Re: [gang8] Dollar Hegemony Revisited

["Barkley Rosser" <rosserjb@xxxxxxx>]

    Exactly.  Like a fixed exchange rate it gets adjusted
from time to time, only rarely if it is a really functioning
gold standard.  Of course, if we had gone back on to
a gold standard around 1980 when there was a bubble
in gold and the price was up over $800 an ounce, then
the price would be higher than it is today.  But, if we had
never gone off it back in 1971 when I think it was around
$35 per ounce (that is not exact amount, maybe it was
$40 or even, wow, $55) and it had never been adjusted
upwards, it would be far lower than it is in today's free
market in gold (somewhere over $300, right?).
     To anyone who is somehow operating under illusions
here, gold is freely traded as a commodity.  The value of
the gold that remains in the reserves of central banks
(most importantly in the US, UK, France, and Russia)
varies as that free market price varies, although occasionally
the price is affected by one of these entities, in recent years
most notably Russia, selling off some of their long accumulated
gold reserves.  None of them are bothering to accumulate
any more.  What they have is simply what is left over from
the past.  Effectively gold is irrelevant to the current international
financial system.  Keynes's wish regarding the "barbrous
relic" has been effectively fulfilled.
Barkley Rosser
----- Original Message -----
From: "Warren Mosler" <mosler@xxxxxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Wednesday, July 09, 2003 11:53 AM
Subject: Re: [gang8] Dollar Hegemony Revisited


>
>  Only problem is when
> > you say that gold would be even higher if
> > we were still on a gold standard.  Not likely.
> > Barkley Rosser
> >
>
> On a gold standard gold remains unchanged, by
> definition?
>
>
>
> =====
> Warren Mosler, www.mosler.org
> c/o James River Capital Corp
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