[lbo-talk] The German Debate on the Monetary Theory of Value

Julio Huato juliohuato at gmail.com
Wed Dec 28 04:11:03 PST 2011

I wrote:

"Aside from the fetishistic behavior goldbugs exhibit, there is a rational element to it under current circumstances -- if the existing legal and political arrangements are in crisis, and there's no reason to believe that new (say, socialist) structures may emerge and promptly jell in replacement, then people will need means of exchange, payment, and value storage more robust than those that seem particularly tied to the legal and political status quo. What's the value of any financial asset if people massively default and renege on their promises? How can you ensure your necessities in a socially chaotic scenario? Precious metals have proved to be historically resilient. (As we speak, Cuba and Venezuela are partially clinging to gold. If China falls, it may not amount to much, but they are placing more faith in it than on the USD.) Goldbuggery reduces the illusion (an illusion with deep social roots, no doubt) of private property to its absurdity."

Okay, not everybody "in a canned-goods-and-ammunition sort of mood" think that gold is cheap enough:


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