“Monies” Have Nothing To Do With Gold

Alberto Veronese, September 22, 2017

Monies have nothing and never have had anything to do with gold and silver.

In 1848, when Switzerland was politically unified, the modern Swiss franc was issued to replace the local currencies (Federal Coinage Act of 1850).

These Swiss coins I found in my wallet, are among the world’s oldest coins still valid today. To date, they have the same design…

Swiss Coins

Swiss Coins

Since, 2004, this existing pure nickel 20 centime coin of the years 1881–1938 has been withdrawn from circulation because machines cannot detect it. Today, the 20 centime coin is in a copper/nickel alloy.

Swiss Coin, 1885

1885, 20 Centime Swiss Coin (20 Rappen)

It is clear that the ‘precious’ nickel alloy could not has been a standard of value nor could it has been the medium of exchange.

Changes in the coinage do not affect prices — the monetary unit is always distinct from the coinage…

and the price of a commodity (E.g. gold and silver) fluctuates constantly in terms of that unit.

We are so accustomed to paying a multitude of small purchases in coin that we have come to adopt the idea that the right to payment of a debt means the right to payment in coin or its equivalent — and further, fostered by the laws of legal tender we have been led to the notion that payment in coin means payment in a certain weight of gold.

In all times, at all stages of civilization, the foundation of all societies is the “sanctity of an obligation” — the idea that to ‘savages’, obligation is unknown and only barter is used, is without foundation.

“To free oneself of an obligation” and not “gold or silver” is the one property which all men seek, the acquisition of which is the aim and object of all commerce.

There is not and there never has been, a law compelling a debtor to pay his debt in gold or silver, or in any other commodity;

Tax-credit alone is money. Monies (credit and debt) have nothing and never have had anything to do with gold and silver.

A “sale”, is not the exchange of a commodity for some intermediate commodity called the “medium of exchange,” but the exchange of a commodity for a tax credit.

Switzerland is the monopoly supplier of ‘its’ currency — its “tax credit”.

“What is money?”
by A. Mitchell Innes, The Banking Law Journal, May 1913, pp. 377-408
http://www.newmoneyhub.com/www/money/mitchell-innes/what-is-money.html

“Number one, the money is a tax credit”.
“Number two the currency is a public monopoly”.

“Warren Mosler’s talk in Chianciano”, Italy, January 11, 2014
http://neweconomicperspectives.org/2014/01/beyond-euro-left-crisis-alternative.html

“Monies” Have Nothing To Do With Gold

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