Struggling towns printing their own cash

Well, to chip into the debate, we have the Lewes Pound, got a famous local politico in it.. Thomas Paine..

but then again they've gone that one step further and declared independence... and do so each year...

Caveat:
Although it is a 2 finger salute at the Gov it is done in the spirit of fun.. so plenty of drinking games, dancing and celebrating being independent.

My nearest city has a local currency.Mostly used by and for stuff I can't use,unfortunately,things like pet sitting and other,for me,semi luxury items.I make stuff people want and so accumulate these "M------ Hours".So a good idea,better when expanded,this has been around more than ten years,off the top.

I extend credit and get silver coin and gold as collateral.Often just turns into payment in specie,which I am careful to be completely fair in dealings.Ya must have an immobile safe,gold tester,scale and a current rate of exchange.Thanks be for the internet and accurate gold price,remember having to read it in the paper?Also ya do need a reputation for honesty and fair dealings over the long term.And for being somewhat nutty and armed,eh?Helps to smell somewhat singed,too.Big dog.

All the talks about economic recovery and "green shoots" have been a mere hogwash. The reality is that many economies on this planet are still running with the help of an elaborated system of smoke and mirrors.

Just a few days back, there were reports about the Greek government sought the help of Goldman Sachs a couple of years back to "cook up" their financial figures. Loans taken by the Greek government were represented as something else in the balance sheets. One can only wonder about the extent of scam perpetrated by these banksters in trouble ridden economies like UK or America.

Why is the thread title so misleading?
Why is the news story itself so misleading?

1:1 scrip is not issuing new currency. It's issuing 1:1 coupons that are a novelty.

This money is not available to anyone who can't buy it for an american dollar. The idea is to have these things work like disney dollars in that they keep the money flowing in areas where there is no money flowing based on the novelty and exclusivity of the use of the scrip.

anyway, thread title and the whole concept as presented is skewed and untruthful.

This is an attempt to perpetuate ignorance from my point of view. Which is exactly the opposite of the mission statement of this place.

once again, laughable!

This is expected, in the time of mainstream currency crisis, local alternatives appear. And its a good thing, because it helps to mitigate the effects of the crisis.
The main difference from which even mainstream economy should learn is that local currencies are debt-free (interest free) at the point of issue, in contrast to our money-as-debt cental bank issued currency.

We should return to debt-free and commodity backed currency.

[edit on 16-2-2010 by Maslo]

[edit on 16-2-2010 by Maslo]

this is one of the basis of the civil war, the ability to issue money.
most people think it was all about slavery, but that did not come into play until a rallying cry was needed.
economic independence was the main thing. Augusta, GA had just became the souths "lowel, MA" in textile processing, which ment the goods could be produced locally the northern without banker, industrialist, and rail baron need. Confederate money was intentionally devalued to get it out of circulation after the war, but for many years was still used vs greenbacks.
As long as a local currency has no real power, it will be tolerated, like coupons. Why do you think CA issued IOU's vs a CA currency? because like the $0.50 off on folgers coffee coupon, it is not legal tender, and value less, as its backed by nothing but the good word of the state. A place holder, if you will. when people started trading it, they shut that down real quick.
also Income tax law states you must report the total trading/bartering as income. make sure that you do that. A crate of local notes could be proof of income tax evasion.
What if walmart, ford, or other companies started paying its employees in its own currency, that would only spend at those places? much the same as forcing spending to be local to a community. another reduction in freedom. hey but we gotta give them up to be free, right?

dr

The main incentive here is to support local economies by keeping the money flowing within the community boosting the local economy and by NOT shipping profits out to a corporate owned offshore subsidiary who aren't required to pay Federal Income Taxes.

Our current national economy with the massive unemployment exemplifies the long term effects of years and years of trade deficits, ie, more money flowing out of the country than in.

The Berkshire's "Berkshares" have been printing a local currency an real Dollar linen paper for the western region of Massachusetts since 2006. They are legal since they aren't coin and backed by Federal Reserve Notes and are distributed by the local Banks.

