(OPE-L) Re: recent references on 'problem' of money commodity?

From: Gerald_A_Levy@MSN.COM
Date: Wed Dec 01 2004 - 10:36:18 EST


>>>>
as for gold, send me some anytime.!!!!.. well I see your point, but I was allowing for some dramatic effect in the case of imperialist states... but it is certainly true for the Indian peasant... still   where personal wealth still requires the form of golden money rendered as tons of jewelry....there is also a flourishing 'second' hand gold market in the form of trinkets, coins with pawnbrokers etc in all middle/poor areas of the world... which might tell us something. <<<

Paul B,

What does it tell us?  *If one wants to understand whether
gold still serves as the money commodity, then why look
to the behavior of Indian peasants?* To look at traditional
societies where elements of pre-capitalist relations are
still to be found is misleading: e.g. the traditional use of gold 
for jewelry in such societies says *nothing* of significance 
about the issue at hand; the fact that there is a second-hand 
market and pawnbrokers *only* means that these peasants 
when starved for cash are forced into selling family property 
*and* that there are pawnbrokers who receive income by 'buying 
low and selling high'.  Indeed, the very essence of that relation is 
*unequal exchange* -- yet, if gold were *really* the "universal
equivalent" how would such an exchange be possible?


>>>>
I any case you are pointing to the admin arrangements which sustain fiduciary issue  and 'force its course'... so what you say is to be expected ( although  since contracts for houses are cleared  via solicitors (lawyers) here I'm sure they wouldn't worry.. the bank would accept the gold .. and that is the point, if  banks  get 'picky' let me know and I'll think about why!!!!!)) <<<

If I were to walk into my bank with a bag (or bars) of gold
and request that it be exchanged for Federal Reserve Notes,
I think they would be very 'picky' indeed and wouldn't agree
to conduct the transaction.  

In solidarity, Jerry


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