Re: [OPE-L] Where does the money come from?

From: Francisco Paulo Cipolla (cipolla@UFPR.BR)
Date: Thu May 05 2005 - 16:57:41 EDT


Jerry,
My question goes the reverse way: not how credit can expand gold
production but how it dumpens gold production in as much as it substitute
for the circulation functions of gold.
Paulo

Gerald_A_Levy@MSN.COM wrote:

> > . 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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