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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