What Is The Best Complementary Currency System?

[dtygel 0]

Hi all,

complementary currencies are a way to get rid of the terrible laws of the market oriented only to profit-making. Normally, a community can create its own currency based on references as the time and other stable or ethical basis.

With the new currency, all people can buy and sell products and services, with no use of dollars! Only his/her own work is enough. Simply great... As what wikipedia says:

"Advocates such as Jane Jacobs argue that this enables an economically depressed region to pull itself up, by giving the people living there a medium of exchange that they can use to exchange services and locally-produced goods (In a broader sense, this is the original purpose of all money.) Opponents of this concept argue that local currency creates a barrier which can interfere with economies of scale and comparative advantage, and that in some cases they can serve as a means of tax evasion."

Well, I'm creating this topic to share some nice places where someone can find references regarding complementary (or local) currencies. Let's start it!

And also I'm trying to gather credits to build a web-site wchich will be using a nice software for the management of a virtual currency. But I'm going to talk about that later on, if this topic envolves some interest...

All the best,

daniel (from Brasil)

Notice from rejected:

Added in quote tags, please be sure to use the tag instead of quotes, thanks!

Edited July 4, 2005 by rejected (see edit history)

[BuffaloHelp 24]

It is such a well written introduction that I am afraid that my thoughts on this subject may dwindle your well-intention. However, from what you are suggesting, isn?t the perfect balance between the capitalism and the barter system that makes this world a great democratic society? The basic economic idea of ?supply and demand? is what drives us to get up each morning and face the inevitable truth: we will work until the day we die. And isn?t this part greedy force that drove us out as cave dwellers to a mansion in Malibu, driving a car that costs more than some tuition at Harvard? To give up human history of economic evolution is like asking us to move back to the cave and start hunting for our daily meal.To suffer is nature; a human being cannot be satisfied unless there are challenges that can be over come. And from that strive this human feels the joy of triumph and acceptance that one day it will get easier. We are living in some difficult times. Perhaps we are not living better than our parents and parents before them. And to revert back to the ?old ways? would be a mockery to all our ancestors who fought to keep the revolution in motion.

[Tyssen 0]

And to revert back to the old ways would be a mockery to all our ancestors who fought to keep the revolution in motion.

 

Eh? What revolution's this then? The only revolutions I can remember that involve changing economic systems have been communist ones and that's a completely different proposition from what's being discussed here.

Sure, we live in a capitalist society and it's been that way for millenia, but it's only in the last century or so that we've seen the emergence of the multinational conglomerate and the focus on profits for shareholders over and above all other considerations.

[dtygel 0]

Hi Tyssen and Buffalo,

 

First of all, don't bother about writing in an elegat way or not: what matters is the content

 

Well, let me present myself: I'm brazilian, and in our country we don't feel at all this relation between capitalism and liberty. And also, all the new thoughts about systemic science (read, for example, Humberto Maturana, Edgar Morin or Boaventura de Sousa Santos) make clear that we, as human beings, are mainly a cooperative species. Of course we are also competitive, that's clear. But we also think about solidarity, that is part of our beings.

 

I don't wake up every day to face the hard reality that I must work until the day I die: I simply like to do my work, it is good for my mind, my spirit, and my knowledge: I grow up daily because of the defies that come from life! And I love to grow, and to live, with all the sufferings and the death that comes after, of course!

 

But let me come back to the topic (sorry...). Some complementary currencies have their values cased on time, others on essential qualities (such as deeds, or talents), others have their values based on the values of the national currency, and finally others have instrinsic value, which is decided collectively in the community using the currency.

 

Why is it interesting to use those currencies locally? There are several reasons which move communities to adopt local currency systems:

 

1. To enforce local cohesion and integration (people will meet, debate, sell and buy in a warm environment, like a family, where trust and solidarity are the rule);

 

2. To enforce the local culture: it can be based on ethnical values, tribal values, and so on;

 

3. To alleviate poverty: in this case, the complementary currency is used among people excluded from the formal market, and they don't have much ordinary money, but they have what is really wealth: their work!

 

4. To develop small and medium enterprises (collaborative enterprises): the use of a complementary currency creates a small market with a "human face", where new enterprises can start their businesses and get ready for the formal market...

