Re: Fw: [gang8] Cartalism

[Gunnar Tómasson <gunnar.tomasson@xxxxxxxxxxx>]

Re. the following:

If there is no way to distinguish one object from another, then they are
not different.  If you can't distinguish "weak money" from "strong money,"
then they are not different.

Comment:

In one sense (empirical economics) Yes - in another sense (analytical
economics) No.

It was with respect to the latter that Keynes advised Hicks in September
1936 (as per my Gang8/PKT message earlier today):

"I commence with the conviction that one has in some way to identify income
with the value of output."

For, it is by means of "strong money" that one 'identifies income with the
value of output'.

In this analytical context, "weak money" - Government-issued legal-tender
"HPM" - is a means of confiscating part of "income/output" for use by
Government.

Gunnar




----- Original Message -----
From: "James R. Olson, jr." <jhavok@xxxxxxxx>
To: "Gunnar Tómasson" <gunnar.tomasson@xxxxxxxxxxx>; <pkt@xxxxxxxxxxxxxxxx>
Cc: "Gang8" <gang8@xxxxxxxxxxxxxxx>
Sent: Wednesday, September 24, 2003 8:44 PM
Subject: Re: Fw: [gang8] Cartalism


At 08:48 AM 9/24/03 -0400, Gunnar Tómasson wrote:
>James:
>
>Another set of questions ought to yield equally illuminating answers:
>
>Here is a dollar.  Is it "weak money," or is it "High-Powered Money?"

If there is no way to distinguish one object from another, then they are
not different.  If you can't distinguish "weak money" from "strong money,"
then they are not different.

The SOURCES of the money supply can be distinguished from each other, and
the effects of manipulating them are different.  But if the person I buy my
sandwich or my stamping mill from cannot tell if the money I pay him with
is "weak" or "strong," then the only difference is rhetorical.
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