,*APT] #c ,! ,DE/RUCTION ( ,MONEY ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,MONEY AS A MEANS ( EX*ANGE & AS A HO>D ( WEAL? APPE>S 9 MANY =MS2 AS SU* IT IS AS OLD AS COMM]CE ITSELF & IS 5C\NT]$ 9 ! MO/ DIV]SE K9DS ( SOCIETIES4 ,UND] CAPITALISM1 9 ADDITION TO !SE G5]AL FUNCTIONS1 IT ALSO EX]CISES ! SPECIFIC FUNCTION ( EMBODY+ ! SOCIAL RELATIONS ( PRODUCTION4 ,9 CAPITALI/ COMMODITY PRODUCTION ! COMMODITY ( LABOR P[] IS EX*ANG$ = MONEY4 ,! PUR*AS] ( ?IS SPECIAL COMMODITY USES IT TO 5L>GE HIS CAPITAL1 MEASUR$ 9 MONEY T]MS4 ,! PRIM>Y AIM ( PRODUCTION IS1 ACCORD+LY1 NOT ! CREATION ( GOODS = USE2 RA!R1 IT IS ONLY A MEANS1 ALBEIT AN 9DISP5SABLE ONE1 = TRANS=M+ A GIV5 QUANTITY ( CAPITAL 9TO A L>G] QUANTITY4 ,PRODUCTION ( ?IS SORT IS POSSIBLE BECAUSE LABOR P[]1 AS A COMMODITY1 HAS ! ABILITY TO PRODUCE MORE ?AN CAPITALI/S MU/ PAY = IT2 ! BASIS ( PRODUCTION1 !N1 IS ! SOCIAL RELATION BETWE5 WAGE LABOR & CAPITAL4 ,9 ! CIRCULATION PROCESS CAPITAL ALT]NATELY ASSUMES COMMODITY =M & MONEY =M AS IT ACCUMULATES4 ,COMMODITIES & MEANS ( PRODUCTION MAY BE TRANS=M$ 9TO MONEY & VICE V]SA1 SO ?AT POSSESSION ( CAPITAL IS EXPRESS$ AS POSSESSION ( MONEY4 ,!RE=E MONEY MU/ ITSELF BE A COMMODITY & BE COMP>ABLE 9 VALUE ) O!R COMMODITIES4 ,9 COMMODITY EX*ANGE BAS$ ON CAPITALI/ PROP]TY RELATIONS1 ! DIVISION ( SOCIAL PRODUCTION 9TO PAID & UNPAID LABOR ASSUMES ! *>ACT] ( VALUE RELATIONS EXPRESS$ 9 MONEY T]MS4 ,AL?\< PR(IT D]IVES FROM UNPAID LABOR TIME EXP5D$ 9 PRODUCTION1 TO ! CAPITALI/ IT APPE>S AS A GA9 WON 9 ! M>KET2 9DE$1 ! PR(IT ACQUIR$ FROM PRODUCTION MU/ PASS ?R\< ! M>KET 9 ORD] TO BE REALIZ$4 ,A COMMODITY MU/ FIR/ BE TRANS=M$ 9TO MONEY 9 ORD] TO 5T] 9TO PRODUCTION OR CONSUMPTION AS AN ITEM ( USE4 ,IT IS MONEY ?AT GIVES PRODUCTION BAS$ ON PRIVATE PROP]TY :ATEV] SOCIAL *>ACT] IT HAS4 ,S9CE CAPITAL EXPANSION DET]M9ES ! C\RSE ( SOCIAL PRODUCTION1 IF ! LATT] IS TO PROCE$ SMOO?LY IT MU/ BE PR(ITABLE 5\< TO P]MIT ACCUMULATION4 ,IF ! RATE ( PR(IT IS 9SUFFICI5T1 ! ACCUMULATION RATE FALLS2 ON ! M>KET ! EFFECT ( ?IS IS A DEFICI5T EFFECTIVE DEM& & %ORTAGE ( MONEY4 ,AL?\< !SE PH5OM5A >E BUT SYMPTOMATIC ( DIFFICULTIES 9 ACTUAL PRODUCTION1 !Y >E REAL 5\< AT ! M>KET LEVEL1 & EV]Y ECONOMIC CRISIS WILL APPE> AS A M>KET & A MONEY PROBLEM AT ! SAME TIME4 ,S9CE ! RELATIONS ( PRODUCTION ADMIT ( NO ALT]ATION1 B\RGEOIS ECONOMICS CANNOT ?9K BEYOND PURE M>KET & MONEY RELATIONS4 ,B\RGEOIS MONET>Y !ORY1 H[EV]1 HAS UND]GONE SOME *ANGES 9 ! C\RSE ( CAPITALI/ DEVELOPM5T4 ,9 CLASSICAL POLITICAL ECONOMY & 9 ,M>X'S !ORY ( VALUE & SURPLUS VALUE1 ! VALUE ( MONEY1 LIKE ?AT ( ANY O!R COMMODITY1 WAS DET]M9$ BY ! AV]AGE AM\NT ( LABOR TIME SOCIALLY NECESS>Y TO PRODUCE IT4 ,! VALUE ( MONEY1 9 ! =M ( GOLD OR SILV]1 WAS DET]M9$ BY ! CO/ ( PRODUC+ IT1 & MONEY ITSELF S]V$ AS ! EQUIVAL5T = ALL O!R COMMODITIES4 ,AL?\< ?R\< M>KET COMPETITION COMMODITY VALUES TAKE ON ! =M ( PRODUCTION PRICES1 I4E41 CAPITALI/ CO/ PRICES PLUS ! AV]AGE SOCIAL PR(IT1 A COMMODITY'S VALUE 9 T]MS ( ! LABOR TIME REQUIR$ TO PRODUCE IT /ILL REMA9S1 S9CE ! AV]AGE RATE ( PR(IT IS DET]M9$ BY ! SIZE ( SURPLUS VALUE 9 RELATION TO ! TOTAL VALUE ( ALL COMMODITIES PRODUC$4 ,?US PRICE DOES NOT ABOLI% ! VALUE NATURE ( COMMODITIES OR ! EQUIVAL5T =M ( MONEY4 ,) ! EM]G5CE ( ! SUBJECTIVE !ORY ( VALUE1 :I* ULTIMATELY 5D$ 9 A HYPO/ATIZATION ( PRICES1 ! B\RGEOIS !ORY ( VALUE CUT ITSELF LOOSE FROM ALL ITS =M] TIES ) CLASSICAL MONET>Y !ORY4 ,CLE>LY ! !ORY ( M>G9AL UTILITY IS 9APPLICABLE TO ! EX*ANGE VALUE ( MONEY1 S9CE IT CANNOT BE DET]M9$ BY ! SUBJECTIVE NE$S ( CONSUM]S1 AS CAN ! EX*ANGE VALUE ( O!R COMMODITIES1 BUT IS 9 FACT JUXTAPOS$ TO !SE NE$S AS AN ALREADY GIV5 OBJECTIVE VALUE4 ,!RE HAVE BE5 ATTEMPTS1 MO/ NOTABLY BY ,LUDWIG VON ,MISES1.<#a.> TO GIVE ! OBJECTIVE EX*ANGE VALUE ( MONEY A SUBJECTIVE F\NDATION BY ASSUM+ ?AT :ATEV] ! OBJECTIVE EX*ANGE VALUE ( MONEY AT ! GIV5 MOM5T1 IT ALWAYS RE/$ ON PRIOR SUBJECTIVE EVALUATIONS1 :I* MAY BE V]IFI$ BY TRAC+ ! DEVELOPM5T ( MONEY HI/ORICALLY BACK TO MONEYLESS B>T]4 ,BUT ! D]IVATION ( MONEY FROM A MONEYLESS ECONOMY CONV9C$ FEW1 & ! ATTEMPT TO DEF9E ! VALUE ( MONEY SUBJECTIVELY WAS GIV5 UP4 ,IT WAS NOT LONG UNTIL ! 5TIRE !ORY ( M>G9AL UTILITY WAS AB&ON$1 S9CE IT OBVI\SLY RE/$ ON CIRCUL> REASON+4 ,AL?\< IT TRI$ TO EXPLA9 PRICES1 PRICES W]E NECESS>Y TO EXPLA9 M>G9AL UTILITY4 ,IT WAS !N DECID$ ?AT ECONOMIC ANALYSIS DID NOT NE$ A SPECIAL !ORY ( VALUE AFT] ALL & C\LD RE/RICT ITSELF :OLLY TO ! EMPIRICAL MAGNITUDES ( MONEY & PRICES4 ,IT W\LD SUFFICE1 SO IT WAS CLAIM$1 TO TRANS=M 0M>G9AL UTILITY10 ) ITS PSY*OLOGICAL UND]P9N+S1 9TO A LOGIC ( *OICES OR M>G9AL ANALYSIS TO R$UCE ALL M>KET RELATIONS TO AN ALL-EMBRAC+ COMMON D5OM9ATOR4 ,JU/ AS EV]Y 9DIVIDUAL PRESUMABLY ORD]$ HIS 9COME & EXP5DITURES RATIONALLY BY MEANS ( M>G9AL CALCULATIONS SO AS TO A*IEVE ! GREATE/ MEASURE ( SATISFACTION ( HIS NE$S1 SO ! UNIV]SAL APPLICATION ( ?IS 0ECONOMIC PR9CIPLE0 W\LD NOT ONLY 5SURE ! GREATE/ RETURNS FROM ! LEA/ 9VE/M5T1 IT W\LD ALSO LEAD TO A G5]AL ECONOMIC EQUILIBRIUM 9 :I* SOCIAL DEM& MAT*$ OV]ALL SUPPLY4 ,IF ONE AB/RACTS FROM ALL O!R SOCIAL RELATIONS & VIEWS HUMAN BE+S SOLELY AS BUY]S & SELL]S1 ONE MAY 9 FACT CON/RUCT A PRICE SY/EM 9 :I* AN EQUILIBRIUM BETWE5 SUPPLY & DEM& IS A*IEV$ BY VIRTUE ( ! RELATIONS EXI/+ AMONG PRICES4 ,H[EV]1 ?AT IS ALL ONE W\LD HAVE - A CON/RUCT HAV+ NO?+ TO DO ) REALITY1 & NO MORE ?AN A REHA%+1 BY ! DEVICE ( M>G9AL ANALYSIS1 ( ,SAY'S DISCR$IT$ PO/ULATE ?AT EV]Y SUPPLY PRODUCES ITS [N DEM&4 ,SAY'S !ORY REF]R$ TO A B>T] ECONOMY & NOT TO A CAPITALI/ MONEY ECONOMY2 FOLL[+ SUIT1 PURE PRICE !ORY ALSO RELEGAT$ MONEY TO A SUBORD9ATE & 9CID5TAL ROLE1 S9CE1 AS M]ELY ! EXPRESSION ( PRICE RELATIONS1 IT WAS ALREADY TAK5 9TO ACC\NT 9 ! ANALYSIS ( EQUILIBRIUM4 ,!RE W]E O!R MONEY & CR$IT !ORIES ?AT EXI/$ MORE OR LESS ON !IR [N ACC\NT1 DOM9AT$ BY ! QUANTITY !ORY ( MONEY1 ) ITS ASSUMPTION ?AT PRICE LEVELS W]E DEP5D5T ON ! QUANTITY ( MONEY 9 CIRCULATION & ITS VELOCITY1 ?AT IS1 ?AT !Y D]IV$ FROM ! APPLICATION ( SUPPLY-&-DEM& RELATIONS TO MONEY ITSELF4 ,BUT AS CAPITAL DEVELOP$1 ITS MONET>Y SY/EM UND]W5T CORRESPOND+ DEVELOPM5TS & TRANS=MATIONS4 ,9 ! M]CANTILE P]IOD PREC$+ LAISSEZ-FAIRE CAPITALISM1 BO? P]SONAL WEAL? & ! WEAL? ( NATIONS W]E MEASUR$ 9 MONEY1 & MONEY 9 TURN WAS REPRES5T$ BY ! PRECI\S METALS4 ,AL?