Re: Putting Chartalism In Its Place?

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Re. the following:

> >So does PRECISION OF LANGUAGE put Chartalism in its place!
> >
> In a word, no!  PRECISION OF LANGUAGE got lost somewhere.
> To argue that a claim cannot be not a store of value is to argue that
> only a physical object can be a store of value.  That would imply the
> very expression "store of value" is meaningless.

Comment:

Indeed!

This is what Adam Smith had to say about it in Wealth of Nations:

"It would be too ridiculous to go about seriously to prove that wealth does
not consist in money, or in gold and silver; but in what money purchases and
is valuable only for purchasing."

In other words, Smith held to be self-evident that "wealth" does not
"consist in money" - whence it follows that "money" cannot be "store" of
"wealth".

At first glance, it may seem that Smith has it all wrong - that, surely,
"gold and silver" are "wealth".

True - but Smith is concerned with "money" QUA "money".

A foundational concept for coherent monetary economics.

Gunnar


----- Original Message -----
From: "William F Hummel" <wfhummel@xxxxxxxxxxx>
To: <pkt@xxxxxxxxxxxxxxxx>
Sent: Tuesday, September 16, 2003 11:39 AM
Subject: Re: Putting Chartalism In Its Place?


> Gunnar writes:
> >
> >The "store of value" view of money is a carryover from Commodity Money
days.
> >
> >In the modern context, money is NOT a "STORE of value" - it has NO
intrinsic
> >value.
> >
> >Instead, modern money serves as "CLAIM on value".
> >
> >The State levies taxes to obtain "claims on value" generated in the
> >non-State sector.
> >
> >So does PRECISION OF LANGUAGE put Chartalism in its place!
> >
> In a word, no!  PRECISION OF LANGUAGE got lost somewhere.
> To argue that a claim cannot be not a store of value is to argue that
> only a physical object can be a store of value.  That would imply the
> very expression "store of value" is meaningless.
>
> PRECISION OF LOGIC shows that the state does not seek a "claim on
> value" because it has unlimited spending power through its own credit
> emission, backed by its to power to tax.  It levies taxes simply to
> maintain the value of its credit previously issued in the form of fiat
> money.
>
> William
>
>
>