[OPE-L:1889] RE: electronic money

Chai-on Lee (conlee@chonnam.chonnam.ac.kr)
Tue, 23 Apr 1996 00:09:08 -0700

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Jerry (new)
There are many "silly" aspects of capitalism. To suggest that there are=20
advantages to electronic money does not establish necessity.=20

I agree. There is no necessity to use the e-money. We can use many =
other forms of money. =20

Jerry (new)
As a practical matter, you may be correct. Is there any theoretical =
reason, though, for asserting that e-money can "never" (btw, a very long =
time) replace gold?

E-money itself has no intrinsic value so it cannot replace the =
commodity-money completely. The reason is this: we are in a society of =
private ownership and private labor expenditure. If we are not in such =
a society, it can of course replace the commodity-money completely. =
Then, however, the money is no longer a money but is a mere token. =20

Jerry (new)
The "right" to own money is certainly an element of capitalist ideology =
and reflects a formal abstract right embodied in bourgeois law. This =
right, understood in a formal and abstract sense, does not alter the =
distribution of income, ownership, or class relations. I wasn't =
suggesting the elimination of the bourgeoisie in the question above. I =
was suggesting, instead, that as a practical matter the conflict between =
the interests of the state and a segment of the capitalist class might =
prevent the process of electronic money becoming universal.
[Nobody wants to touch my underground economy hot potato].
Without capitalists, no more money? I don't know about that ....

Yes, you are right. I prefer cash to a mere promise from the bank. =
Iran deposited her reserves at the Fed in US and so she could not use =
her own money when she desperately needed it because the US government =
declared the moratorium. We have to give up a certain amount of our =
freedom to secure my money, and have to curry favor with the bank (with =
the state because the state has a physical power to control the bank). =
Free market economy does not apply to this. If I want to be free from =
those nuisances, I would refuse to receive the e-money in the exchange =
for my commodities. =20

Jerry (new)
Wouldn't savings, hoarding, and credit all be possible with an e-money =

Imagine what happen to the US-Japan relationship. Japan has earned a =
lot of US e-money by exporting hard labored goods. =20
If the Japanese people want to use the E-money, then they have to import =
the US goods. Over import leads to more unempolyment for the Japanese. =
Unless they are more powerful militarily than US, they can never get =
back what they earned. They have to spend the money within US. Yes, =
maybe they can buy the government itself by manipulating the US voters =
with money. It has the physical power anyway. If we cannot have such a =
physical power, I would prefer the cash, the commodity money. =20
Jerry (new)
What does "bubble monetary unit accumulation" mean?
If e-money disappeared, how would that impact (in the short and medium =
term) the accumulation process and the credit system?=20

I meant that, in case of hyperinflation and warfare, the e-money becomes =
useless. Maybe it has been already declared a moratorium. A sort of =
fictitious capital. Even gold can still apply to this. But, gold has =
more widely secure. E-money is effective in a limited community, in a =
more limited time and places. =20

I prefer commodity-money to a mere promise such as this: "Thank you for =
your product. This is very important to me. But I will give you =
someday what you require from me in return for this." A mere slip =
printed out from a computer might be more secure than the mere =
gratitude. =20

In OPE-L Solidarity,