Hi Christian Christian: Hmm, not really. The difference is that money backed by gold is convertible on demand. Fiat money is not.
Karl: Concerning money as medium of exchange Marx in Capital has the following to say (and I quote): "The function of gold as coin becomes completely independent of the metallic value of that gold. Therefore things that are relatively without value, such as paper notes, can serve as coins in its place. This purely symbolic character is to a certain extent masked in metal tokens. In paper money it stands out plainly." Karl: Money by its very nature in the form of medium is does not have to be backed by gold. In the West it is not backed by gold as medium of exchange. Millions of paper dollars function as medium of exchange. They are not backed by gold. Yet they are money --money as medium of exchange. Christain: Not according to Marx. A stock share is a claim on future income, not on the firm's tangible assets. That's fictitious capital. Karl: You miss my point. My point is that Marx, in my view, may have been mistaken in his view of share capital, equities, as fictitious capital. I am not talking here of government stock.