\< ! CONCEPT ( CAPITAL PRESUMES MONEY1 IT EMBRACES ALL COMMODITIES JU/ AS WELL1 ) ANY COMMODITY HAV+ ! CAPACITY TO TAKE ! PLACE ( MONEY4 ,?IS BE+ SO1 ! QUE/ = RI*ES BECAME CONT+5T ON ! POSSESSION ( CAPITAL RA!R ?AN ( GOLD OR SILV]4 ,= MONEY TO FUNCTION AS CAPITAL1 IT MU/ HAVE CEAS$ TO BE MONEY1 I4E41 IT MU/ BE 9VE/$ 9 MEANS ( PRODUCTION & LABOR P[] FROM :I* PR(ITS 9 TURN ACCRUE TO :OMEV] CONTROLS PRODUCTION4 ,ACCUMULAT+ CAPITAL REPRES5TS MONEY VALUES 9 ! =M ( MORE MEANS ( PRODUCTION & ADDITIONAL LABOR P[]4 ,OV] ! LONG RUN ! 9/RUM5TS ( PRODUCTION TRANSF] !IR [N VALUE TO ! COMMODITIES MANUFACTUR$4 ,( C\RSE1 ! MASS ( COMMODITIES PLAC$ ON ! M>KET MU/ BE CONV]T$ 9TO MONEY2 BUT S9CE !Y EMBODY ONLY A PORTION ( EXI/+ CAPITAL1 ONLY A PORTION ( ! CAPITAL ACQUIRES MONEY =M4 ,9 G5]AL ! TOTAL SUM ( MONEY NE$$ IS DET]M9$ BY ! PRICES ( ! COMMODITIES 9 CIRCULATION & BY ! VELOCITY ( MONEY4 ,( C\RSE1 9 ORD] TO CIRCULATE1 COMMODITIES DO NOT !MSELVES REQUIRE MONEY BUT HUMAN ACTIVITY & MEANS ( TRANSPORTATION4 ,IT IS NOT COMMODITIES BUT ! PROP]TY CLAIMS ATTA*$ TO !M ?AT CAUSE MONEY TO CIRCULATE4 ,ANY NUMB] ( DIFF]5T =MS ( MONEY MAY EX]CISE ?IS FUNCTION4 ,COMMODITY MONEY1 I4E41 GOLD & SILV]1 SEEMS TO BE AN EXP5SIVE & UNNECESS>Y EXP5DITURE AS A M$IUM ( CIRCULATION4 ,IT SUBS]VES NEI!R PRODUCTION NOR CONSUMPTION BUT REPRES5TS ! CO/S ( ! CIRCULATION PROCESS4 ,TO PRODUCE GOLD & SILV] REQUIRES LABOR & CAPITAL ?AT IF PUT TO USE ELSE:]E W\LD BR+ 9 PR(ITS4 ,( C\RSE1 = ! PRODUC]S ( GOLD & SILV] !IR PRODUCTION IS AS PR(ITABLE AS ANY O!R2 BUT FROM ! /&PO9T ( SOCIETY AS A :OLE1 AS A MEANS ( CIRCULATION COMMODITY MONEY IS UNPRODUCTIVE4 ,= ?IS REASON CAPITAL HAS ALWAYS /RIV5 TO REPLACE COMMODITY MONEY ) SYMBOLIC MONEY4 ,TWO DIFF]5T SORTS ( MONEY CAME TO BE DI/+UI%$3 COMMODITY MONEY & SYMBOLIC MONEY4 ,BUT HI/ORICALLY ! V>I\S MONEY SURROGATES1 SU* AS BANK NOTES & CR$IT MONEY1 DID NO MORE ?AN MONEY & H5CE REMA9$ TI$ TO ITS VALUE4 ,ONCE GOLD-BACK$ CURR5CIES & ! 9T]NATIONAL GOLD /&>D BECAME UNIV]SAL1 V>I\S MEANS ( PAYM5T CAME 9TO USE4 ,! GOLD BACK+ ( PAP] CURR5CY WAS SUPPOS$ TO RE/RICT ITS ISSUE & H5CE PREV5T ITS DEPRECIATION4 ,! GOLD /&>D ALSO SET LIMITS ON ! PROLIF]ATION ( A NATION'S CURR5CY 9 ?AT A C\NTRY /OOD TO LOSE ITS GOLD RES]VES IF IT PR9T$ TOO MU* MONEY4 ,9 ! RES]VE SY/EM ! MONEY 9 CIRCULATION WAS A MULTIPLE ( ! AM\NT ?AT ACTUALLY HAD GOLD BACK+1 SO ?AT AT ANY GIV5 TIME ONLY A FRACTION ( IT C\LD BE CONV]T$ 9TO GOLD4 ,BUT AS LONG AS ! CONFID5CE PREVAIL$ ?AT ! CONV]SION WAS GU>ANTE$1 PAYM5T 9 FIAT MONEY WAS AS EFFECTIVE AS GOLD ITSELF4 ,GOLD IS NOT JU/ COMMODITY MONEY2 BECAUSE IT HAS 9DU/RIAL & O!R USES1 IT IS ALSO A COMMODITY 9 ! SIMPLE S5SE ( ! T]M4 ,ITS VALUE 7& H5CE ITS PRICE7 DEP5DS ON ! PRODUCTIVITY ( GOLD PRODUCTION & ALSO ON ! SUPPLY & DEM& RELATION%IPS ( GOLD4 ,= GOLD & ! CURR5CIES BAS$ ON IT TO REMA9 /ABLE1 IT WAS NECESS>Y TO CONTROL ! PRICE ( GOLD4 ,ORIG9ALLY ! MONEY VALUE ( GOLD & ITS VALUE AS A COMMODITY W]E ! SAME1 BUT AT TIMES ! COMMODITY VALUE EXCE$$ ! MONEY VALUE1 & MONEY GOLD WAS CONV]T$ BACK 9TO COMMODITY GOLD4 ,TO KEEP ! PRICE ( GOLD AT A GIV5 LEVEL1 ?AT PRICE HAD TO BE /ABLE NOT ONLY 9 MONEY T]MS BUT ALSO ON ! GOLD M>KET4 ,?IS MEANT ?AT :]EV] ! SUPPLY ( GOLD EXCE$$ ITS M>KET DEM&1 ! EXCESS HAD TO BE B\Y AU?ORITIES1 :E!R !Y HAD NE$ = IT OR NOT4 ,9 ?IS WAY ! COMMODITY VALUE ( GOLD WAS DET]M9$ BY ITS MONEY VALUE4 ,H[EV]1 ! FACT ?AT ! COMMODITY VALUE & MONEY VALUE ( GOLD C\LD BE MADE TO CO9CIDE ONLY ?R\< /ATE 9T]V5TIONS OR ON ! BASIS ( 9T]NATIONAL AGREEM5TS1 & FUR!R1 ! FACT ?AT GOLD AS COMMODITY MONEY WAS BE+ US$ LESS & LESS AS A M$IUM ( CIRCULATION1 GAVE RISE TO ! BELIEF ?AT CAPITALI/S C\LD 5GAGE 9 !IR BUS9ESS ACTIVITIES JU/ AS WELL )\T COMMODITY MONEY4 ,?IS VIEW HAD ALREADY BE5 ANTICIPAT$ 9 ,GEORG ,FRI$RI* ,KNAPP'S /ATE !ORY ( MONEY1.<#b.> ! BURD5 ( :I* WAS ?AT MONEY DID NOT NE$ TO HAVE A VALUE ( ITS [N1 & ?AT :ATEV] P[] IT HAD D]IV$ FROM ! VALUE PLAC$ ON IT BY /ATE FIAT4 ,H[EV]1 GOLD-BACK$ CURR5CY & ! GOLD /&>D W]E MA9TA9$ NOT M]ELY \T ( TRADITION BUT BECAUSE COMMODITY MONEY WAS HELD TO BE MORE /ABLE4 ,?US COMMODITY MONEY CIRCULAT$ BECAUSE IT HAD VALUE1 & PAP] MONEY HAD VALUE BECAUSE IT CIRCULAT$4 ,! NOTION ( AN AUTOMATIC SELF-REGULAT+ M>KET ME*ANISM :I* AT ?AT TIME PREVAIL$ NE$$ A SELF-REGULAT+ MONET>Y SY/EM TO GO ) IT1 & ! GOLD /&>D SEEM$ TO FILL ! BILL4 ,! VALUES ( ! V>I\S NATIONAL CURR5CIES W]E PEGG$ TO UNITS ( ACC\NT REPRES5T+ A SPECIFI$ GOLD CONT5T4 ,ALL CURR5CIES W]E TI$ TOGE!R BY !IR GOLD CONT5TS1 = S9CE ! PRICE ( GOLD WAS EXPRESS$ P] UNIT WEI$ BY GOLD %IPM5TS4 ,IT WAS PRESUM$1 OR RA!R HOP$1 ?AT !SE GOLD %IPM5TS W\LD AFFECT PRICES 9 ! V>I\S C\NTRIES 9 SU* A WAY ?AT 9T]NATIONAL TRADE RELATIONS W\LD T5D T[>D AN EQUILIBRIUM TO ! G5]AL B5EFIT ( ALL4 ,UND] ! GOLD /&>D GOLD FL[$ FROM C\NTRIES ) A NEGATIVE BALANCE ( PAYM5TS TO C\NTRIES ) A POSITIVE BALANCE4 ,IT WAS ASSUM$ ?AT A GOLD DRA9 FROM ONE C\NTRY W\LD LEAD TO DEFLATION & L[] PRICES !RE1 :ILE ! RESULTANT 9FLATION 9 C\NTRIES ACQUIR+ GOLD W\LD CAUSE PRICES TO RISE4 ,SOON] OR LAT]1 !RE=E1 ! BALANCE ( TRADE ( C\NTRIES ) L[ PRICES W\LD IMPROVE1 & ?AT ( C\NTRIES ) HI< PRICES W\LD BECOME WORSE1 UNTIL AN EQUILIBRIUM 9 ! PAYM5TS BALANCE W\LD ONCE AGA9 BE RE/OR$4 ,?IS IS NOT ! WAY ?+S WORK$ \T1 H[EV]4 ,:E!R ! GOLD /&>D WAS MA9TA9$ OR NOT1 CAPITAL ACCUMULATION DEP5D$ ON CAPITAL PR(ITABILITY1 NOT ON MONEY & CR$IT4 ,:]E EXPANSION ( MONEY & CR$IT BOO/S ACCUMULATION AS A RESULT ( 9FL[+ GOLD1 & H5CE RAISES LABOR PRODUCTIVITY1 PRICES DO NOT RISE COMP>$ ) ?OSE 9 C\NTRIES LOS+ GOLD & EXP]I5C+ ACCUMULATION PROBLEMS1 ) A CONSEQU5T DECL9E 9 LABOR PRODUCTIVITY4 ,! GOLD /&>D WAS NO MORE AN 9/RUM5T ( EQUILIBRIUM & /ABILITY ?AN ! M>KET ME*ANISM1 NOR WAS IT ANY MORE ABLE TO *ECK ! CONC5TRATION & C5TRALIZATION ( CAPITAL ?AN WAS ! DOME/IC PRICE SY/EM ( ANY C\NTRY4 ,! GOLD /&>D 7LIKE MONEY7 WAS NOT A PHYSICALLY NECESS>Y M$IUM = 9T]NATIONAL COMMODITY CIRCULATION1 BUT RA!R IT EXPRESS$ ! PROP]TY CLAIMS ATTA*$ TO COMMODITIES & CAPITAL4 ,IT SEEM$ ESPECIALLY IMPORTANT = PURPOSES ( CAPITAL EXPORT 7= LOANS & 9VE/M5TS7 TO PROTECT ! 