From: Paul Bullock (paulbullock@EBMS-LTD.CO.UK)
Date: Wed Apr 30 2003 - 14:19:22 EDT
Paul, this might sound a bit repetative, but if you go to the site www.rcgfrfi.easynet.co.uk you will find the article 'Inflation, The crisis and the Post war Boom' 1979 (2nd ed) which deals with this question, perhaps not fully to your own interest of the idea of direct state gains from inflation... but provides the basis for an understanding. It can be printed off regards Paul Bullock ----- Original Message ----- From: <clyder@GN.APC.ORG> To: <OPE-L@SUS.CSUCHICO.EDU> Sent: Tuesday, April 29, 2003 9:56 PM Subject: Re: (OPE-L) Re: Realisation an seigneurage > Quoting gerald_a_levy <gerald_a_levy@MSN.COM>: > > > Paul C wrote on Tuesday, April 29: > > > > > I want to consider the obverse situation - what validates > > > the money issued by the state bank and or the credit system. > > > > Exchange. > > > > The state bank can issue promissory notes, but those notes > > must still pass the "test" of exchange to be socially validated > > as money. If, for whatever reason, those notes are not > > accepted as a medium of exchange and if those notes are not > > able to serve the other functions of money, then they don't > > become, or continue to be, money and revert to what they were > > before being issued by the state bank, i.e. just pieces of paper. > > > > In solidarity, Jerry > > This is not adequate Jerry. > > The point I am making relates to the general phenomenon of > inflation, where state bank notes continue to function as money > but depreciate. I am not concerned with the rare situations in > which the currency becomes completely worthless - but the more > mundane phenomenon of monetary inflation. > > A dollar is still accepted as a medium of exchange in the US > but it is worth significantly less than it was 30 years ago say. > > > > > > >
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