[OPE-L:2409] Re: commodity money in Marx's theory

Duncan K Foley (dkf2@columbia.edu)
Wed, 29 May 1996 10:54:02 -0700

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In reply to Costas:

I agree very much with what you have to say about the development of the
money form.

I'm a little troubled by characterizing state credit moneys as "valueless"
or "pure fiat moneys", because I don't think it's quite correct. The state
credit moneys are in fact backed by assets of the state, just as bank
deposits are backed by assets the bank holds. These assets include the
future taxing power of the state, and in the case of some states (like the
U.S.) very substantial land and natural resource assets.