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THE COMMUNITY CURRENCY MOVEMENT COMMUNITY THE CURRENCY MOVEMENT Local currency and barter systems are on the rise around the world in response to global economic forces and the desire to bring communities together, enhance skills, sell goods and services and stimulate productivity. SIDESTEPPING THE DEBT WEB WITH "PARALLEL" CURRENCIES It is as ridiculous for a nation to say to its citizens, "You must consume less because we are short of money," as it would be for an airline to say, "Our planes are flying, but we cannot take you because we are short of tickets." — Sheldon Emry, Billions for the Bankers, Debts for the People contractual agreement among a group of people to accept those okens at an agreed-upon value in trade. The ideal group for this contractual agreement is the larger community called a nation, but, if that arger group can't be brought to the task, any smaller group can enter into an agreement, get together and trade. Historically, community currencies have arisen spontaneously when national currencies were scarce or unobtainable. When the German mark became worthless during the Weimar hyperinflation of the 1920s, many German cities began issuing their own currencies. Hundreds of communities in the United States, Canada and Europe did the same thing during the Great Depression, when unemployment was so high that people ad trouble acquiring dollars. People lacked money but had skills, and there was plenty of work to be done. Complementary local currencies quietly coexisted along with official government money, increasing liquidity and acilitating trade. Like the mediaeval tallies, these currencies were simply credits attesting that goods or services had been received, entitling the bearer to trade the credit for an equivalent value in goods or services in the ocal market. Me: is a token representing value. A monetary system is a Community currencies now operate legally in more than 35 countries, and there are over 4,000 local exchange programs worldwide. Local or private exchange systems come in a variety of forms. Besides private gold and silver exchanges, they include local paper money, computerised systems of credits and debits, systems for bartering labour, and systems for trading loca agricultural products. What distinguishes them from most nationa currencies is that they are not created as a debt to private banks, and they don't get siphoned off from the community to distant banks in the form o interest. They stay in town, stimulating local productivity. Local currencies can "prime the pump" with new money, funding loca projects without adding to the community debt. Many governments actively support them, and others give unofficial support. Experience shows tha these additions to the money supply strengthen rather than threaten national financial stability. Besides their monetary functions, local exchange systems have served to bring communities together, funding cooperative businesses where members can sell goods, new skills can be learned and public markets can be held. by Ellen Hodgson Brown, JD © 2007-2009 from chapter 36 of her book The Web of Debt (Third Millennium Press, Baton Rouge, Louisiana, USA, 2007, third edition 2008) Website: http:/Awww.webofdebt.com by Ellen Hodgson Brown, JD © 2007-2009 from chapter 36 of her book The Web of Debt (Third Millennium Press, Baton Rouge, Louisiana, USA, 2007, third edition 2008) Website: http://www.webofdebt.com NEXUS ¢ 25 AUGUST — SEPTEMBER 2009 www.nexusmagazine.com