“One does not exchange money for money “

Autor: Ljiljana Tatic                                                                                                                     Nicosia, 17.07.2016

Bitcoin should not be incorporated into the existing system of central banks. Problem of Central Banks is not only a fact that they are centralized. Bigger problem is that they consider money as a capital ‘per se’. The role of Bitcoin has to become a new standard of value, and as such to become an alternative to the current financial gambling system.  

logo_bis

The Bank for International Settlements (BIS) is a treaty organization that is not under the jurisdiction of any government. The BIS operates as a kind of central bank of central banks that settles international imbalances caused by uneven international trade.1

Friedman, whose monetary economic theories heavily influenced Greenspan, was concerned about the stifled nature of the debate on why Federal Reserve Bank engaged almost 500 prestiges Economists. Milton Friedman, in a 1993 letter to Auerbach that the author quotes in his book, argued that the Fed practice was harming objectivity: “I cannot disagree with you that having something like 500 economists is extremely unhealthy. As you say, it is not conducive to independent, objective research. You and I know there has been censorship of the material published. Equally important, the location of the economists in the Federal Reserve has had a significant influence on the kind of research they do, biasing that research toward noncontroversial technical papers on method as opposed to substantive papers on policy and results,” Friedman wrote.2

Non of those 500 economists ever comment the problem of ‘money to money’ trade neither impact of increasing the quantity of money in circulation on real peoples life even tough probably all of them know that economy desperately needs to estimate a new substance of value.

The utility of thing makes it a use value. But this utility is not a thing of air. Being limited by the physical properties of the commodity, it has no existence apart from that commodity. A commodity, such as iron, corn, or a diamond, is therefore, so far as it is a material thing, a use value, something useful. This property of a commodity is independent of the amount of labour required to appropriate its useful qualities.

When treating of use value, we always assume to be dealing with definite quantities, such as dozens of watches, yards of linen, or tons of iron. The use values of commodities furnish the material for a special study, that of the commercial knowledge of commodities. Use values become a reality only by use or consumption. Use values also constitute the substance of all wealth, whatever may be the social form of that wealth. In the form of society we are about to consider, they are, in addition, the material depositories of exchange value.3

 

” One does not exchange money for money “4. Strangely enough, there are multiple answers to this question, and the amount of money that exists changes depending on how we define it. The more abstract definition of money we use, the higher the number is.

The result is a hierarchy of information that ranges from some of the smallest markets as Bitcoin = $5 billion, Silver aboveground stock = $14 billion, to the world’s largest markets: Derivatives on a notional contract basis = somewhere in the range of $630 trillion to $1.2 quadrillion.

Global supply of all coinage and banknotes is $5 trillion, the aboveground gold supply is $7.8 trillion, the narrow money supply is $28.6 trillion, and the broad money supply is $80.9 trillion.5

The book which ‘ex professo’ telling about “trade” and “speculation” one can read

this: ”

Each trade consist in exchange different kinds of things; and the profit (to the

merchant?) comes precisely from this difference. To exchange a pound of bread

against a pound of bread … would be attended with no profit; …

Therefore trade is advantageously contrasted with gambling, which consists in a mere exchange of money for money.” 6 Although Corbet does not see that the M-M, exchanging money for money is the characteristic form of circulation, not only of merchants’ capital but of all capital, yet at least he acknowledges that this form is common to gambling; …. 7

“Trading is a gambling, and from a beggar profit can not be extracted. If one for a

long time receive in everything and from all, he would have to return voluntarily to

them largest part of winning if he wants to play again. ” 8

 

Bitcoin should not be incorporated into the existing system of central banks. Problem of Central Banks is not only a fact that they are centralized. Bigger problem is that they consider money as a capital ‘per se’. The role of Bitcoin has to become a new standard of value, and as such to become an alternative to the current financial gambling system.

1 “The world’s most exclusive club meets every other month at 7pm on Sunday evening in a circular tower block whose tinted windows overlook Basel railway station. Its members include some of the most powerful men in the world. They are central bankers, who have come to Switzerland to attend the Economic Consultative Committee of the Bank for International Settlements, the bank for central banks.
Set up in 1930 by an international treaty, the BIS and its assets are legally inviolable. The Swiss authorities have no jurisdiction over the bank or its premises. The BIS has just 140 customers but made tax-free profits of $1.17 billion in 2011-12.
After 1945 the BIS—behind the scenes—for decades provided the necessary technical and administrative support for the trans-European currency project, from the first attempts to harmonize exchange rates in the late 1940s to the launch of the Euro in 2002.
The bank is now at the center of efforts to build a new global financial and regulatory architecture. Yet despite its central role in the history of the last century and during the current crisis, the BIS remains largely unknown – until now” “Tower of Basel” Adam LeBor
2 Priceless: How The Federal Reserve Bought The Economics Profession http://www.huffingtonpost.com/2009/09/07/priceless-how-the-federal_n_278805.html3 Part Two, Transformation of Money into Capital (Marx, Capital, volume one)
4 Yelling Mersie De La Riviera to merchants. (“L’Ordre naturel etc.”, Pg. 486)
5 All of the World’s Money and Markets in One Visualization http://money.visualcapitalist.com/all-of-

the-worlds-money-and-markets-in-one-visualization/ 6 7 8

(Th. Corbet:”An Inquiry into the Causes and Modes of the Wealth of Individuals; or the Principles of

Trade and Speculation explained”. London 1841, str. 5.)

(MacCulloch:”A Dictionary practical etc. of Commerce”. London 1847, str. 1009.)

Pinto: “Traite de la Circulation et du Credit”. Amsterdam 1771, Pg. 231

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s