You exchange them for a 10% gain exchange rate, ie $90. buys 100 Berkshares which are then exchanged 1 for 1 for regular Dollars in the local businesses so overall you're saving 10% by supporting local establishments/businesses.

www.berkshares.org...



[edit on 16-2-2010 by nh_ee]

Sounds like a bit of fun for the locals, but judging by the way that the dollar is currently stomping all over the Euro and the Pound right now I'm happy with good ol' greenbacks.

Originally posted by Fakshon
I wasn't sure which how or where to post this, but it is interesting. I remember hearing about a gentleman creating gold currency or dollars back by gold and the government pressing charges against him. However, this story seems to be popping up more and more. I wonder if this is further evidence that the economy is in really worse shape than they admit.

Historians can tell you this practice goes wayyyyyyy back in history. They can also tell you that it always ends up badly. Real currency has some sort of resource backing it -- including intangibles. Barter exchanges are also stable systems.

But print-your-own-currency? As the rest of the article says, your boss might decide to pay you in the town currency, but when you take it to the grocery store, the rest of the country isn't accepting that scrip. So if THEY take the scrip, there is no way they can pay to restock their shelves.

Even when state governments did it (back during the 1700's to 1800's), the value of the state "dollar" varied wildly. Texas dollars were worth only 1/4th of what Louisiana dollars were at the time of the founding of the Republic of Texas, and Louisiana dollars weren't worth a dollar in Pennsylvania.

It'd be nice if people would learn from history.

Originally posted by nh_ee
The Berkshire's "Berkshares" have been printing a local currency an real Dollar linen paper for the western region of Massachusetts since 2006. They are legal since they aren't coin and backed by Federal Reserve Notes and are distributed by the local Banks.

You exchange them for a 10% gain exchange rate, ie $90. buys 100 Berkshares which are then exchanged 1 for 1 for regular Dollars in the local businesses so overall you're saving 10% by supporting local establishments/businesses.

www.berkshares.org...

I looked the site up, and then checked on some of the businesses. The banks they say they're affiliated don't seem to have any info on Berkshares on their websites, so I wonder if you can deposit them or use them to pay for a loan. It looks like you can't... just wondering... and there's no information on how you can redeem them for regular US currency. Does the shopkeeper have to give back real US money if you used, say, a $10 Berkshare to pay for a $4.50 hamburger (since no coins are available)?

Also, the merchant has to count it as income and pay taxes on it:
en.wikipedia.org...

I think that'd inspire merchants to eventually raise their prices.

reply to post by pyrts


But a point could be made that those places that have a form of currency in place are in a position to not simply roll over should the economy crash.. what is considered monopoly money one day could be very real the next..

Locally to me it is used more to draw people away from the coporates and spend locally.. I personally approve of that, when I travel anywhere in the world I really don't want to see the same gray High Street (main street) with same gray names selling the same gray products.. Perhaps that is just me..

Edit to add: what I have noticed about such communities is simply that they are actual communities that work together.. at least that is my observation..

[edit on 16/2/10 by thoughtsfull]

reply to post by LuxFestinus


THIS IS THE BIGGEST PROBLEM. No electronic anything!!!! What don't you get about slavery, you are a slave to the system, break the sysytem and go back to whats in your hand!! Control.. get it?

Electronic anything is total BS.

Okay...Okay enough of this free will spirited hippie style economic revolution.

Now you all get back to your 9-9 jobs and keep working like busy little bees. Yes that's right, your read this post right, all these hippies and there ideas in forming a new currency, i suggest its time we used our friendly neighborhood riot police.

Okay Lieutenant, break out the tear gas and load the cattle up so we can take a nice nature stroll through this so called city that dares to defy the Federal Government, also, get the National Guard on the horn as we may encounter hostile terrorist activities, hey, don't forget to contact Home Land Security.



...i suppose all these hippies think that as politicians we can now be held responsible for our actions...!

reply to post by tristar


?
Second line

Not sure I understood the sarcasm.