I like this. It explains that local money can work. It's a dimension to money that is little understood.
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The Bristol currency is an interesting development and should be foolproof. I thought you might like this link, Richard. While much simplified, it does explain the banking process in easy reading and where it inevitably leads.
http://viracocha.tripod.com/Salvation.htm
I post this without looking at the link – sorry
excellent link. but how do you decide how much each person gets to start with? and what happens to the person who spends every last penny on women and beer? does he have to go to the other islanders for a ‘loan’? or does everyone get a minimal additional amount every week, thereby taxing the wealth of the community to ensure everyone gets a second chance?
Interesting thoughts. No doubt there could be a Monetary Policy Committee who could decide how to “help” those who had sunk into the world of women and drink. It would not be too difficult to set up package tours to this island!
In this story, http://viracocha.tripod.com/Salvation.htm, doesn’t the banker have to spend the profits (interest) with the islanders or else starve to death?
The thing is the system can work if we view interest as simply the cost of maintaining it. Any currency has costs, for instance to print the notes etc. Of course, if the interest (cost of the currency) is too high then others should be free to step in with a less expensive one. So maybe the real problem is that currencies are monopolies, run by banks in cahoots with governments?
Still, could that be about to change with the advent of the likes of bitcoin?
I have not viewed the story
But it sounds off beam