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

From: Fred Moseley (fmoseley@MTHOLYOKE.EDU)
Date: Fri Nov 19 2004 - 09:57:16 EST

On Mon, 15 Nov 2004, Paul Cockshott wrote:

> 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
> believe)
> by gold, and it was 70% until very recently? Why do most central banks
> still
> periodically issue  gold coin , issued in various quantities, if only in
> thousands?
> ------------------
> 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
> which
> paper money is accepted a as valid expression of abstract, social
> labour.
> 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.

Yes, this is similar to what I am saying.  And I would add: the quantity
of money also determines the inverse of the value of money, the MELT.

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