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ID-3-1 Golden Calf. January 8th, 1986
Golden Calf.
As any community develops beyond primitive subsistence forms, the
specialization of skills begins to limit the effectiveness of
barter.
As a community progressively differentiates, the opportunity for
direct exchanges of equivalent perceived value becomes
restricted.
It becomes necessary to adopt an intermediate carrier of value,
so that I can accept a "currency" from a person purchasing my
products and expect to pass that currency on to those who supply
me.
In emergent primitive societies the currency usually had in
itself some perceived tangible value, i.e. grain or livestock, as
something of real substance was necessary to induce the seller to
part with substantial products.
A variety of considerations, convenience, denomination,
durability, etc. lead to the gradual adoption of precious metal
currencies.
The valuation of the coinage depended however on a secondary
cultural evaluation, the attribution of significance to a
particular set of metals, stones, etc - altogether different
from the more tangible and immediate significance of grain, etc.
At this point human culture began to be entranced by objects of
its own making, began to attach as much significance its own
created images as it did to the reality the money was supposed to
represent.
At no time in this developing process was the amount of money in
circulation intelligently related to the job it had to do -
provide for the proper interaction of the economy.
Rather the control of the money supply was focused on the task of
maintaining its credibility and power.
To keep the peasants working they had to be hungry and the carrot
had to be scarce.
Isaac Newton, as Master of the Royal Mint, had much to do with
the confirmation of this process when he designed and minted the
first gold sovereign.
This coin could not easily be forged, shaved or otherwise
adulterated and thereby rendered the banking industry accountable
and honest.
Landsman Community Services Ltd. ID-3-1 Page 1
ID-3-1 Golden Calf. January 8th, 1986
Prior to that time, to leave money with a banker was risky.
To be sure of recovering the value deposited you had to insist on
exactly the same coins in return and hope that they had not been
shaved.
Newton's coin established a reliable standard and made it
possible for bankers to consolidate all deposits in one, and pay
off accounts with any coins from that one heap.
Like many good ideas, it brought unexpected consequences.
Landsman Community Services Ltd. ID-3-1 Page 2
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