[OPE-L:1875] RE: electronic money

glevy@acnet.pratt.edu (glevy@acnet.pratt.edu)
Mon, 22 Apr 1996 14:00:44 -0700

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Jerry (old)
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Why is electronic money "necessary" for the reproduction of highly
developed capitalism?

Chai-on [OPE-L:1864]
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Because it is silly enough to expend labor for the unproductive
consumption of gold as the means of circulation.

Jerry (new)
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There are many "silly" aspects of capitalism. To suggest that there are
advantages to electronic money does not establish necessity.

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Jerry (old)
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Why haven't nations sold off their gold reserves? Are the reserves
entirely redundant or are they still required (and, if so, for what reasons)?

Chai-on
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Because the electronic money can never replace the gold unless we can
have a single world-wide government.

Jerry (new)
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As a practical matter, you may be correct. Is there any theoretical
reason, though, for asserting that e-money can "never" (btw, a very long
time) replace gold?

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Jerry (old)
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If traditional forms of currency in circulation (coins and paper
currency) were eliminated, this would change the relationship between
the citizen and the state since it would mean that the state would
(rather easily) have records of all earned income. Effectively, this
would eliminate "unreported income" and the "underground economy." While
this might be seen as a worthwhile objective from the standpoint of the
state, one would imagine that there would be rather strong (in some
cases, quite literally) social forces opposed to this process.

Chai-on
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Money is in the spirit of a bourgeois freedom. If its spirit is
occupies by the state, the bourgeois class might have already
eliminated. No more bourgeoisie? Then, it is guaranteed no longer money.

Jerry (new)
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The "right" to own money is certainly an element of capitalist ideology
and reflects a formal abstract right embodied in bourgeois law. This right,
understood in a formal and abstract sense, does not alter the
distribution of income, ownership, or class relations.

I wasn't suggesting the elimination of the bourgeoisie in the question
above. I was suggesting, instead, that as a practical matter the conflict
between the interests of the state and a segment of the capitalist class
might prevent the process of electronic money becoming universal.

[Nobody wants to touch my underground economy hot potato].

Without capitalists, no more money? I don't know about that ....

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Chai-on
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A complete replacement of money with the electronic units
would imply the perfect exchange economy. No one can sell more than he
(or she) buys, although temporarily not impossible.

Jerry (new)
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Wouldn't savings, hoarding, and credit all be possible with an e-money
system?

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Jerry (old)
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What would happen in a crisis or hyperinflation if capitalists
and/or workers demanded payment in some more tangible material object
like gold or silver or some other state token of account, e.g. the dollar?

Chai-on
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All the electronic money becomes nothing. The bubble monetary unit
accumulation simply disappears.

Jerry (new)
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What does "bubble monetary unit accumulation" mean?

If e-money disappeared, how would that impact (in the short and medium
term) the accumulation process and the credit system?

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In OPE-L Solidarity,

Jerry