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View Diary: The Corpse of Value (25 comments)

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  •  The thing we forget (4+ / 0-)

    is that all money is just accounting.  Even when money was gold and silver based, it was still just accounting.  You can't eat gold, drink gold.  If there is a sudden influx of gold into an economy, that doesn't make the economy any richer, really.  It just makes gold worth less, relative to everything else.  This is what Spain discovered the hard way.  They got all the "money wealth" out of the new world- the gold and silver.  France and England got all of the "use value wealth"- the timber and grain and furs and etc.  Stuff that is valuable not because it's money, but because it's useful.  Which countries ended up truly wealthy and powerful?

    I think you're right, that oil works a lot more like money wealth than it does use-value wealth, because it encourages a country to develop a one-product economy.  I mean, pop quiz- besides oil, what else is produced in Saudi Arabia?  UAE?  Kuwait?  I can't think of anything off the top of my head.  Now, what all is produced in South Korea?  Japan?  Cars and textiles and plastics and electronics and lots of things.

    "History does not always repeat itself. Sometimes it just yells, 'Can't you remember anything I told you?' and lets fly with a club." --John W. Campbell

    by bhurt on Sun Jun 17, 2007 at 06:02:28 AM PDT

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