9T]E/ & PR(ITS FL[+ BACK 9TO A C\NTRY FROM DEPRECIATION & LOSSES4 ,! CAPITAL M>KET WAS CONC5TRAT$ 9 ,WE/]N ,EUROPE1 MA9LY ,5GL&1 & ACCORD+LY !SE C\NTRIES W]E CAPITAL-EXPORT+ C\NTRIES :I* SAW TO IT ?AT ! GOLD /&>D RETA9$ G5]AL ACCEPTANCE4 ,IT GAVE ! DIFF]5T EX*ANGE RATES A MEASURE ( /ABILITY & CONTROLL$ NATIONAL MONET>Y & CR$IT POLICIES4 ,9T]NATIONAL RIVALRY ?US EXT5D$ OV] MONEY AS WELL4 ,WORLD ,W> ,I SPELL$ ! 5D ( ! GOLD /&>D4 ,LAT] ATTEMPTS TO RE/ORE IT FAIL$ [+ TO NEW ECONOMIC CRISES4 ,) ! GOLD /&>D ABOLI%$1 ! CREATION ( MONEY BECAME ! AFFAIR ( EA* P>TICUL> C\NTRY4 ,?OSE C\NTRIES EM]G+ DEFEAT$ FROM ! W> AVAIL$ !MSELVES ( 9FLATION TO CANCEL /ATE DEBTS1 TO DIV]T A GREAT] SUM ( SURPLUS VALUE 9TO ! H&S ( CAPITAL1 TO /EP UP EXPLOITATION ( ! WORK]S1 & TO GIVE ! CAPITALI/ ECONOMY A NEW BOO/4 ,H[EV]1 ! DIFFICULTIES ?AT >OSE 9 ! PROCESS ELUD$ CONTROL1 & 9FLATION L$ TO A TOTAL DEPRECIATION ( MONEY1 S\ND+ ! IMM95T DEMISE ( ! CAPITALI/ SY/EM4 ,IT WAS NECESS>Y TO RE/ORE ! BUY+ P[] ( MONEY ?R\< ! ISSUANCE ( NEW MONEY ) NO BACK+4 ,! ,G]MAN ,R5T5M>K1 = EXAMPLE1 HAD NO O!R BACK+ ?AN ! OPTIMI/IC FAI? ( ! POPULATION 9 GOV]NM5T PROMISES TO KEEP IT /ABLE4 ,?IS WAS TAK5 AS PAT5T PRO( ?AT ! BUY+ P[] ( MONEY C\LD BE MA9TA9$ EV5 )\T RES]VES BY GOV]NM5T DECREE ALONE4 ,9 ,RUSSIA ! ,BOL%EVIKS AT FIR/ WELCOM$ ! 9FLATION BR\ & ACCEL]AT$ BY ! REVOLUTION4 ,= !M IT BETOK5$ ! DECAY ( ! CAPITALI/ SY/EM4 ,AL?\< ! ISSUANCE ( PAP] MONEY :ILE ! EX*ANGE RATE WAS DECL9+ AM\NT$ TO A K9D ( P]PETUAL TAXATION1 ?IS NECESSITY WAS TRANS=M$ 9TO ! VIRTUE ( A MONET>Y SY/EM ?AT PURPORT$LY CONTA9$ ! SE$S ( ITS [N ABOLITION4 ,MONEY1 WROTE ,BUKH>91 0REPRES5TS ! MAT]IAL SOCIAL WEFT1 ! FABRIC ?AT HOLDS TOGE!R ! :OLE DEVELOP$ COMMODITY SY/EM ( PRODUCTION4 ,IT IS OBVI\S ?AT 9 A TRANSITIONAL P]IOD1 AS ! COMMODITY SY/EM ITSELF IS DECAY+1 MONEY TOO %\LD LEAD A CONTRADICTORY EXI/5CE1 9 ?AT1 FIR/1 IT UND]GOES DEPRECIATION1 & SECOND1 ! DI/RIBUTION ( NOTES BECOMES DISSOCIAT$ FROM & 9DEP5D5T ( ! DI/RIBUTION ( PRODUCTS1 & VICE V]SA4 ,MONEY CEASES TO BE A UNIV]SAL EQUIVAL5T & BECOMES A CONV5TIONAL & HI ,GIV5 ! VISIONS ( A MONEYLESS SOCIALI/ ECONOMY CURR5T AMONG ! ,BOL%EVIKS AT ?IS TIME1 ! DEPRECIATION ( MONEY SEEM$ TO NEATLY FIT !IR PLANS = RECON/RUCTION ON ! BASIS ( A NATURAL ECONOMY4 ,BUT NEI!R 9FLATION NOR B>T] PROV$ TO BE VIABLE SOLUTIONS TO ! GR[+ ECONOMIC DIFFICULTIES1 & !Y W]E SOON DISC>D$ TO MAKE WAY = A NEW MONET>Y SY/EM4 ,A S]IES ( CURR5CY RE=MS & ! FIR/ /EPS T[>D A PLANN$ ECONOMY RE/OR$ MONET>Y /ABILITY1 AL?\< NOT ! RELATIVE 9DEP5D5CE MONEY HAD 5JOY$ =M]LY4 ,AS A UNIT ( PAYM5TS MONEY WAS TRANS=M$ 9TO AN 9/RUM5T ( ACC\NT+ & CONTROL 9 AN ECONOMY KEY$ TO USE VALUES & MAT]IAL BALANCES4 ,AS A MEASURE ( VALUE & A MEANS ( PAYM5T1 IT S]V$ ! PURPOSES ( CIRCULATION ONLY 9S(> AS IT /E]$ COMMODITY FL[S 9TO *ANNELS SPECIFI$ BY ! PLAN4 ,ITS FUNCTION AS A M$IUM ( CIRCULATION WAS 9 G5]AL RE/RICT$ TO CONSUM] 9COME & \TLAYS2 ! F9ANCIAL ASPECTS ( ECONOMIC RELATIONS AMONG 5T]PRISES W]E DEALT ) VIA ! ACC\NT+ PROC$URES ( ! /ATE BANK4 ,! SOCIAL REGULATION ( PRODUCTION & DI/RIBUTION WAS NO LONG] AN UNCONSCI\S PROCESS EFFECT$ ?R\< M>KET RELATION%IPS OR CONCRETELY ?R\< ! CIRCULATION ( MONEY2 PRODUCTION & DI/RIBUTION W]E H5CE=? CONTROLL$ CONSCI\SLY ?R\< ! M$IUM ( MONEY1 JU/ AS WAGE LABOR WAS US$ TO MA9TA9 C5TRALIZ$ CONTROL OV] ! ECONOMY4 ,?R\< ! CONTROL ( PRICES & WAGES1 MONEY TOO IS CONTROLL$1 9ASMU* AS MONEY ONLY EXPRESSES 9 FIGURES :AT HAS ALREADY BE5 /IPULAT$ 9 MAT]IAL T]MS4 ,MONEY WAS H5CE=? D5UD$ ( ITS VEIL2 NO LONG] ! AB/RACT REIFI$ =M ( SOCIAL RELATIONS1 IT HAD BECOME A MEANS = SOCIAL CONTROL 9 ! 9T]E/S ( ! NEW MODIFI$ =M ( CAPITAL PRODUCTION RELATIONS4 ,H[EV]1 ?IS NEW FUNCTION ( MONEY WAS RE/RICT$ TO ! DOME/IC ECONOMY4 ,9T]NATIONALLY GOLD CONT9U$ TO BE REQUIR$ TO SQU>E PAYM5TS BALANCES4 ,ACCORD+ TO ,L59 ! USE ( GOLD AS BUILD+ MAT]IAL = PUBLIC CONV5I5CES WAS POSSIBLE & APPROPRIATE ONLY AFT] A WORLD SOCIALI/ REVOLUTION4 ,UNTIL SU* TIME AS ?AT CAME AB\T1 IT WAS NECESS>Y 0TO H[L ALONG ) ! WOLVES0 & CONT9UE TO PRODUCE & ACCUMULATE GOLD4 ,BUT MONEY GA9$ A DUAL FUNCTION 9 CAPITALI/ C\NTRIES AS WELL3 AN 9T]NATIONAL & A DOME/IC FUNCTION2 GOLD IS CONSID]$ NECESS>Y ONLY AS A UNIV]SAL MEANS ( PAYM5T TO SQU>E \T/&+ PAYM5TS BALANCES4 ,! VIEW HAS LONG BE5 CURR5T ?AT A GOLD-BACK$ CURR5CY WAS NOT NECESS>Y = A NATION'S DOME/IC ECONOMY4 ,BUT BECAUSE ( TRADITIONAL ?9K+1 & \T ( FE> ( CURR5CY DEPRECIATION1 COMMODITY MONEY WAS /ILL RETA9$4 ,BECAUSE ! GOLD /&>D SET PRIOR LIMITS TO ! CREATION ( MONEY1 !SE LIMITS C\LD JU/ AS WELL BE DEF9$ BY MONET>Y POLICY4 ,9 ANY EV5T COMMODITY MONEY LO/ ITS =M] IMPORTANCE ) ! DEVELOPM5T ( BANKS & ! CR$IT SY/EM1 UNTIL 9 ! 5D IT CAME TO BE REG>D$ M]ELY AS AN ACC\NT+ UNIT = BALANC+ \T DEBITS & CR$ITS4 ,EV]Y PUR*ASE & SALE1 IT WAS N[ >GU$1 CREAT$ A DEBT ?AT C\LD JU/ AS WELL BE PAID ?R\< ! BANKS )\T ! 9T]V5TION ( MONEY4 ,?US CA%LESS PAYM5T TRANSACTIONS CAME 9CREAS+LY TO BE US$ 9/EAD ( ! /ATE-ISSU$ CURR5CY1 )\T1 H[EV]1 REPLAC+ ! LATT] 5TIRELY4 ,! CONCEPT ( MONEY IS 5TAIL$ 9 ?AT ( A COMMODITY2 H5CE GOLD CURR5CY WAS A HI/ORICAL AL?\< NOT NECESS>Y PH5OM5ON ( COMMODITY CIRCULATION4 ,S9CE ALL COMMODITIES >E POT5TIAL MONEY & MONEY CAN COMM& ANY COMMODITY1 ANY T PAYM5T M$IUM CAN S]VE AS A M$IUM ( EX*ANGE 9 A NATION'S DOME/IC ECONOMY4 ,= ! MASS ( WORK+ PEOPLE1 MONEY IS PURELY A M$IUM ( EX*ANGE 5ABL+ !M TO EX*ANGE ! COMMODITY LABOR P[] = ! COMMODITIES !IR WAGES 5ABLE !M TO AF=D4 ,= CAPITAL1 ON ! O!R H&1 MONEY IS A M$IUM ( EX*ANGE AS WELL AS A M$IUM ( ACCUMULATION4 ,A GIV5 QUANTITY ( MONEY MU/ BE 5L>G$ = COMMODITY EX*ANGE TO BECOME CAPITALI/ COMMODITY EX*ANGE4 ,BUS9ESS IS NOT TRANSACT$ TO SQU>E DEBITS & CR$ITS BUT TO OBTA9 PR(ITS4 ,! MOD]N CR$IT SY/EM WAS AN 9/RUM5T ( RAPID CAPITAL DEVELOPM5T1 & CAPITAL ACCUMULATION 9 TURN S]V$ AS A P[]FUL /IMULUS TO ! EXPANSION ( ! CR$IT SY/EM4 ,! MONET>Y SY/EM GREW MORE & MORE COMPLICAT$1 AL?