Re: Backed money (reply to Mosler)

["ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú" <hliu@xxxxxxxxxxxxxx>]

I am in full agreement with you that government, by virtue of its power to create tax liabilities, can instill value in its currency, independent of its posession of any property.  The need for reseerves
is created only by the exchange rate regime.

In England, there was a time when His Majesty's Government owned very little of anything.  Land was owned by the Crown, which was not the same as the government which only controled the budget, a cash
flow regime with no asset implications.  This was true of all British colonial governments as well.

After WWII, the HK Colonial government gradually detached itself from the UK and the Crown financially and the HK government inherited all Crown lands and developed a powerful special interest in keeping
land prices high.  HK land speculators and even the consuming public could buy with solid assurance that government policy will protect the value of their real property investment, until 1997, when the
currency peg presented a policy dilemma for the government between the peg and land prices.

Henry C.K. Liu

Warren Mosler wrote:

> "ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú" wrote:
>
> > Warren Mosler wrote:
> >
> > > Let me again
> > > bring in Innes' What is Money, 1913, from http://www.warrenmosler.com
> > >
> > > "But a government produces nothing for sale, and owns little or no property; of what value, then, are these tallies to the creditors of the government?
> >
> > This is factually not correct.  The US governemnt owns 80% of the nation's land.  Similarly for Hong Kong, the SAR government owns all the land, and leases about 15% currently to the private sector.
>
> It was written in 1913 about whatever govt the UK had a hundred or so
> years before.  Point is a govt can give value to its currency quite easily
> by selling something real to get it, but even without having anything to
> sell, etc...
>
> And Adam Smith said the same thing over 100 years before that.
>
> w
>
> >
> >
> > Henry C.K. Liu

Warren Mosler wrote:

> "ÁÎ×Ó¹â HenryC.K.Liu ¹ù¤l¥ú" wrote:
>
> > Warren Mosler wrote:
> >
> > > Let me again
> > > bring in Innes' What is Money, 1913, from http://www.warrenmosler.com
> > >
> > > "But a government produces nothing for sale, and owns little or no property; of what value, then, are these tallies to the creditors of the government?
> >
> > This is factually not correct.  The US governemnt owns 80% of the nation's land.  Similarly for Hong Kong, the SAR government owns all the land, and leases about 15% currently to the private sector.
>
> It was written in 1913 about whatever govt the UK had a hundred or so
> years before.  Point is a govt can give value to its currency quite easily
> by selling something real to get it, but even without having anything to
> sell, etc...
>
> And Adam Smith said the same thing over 100 years before that.
>
> w
>
> >
> >
> > Henry C.K. Liu