
Paul C
The gold once in existence is not going to disappear. It will stay
in the vaults of the central banks until it is either

a) used industrially
b) transferred to private hoards

Both of these processes are underway but take time. The gradual run
down in the percentage of reserves held as gold show that these
processes are occurring.

Paul B
Finally if money need not be a commodity 'at heart', then what is the
way in
paper money is accepted a as valid expression of abstract, social
Who does the guessing?

Paul C

It occurs through the state appropriating a portion of social labour and
issuing state money to pay for it. The amount of state money issued for
this quantity of social labour defines the value of state money.

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