\< ! SOCIAL RELATIONS ON :I* IT WAS BAS$ RETA9$ !IR UNV>NI%$ EXPLOITATIVE *>ACT] ( CAPITAL V]SUS LABOR4 ,TODAY IT IS ! BANK+ SY/EM :I* IS *>G$ ) IMPLEM5T+ GOV]NM5T MONEY POLICY4 ,BANK L5D+ DEP5DS ON ! /ATE'S CREATION ( MONEY1 :I* ! /ATE DOES BY PR9T+ NOTES & ISSU+ TREASURY BONDS2 IT IS ALSO DEP5D5T ON GOV]NM5T-REGULAT$ RES]VE REGULATIONS = DEPOSITS1 :I*1 H[EV]1 MAY V>Y4 ,?\< CR$IT MAY BE ONLY P>TIALLY COV]$ BY BANK RES]VES1 IT IS 9 G5]AL SECUR$ BY ! CAPITAL ASSETS ( ! BORR[$ ,IF !RE IS NO CAPITAL EQUIVAL5T1 !RE IS ALSO NO CR$IT4 ,?US IT IS ! CAPITAL AT H&1 NOT MONEY1 :I* IS ! RELEVANT FACTOR4 ,! AIM ( CAPITAL ACCUMULATION IS TO TRANS=M A GIV5 MASS ( VALUE 9TO A L>G] ONE2 ACCORD+LY1 GIV5 A CON/ANT VELOCITY1 ! MONEY SUPPLY1 9 ALL ITS V>I\S =MS1 ALSO 9CREASES4 ,SO LONG AS CAPITAL ACCUMULATION 5C\NT]S NO OB/ACLES1 ACCUMULATION ( VALUE & ACCUMULATION ( MONEY TAKE PLACE SIDE BY SIDE ) NO NOTABLE FRICTION4 ,BUT !RE IS ALWAYS A DANG] ( A MONET>Y CRISIS UNFOLD+1 S9CE ! SOCIAL *>ACT] ( PRODUCTION HAS ONLY ONE VEHICLE ( EXPRESSION1 & ?AT IS ! MONEY RELATIONS ( COMMODITY PRODUCTION1 :I* ORIG9ATE 9 BUT EXI/ & FUNCTION 9DEP5D5TLY ( COMMODITY PRODUCTION4 ,BUT ASIDE FROM ?IS EV]-PRES5T POSSIBILITY ( A MONET>Y CRISIS1 A G5]AL CRISIS OCCURS ONLY IF ! ACCUMULATION PROCESS IS /OPP$ OR SL[$2 BUT !N ! CRISIS IS ALWAYS ALSO A MONEY CRISIS4 ,EV5 9TO ! TW5TIE? C5TURY B\RGEOIS ECONOMICS HAS NEV] BE5 ABLE TO EXPLA9 CRISES2 ACCORD+ TO IT ! M>KET ME*ANISM %\LD BE SUFFICI5T 9 ITSELF TO ALLAY ANY DI/URBANCES ( EQUILIBRIUM4 ,BUT ! DURATION & SCOPE ( ! CRISIS BETWE5 ! TWO WORLD W>S DISPELL$ ?IS ILLUSION & NECESSITAT$ F>-REA*+ ECONOMIC 9T]V5TIONS BY ! /ATE4 ,! MEANS US$ W]E MONET>Y & FISCAL2 & AL?\< !Y DID 9FLU5CE ! M>KET1 !Y DID NOT CALL ITS EXI/5CE 9 QUE/ION4 ,9 ! EYES ( B\RGEOIS BUS9ESSM5 & ECONOMI/S1 ! CRISIS WAS A REFLECTION ( 9SUFFICI5T DEM&1 & !Y *OSE !IR MEANS TO COMBAT IT ACCORD+LY4 ,9SUFFICI5T PRIVATE DEM& HAD TO BE SUPPLEM5T$ BY PUBLIC EXP5DITURES TO ALLEVIATE UNEMPLOYM5T & ACTIVATE IDLE PLANT4 ,AT ! SAME TIME1 ! PR(ITABILITY ( PRIVATE CAPITAL HAD TO BE IMPROV$ SO ?AT ! EXI/+ CRISIS & ! /ATE 9T]V5TIONS IT NECESSITAT$ DID NOT BECOME P]PETUAL4 ,S9CE ! CRISIS WAS SE5 AS A MOM5T>Y DI/URBANCE1 ! MEASURES TAK5 TO COMBAT IT W]E SE5 AS SOME?+ TEMPOR>Y AS WELL1 IMPOS$ BY =CE ( CIRCUM/ANCES4 ,DEFICI5T DEM& CAUS$ BY A R$UCTION 9 NEW CAPITAL 9VE/M5TS RESULTS 9 A L[] BUY+ P[] AMONG ! POPULATION OR A %ORTAGE ( MONEY 9 G5]AL4 ,! LATT] PROBLEM CAN BE ANSW]$ BY 9FLATION>Y MEANS1 :I*1 H[EV]1 CANNOT ALT] ! ACCUMULATION DIFFICULTIES ?AT LAY AT ! ROOTS ( ! CRISIS4 ,= CAPITAL 9FLATION HAS A RATIONALE ONLY 9S(> AS IT CONTRIBUTES TO EXPANSION ( PR(ITS ON BO? DOME/IC & =EIGN M>KETS2 IT LOSES ?IS RATIONALE AS ! RATE ( 9FLATION 9CREASES4 ,9FLATION MU/ !RE=E BE CONTROLL$1 & ?IS IS DONE MO/ EFFECTIVELY BY DEFICIT F9ANC+ ?R\< /ATE LOANS4 ,H[EV]1 S9CE IT APPE>$ ?AT A GR[+ /ATE DEBT BR\OSE1 ! GI/ ( :I* IS ?AT AN ECONOMY ) FULL EMPLOYM5T C\LD BE REGULAT$ BY /ATE MEASURES4 ,?IS IDEA1 :I* ORIG9AT$ ) ,JOHN ,MAYN>D ,KEYNES1.<#d.> BECAME 9 V>I\S V]SIONS A UNIV]SAL AXIOM4 ,?R\< A COMB9ATION ( FISCAL & MONET>Y MEASURES1 GOV]NM5TS1 IT WAS CLAIM$1 %\LD BE ABLE NOT ONLY TO 5SURE FULL EMPLOYM5T BUT ALSO TO PREV5T 9FLATION & DEFLATION4 ,DOME/ICALLY ! GR[? ( ! /ATE DEBT HAD NO SIGNIFICANCE1 S9CE ITS ASSUMPTION & PAYM5T AM\NT$ ONLY TO 9COME TRANSF]S ?AT W\LD NOT DETRACT FROM TOTAL SOCIAL CONSUMPTION4 ,?IS WAS BUT A V>IATION 9 ! ALT]$ FUNCTION ( MONEY SU* AS WE SEE 9 A PLANN$ ECONOMY4 ,MONEY WAS H5CE=? TO FUNCTION AS AN 9/RUM5T ( /ATE ECONOMIC POLICY )9 ! M>KET SY/EM4 ,ONLY :5 ! M>KET FAIL$ 9 ITS FUNCTION AS AN EQUILIBRIUM ME*ANISM %\LD A NATION'S PRODUCTION BE /IMULAT$ OR CUT BACK BY 9JECTION OR )DRAWAL ( /ATE-RAIS$ FUNDS4 ,! AUTOMATIC PRICE SY/EM W\LD CONT9UE TO BE DET]M9$ BY CONSUM] ACTIVITY1 BUT IT W\LD 9CLUDE 9 ADDITION /ATE-REGULAT$ & EXP&$ PUBLIC CONSUMPTION4 ,S9CE1 H[EV]1 9CREAS+ PUBLIC CONSUMPTION CUTS 9TO ! AM\NT ( SURPLUS VALUE AVAILABLE = CONV]SION 9TO CAPITAL1 A READ9ESS TO ADOPT ?IS K9D ( ECONOMIC POLICY REQUIR$ BO? ! WILL & ABILITY TO DISREG>D ! ACCUMULATION NE$S ( PRIVATE CAPITAL AS1 H[EV]1 ?IS W\LD 9 ! C\RSE ( TIME CALL ! CAPITALI/ SY/EM ITSELF 9TO QUE/ION1 SU* AN ECONOMIC POLICY CAN ONLY BE A TEMPOR>Y ONE1 APPLI$ \T ( NECESSITY & SP>+LY4 ,BUT A /ATE MONET>Y POLICY AIM$ AT 9FLU5C+ ! ECONOMY SIGNIFIES AT LEA/ A P>TIAL ELIM9ATION ( COMMODITY & MONEY FETI%ISM1 & 9 ?IS S5SE IT REFLECTS ! G5]AL PROCESS ( DECL9E ( A M>KET ECONOMY4 ,IT 9DICATES AN ACCEPTANCE 9 A S5SE ( ,KNAPP'S /ATE !ORY ( MONEY & ITS ADAPTATION TO ! MIX$ ECONOMIC SY/EM ( PRES5T V9TAGE4 ,BUT AS LONG AS ! /ATE-CONTROLL$ PR(ITLESS SECTOR ( ! ECONOMY GR[S MORE RAPIDLY ?AN ! PRIVATE SECTOR1 ! ACCUMULATION RATE ( ! LATT] MU/ FALL1 & SU* A POLICY ( CONSCI\S1 PURPOSEFUL 9T]V5TION 9TO AUTOMATIC M>KET PROCESSES WILL NOT BR+ ORD] 9TO ! SY/EM2 ITS OCCURR5CE IS RA!R A SIGN ( DECAY REG>DLESS ( ANY TEMPOR>Y ECONOMIC RELIEF IT MAY BR+4 ,ULTIMATELY ANY /ATE MONET>Y POLICY MEETS ITS LIMITS 9 ! CONTRADICTIONS AT WORK 9 ! SPH]E ( PRIVATE PRODUCTION4 ,IF IT WAS POSSIBLE TO BR+ A NATION'S DOME/IC ECONOMY \T ( DEPRESSION BY 9FLATION>Y MEANS1 IT WAS A REASONABLE EXPECTATION ?AT IF SU* MEANS W]E US$ SIMULTANE\SLY 9 ALL C\NTRIES NO LONG] B\ND TO ! GOLD /&>D1 ! WORLD ECONOMY AS A :OLE W\LD BE GIV5 A BOO/4 ,NATIONAL MONET>Y POLICIES APPLI$ 9DEP5D5TLY W\LD 9 ! PROCESS EXP& WORLD TRADE BY EXP&+ DOME/IC PRODUCTION1 & 9T]NATIONAL COMM]CE C\LD1 AT LEA/ 9 PR9CIPLE1 BE REGULAT$ JU/ AS WELL ?R\< 9T]NATIONAL AGREEM5TS )\T ! 