From: Paul C (clyder@GN.APC.ORG)
Date: Mon Jun 07 2004 - 18:16:14 EDT
Rakesh Bhandari wrote: > > If governments could force the acceptance of a money merely by > collecting taxes in it, then why do governments even bother borrowing > money from abroad to finance their deficits? The problem is that some states are politically unable to impose adequate taxes on the propertied classes. They resort to borrowing as the easier option. > > And to return to Claus Germer's perspective: we do see even today > gold prices in particular rise in an inflationary period. Well that is to be expected, in an inflationary period all prices rise. > > > You also write: > >> The use of gold or silver is not essential to money tokens, as is >> shown by their abandonment in favour of the use of paper money >> printed using sophisticated techniques that make it difficult >> to copy. The use of bullion was a low-tech anti-forgery expedient. >> >> The use of gold was not at all essential to the pound functioning as >> money >> so long as some other technology made forgery hard. The development of >> high quality intaglio printing provided that, allowing hard to copy >> banknotes >> to be produced. If we consider all the forms of money existing in >> early 19th century Britain - why conceptually privilige gold coin. We >> know >> that gold convertiblity could be suspended without interrupting the >> operation >> of the capitalist economy. If however one removed all forms of bank >> money, >> then the economy would have collapsed. Which then was key ? > > Gold, or paper money? > > > Thanks for the history of anti forgery technique! It squares well > with your earlier emphasis on the importance of copying technologies. > Let me think about what you are saying here and find time to read > Costas' book as well as Ingraham's. > > http://66.102.7.104/search?q=cache:vNkpl28HGCgJ:www2.soas.ac.uk/Economics/workpap/adobe/wp130.pdf+marx+chartalism&hl=en&ie=UTF-8#> > MONEY AS 'UNIVERSAL EQUIVALENT' AND ITS ORIGIN IN > COMMODITY EXCHANGE > COSTAS LAPAVITSAS > DEPARTMENT OF ECONOMICS > SCHOOL OF ORIENTAL AND AFRICAN STUDIES > UNIVERSITY OF LONDON > CL5@SOAS.AC.UK > MAY 2003 > >
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