Hi Cordell:
I agree with you that anything that more than two people accept as money is
money.
It cannot be disputed that real money is based upon trust. Trust that it
will do, and continue to do what it does.
I believe our contention is that there is a considerable power allocation
(legislated from Gov to private ) to those who create the nations money
supply. Secondly, is that exercise of power discharged equitably or biased.
Thirdly, does its unregulated exercise bode ill for the nations people.
I did say I was not an economist but, a small part of my post originates in
a study book called "MONEY, BANKING AND FINANCE, The Canadian Context", By
Gordon F. Boreham with Ronald G. Bodkin, Published by Richard Kitowski
through Holt, Rinehart and Winston of Canada, (rev. 1992)
It was my reading of the chapter (6) on "The Supply of Money: Deposit
Creation and Distruction" especially that drew my attention when the
authors (of this University level textbook) said "we really don't know how
to account for the incraese and decrease on the money supply."
Regards
Ed G
At 02:12 PM 08/05/2001 -0400, you wrote:
>As an economist (Ph.D., many years ago) all I would like to add to this is
>what I used to teach in Economics 101. Money is what money does. Try
>giving your corner grocer zlotys, then try giving dollars. Dollars does
>something for you, zlotys does not.
>
>Arthur Cordell
>
>
>
>
>-----Original Message-----
>From: Ed Weick [mailto:[EMAIL PROTECTED]]
>Sent: May 8, 2001 11:14 AM
>To: Keith Hudson
>Cc: futurework; Magic Circ Op Rep Ens; EdGoertzen
>Subject: Re: Fiat Money and Bank Credit.
>
>
>
>Keith:
>
>> But, ever since central banks reneged on their obligation to repay paper
>> money with real value (such as gold) on demand, money has become
>> increasingly artificial and its perceived value depends upon arbitrary
>> decisions by politicians and/or central bankers -- and a credulous public
>> -- and on nothing else. Central banks were started in order to supply the
>> rapacious demands of governments wishing to fight wars, but nowadays are
>> little more than immense scams residing in marble portals which always
>> benefit the rich and the middle class at the expense of the poor. "To
>those
>> that hath shall be given."
>>
>
>This raises a very interesting question, that of what comprises "real
>value". Paper money has "value" because of political authority and social
>convention. Despite the long pretense of Fort Knox, gold has "value"
>largely by social convention. I recall when, a few decades ago, the price
>of gold was at aprx. Cdn$800 and still going up. It is now far lower than
>that, about $200(?). The value of diamonds and other precious stones is
>based largely on market manipulation. A well to do Canadian's view of "real
>value" would differ enormously from that of a Sub-Saharan refugee's.
>Another day of life would be very important to the latter; an SUV to the
>former. So, question, could there be a universal understanding of what
>comprises "real value"? Perhaps pure water, clean air, basic food and
>shelter, peace?
>
>I suppose we would all have to be stripped bare of everything we own to find
>out. The refugee probably has a better understanding than the rest of us.
>
>Ed W
>
>