9T]M$IACY ( GOLD4 ,?IS IDEA WAS BAS$ ON ! BELIEF1 /ILL UN%AK51 ?AT UND] FULL EMPLOYM5T ! EQUILIBRIUM T5D5CIES ( ! M>KET W\LD AGA9 BEG9 TO OP]ATE AT BO? NATIONAL & 9T]NATIONAL LEVELS4 ,BE=E ?IS C\LD HAPP51 H[EV]1 A BITT]1 NO-HOLDS-B>R$ 9T]NATIONAL COMPETITION BEGAN 9 :I* EV]Y C\NTRY PURSU$ ITS [N ADVANTAGE AT ! EXP5SE ( EV]Y O!R1 & :I* F9ALLY L$ TO ,WORLD ,W> ,I,I4 ,! 9T]NATIONAL MONET>Y SY/EM1 :I* HAD ALREADY BEGUN DIS9TEGRAT+ 9 ! PREC$+ CRISIS1 HAD BY ?IS TIME TOTALLY COLLAPS$ & AT W>'S 5D HAD TO BE REBUILT FROM SCRAT*4 ,:ILE ! W> WAS /ILL 9 PROGRESS1 ! VICTOR NATIONS MET 9 ,BRETTON ,WOODS TO WORK \T ! MONET>Y F\NDATIONS = ! RECON/RUCTION ( WORLD TRADE4 ,! ,C5TRAL ,WORLD ,BANK & ! ,9T]NATIONAL ,MONET>Y ,FUND W]E CREAT$ 9 ! LIN$ FROM ! PREVI\S MONET>Y CRISES1 ) ! AIM ( PROVID+ CR$ITS TO PREV5T BALANCE-(-PAYM5TS DIFFICULTIES FROM JEOP>DIZ+ WORLD TRADE4 ,IMPLICIT 9 !SE MEASURES WAS ! OLD HOPE ?AT ! 9EQUALITIES 9 9T]NATIONAL ECONOMIC RELATIONS W\LD 9 ! 5D BALANCE !MSELVES \T ON !IR [N1 EV5 ?\< ?AT MIS BROKE ! HEGEMONIC POSITION ( ,EUROPEAN CAPITAL 9 FAVOR ( ,AM]ICAN CAPITAL4 ,CR$ITOR NATIONS BECAME DEBTOR NATIONS1 & VICE V]SA4 ,GOLD %IFT$ 5 MASSE TO ,AM]ICA1 & TRADE RELATIONS W]E RESUM$ ONLY ON ! BASIS ( LONG-T]M CR$ITS4 ,! PO/W> *AOS ( EX*ANGE RATES WAS REPLAC$ BY A SY/EM ( FIX$ EX*ANGE RATES 9 P>ITY ) ! GOLD-BACK$ DOLL>1 & ! DOLL> WAS APPO9T$ TO ! /ATUS ( AN 9T]NATIONAL MONEY & A RES]VE CURR5CY4 ,BECAUSE ! DOLL> C\LD BE EX*ANG$ = A GOLD EQUIVAL5T1 ITS FUNCTION AS A RES]VE CURR5CY GAVE IT ! SAME /ATUS AS GOLD4 ,!RE WAS1 H[EV]1 ALWAYS ! DANG] ?AT ! PRICE ( GOLD W\LD RISE1 :I* W\LD CAUSE ALL CURR5CIES TO DEPRECIATE4 ,BUT AS LONG AS ! PO/W> BOOM CONT9U$1 ! LIKELIHOOD ( ?IS WAS NEGLIGIBLE1 & ! NEW MONET>Y SY/EM SEEM$ TO MEET ! NE$S ( ! WORLD ECONOMY AS WELL4 ,APPE>ANCES W]E DECEPTIVE4 ,:ILE ! VA/ CAPITAL DE/RUCTION ?AT HAD TAK5 PLACE 9 ,EUROPE & ,ASIA MADE RECON/RUCTION A NECESSITY1 ) A LONG P]IOD ( ECONOMIC BOOM 5SU+1 CAPITALI/ ACCUMULATION 9 ,AM]ICA CONT9U$ TO DRAG ITS FEET2 ANY?+ EV5 APPROXIMAT+ FULL EMPLOYM5T C\LD BE A*IEV$ ONLY ON ! CONDITION ( GOV]NM5T-9DUC$ SUPPLEM5T>Y PRODUCTION 9 TO =M ( MILIT>Y EXP5DITURES4 ,! RESULT WAS A CREEP+ 9FLATION ACCEL]AT$ BY IMP]IALI/ 9T]V5TIONS 9 ALL P>TS ( ! WORLD4 ,! MODE/ ACCUMULATION RATE ( ,AM]ICAN CAPITAL WAS A SIGN ?AT ! RATE ( PR(IT WAS L[2 ?IS1 H[EV]1 WAS COMP5SAT$ = BY ! EXPORTATION ( CAPITAL TO C\NTRIES :]E PR(ITABILITY WAS HI<]4 ,AM]ICAN CAPITAL EXPORT1 PREEM95TLY TO ,WE/]N ,EUROPEAN C\NTRIES1 ADD$ MORE /EAM TO ! ECONOMIC UP SW+ ALREADY 9 PROGRESS & H5CE = SOME TIME 5C\NT]$ NO OPPOSITION4 ,! MONET>Y POLICIES ( ,AM]ICAN GOV]NM5TS FAVOR$ ! EXPORT ( CAPITAL & AT ! SAME TIME FURNI%$ ! F9ANCIAL MEANS = IMP]IALI/ P[] POLITICS4 ,:ILE ,AM]ICAN CAPITALI/S B\S W]E BE+ ACCUMULAT$ 9 !SE C\NTRIES AS RES]VES4 ,! RESULT WAS A /EADY FL[ ( GOLD BACK TO ,EUROPE1 :I* MEANT PRACTICALLY ?AT ! DOLL> LO/ SOME ( ITS GOLD GU>ANTEE4 ,AS O!R C\NTRIES BECAME MORE COMPETITIVE1 ! ,U4,S4 POSITIVE BALANCE ( TRADE1 :I* HAD P]SI/$ = A LONG TIME1 VANI%$1 & ! NEGATIVE BALANCE ?AT 5SU$ C\LD BE REM$I$ NEI!R BY TRADE1 ! RETURN FL[ BACK 9TO ! C\NTRY ( PR(ITS ON EXPORT$ CAPITAL1 NOR BY ! EXPORT ( ,EUROPEAN CAPITAL TO ! ,UNIT$ ,/ATES4 ,ULTIMATELY1 IF ! ,U4,S4 PAYM5TS DEFICIT P]SI/$1 A BREAKD[N ( CAPITAL TRADE RELATIONS WAS 9EVITABLE4 ,MONET>Y CRISIS AGA9 BECAME ! CAT*WORD1 & ! NE$ = A NEW MONET>Y SY/EM WAS VOIC$4 ,BUT !SE PROPOSALS W]E ONLY REACTIONS TO ! EXI/+ DIFFICULTIES1 NOT !IR SOLUTION4 ,:5 ! ECONOMY HAD FAIL$ UND] ! GOLD /&>D1 ITS ABOLITION WAS SURE1 IT WAS !N SAID1 TO BR+ AB\T AN IMPROVEM5T4 ,:5 FLOAT+ EX*ANGE RATES ONLY DEEP5$ ! *AOS 9 WORLD TRADE1 FIX$ EX*ANGE RATES W]E ADOPT$ AGA94 ,:]EAS ONCE !RE WAS NO QUE/ION BUT ?AT ! WORLD CURR5CY BE TI$ TO GOLD1 N[ ?IS NE$ WAS DISPUT$ & FREE EX*ANGE RATES W]E CONSID]$ ! CORRECT POLICY4 ,MONET>Y POLICY HAS ?US 9V>IABLY BE5 BUT A REFLEX REACTION TO ECONOMIC DEVELOPM5TS ?AT HAD GONE \T ( CONTROL4 ,IT WAS CONSCI\S /E]+ ( ECONOMIC POLICY BY MONET>Y MEANS ONLY 9 ! IMAG9ATION ( MONET>Y !ORI/S4 ,IF AT ! NATIONAL LEVEL CAPITALI/ CONTROL OV] ! ECONOMY PROV$ TO BE AN ILLUSION1 IT TURN$ \T TO BE EV5 LESS POSSIBLE TO BR+ 9T]NATIONAL COMM]CE UND] CONTROL BY MEANS ( MONET>Y >RANGEM5TS4 ,JU/ AS /ATE-9DUC$ FULL EMPLOYM5T ONLY CONCEALS1 BUT DOES NOT RELIEVE1 ! CRISIS UND]M9+ ! SY/EM1 SO AS ! CAPITALI/ SY/EM DECAYS1 IT DRAGS ! MONET>Y SY/EM ALONG ) IT4 ,& IF FULL EMPLOYM5T CAN ONLY BE A*IEV$ ?R\< 9FLATION :5 ACCUMULATION IS 9ADEQUATE1 SO 9FLATION LEADS ?R\< ! G5]AL 9T]DEP5D5CE ( ! WORLD ECONOMY TO ITS DIS9TEGRATION BY =C+ EA* 9DIVIDUAL NATION TO TRY TO UNLOAD ITS PROBLEMS ONTO O!RS4 ,B\RGEOIS !ORY TRIES TO EXPLA9 9FLATION ) ! WAYW>D ASSUMPTION ?AT DEM& EXCE$S SUPPLY4 ,BUT ! NUMB] ( UNEMPLOY$ CONT9UES TO RISE1 MORE & MORE PLANT IS %UT D[N1 & /ILL 9FLATION GOES ON2 ITS CAUSE1 !RE=E1 CANNOT LIE SIMPLY 9 EXCESSIVE BUY+ P[]4 ,! CAUSE LIES ELSE:]E3 9 ! DRIVE1 NAMELY1 TO SECURE CAPITAL'S CONT9U$ PR(ITABILITY DESPITE GR[+ PUBLIC SP5D+ & ! DECL9E ( 9/RUM5TS4 ,! QUE/ = MORE PR(ITS IS ALSO A FACTOR DET]M9+ CAPITAL EXPORTS1 :I* >E SUBSIDIZ$ BY AN 9FLATION>Y MONET>Y POLICY4 ,CAPITAL MU/ EXP&1 & ?IS MEANS ALSO GEOGRAPHICALLY1 ) NATIONAL RIVALRIES & IMP]IALI/ COMPETITION ! RESULT4 ,P[] POLITICS IS BACK$ UP BY 9FLATION>Y MONET>Y POLICIES1 :I* >E P]HAPS ! BE/ WAY TO JU/IFY GR[+ PUBLIC EXP5DITURES1 S9CE !Y CONTA9 ! PROMISE ( POT5TIAL FUTURE PR(ITS4 ,ONCE AN 9FLATION>Y C\RSE HAS BE5 SET & IT IS CLAIM$ TO BE ! KEY TO A SPECI\S SOCIAL /ABILITY1 IT BECOMES 9CREAS+LY DIFFICULT TO AB&ON ?IS C\RSE & RETURN TO TRADITIONAL CRISIS ME*ANISMS4 ,ALL W>N+S TO ! CONTR>Y1 9FLATION>Y MONET>Y POLICIES W]E ADOPT$ NOT \T ( CONVICTION BUT 9 DEF]5CE TO NECESSITY4 ,/>T$ 9 ! ,UNIT$ ,/ATES1 !Y BECAME A G5]AL PH5OM5ON4 ,S9CE A NEGATIVE BALANCE ( PAYM5TS 9 ONE C\NTRY MEANS A POSITIVE BALANCE 9 ANO!R1 ! MONEY RES]VES ( ! LATT] 9CREASE1 & ! MONEY SUPPLY & CR$ITS EXP& ALONG ) !M4 ,HAD ! EXPORT ( CAPITAL TO ! ,UNIT$ ,/ATES OR ,U4,S4 EXPORT ( ITS PRODUCTS 9CREAS$ COMM5SURATELY1 PAYM5TS BALANCES OV]ALL C\LD HAVE BE5 SQU>$4 ,BUT TOTAL ,AM]ICAN SP5D+ CONSI/5TLY EXCE$$ ,AM]ICAN REV5UE FROM 