[OPE-L:1891] RE: electronic money

Chai-on Lee (conlee@chonnam.chonnam.ac.kr)
Tue, 23 Apr 1996 00:40:40 -0700

[ show plain text ]

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.

If the banks are the only debtor, nobody would be debtors. We all are =
creditors. This means the banks can never be a creditor. If they can, =
we can then be a debtor. The banks produce nothing but mere money =
dealing services but they nevertheless are given credits by us? They =
pay interests from nothing. The interest was an illusionary payment. =
IMO, however, they are often mediating the creditor-debtor relationship. =