Nexus - 1605 - New Times Magazine-pages

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after each other and checking in; and they begin to set up food bank coops. |The process] seems to act as a catalyst for the creation of group cohesion in a society where that kind of catalyst is difficult to find. some places, frequent flyer miles can be spent for groceries, telephone calls, taxis, restaurants and hotels. Lietaer proposes extending this model to local governments, to achieve community ends without the need to tax or vote special appropriations. For example, a system of "carbon credits" could reward consumers for taking measures that reduce carbon emissions. The credits would be accepted as partial payment for other purchases that serve to reduce carbon emissions, producing a snowball effect, and businesses accepting the credits could use them to pay local taxes.’ Local scrip has also been used to tide farmers over a system of "carbon credits" could reward consumers for until harvest. "Berkshire Farm Preserve Notes" were — taking measures that reduce carbon emissions. The printed by a farmer when a bank in rural Massachusetts credits would be accepted as partial payment for other refused to lend him the money he needed to make it purchases that serve to reduce carbon emissions, through the winter. Customers would buy the notes for — producing a snowball effect, and businesses accepting $9 in the winter and could redeem them for $10 worth of _ the credits could use them to pay local taxes.’ vegetables in the summer. With small family farms rapidly disappearing, local currencies Parallel Electronic Currencies: Local of this type are a way for the Exchange Trading Systems (LETS) community to help farm families that . Alternative currency systems got a have been abandoned by the Like the tally major boost with the advent of centralised monetary system. Private computers. No longer must private currencies provide the tools to bind system of coins be minted or private bills be communities together, support local mediaeval pre ed. Trades can now be done food growers and maintain food ano. 9 electronically. supplies.’ England, It Is Just The first electronic currency system aaa Lictaer, author of The rare an accounting was devised after IBM syeases ear of Money, describes other private . computer to the public in . currency innovations, including a scheme tallying Canadian computer expert Michae system devised in Japan for providing credits in and Linton built an accounting database, for elderly care that isn't covered by . and in 1982 he introduced the Loca national health insurance. People debits out. Exchange Trading System (LETS), Naning relationship tickets" thot LETS credits fecording transactions and are put into a savings account. cannot become eeping accounts. They can then be used when the scarce any more Like Co ton Mather more than account holder becomes disabled, wo centuries earlier, Linton had or can be sent electronically to than inches can redefined money. In his scheme, i elderly relatives living far away, become scarce. was merely “an information system or recording human effort". A LETS credit comes into existence when a member borrows the model is found in Bali, where community's credit to purchase communities have a dual money goods or services. The credit is system. Besides the national currency, the Balinese use —_ extinguished when the member gives goods or services a local currency in which the unit of account is a block —_ back to the community in satisfaction of his obligation of time of about three hours. The local currency is used __ to repay the credits. The exchange operates without any when the community launches a local project, such as _ form of "backing" or "reserves". putting on a festival or building a school. The villagers Like the tally system of mediaeval England, it is jus’ don't have to compete with the outside world to —_ an accounting scheme tallying credits in and debits out. generate this currency, which can be used to accomplish = LETS credits cannot become scarce any more than things for which they would not otherwise have had the inches can become scarce. They are tax-free and where someone else will administer care in return for credits. Another interesting funds.‘ interest-free. They can be stored on a computer withou even printing a paper copy. They are simply The Frequent Flyer Model: Supplemental Credit information. There are now at least 800 Local Exchange Systems Trading Systems in Europe, New Zealand and Australia. Another innovation that has served to expand the They are less popular in the United States, bu medium of exchange is the development of corporate = community currency advocate Tom Greco feels they wil credits such as airline frequent flyer miles [or points], | become more popular as conventional economies which can now be "earned" and "spent" in a variety of | continue to decline and more people become ways besides simply flying on the issuing airline. In "marginalized". Like the tally system of mediaeval England, it is just an accounting scheme tallying credits in and debits out. LETS credits scarce any more than inches can The Frequent Flyer Model: Supplemental Credit Systems Another innovation that has served to expand the medium of exchange is the development of corporate credits such as airline frequent flyer miles [or points], which can now be "earned" and "spent" in a variety of ways besides simply flying on the issuing airline. In NEXUS ¢ 27 cannot become become scarce. AUGUST — SEPTEMBER 2009 www.nexusmagazine.com