Subject: [OPE-L:1846] Re: Re: Re: the money supply
From: clyder (wpc@dcs.gla.ac.uk)
Date: Mon Dec 06 1999 - 08:52:42 EST
>
> as the argumentation which Dr.Germer mentioned is very proper.
> >"gold has been driven to the vaults of the central banks of capitalist
> countries as a result of its character of general equivalent of value,
i.e,
> money. In Marx's theory the function of means of hoarding is one of the
> functions of money, and huge amounts of gold are still used in this
> function not only by the "central" central banks, but in still greater
> amounts by individual capitalists. Considering that hoarding means
"storing
> value", isn't it significant that central banks and capitalists continue
to
> store mainly gold instead of other objects of value as a final safeguard
of
> value?
>
The papers today report that the bank of England has just sold another
25 tons of gold on top of 75 tons sold earlier in the year. Gold now
comprises
less than 5% of the reserves of the Bank. The Bank argues that a balanced
portfolio of other currencies is as secure as gold for foreign exchange
purposes.
It sells gold and buys £20 worth of yen £40 worth of dollars and £40
worth
of euros for each £100 of gold sold.
The argument of the Bank seems sound to me.
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