Re: [gang8] Re: two currencies and Korean war

["Henry C.K. Liu" <hliu@xxxxxxxxxxxxxx>]

SDR is not really fiat money without tax backing.  It is pegged to a basket
of four currencies, all fiat money themsleves, but all anchored by tax
authorities.

Henry C.K. Liu

"J. Barkley Rosser, Jr." wrote:

> SDR.
> Barkley Rosser
> ----- Original Message -----
> From: "William F Hummel" <wfhummel@xxxxxxxxxxxx>
> To: <pkt@xxxxxxxxxxxxxxxx>
> Sent: Thursday, January 03, 2002 2:09 PM
> Subject: Re: [gang8] Re: two currencies and Korean war
>
> > Alan Isaac wrote:
> >
> > >On Mon, 31 Dec 2001, Harry Veeder wrote:
> >
> > >> If the state theory of money is correct, then those people who are
> > >> not expected to pay *any* income tax will prefer not to work for
> > >> money because it will have no (tax) value.
> > >
> > >It may sound like Harry is proposing a simple fallacy of
> > >composition here, but in fact his statement pokes at
> > >the chartalist theories where they are weak.  The answer
> > >a chartalist can give is that as long as someone else
> > >expects to have to pay taxes they the non-taxpaying individual
> > >will expect there to be a demand for the currency and thus for
> > >the currency to have value.
> > >
> > >Will the chartalists ever stop and notice how often they must
> > >use the word `expect' in such discussions??
> > >
> > >Money will not be held unless it is expected to serve as a store of
> > >value.  There are many ways in which this expectation can be
> > >generated, and the chartalists are simply discussing one of them.
> > >
> > Then you should be able to give some examples of fiat money in a
> > modern economy that have retained value (not just local) without
> > taxes payable in that money to the issuer of it.
> >
> > William F Hummel
> >