Modern Capitalism – The Marxist View: Part 13

 

Treachery!! Предательство!!

The feared “Soviet” secret service, the KGB, was always controlled by the the CIA (Central Intelligence Agency of the USA). As such, the CIA — KGB played an insidious and decisive role in the destruction of the Soviet Union.

The KGB’s successor in conspiracy, the “Russian” secret service FSB (ФСБ — Федеральная служба «безопасности» России) is likewise controlled by the CIA.

Among the manifold CIA – FSB tasks in stifling Arnold Lockshin is to block almost all commentaries sent in response to my material on the internet.

Arnold Lockshin, political exile from the USA living in Russia

ФСБ — Федеральная служба «безопасности» России — по приказу своего секретного постоянного хозяина — американского ЦРУ блокирует, не пропускает почти все отправленные мне комментарии.

И это далеко не всё.

Арнольд Локшин, Политэмигранта из США

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Gold versus phony-baloney money – a short history

The gold standard. Prior to World War I, the gold standard was considered the norm.

A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold

 

The main feature of the gold exchange standard is that the government guarantees a fixed exchange rate to the currency of another country that uses a gold standard (specie or bullion), regardless of what type of notes or coins are used as a means of exchange. This creates a de facto gold standard, where the value of the means of exchange has a fixed external value in terms of gold that is independent of the inherent value of the means of exchange itself” (Gold standard, Wikipedia).

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Even in Marx’s time (19th century), governments not infrequently abandoned gold as a standard during wars or economic crises.

The term greenback refers to paper currency (printed in green on one side) issued by the United States during the American Civil War (1861-1865)… They were legal tender by law, but were not backed by gold or silver, only the credibility of the U.S. government.

Before the Civil War, the only money issued by the United States was gold and silver coins, and only such coins («specie») were legal tender; that is, payment in that form had to be accepted.

«Paper currency in the form of banknotes was issued by privately owned banks; the notes being redeemable for specie at the bank’s office. They were not legal tender. Such notes had value only if the bank could be counted on to redeem them. If a bank failed, its notes became worthless.»

National governments had in the past issued paper money and made it legal tender, but usually with at least the pretense that the notes would be redeemable for specie at some time. Continental dollars issued by the Continental Congress during the American Revolution (late 18th century – AL) had no such backing, and soon became almost worthless” (Greenback – money, Wikipedia).

Within a few months it was clear that the costs of the war (Civil War in the United States — AL) would run far beyond the government’s limited income from tariffs and excises.

«The Lincoln Administration sought loans from major banks, mostly in New York City. These banks quickly ran out of money to lend and, in turn, went to European banks for more. The European banks demanded very high interest rates of 24 to 36 percent. Lincoln refused to borrow on such terms and called for other solutions» (Greenback – money, Wikipedia).

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The huge expenses of World War I essentially put an end to the gold standard, although it took some additional years before the end of convertibility took full effect.

Governments with insufficient tax revenue suspended convertibility repeatedly in the 19th century. The real test, however, came in the form of World War I, a test which ‘it failed utterly.’

«By the end of 1913, the classical gold standard was at its peak but World War I caused many countries to suspend or abandon it…

As of 2014 no nation uses a gold standard as the basis of its monetary system, although many hold substantial gold reserves ..” (Gold standard, — Wikipedia)

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