 

There are several other reasons, but I prefer to restrain my thoughts now. Let's tackle this issue later. Some interesting sites to see real experiences in this field in several countries and also to gather some theoretical background are listed bellow:

 

CCSyndicator - Coordinating Complementary Currencies Worldwide

The Transitioner

The Open Money Project

 

 

Directory of different complementary currenciy systems in the world

LETS (Local Exchange Trading System)

Future of Money Summit

Thoughts about Complementary Currencies for Alleviation of Poverty

About the LETS system

 

I hope to have contributed

 

Daniel Tygel (Brazilian Forum of Economy of Solidarity [url="http://forums.xisto.com/no_longer_exists/ )

[Saint_Michael 3]

well its all good and deep stuff but i tell you how the real world works. your statement:

4. To develop small and medium enterprises (collaborative enterprises): the use of a complementary currency creates a small market with a "human face", where new enterprises can start their businesses and get ready for the formal market...

in order to get ready for a formal capitalistic market you have to be a capitalistic from the beginning, if you follow old traditions like the tribes in brazil who rely on trading goods for other good, you will be going no where and eventually the bigger store will shut you down, that is the rule of capitalism, take out your compition by offering better services then the store next door.

2. To enforce the local culture: it can be based on ethnical values, tribal values, and so on;

well thats how the barter system has work since down of man, weddings for an example were a big deal look at india, bartering is still the way of traditional weddings (correct me if im wrong). remember people beleive paper has value it doesn't but people beleive thats how bartering and trading has evolved from ancient times.

"Advocates such as Jane Jacobs argue that this enables an economically depressed region to pull itself up, by giving the people living there a medium of exchange that they can use to exchange services and locally-produced goods (In a broader sense, this is the original purpose of all money.) Opponents of this concept argue that local currency creates a barrier which can interfere with economies of scale and comparative advantage, and that in some cases they can serve as a means of tax evasion."

and whats being said is true look at the whole incident with china they fix the value of their money to usa, thus screwing up the economy for many counties as well, but since they decided to cut off the currency altogether to the point where the value will still coninside with the the market , it will help people pull out of slumps and making business grow, the second part to this is that the local governments, can change the value of thier money, thus creating problems because then everyone has to try and much thiers to balance things out, why do you think most of the world bases thier money off united states, cuz we are the purest form of capitalism, look how the current market is right now, are us dollar sucks compare to everyone elses, cuz the market is in a slump due to big business taking over the samller ones.

and to finish up my opinion or rather the real world..

1. To enforce local cohesion and integration (people will meet, debate, sell and buy in a warm environment, like a family, where trust and solidarity are the rule);

it never lasts, people are to suspicious of each for it too work, why do you think we are having all these problems cuz no one can trust anyone anymore. but now big businesses rely on cheap labor, thus making more problems with the economy in the long run.

WTO has set teh rules if only people would following them we wouldn't be having as many problems, but then again no one cares what people think its all about making money and being number #1.

[goldinero 0]

dtygel has some valid points. I've never heard of a complementary currency system before, but it sounds a lot like the Social Credit system proposed in Canada circa 1930. Refer to the links below:

The Money Myth Exploded

Social Credit: Make Your Own Bank

Although people like to think the United States as the epitomy of pure capitalism, I'd challenge that thought. The banking system in the US is a pure monopoly regulated entirely to the benefit of those who own it. And the existing fractional banking system promotes scarcity of money and, therefore, poverty.

Banks create money by making so-called loans. But the amount of money created by these loans only covers the principal. The interest is never created. Since all money comes from loans and the interest on loans can only be paid by new loans, foreclosures and bankruptcies are unavoidable. Inflation is also unavoidable.

In a purely capitalist economy, there would be no banking monopoly. Money would be created by private enterprise and its value determined by the free market. Junk money would be quickly abandoned and solid money would be quickly adopted.

Who knows? Perhaps a complementary currency system will lead to that end.

[Saint_Michael 3]

the thing is thought that you can't have pure capitalism cuz its going to be flaw no matter how many laws you make to make it better, the system will always be flawed.