9T]NATIONAL ECONOMIC TRADE4 ,ONE WAY TO MEET ?IS PROBLEM MIKETS AT ! CO/ ( ! WORK+ POPULATION2 BUT !SE MEASURES W\LD HAVE FUR!R UND]M9$ ! ALREADY UN/ABLE ,AM]ICAN ECONOMY1 :I* WAS EV5 !N DEP5D5T ON 9FLATION4 ,!SE DISCREPANCIES 9 CAPITALI/ ECONOMIC RELATIONS >E TELL+ SIGNS ?AT PR(ITABILITY ( CAPITAL IS NOT SUFFICI5T TO 5ABLE ALL WORLD CAPITALI/ C\NTRIES TO A*IEVE AT ! SAME TIME AN ACCUMULATION RATE P]MITT+ FULL EMPLOYM5T4 ,EA* C\NTRY'S %>E 9 TOTAL ACCUMULATION IS NOT CON/ANT & WILL FLUCTUATE OV] TIME4 ,CAPITAL FL[S 9TO C\NTRIES ) ! HID TO ! ECONOMIC CONTRADICTIONS IT CREATES1 ALL ?AT IS LEFT IS ! HOPE ?AT ! TR5D WILL SOON] OR LAT] %IFT C\RSE4 ,IF ?IS HOPE IS DECEIV$1 ATTEMPTS >E 9ITIAT$ TO USE POLITICAL MEANS TO BREAK ! P]SI/5T ONE-SID$NESS ( ECONOMIC DEVELOPM5T2 BUT IF ACCUMULATION IS 9SUFFICI5T1 ! ONLY WAY ?IS CAN BE DONE IS TO USE POLITICAL =CE TO EFFECT A R$I/RIBUTION ( WORLD PR(IT4 ,NO NATION CAN AF=D 9 ! LONG RUN TO REMA9 9DIFF]5T TO ! PAYM5TS DEFICIT ( ! WORLD'S GREATE/ CAPITALI/ P[]1 ! ULTIMATE CONSEQU5CE ( :I* W\LD BE ! COLLAPSE ( WORLD TRADE4 ,ALL C\NTRIES >E AS COMMITT$1 IF NOT MORE SO1 AS ! ,UNIT$ ,/ATES TO ! EXPANSION ( WORLD TRADE & >E !RE=E PREP>$ TO PUT ASIDE ALL !IR RES]VATIONS & MAKE CONCESSIONS ?AT WILL HELP RESCUE ! ,UNIT$ ,/ATES FROM ITS PAYM5TS DEFICIT4 ,?IS READ9ESS IS :AT 5ABL$ ! ,UNIT$ ,/ATES TO CA%I] ! ,BRETTON ,WOODS MONET>Y SY/EM & ABOLI% DOLL> CONV]TIBILITY4 ,SO :AT HAD LONG BE5 A NATIONAL REALITY WAS N[ A*IEV$ ON ! 9T]NATIONAL LEVEL AS WELL2 COMMODITY MONEY CEAS$ TO EXI/4 ,RES]VE CURR5CIES HAD BE5 ONLY P>TIALLY CONV]TIBLE BY ! PROC$URE ( GOLD EX*ANGE BAS$ ON ! GOLD /&>D2 BUT TO ! EXT5T !Y W]E CONV]TIBLE 7& ?AT EXT5T1 MOREOV]1 WAS CONT9U\SLY DIM9I%+71 IT WAS SUFFICI5T TO PREV5T A G5]AL FLIANTE$ CR$ITS1 I4E41 ! SPECIAL DRAW+ RIY ,FUND1 & BY HOLD+ ! MONEY PRICE ( GOLD SEP>ATE FROM ITS PRICE AS A COMMODITY4 ,EV5 AFT] DOLL> CONV]TIBILITY WAS ABOLI%$1 ! /ATE ( AFFAIRS ?AT !N >OSE WAS CONSID]$ A TEMPOR>Y ONE1 UNTIL SU* TIME AS A NEW CURR5CY SY/EM C\LD BE DEVIS$ 9 :I* GOLD W\LD CONT9UE TO PLAY SOME ROLE1 IF ONLY A LIMIT$ ONE4 ,! ABOLITION ( DOLL> CONV]TIBILITY & ! 5SU+ NE$ = A NEW MONET>Y SY/EM SEEM$ TO SUB/ANTIATE A T5D5CY T[>D A CAPITALI/ RE-ORGANIZATION ( ! WORLD ECONOMY1 AL?\< ) ! WRONG MEANS ( MONET>Y POLICIES1 DESIGN$ TO BR+ M>KET CONDITIONS 9 CON=MITY ) ! NE$S ( A MORE REGULAT$ WORLD ECONOMY4 ,9 BO? SOCIALI/ & B\RGEOIS LIT]ATURE1 ! 9T]NATIONALIZATION ( CAPITAL CONC5TRATION HAD ALWAYS BE5 L9K$ ) ! ABOLITION ( MONEY 9 ITS CAPITALI/ =M4 ,= 9/ANCE1 ACCORD+ TO ,HILF]D+1 0UND] F9ANCE CAPITAL1 CAPITAL LOSES ITS SPECIAL CAPITAL *>ACT]10 S9CE ! ULTIMATE \TCOME W\LD BE ! CREATION ( AN 9T]NATIONAL 0G5]AL C>TEL40 ,CAPITALI/ PRODUCTION WILL !N BE REGULAT$ BY A C5TRAL PLAN :I* DET]M9ES ! :OLE ( PRODUCTION 9 ALL ITS P>TICUL> SPH]ES4 ,PRICE DET]M9ATION WILL !N BE PURELY NOM9AL1 IMPLY+ ! DI/RIBUTION ( ! SOCIAL PRODUCT BETWE5 ! C>TEL-MAGNATES ON ! ONE H&1 & BETWE5 ! WORK+ POPULATION ON ! O!R H&4 ,PRICE IS !N NO LONG] A RESULT ( MAT]IAL RELATIONS BETWE5 M51 BUT A M]E ACC\NT+ DEVISE = ! DI/RIBUTION ( GOODS BY P]SONS TO P]SONS4 ,MONEY NO LONG] PLAYS A ROLE4 ,IT CAN N[ DISAPPE> COMPLETELY1 = ! DI/RIBUTION CONC]NS ITSELF ) PRODUCTS & NOT ) VALUES4 ,) ! DISAPPE>ANCE ( ! AN>*IC *>ACT] ( SOCIAL PRODUCTION DISAPPE>S ! VALUE *>ACT] ( COMMODITIES & !RE) ALSO MONEY4.<#e.> ,LUDWIG VON ,MISES WAS LESS CAPTIVAT$ BY1 YET /ILL WAS APPREH5SIVE AB\T ?IS DEVELOPM5T1 = HE TOO BELIEV$ ?AT A WORLD C>TEL WAS A POSSIBILITY1 ) ! DE/RUCTION ( MONEY AS ITS CONSEQU5CE1 S9CE 0A S+LE WORLD CURR5CY BANK OR ! WORLD C>TEL W\LD BE ABLE TO EXP& CURR5CY CIRCULATION )\T LIMIT40 ,HE SAW H]E PROBLEMS :I* 0P]HAPS PO9T BEYOND ! 9DIVIDUALI/IC ORGANIZATION ( PRODUCTION & DI/RIBUTION TO NEW =MS ( COLLECTIVE ORGANIZATION ( ! ECONOMY ( ! SOCIETY AS A :OLE40.<#f.> ,AT ! NATIONAL LEVEL IT HAS BECOME APP>5T ?AT ! M>KET CANNOT BE /ABILIZ$ ?R\< ! 9DIRECT MEANS ( MONET>Y & FISCAL POLICY1 & ?AT ONLY DIRECT MEASURES ( ADM9I/RATIVE PRICE & 9COME REGULATIONS C\LD PUT AN 5D TO 9FLATION4 ,!RE EXI/S !N A T5D5CY TO ADOPT ! CONCEPT ( MONEY LIKE ! ONE ?AT PREVAILS 9 ! PLANN$ ECONOMIES = ! M>KET ECONOMIES AS WELL4 ,AL?\< ACTUALLY 9COMPATIBLE ) ! LATT]1 S9CE AN EFFECTIVE PRICE & 9COME POLICY PRESUPPOSES C5TRALIZ$ CONTROL ( ALL PRODUCTION & DI/RIBUTION1 /ILL ?IS WAY ( ?9K+ 9DICATES ! UNDESIR$ TRANS=MATION ( CAPITALISM FROM AN 9DIVIDUALI/IC 9TO A COLLECTIVE SY/EM SU* AS TEMPOR>ILY EXI/$ AT TIMES ( W> UND] ! NAME ( 0W> SOCIALISM40 ,AS CAPITALISM IS DIS9TEGRAT+ FROM )91 SO TOO MONEY IS BECOM+ OTIOSE1 AL?\< ! SY/EM CONT9UES TO BE BAS$ ON IT4 ,ACCORD+ TO ,M>X ! ACCUMULATION & CONC5TRATION ( CAPITAL1 & ITS TRANS=MATION FROM PRIVATE 9TO %>E-CAPITAL W\LD LEAD TO A PROGRESSIVE SOCIALIZATION ( CAPITAL4 ,?IS IS ! ABOLITION ( ! CAPITALI/ MODE ( PRODUCTION )9 CAPITALI/ PRODUCTION ITSELF1 A SELF-DE/RUCTIVE CONTRADICTION1 :I* REPRES5TS ON ITS FACE A M]E PHASE ( TRANSITION TO A NEW =M ( PRODUCTION4 ,IT MANIFE/S ITS CONTRADICTORY NATURE BY ITS EFFECTS4 ,IT E/ABLI%ES A MONOPOLY 9 C]TA9 SPH]ES & !REBY *ALL5GES ! 9T]F]5CE ( ! /ATE4 ,IT REPRODUCES A NEW >I/OCRACY ( F9ANCE A NEW SORT ( P>ASITE 9 ! %APE ( PROMOT]S1 SPECULATORS1 & M]ELY NOM9AL DIRECTORS3 A :OLE SY/EM ( SW9DL+ & *EAT+ BY MEANS ( CORPORATION JUGGL+1 /OCK JOBB+1 & /OCK SPECULATION4 ,IT IS PRIVATE PRODUCTION )\T ! CONTROL ( PRIVATE PROP]TY4.<#g.> ,9 SU* A SITUATION CAPITALI/ SOCIETY HAS ONLY ITS [N DEMISE AHEAD ( IT4 ,! /ATE IS =C$ TO 9T]V5E 9 ! M>KET ME*ANISM 9 WAYS ?AT CAN ONLY P>ALYZE IT2 9 A WORD1 IT IS CON/RA9$ TO APPLY POLITICAL MEASURES DIVORC+ ! RELATIONS ( PRODUCTION FROM ITS M>KET RELATIONS 9 ORD] TO MA9TA9 AT LEA/ ! =M]4 ,ON ! O!R H&1 AS ! M>KET ME*ANISM DIS9TEGRATES1 IT REQUIRES ON ITS [N ACC\NT GOV]NM5T 9T]V5TIONS TO PROLONG ITS [N EXI/5CE1 I4E41 9DIVIDUAL CAPITAL 5TITIES & CORPORATIONS NE$ ! AU?ORITY ( ! /ATE TO 5SURE !IR PR(ITABILITY4 ,ECONOMIC & POLITICAL MEASURES !RE=E CO9CIDE2 CAPITAL BECOMES ! GOV]NM5T1 & ! GOV]NM5T SPELLS CAPITAL4 ,/ATE AU?ORITY1 :I* HAD ALWAYS BE5 DEP5D5T ON & AT ! S]VICE ( CAPITAL1 IS N[ FULLY ID5TIFI$ ) CAPITAL1 & ITS FIR/ FUNCTION IS TO MA9TA9 ! EXPLOITATIVE RELATIONS ?AT M>KET RELATIONS CAN NO LONG] GU>ANTEE4 ,UND] ! HEGEMONY ( MONOPOLY CAPITAL1 ! AV]AGE RATE ( PR(IT1 :I* IS M$IAT$ BY COMPETITION1 IS NO LONG] ABLE TO REGULATE ! M>KET ME*ANISM4 ,PRIC+1 :I* IS DONE 9 A RELATIVELY >BITR>Y FA%ION1 RESULTS 9 ! TRANSF] ( PR(ITS FROM COMPET+ 5T]PRISES TO ! MONOPOLIES4 ,AL?