I think this is the beginnings of an economy based on perpetual growth and fossil fuel energy running headlong into geological energy constraints. Basically I see an undulatory downward path for the rest of my life. From here out, I think any rallies in our economic condition are going to be met with spiking commodity prices that knock us right back down.
Local Exchange Trading Systems (LETS) also known as LETSystems are local, non-profit exchange networks in which goods and services can be traded without the need for printed currency. In some places, e.g. Toronto, the scheme has been called the Local Employment and Trading System.
LETS networks use interest-free local credit so direct swaps do not need to be made. For instance, a member may earn credit by doing childcare for one person and spend it later on carpentry with another person in the same network. In LETS, unlike other local currencies, no scrip is issued, but rather transactions are recorded in a central location open to all members. As credit is issued by the network members, for the benefit of the members themselves, LETS are considered mutual credit systems.
Anybody have personal experience with local currencies? Ups and downs, pitfalls, hard earned advice?
An old thread here mentioned it but I figured it could use its own home, since our currency is likely to become the proverbial toilet paper in short order.
This could as well be at home in PFTF but I wanted to get the angle from all you economics savvy types. _________________ Cogito, ergo non satis bibivi
The Dude Is Not In: Leave A Message After The Beep.
Posted: Fri Oct 10, 2008 5:59 am Post subject: Re: LETS do business - local currencies
As I wrote in a prior thread, I think rather than an "Amero" being introduced, rather what you will see are new currencies issued by given locales to maintain local trade.
To do this QUICK, the best way would be to fix current prices on all goods, and then do a qucky redistribution of the total weath in the population dividing up the amount of wealth in goods by the total population. Those would be the necessary goods for immediate survival, aka FOOD.
No international trade for a while, it would be up to each local economy to become self sufficient. However, theft of goods from another economy could subsidize emerging local economies. So I would expect pirating and surrounding of warehouses to be part of this game in localized areas. Local military commanders probably have the upper hand in this at the moment.
Eventually, those local economies that do survive will be able to trade directly with other local economies. Not over water though, to much pirating possible and too easy to sink ships.
I think the US as a Nation fals apart under the bankruptcy. Could China hold say Illionois responsible for a debt incurrd by all of America before dissolution fo the Union?
I see a fractionalization of the wealth, and those areas able to self support should make it through, perhaps. However, extreme shortages in the process.
Posted: Fri Oct 10, 2008 6:00 am Post subject: Re: LETS do business - local currencies
I joined one group, but was passive...basically I did not have the services or goods to 'sell' that were needed in the group, in part I was not really involved with the people before joining the group.
This experience taught me that I should learn more practical skills, rather than the skills I need for an office job. Some of these I am working on as I prepare for a world with less oil
But in general I think LETS is a good idea (along with other local currencies ideas). However, where I am now, I guess what will take its place is more of an informal swapping of work, rather than a more ridged _________________ We should teach our children the 4-Rs: Reduce, Reuse, Recycle and Rejoice.
Joined: Aug 03, 2006 Posts: 4330 Location: Graceland
Posted: Fri Oct 10, 2008 6:20 am Post subject: Re: LETS do business - local currencies
This is a little off topic, but it has occurred to me occasionally that shares of the PM ETFs--GLD, IAU, SLV, etc.--could be used as a type of money backed up by PMs.
You could go to the store and everything would be priced in shares of GLD.
Sort of an ad hoc private gold standard. _________________
There's another word for that. It's called "barter". _________________ The whole of human history is a refutation by experiment of the concept of "moral world order". - Friedrich Nietzsche
Local Exchange Trading Systems (LETS) also known as LETSystems are local, non-profit exchange networks in which goods and services can be traded without the need for printed currency. In some places, e.g. Toronto, the scheme has been called the Local Employment and Trading System.
LETS networks use interest-free local credit so direct swaps do not need to be made. For instance, a member may earn credit by doing childcare for one person and spend it later on carpentry with another person in the same network. In LETS, unlike other local currencies, no scrip is issued, but rather transactions are recorded in a central location open to all members. As credit is issued by the network members, for the benefit of the members themselves, LETS are considered mutual credit systems.
Anybody have personal experience with local currencies? Ups and downs, pitfalls, hard earned advice?
An old thread here mentioned it but I figured it could use its own home, since our currency is likely to become the proverbial toilet paper in short order.
This could as well be at home in PFTF but I wanted to get the angle from all you economics savvy types.
Joined: Dec 08, 2004 Posts: 1633 Location: Nez Perce Nation
Posted: Fri Oct 10, 2008 11:56 am Post subject: Re: LETS do business - local currencies
We've been trying out barter with our neighbors for the last two years. My labor for beef, our pork for large basalt rocks, our eggs for small jobs around the farm.
I imagine that we'll be doing more of this as time goes by and more neighbors tune in to reality. _________________ "Modern Agriculture is the use of land to convert petroleum into food."
-- Albert Bartlett
"It will be a dark time. But for those who survive, I suspect it will be rather exciting."
-- James Lovelock
Posted: Fri Oct 10, 2008 12:49 pm Post subject: Re: LETS do business - local currencies
We have a couple of heavyweights on the scene. First Tim Jenkin and his CES. Tim took on Apartheid in the 70's - and won!. Tim has a head of his own, and the book is absolutely worth a read. Now he is taking on the global apartheid system in the form of "money".
Almost as persistent as Tim are the Dutch guys and gals at Strohalm. They have spent serious efforts developing "Cyclos" software free for download.
Then we have the ultimate protective colored Bartercard. These guys are dead serious!
There is quite a scene in "alternative monetary systems" out there, and I encourage everyone interested to investigate it. For a springboard, check out the postings of "JCarvingblock" over at Gold is Money. The forum is a bit crazy, but that particular guy is among the sharper knives in the barbershop.
Joined: Dec 27, 2004 Posts: 13064 Location: naive idiot fantasy world
Posted: Fri Oct 10, 2008 4:49 pm Post subject: Re: LETS do business - local currencies
I prefer the sharing or gifting economy, personally. _________________ "...powerdown so soft and fluffy you'll think you're living in a pillow." - jboogy
Joined: Dec 27, 2004 Posts: 13064 Location: naive idiot fantasy world
Posted: Fri Oct 10, 2008 7:27 pm Post subject: Re: LETS do business - local currencies
smiley wrote:
It is definitely preferable to the stealing and looting economy
The more sharing we do the less looting will be necessary...
One likes to hope....
At least this particular pollyanna likes to, anyway. _________________ "...powerdown so soft and fluffy you'll think you're living in a pillow." - jboogy
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