Local Currency Plan

[odie1kanobe]

Just a poor college student with a part-time job.

When you have experience of rea word come back and give your take on it.

[NewRepublic]

Does anyone here live in Shankill, co. Dublin?
They had a local currency for a while, the Skill.
I know because I was one of the administrators.
This was around 1995.

The idea was, you join, your initial balance is zero. You get a chequebook and a list of other members and their suggested goods/services on offer. A Skill was valued at one hour's work. So the two people striking a deal would agree themselves the value of the goods or services if they were other than hours working.

I think the town of Ballinasloe introduced a similar system in recent months. The LETS system is what its called.

<LETS.html>

the currency can be purchased by the general public and local businesses from the Ballinasloe Credit Union and can then be used to purchase goods and services in any of the participating businesses around the town. It’s hoped that the general public will use the LETS as gifts for friends and family and by Employers for Employee bonuses.

[Kensington]

Also there was too much paperwork involved. That should be remedied now, with computers and IT skills being so ubiquitous.

Yes, that sounds like a LETS scheme. They are good, but overly complicated. People will always use what is more convenient, therefore we should make a convenient alternative. Local councils issuing their own currency is about as easy as you can get.

When you have experience of rea word come back and give your take on it.

I have. It has problems. Instead of partaking in the general Irish whinge, i have decided to look at ways of fixing it. You should try it some time.

the currency can be purchased by the general public and local businesses from the Ballinasloe Credit Union and can then be used to purchase goods and services in any of the participating businesses around the town. It’s hoped that the general public will use the LETS as gifts for friends and family and by Employers for Employee bonuses.

I cannot see how this will make a huge difference. One just swaps a Euro for a LETS token. It is not increasing the purchasing power of the local economy. It may encourage people to shop more in the locality, but what is the incentive? Unfortunately, i think that it will just prove to be a novelty. Though, i do wish them the best of luck.

[NewRepublic]

I cannot see how this will make a huge difference. One just swaps a Euro for a LETS token. It is not increasing the purchasing power of the local economy. It may encourage people to shop more in the locality, but what is the incentive? Unfortunately, i think that it will just prove to be a novelty. Though, i do wish them the best of luck.

I'd really have to agree with you. Its seems like an awful effort to go to considering there is no huge incentive to use it.

[forest]

i dont quit get the example with Guernsey.
Guernsey is in the sterling area and like Scotland and NI can issue their own money but its sterling
In the case of Scotland can be used in England (however in practice this isnt the case)

[Kensington]

Guernsey is in the sterling area and like Scotland and NI can issue their own money but its sterling

Yes, but the important point is how the money is created. 98% of all money is created as debt. Guernsey, however, could not get a loan. So Guernsey simply printed the money themselves and spent it.

Now, notes and coins are created debt-free by all Governments, but they only make up a tiny percentage of the total money supply.

For example, if the British Government needed 2 billion pounds, they could, and probably would, sell bonds to that amount. In other words, they would take out a loan for that amount. They could also, instead, print it in notes and just spend it. They would not have to take out a loan, they could just print the notes.

That is what happened in Guernsey.

[Kensington]

Its seems like an awful effort to go to considering there is no huge incentive to use it.

Yes, incentive is key. People will make an effort to use it at the beginning, but for a system to be sustainable, people have to have a good reason to use it and accept it.

If it was accepted for payment of local taxes and charges (one local currency unit = one Euro), people would see that it has value and would be more likely to accept it.

If it was new money and increased the local money supply, it would lead to a genuine increase in local business.

If it utilised a Credit Card, people may find it more convenient than fumbling around for coins.

[Baron von Biffo]

Yes, but the important point is how the money is created. 98% of all money is created as debt. Guernsey, however, could not get a loan. So Guernsey simply printed the money themselves and spent it.

Now, notes and coins are created debt-free by all Governments, but they only make up a tiny percentage of the total money supply.

For example, if the British Government needed 2 billion pounds, they could, and probably would, sell bonds to that amount. In other words, they would take out a loan for that amount. They could also, instead, print it in notes and just spend it. They would not have to take out a loan, they could just print the notes.

That is what happened in Guernsey.

Why not eliminate the middleman and let us print our own money?

[fool]

However for the sake of arguement lets say you are a barber. You could issue your own currency. Done in the states and was common during the depression. Just call it a workhour valued at 20 euros or 2 haircuts. In effect you would be issueing an IOU. In reality many join the scheme and it works well.

Local currency - Wikipedia, the free encyclopedia

Worked well and ended unemployment but the socialists stamped it out. As you grow older you will realise that socialists do not care whether you are unemployed or not.

When did America have a socialist government?

[Kensington]

Why not eliminate the middleman and let us print our own money?

The amount of money in the economy has to be regulated and money has to be universally accepted so as to perform its function as a medium of exchange. It, therefore, has to be regulated by some authority.