\< ?IS PROMOTES CAPITAL CONC5TRATION & C5TRALIZATION1 BY ITSELF IT EFFECTS NO *ANGE 9 ! TOTAL MASS ( PR(ITS1 UNLESS 9 ! PROCESS ! PRODUCTIVITY ( LABOR ALSO 9CREASES COMM5SURATELY ) ! NE$S ( ACCUMULATION4 ,IF ?IS DOES NOT OCCUR1 MONOPOLIZATION H9D]S ! EM]G5CE ( M>KET RELATIONS ADVANTAGE\S TO A PROGRESSIVE ACCUMULATION & GIVES RISE TO DEEP5+ CONTRADICTIONS ON ! MONEY & COMMODITY M>KETS4 ,GR[+ MONOPOLIZATION IS ! EXPRESSION ( BO? ! RISE ( CAPITAL & ITS FALL1 JU/ AS ACCUMULATION H]ALDS ITS BEG9N+ & ITS 5D4 ,S9CE MONOPOLIZATION IS A PRODUCT ( COMPETITION1 IT CANNOT BE >RE/$4 ,MONOPOLI/IC PRIC+ DI/RIBUTES SOCIAL PR(ITS 9 ACCORDANCE ) ! CLAIMS ( MONOPOLIES4 ,?US MONOPOLI/IC PRIC+ IS ALREADY ! PACESETT] ( GOV]NM5T DI/RIBUTION POLICY1 & IT IS ONLY A QUE/ION ( :I* IS MORE APPROPRIATE3 :E!R ! /ATE WILL *OOSE ! 9DIRECT WAY ( MONET>Y POLICY OR ! DIRECT WAY ( PRICE & WAGE POLICY4 ,H[EV]1 C5TRALIZ$ CONTROL OV] ! 5TIRE ECONOMY1 SU* AS EXI/S 9 ! PLANN$ ECONOMIES1 CANNOT BE A*IEV$ )\T ! TOTAL ABOLITION ( PRIVATE CAPITAL PROP]TY RELATIONS4 ,BUT ?AT MEANS A SOCIAL REVOLUTION ?AT W\LD SWEEP AWAY /ATE MONOPOLY CAPITALISM4 ,HILF]D+'S 0G5]AL C>TEL0 IS !RE=E AN ILLUSION ON BO? ! NATIONAL & 9T]NATIONAL SCALE4 ,/ATE-CAPITALISM DE/ROYS ! ECONOMIC BASIS = CLASS RULE = BO? COMPETITIVE & MONOPOLY CAPITAL1 BUT IT GIVES RISE TO A NEW CLASS ?AT RULES BY POLITICAL MEANS ALONE TO ASSUME ! REQUIR$ CONTROL OV] PRODUCTION & DI/RIBUTION4 ,PRES5T MONET>Y POLICY REFLECTS ! D\BLE-FAC$ NATURE ( ! MIX$ ECONOMY1 ITS PROGRESSIVE NATIONALIZATION ( PRODUCTION )9 EXI/+ PROP]TY RELATIONS1 & ! RESULT+ %>P5+ CONFLICT BETWE5 ! REAL NE$S ( SOCIETY & ! ACCUMULATION NE$S ( CAPITAL4 ,ON ! ONE H&1 MONEY IS SUPPOS$ TO FUNCTION AS AN 9/RUM5T ( DELIB]ATE & CONSCI\S ECONOMIC MANAGEM5T1 BUT ON ! O!R IT MU/ P]=CE REFLECT EXI/+ RELATIONS ( PRODUCTION & ! RESULTANT DI/RIBUTION ( ! SOCIAL PRODUCT4 ,IT IS EXPECT$ TO S]VE TWO MA/]S1 SO TO SPEAK1 & 9 DO+ SO S]VES BO? 9ADEQUATELY1 AS IS PLA9 FROM ! 9CREAS+LY UNPRODUCTIVE USE ( LABOR & CAPITAL & ! RESULTANT DE/RUCTION ( MONEY AS ! 9C>NATION ( CAPITAL PRODUCTION AS VALUE RELATIONS4 ,DOME/ICALLY A NATION'S MONEY IS VALU$ 9 T]MS ( ITS BUY+ P[]2 IT MAKES NO DIFF]5CE IF IT IS COMMODITY MONEY OR SYMBOLIC MONEY4 ,N[ADAYS SYMBOLIC MONEY IS EV5 COM+ TO BE REG>D$ AS SUP]FLU\S1 & A FUTURE IS 5VISAG$ ) ELECTRONIC BANK TRANSACTIONS EFFECT+ CA%LESS & *ECKLESS PAYM5TS4.<#h.> ,9T]NATIONALLY1 H[EV]1 ! SITUATION IS DIFF]5T4 ,AT LEA/ SOME SYMBOLIC MONEY MU/ BE CONV]TIBLE 9TO COMMODITY MONEY TO COV] ! BALANCE ( PAYM5TS DEFICITS ?AT >ISE 9 9T]NATIONAL TRADE4 ,! DOLL> WAS =M]LY US$ AS A RES]VE CURR5CY BECAUSE ( ITS CONV]TIBILITY 9TO GOLD4 ,BUT :5 CONV]TIBILITY WAS ABOLI%$1 ) IT W5T ! FIX$ REF]5CE PO9T TO :I* ALL CURR5CIES HAD BE5 PEGG$2 H5CE=? ! VALUE ( !SE CURR5CIES DEP5D$ ON ! %IFT+ SUPPLY & DEM& SITUATION ON ! M>KET4 ,IF ! WORLD W]E A S+LE NATION1 ! NATIONAL MONET>Y SY/EM C\LD BECOME AN 9T]NATIONAL MONET>Y SY/EM4 ,COMMODITY MONEY & GOLD RES]VES W\LD !N BE SUP]FLU\S1 & ! MONEY M>KET C\LD BE CONTROLL$ BY GOV]NM5T REGULATIONS4 ,9 ! REAL WORLD ( COMPETITIVE CAPITALI/ NATIONS1 H[EV]1 ?IS IS NOT POSSIBLE1 & ANY MONET>Y POLICY BAS$ ON 9T]NATIONAL AGREEM5TS HAS ITS LIMITS 9 TIME4 ,?US ! FIX$ EX*ANGE RATES ( ! ,BRETTON ,WOODS SY/EM HAD A /ABILIZ+ EFFECT AS LONG AS ! REAL 9/ABILITY ( ! WORLD ECONOMY AS A :OLE MADE EV]Y NATION A DEBTOR TO ! ,UNIT$ ,/ATES4 ,BUT ! ,UNIT$ ,/ATES WAS UNABLE TO MA9TA9 ITS POSITION ( ABSOLUTE HEGEMONY BY FUR!R RAPID CAPITALI/ ACCUMULATION4 ,! REACTION AGA9/ ! DEVELOP+ CRISIS L$ TO A DOLL> 9FLATION1 ) ! 9T]NATIONAL MONET>Y CRISIS AS ITS PRODUCT4 ,CAPITALISM HAS BE5 PLAGU$ BY ECONOMIC CRISES1 ) !IR ACCOMPANY+ MONET>Y REP]CUSSIONS1 ?R\<\T ITS HI/ORY4 ,BUT /ILL ! ILLUSION P]SI/S1 /RONG] EV5 ?AN BE=E1 ?AT ! CONFLICT+ 9T]E/S ! CRISIS HAS BR\Y SY/EM1 ! WORLD SEEMS TO BE VIEW$ AS IF IT W]E ALREADY ONE NATION1 & WORDS AB\T ! NE$ = 9T]NATIONAL COOP]ATION FL[ ON 5DLESSLY AS COMPETITION GR[S %>P]1 DRAW+ MONET>Y POLICY ALONG ) IT4 ,TRUE1 ! 9T]NATIONAL ECONOMY HAS = QUITE A :ILE N[ EXHIBIT$ A DEGREE ( 9TEGRATION & MUTUAL DEP5D5CE SU* ?AT EV]Y RIS+ TR5D IS FELT1 IF TO AN UNEV5 DEGREE1 ?R\<\T ! WORLD1 & EV]Y S]I\S CRISIS BECOMES A CRISIS WORLDWIDE AS WELL4 ,!RE IS A NE$1 !RE=E1 = COOP]ATION2 BUT ! WAY CAPITALISM IS CURR5TLY ORGANIZ$1 I4E41 PR$OM9ANTLY ON A NATIONAL BASIS1 PRECLUDES HAMM]+ \T ANY COMMON 9T]E/S ?AT GO BEYOND ! TRIVIAL4 ,?US ! WORLD MONET>Y CRISIS PRECIPITAT$ BY ! ABOLITION ( DOLL> CONV]TIBILITY %[$ ?AT NOT ONLY G5]ALLY BUT 9 MONET>Y POLICY AS WELL1 NATIONAL NE$S TAKE PREC$5CE OV] 9T]NATIONAL ONES4 ,! ,UNIT$ ,/ATES WAS NEI!R WILL+ NOR ABLE TO AB&ON ITS 9FLATION>Y C\RSE & S\E WILL+ TO 5DURE DISADVANTAGES TO AVOID EV5 GREAT] LOSSES4 ,! DECL9+ COMPETITIV5ESS ( ,AM]ICAN CAPITAL CONTRIBUT$ TO ! ,U4,S4 BALANCE ( PAYM5TS DEFICIT1 BUT ?IS C\LD BE ALLEVIAT$ TO SOME DEGREE BY ! UP-VALUATION ( O!R CURR5CIES4 ,UND] ! ,BRETTON ,WOODS AGREEM5TS1 ALL CURR5CIES W]E AT P>ITY ) ! DOLL> 9FLATION1 MANIFE/$ AS A BALANCE ( PAYM5TS DEFICIT1 R$UC$ ! DOLL>'S EX*ANGE RATE AGA9/ O!R CURR5CIES1 ,TO MA9TA9 ! P>ITY ( !IR [N CURR5CIES1 ! C5TRAL BANKS ( O!R NATIONS W]E OBLIG$ TO BUY UP SURPLUS DOLL>S1 !REBY ADD+ FUEL TO 9FLATION ON !IR [N T]RITORY4 ,TO KEEP 9FLATION )9 B\NDS !Y HAD TO UP-VALUE !IR [N CURR5CIES ) RESPECT TO ! DOLL>1 AL?