From: Gerald_A_Levy@MSN.COM
Date: Thu May 05 2005 - 07:57:27 EDT
> . So the question remains: how the development of the credit system > regulates the pace of gold production? Hi again Paolo: Well, of course, credit can help to finance exploration for gold, mining costs, and new technologies for gold production, but that doesn't take note of the issue that Paul mentioned earlier in this thread: the role of (to paraphrase) good fortune and historical accident in gold production. On that point, it's worthwhile noting that historically much of the gold that was mined under capitalism was not mined by capitalist firms but by small producers. This was especially true, in the 19th Century, when new areas which were gold-rich were discovered. In solidarity, Jerry PS: Even today, in Latin America -- including Brazil? -- there is panhandling for gold by self-employed informal sector people. Of course, that's not where the bulk of gold is mined today but it does raise an interesting issue re rent: do the mining condition in the least productive area govern the exchange value of gold? Taken quite literally, that would suggest that those poor informal sector miners determine the price of gold on world markets. But, that -- of course -- is absurd.
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