[OPE-L:1880] RE: electronic money

Paul Cockshott (wpc@clyder.gn.apc.org)
Mon, 22 Apr 1996 15:26:45 -0700

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You, of course, may imagine that the accumulated credit represents a =
real power of command over labour as long as the debtors are believed to
be capable of redemption. =20

However, if you keep on accumulating the credit over and beyond my =
redemption capability, how can you be easy believing that your credit =
represents a real power of command. =20

The debtors in question, those whose debts function as money,
are the banks. Whilst these do occasionally fail, this is an
individual phenomenon. Once convertibility into gold is suspended,
it is no longer possible for the entire banking system, state
bank included to fail, as there is nothing else for the credit
money to be redeemed as.

A consequence is that there is no stable relationship between
the monetary unit and value.