Struggling towns printing their own cash

Struggling towns printing their own cash

articles.moneycentral.msn.com

In an echo of the Great Depression, local currencies with their own special flavors are popping up all over in attempts to give commerce and communities a lift.

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I wasn't sure which how or where to post this, but it is interesting. I remember hearing about a gentleman creating gold currency or dollars back by gold and the government pressing charges against him. However, this story seems to be popping up more and more. I wonder if this is further evidence that the economy is in really worse shape than they admit.

articles.moneycentral.msn.com
(visit the link for the full news article)

I guess that would be one way to fight the globalization the federal government wants. Print your own state currency that is valued differently than fed money.

That's great! More towns need to try that... that is awesome!

Originally posted by JBA2848
I guess that would be one way to fight the globalization the federal government wants. Print your own state currency that is valued differently than fed money.

That was actually done up until 1900. I have a friend who has currency from 1880 that was in really good shape. Look on E-bay and you can find all kinds of old currency printed in certain towns and States.

It is just now coming full circle and it is not illegal, if you have something to back it up with, there is no federal law, only a regulation for the U.S. Corporation and not the U.S.A.

It can't be illegal. It's essentially just a form of trade.

Power to the people, I say!

In my home town Dundee in Scotland we have the Squid not to popular yet but it can be used in a variety of places around town.

Its 1:1 exchange rate at the moment I like it because it keeps the money more local.

I can see the exchange rate going down though once some big company picks up on it and buys it and if that happens then small local currencies will go belly up.

I want to know how this is not illegal but coining gold and silver coins is illegal?

2nd line.

This should fall under state rights, and if a state decides to make its own currency there should be nothing the Federal government could do about it.

During the Civil War, the south had state notes, I would like to see this again; it would really show the Feds and the Fed who is in power.

reply to post by xstealth


There is now new legislation regarding the printing of local currencies? With the Patriot act and all kind of other new legislations, I find that hard to believe.

Personally, I don't know what to think of this. It shows how severe and desperate the situation has become. Weather it's bad... I don't know, but I don't think the Fed is gonna like it.

Starred and flagged.

How will printing their own cash help the economy? Since the people there would also be using the normal US dollar then people in the stores will just raise their prices because there'd be more money.

People all over the world are experiencing issues because of the problem in America, so it's hardly a state thing.. how can someone think that by printing their own money they are doing more good than harm is beyond me.

I don't know anything about money or the economy though, that's just my opinion based on what sense I have (which is none).

Originally posted by xstealthDuring the Civil War, the south had state notes, I would like to see this again; it would really show the Feds and the Fed who is in power.

So simply put, that does sound fantastic. The renegade south claiming their sovereignty financially and physically. However the truth of the matter is that it wouldn't get much better.

The people controlling the confederate dollar were no more interested in the common man and escaping the financial system than they're Yankee brothers. A true local currency, cool. A currency used by half the US, not so cool.

All imo, of course.

reply to post by Nventual


In the event of a bank holiday, or the expected mass devaluation of the dollar, having a small percentage of local cash being in something other than federal reserve notes will make life far less difficult in the transition from FRN's to something else. This is especially the case if the notes are backed one for one by real assets.

It might cause a little inflation in goods prices compared to the rest of the country, but likely less than even living wage rules would. After the financial disaster, the local asset notes would then be printed up to level of matching the amount of assets backing them and further as it is unlikely a bank would accept them, they remain used for what cash should be used for, to facilitate trade of goods and services, not to be horded.

This is ok for a small very local community. But in the end there would be mass counterfeiting if this gained wide spread use.

i like this thread...
now about illegal.....that's the greenback. the others that were backed by gold are more of a good idea.

Originally posted by Nventual
How will printing their own cash help the economy? Since the people there would also be using the normal US dollar then people in the stores will just raise their prices because there'd be more money.

People all over the world are experiencing issues because of the problem in America, so it's hardly a state thing.. how can someone think that by printing their own money they are doing more good than harm is beyond me.

I don't know anything about money or the economy though, that's just my opinion based on what sense I have (which is none).

It is simple and you don't really need to know much, just understand basics of current economy. Your town can print same dollars as the Fed, the difference is how are they distributed and under what conditions. Problem with the Fed is that it tends to give away couple of billion dollars to those that protect and nourish it, while your local printer Mr. John Smith is a honest man and he's not going to give a trillion dollars to fund his own private army of storm troopers. Well, that's just one of the simplest problems, but you get the basic idea.
Of course, in order to trade with other towns you'd have to trade with actual gold, silver, potatoes or what have you - your paper means nothing to others, since they may not trust Mr. John Smith. But no problem, if your currency is efficient and people can buy actual gold, silver or potato with it ("gold back value") then you've got nothing to worry about. If it's corrupt and all you can really buy is your own right to exist, well, then Mr. John Smith eventually brings forth his army of storm troopers he's been making all the time.
I just really made it extremely simple, but in essence that's how economy economic crisis really works. There's also treasury, taxing system and in today's world - oil, they all greatly influence global economy.

[edit on 15/2/2010 by SassyCat]

I hope they know every dollar they print has interest attatched to it

reply to post by Nventual


This is simply a form of local bartering and is an excellent way of keeping trade local. The only way this works is if people in the local area recognize the importance of buying local and "buy-in" to the idea. Basically, you have two forms of money - the local one and the dollar (which you use to buy things outside the local area). The more people start to buy local, the more the local economy grows, which, in turn, creates more local jobs... and so on. Local inflation only increases as much as the local economy will sustain it - meaning, if someone raises their prices too much, people won't buy, then they simply will lower them to get sales back. The difference here is that there is no "unknown" force in the mix - namely, the Federal Reserve. It protects local economies in times of massive federal inflation (the dollar) because locals have an alternative to the dollar.

Great form of trade, actually.

Edit to add: There are a number of different ways they could choose to do this, and ways that aren't like what I describe above. For example, one community in Massachusetts does it this way:

BerkShares

BerkShares are placed in circulation when citizens exchange federal dollars for BerkShares at any of the BerkShares Exchange Banks (see list below). Some restrictions may apply.

Citizens may exchange federal dollars for BerkShares at any of the BerkShare Exchange Banks during normal bank hours (some restrictions may apply):

Banks Accepting Berkshares - see list
Berkshire Bank—Main Street, Great Barrington branch
Berkshire Bank—Stockbridge Road, Great Barrington branch
Berkshire Bank—Main Street, Stockbridge branch
Berkshire Bank—Lee branch
Berkshire Bank—Sheffield branch
Berkshire Bank—West Stockbridge branch
Lee Bank—Main Street, Great Barrington branch
Lee Bank — Park Street, Lee branch
Lee Bank—Elm Street, Stockbridge
Lenox National Bank-Main Sreet branch, Lenox
Pittsfield Coop Bank—Main Street, Great Barrington branch
Salisbury Bank—Egremont branch
Salisbury Bank—Sheffield branch

The exchange rate is ninety-five cents per BerkShare. Ninety-five federal dollars will yield one hundred BerkShares. BerkShares are printed in 1, 5, 10, 20, and 50 denominations of BerkShares.

Federal dollars remain on deposit at the BerkShare Exchange Banks to redeem excess BerkShares at a five percent discount. 100 BerkShares would be exchanged for ninety -five federal dollars.

[edit on 15/2/2010 by Iamonlyhuman]

Originally posted by SuperSlovak
I hope they know every dollar they print has interest attatched to it

Because it's tied 1:1 with FRNs?

North Dakota boasts the only State Owned bank in the nation.

Look it up and read about it. It is amazing.