\< ?IS MADE !IR [N EXPORTS LESS COMPETITIVE ) ,AM]ICAN EXPORT PRODUCTS4 ,!Y HAD TO *OOSE1 !RE=E1 BETWE5 TWO EVILS3 9FLATION1 OR A DECL9E 9 EXPORTS4 ,9 SOME RESPECTS ! DECISION WAS !IRS1 BUT 9 O!RS IT WAS IMPOS$ ON !M4 ,! ,UNIT$ ,/ATES WAS ABLE TO =CE ! REVALUATION ( O!R CURR5CIES & TO MAKE >RANGEM5TS ?AT W\LD ALL[ EX*ANGE RATES TO FLUCTUATE OV] A WID] RANGE4 ,H[EV]1 ! NET EFFECT ( ALL ?IS WAS ONLY A REAPPORTIONM5T ( WORLD TRADE1 ) ONE NATION'S GA9 BE+ ANO!R NATION'S LOSS4 ,! VOLUME ( ! WORLD ECONOMY & PR(ITABILITY REMA9$ AS !Y W]E4 ,! G5]AL VIEW N[ IS ?AT ! PRES5T MONET>Y CRISIS WILL BE ) US = SOME TIME1 ) TEMPOR>Y MEASURES APPLI$ H]E & !RE UNTIL A NEW WORLD MONET>Y SY/EM CAN BE FA%ION$ ?AT WILL BETT] MEET ! NE$S ( ! CAPITALI/ WORLD ECONOMY ?AN DID ! =M] ONE4 ,IT IS ( C\RSE AN ILLUSION TO ASSUME ?AT A MONET>Y SY/EM CAN BE F\ND ?AT WILL SUBORD9ATE ! 9T]E/S ( ALL C\NTRIES TO ?OSE ( ! ,UNIT$ ,/ATES4 ,! ACCEPTANCE ( ,AM]ICAN MONET>Y & TRADE POLICIES1 :E!R VOLUNT>Y OR NOT1 HAS BE5 CONT+5T ON ! RELATIVE PROSP]ITY ( ,JAPAN & ! ,WE/]N ,EUROPEAN C\NTRIES COMP>$ ) ! ,UNIT$ ,/ATES1 & IT CAN ONLY BE CONT9U$ AS LONG AS ?IS PROSP]ITY LA/S4 ,BUT SIGNS >E MULTIPLY+ ?AT A DECL9E IS ALREADY BEG9N+ ?AT WILL MEAN !SE C\NTRIES WILL NO LONG] BE EI!R WILL+ OR ABLE TO MAKE CONCESSIONS4 ,AS LONG AS ! ,UNIT$ ,/ATES /&S FIRM ON ITS POSITION ?AT AUTONOM\S NATIONAL ECONOMIC POLICY1 ) ITS OBJECTIVE ( MORE OR LESS FULL EMPLOYM5T1 CANNOT BE SACRIFIC$ TO ! 9T]E/S & 5DS ( A BALANCE ( PAYM5TS EQUILIBRIUM1 O!R NATIONS WILL BE =C$ TO MA9TA9 SOCIAL /ABILITY BY MEANS ( 9FLATION & DEFICIT F9ANC+1 :ILE AT ! 9T]NATIONAL LEVEL RESUM+ !IR COMPETITIVE BATTLE ( ALL AGA9/ ALL4 ,( C\RSE1 H[ ?IS NEW MONET>Y SY/EM IS GO+ TO BE CREAT$ )\T SQU>+ PAYM5TS BALANCES REMA9S A RIDDLE1 UNLESS ! C\NTRIES ) POSITIVE BALANCES >E WILL+ TO TOSS !M D[N ! DRA9 BY WRIT+ (F ! DEFICITS ( O!R C\NTRIES4 ,9 A C]TA9 S5SE ?IS WAS 9 FACT :AT ALREADY HAD BE5 HAPP5+ :5 ! ,AM]ICAN DEFICIT WAS TRANSLAT$ 9TO ! MONET>Y RES]VES ( O!R C\NTRIES4 ,& AL?\< SURPLUS DOLL>S1 9 CONTRA/ TO GOLD1 FL[$ BACK ONTO ,AM]ICAN MONEY M>KETS :5 O!R NATIONS PUR*AS$ 9T]E/-BE>+ GOV]NM5T BONDS1 ?AT 9T]E/ IS NOT AN ADEQUATE COMP5SATION = ! P]MAN5T DANG] ( FUR!R DEPRECIATIONS ( ! DOLL>4 ,) NO GOLD BACK+ ! DOLL> REPRES5TS A CLAIM ON ! ,UNIT$ ,/ATES ?AT MU/ DIM9I% 9 VALUE AS 9FLATION CONT9UES1 :]EAS GOLD RETA9S ITS VALUE1 DET]M9$ AS IT IS BY PRODUCTION CO/S4 ,AL?\< IT HAS BE5 ASSUM$ ?AT ! ABOLITION ( ! GOLD RES]VES W\LD R$UCE ! PRICE ( GOLD ON ! GOLD M>KET1 :I* HAS ONLY A LIMIT$ DEM&1 IT HAS OCCURR$ TO NO ONE TO TRY ?IS EXP]IM5T S]I\SLY4 ,! ,UNIT$ ,/ATES WAS ALSO NOT WILL+ TO /& FIRM ON DOLL> CONV]TIBILITY D[N TO ! LA/ GOLD B>1 BUT 9/EAD ABOLI%$ CONV]TIBILITY TO SAVE :AT GOLD REMA9$4 ,EV5 ) ! DOLL> NO LONG] CONV]TIBLE1 GOLD RETA9S ITS FUNCTION AS COMMODITY MONEY4 ,O!R COMMODITIES C\LD ALSO P]=M ! SAME FUNCTION1 H[EV]1 MORE & MORE1 SUGGE/IONS >E BE+ HE>D ?AT DOLL> SURPLUSES %\LD BE EX*ANG$ = %>ES 9 ,AM]ICAN COMPANIES1 & ! ,JAPANESE C5TRAL BANK IS CONSID]+ US+ ITS SURPLUS DOLL>S AS LOANS TO ,JAPANESE BUS9ESSM5 TO 9VE/ 9 ! ,UNIT$ ,/ATES4 ,! ,AM]ICAN DEFICIT W\LD ?US BECOME AN 9/RUM5T ( CAPITAL EXPORT = O!R C\NTRIES1 AS IT HAD BE5 9 ! PA/ = ,AM]ICA1 & A BALANCE ( PAYM5TS EQUILIBRIUM W\LD BE EFFECT$ ?R\< ! PROLIF]ATION ( MULT9ATIONAL CONC]NS4 ,IF1 H[EV]1 NO?+ IS *ANG$ 9 ! EXI/+ TRADE RELATIONS1 MORE DEFICITS W\LD BR+ AB\T A FUR!R DRA9 ON ,AM]ICAN CAPITAL & MAKE ITS SITUATION1 ALREADY PREC>I\S1 MU* MORE SO1 S9CE ! PR(ITS ( ! MULT9ATIONALS W\LD FL[ BACK 9TO ! C\NTRIES ( !IR [N]S4 ,NOT MU* IS TO BE EXPECT$1 !RE=E1 FROM MEASURES 9 ?IS DIRECTION4 ,IT IS MORE LIKELY ?AT ATTEMPTS WILL BE MADE TO F9D COMPROMISE SOLUTIONS ?R\< ! ,9T]NATIONAL ,MONET>Y ,FUND1 :I* WILL MA9TA9 ! CONV]TIBILITY ( ! DOLL> 9TO O!R CURR5CIES EV5 )\T GOLD BACK+4 ,! HOPE IS /ILL SU/A9$ ?AT ! PROBLEM WILL SOLVE ITSELF GIV5 5\< TIME4 ,! ME*ANISM ( >TIFICIAL RES]VES & SPECIAL DRAW+ RIE !IR BALANCE ( PAYM5TS UND] LONG-T]M CONDITIONS4 ,BUT ANY 9T]NATIONAL AGREEM5TS TO ?IS 5D ASSUME ?AT CURR5T ECONOMIC DIFFICULTIES WILL NOT DEG5]ATE 9TO A NEW WORLD CRISIS4 ,IF !Y DO1 ANY WORLD MONET>Y SY/EM DEVIS$ WILL COME TUMBL+ D[N1 AS HAPP5$ 9 ! LA/ GREAT CRISIS4 ,WORLD MONEY HAS ALREADY GONE ! WAY ( COMMODITY MONEY1 EV5 ?\< ! DOLL> MU/ P]=CE CONT9UE TO P]=M HE FUNCTION ( A WORLD CURR5CY )\T 9 FACT BE+ SO ANY LONG]4 ,?IS DEMISE ( MONEY 9 ITS TRADITIONAL =M IS ! 9EVITABLE CONSEQU5CE ( ! DISSOLUTION ( ! NATIONAL & 9T]NATIONAL AUTONOMY ( ! M>KET & ! ATT5DANT PROGRESSIVE DECAY ( ! CAPITALI/ ECONOMIC SY/EM4 ,!SE >E ! WOES & TRAVAILS ( ! B\RGEOISIE1 H[EV]1 AL?\< !Y >E BORNE ON ! BACKS ( ! WORK]S4 ,CAPITAL CAN LIVE NEI!R ) MONEY NOR )\T IT1 & ITS DAY1 LIKE ?AT ( MONEY ITSELF IS LONG OV]DUE4 ,! F9AL ABOLITION ( MONEY WILL BE A TASK = SOCIALISM TO RESOLVE4 ,NOTES #a4 ,!ORIE DES ,GELDES UND D] ,UMLAUFSMITTEL1 #a#i#a#b4 #b4 ,/AATLI*TE ,!ORIE DES ,GELDES1 #a#i#e4 #c4 ,OKONOMIK D] ,TRANS=MATIONSP]IODE1 #a#i#b#b1 P4 #a#f#g4 #d4 ,! ,G5]AL ,!ORY ( ,EMPLOYM5T1 ,9T]E/ & ,MONEY1 #a#i#c#f4 #e4 ,DAS ,F9ANZKAPITAL1 #a#i#a1 PP4 #c#b#a4 #f4 ,!ORIE DES ,GELDES UND D] ,UMLAUFSMITTEL1 P4 #d#g#f4 #g4 ,K4 ,M>X4 ,CAPITAL1 ,VOL4 #c1 ,K]R $4 P4 #e#a#i4 #h4 ,D4 ,W4 ,RI*>DSON1 ,ELECTRIC ,MONEY4 ,EVOLUTION ( AN ,ELECTRONIC ,FUNDS-,TRANSF] ,SY/EM1 #a#i#g4 0,!RE IS NO QUE/ION10 WRITES ,J4 ,FL9T 9 ,! ,NEW ,YORK ,TIMES ( ,MAY #c#a1 #a#i#g#g1 0?AT A REVOLUTION OR AT LEA/ AN EVOLUTION IS UND] WAY4 ,! GOAL IS TO W9 BY ELECTRONICS ! @s#a1 BILLION ?AT CONSUM]S KEEP 9 BANKS1 SAV+S & LOAN ASSOCIATIONS & CR$IT UNIONS1 & TO HOLD D[N ALWAYS GR[+ CO/S BY ELIM9AT+ PAP] PROCESS+4 ,BUT >GUM5TS RAGE OV] ! SUCCESS OR FAILURE ( ELECTRONIC FUNDS TRANSF] SY/EMS - OR ,F4 ,F4 ,T4 AS ! PROCESS IS KN[N 9 BANK]S' J>GON - ! DIRECTIONS TAK5 & ! B5EFITS OR DANG]S = CONSUM]S1 ',WE HAVE PASS$ ! PO9T ( NO RETURN1' SAID ,J4 ,J4 ,POPP51 A VICE PRESID5T ( ,BOOZ1 ,MI5 @& ,HAMILTON1 MANAGEM5T CONSULTANTS4 ',WE >E REA*+ = ! =MS ( FULL IMPLEM5TATION1 LIKE IT OR NOT4' ,BUT HE SEES A F9AL ,F4 ,F4 ,T4 VICTORY AS MU* AS A QU>T] C5TURY AWAY40 #aigf ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #c1 #bba 3 ,*APT] #c -- ,ADD$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/