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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