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Thomas h. greco jr. complementary currency and exchange - the state of movement


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Thomas h. greco jr. complementary currency and exchange - the state of movement

  1. 1. Complementary Currency and Exchange The State of the Movement
  2. 2. Modern Money is CreditMoney has evolved through stages• Commodity money• Symbolic money• Credit money
  3. 3. What is the Credit Commons? The credit commons isthe virtual pool of credit and trust.
  4. 4. The Credit CommonsThe In’s and Out’s of the Credit Commons Credit is based on trustWe all put in, but who can take out?
  5. 5. The Credit Commons “Loans” Banks “Loans” “Loans” Central GovernmentThe Credit Commons can be accessed only through banks!
  6. 6. The Exchange Process is Being ReinventedComplementary Currencies and CreditClearing Arrangements are Emergingon Various Levels and Fronts. The “credit commons” is being reclaimed.
  7. 7. Main Currents of the Movement Voluntary For-profit Grassroots BusinessSocial Action Exchange Options Mutual Credit/LETS Barter Exchanges Community Currencies Trade Exchanges
  8. 8. All over the world,mutual credit systemsand communitycurrencies are emerging.
  9. 9. InArgentina,tradingclubs andprivatecurrenciesproliferatein the faceofeconomicandfinancialstringency.
  10. 10. Commercial interests are discoveringthe advantages of direct credit clearing.
  11. 11. Provincial Government Currencies
  12. 12. Promising DirectionsFreedom approaches based on voluntaryparticipation, that involve• Grassroots organizations,• NGO’s• Associations of businesses,• Municipal and provincial governments,• For-profit enterprises
  13. 13. What Are the Innovative Technologies in Money and Banking? Mutual credit. Credit Clearing. Co-responsibility. Internet based markets, social networks, accounting and information management. Reliance upon “strong identity.” Reliance upon peer-to-peer reputation ratings.
  14. 14. It Is the Unique Combination of Elements That is RevolutionaryThese technologies are being combined into new products that make the exchange process: Simpler Less costly More efficient More equitable More democratic Easier to understand Sustainable
  15. 15. The Next “Free Abundance” is CreditThe present system of money and banking is a chokeon credit, which is potentially infinite and free.The practical limits of credit are: • The productive capacity of the buyer, and • The trust of the sellerThe appropriation of credit by the government andbanking sectors diverts a huge proportion of economicoutput from need satisfaction to accumulation andwaste.
  16. 16. Why Community Currencies Sometimes Stagnate or FailFailure of reciprocity (non-redemption) • System design flaws • Improper basis of issue • Over-issuance • Lack of clear agreement between issuers and users • Management issues • Lack of accountability and transparency • Inadequate management procedures and controls • Failure to respond to internal or external threats
  17. 17. Why Community Currencies Sometimes Stagnate or FailScale and scope• Failure to achieve critical size• Limited number of issuers and narrow range of goods and services offered• Failure to penetrate all levels of the production/distribution circuit• Failure to gain wide acceptance within the mainstream of business
  18. 18. Issuance and Circulation at All Economic LevelsWholesalers Retailers EmployeesManufacturers Basic Commodity Producers
  19. 19. Evaluating A Currency Questions That Should Be AskedWho is the issuer?How is it issued into circulation?What is the basis (foundation) of issue?What is the amount currently in circulation?What are the terms of the (explicit or implied) contract offered bythe issuer to the users of the currency, i.e., • What does the issuer promise? • What is the form of redemption? • What are the limits, if any, on the amount that may be issued? • What is the duration of the contract? Is there an expiration date? • Are there any fees, conditions, or limitations associated with redemption?
  20. 20. The Future of Money is No MoneyThe highest evolutionary step of reciprocalexchange is the process of mutual credit clearing.The future of exchange lies in decentralizedautonomous mutual credit clearing networks.These networks will be linked together without thecenter destroying their autonomy.
  21. 21. A New Economic Order?“…extension of exchange transactionswithout state money is in reality thebeginning of a new system of settlingaccounts, indeed the beginning of a neweconomic order." --Ulrich von Beckerath
  22. 22. It is Time to: “…re-conceive in the mostfundamental sense, the very idea of bank, money, and credit card …” -- Dee Hock, CEO emeritus, VISA International
  23. 23. SourcesBooks:• Money: Understanding and Creating Alternatives to Legal Tender - Greco• Money and Debt: A Solution to the Global Crisis - Greco• Flight from Inflation - Riegel• The New Approach to Freedom - RiegelWebsite: http://www.reinventingmoney.comBlog: