Category Archives: Developing Alternatives

Get Ready to Play in the Butterfly Economy

Presentation by Thomas H. Greco, Jr. to the (virtual) 2020 Annual Convention of the International Reciprocal Trade Association (IRTA.) on September 24, 2020.

A Landmark Event in Exchange Alternatives

Greetings,

This is a heads up to inform you of an important upcoming virtual event in which I will be a featured presenter. It is the annual convention of the International Reciprocal Trade Association (IRTA), the premier organization for the commercial trade exchange industry and a leading force for monetary and financial innovation.  

The theme of this year’s convention is Navigating the Future, something that is becoming increasingly problematic for businesses and individuals alike, especially in the wake of the massive economic disruptions of the past several months. But every crisis brings with it opportunities, both for good and for ill, and we will need to choose wisely.

The presenter lineup is the most diverse and interesting to date, and brings together knowledgeable experts representing all aspects of the exchange revolution, including commercial, grassroots, for-profit, non-profit, and technologies like crypto currencies and blockchain.

The convention will convene virtually over three days, September 23rd-25th, 2020, for four hours each day. You can see the entire list of presenters and the full program schedule at the convention website: https://irta.pathable.co/

My interactive session, titled “Get Ready to Play in the Butterfly Economy,” is scheduled for Thursday, Sept. 24th at 1:45 PM Eastern time (10:45 AM, Pacific and Arizona time).

Here are some convention highlights:
Michael Terpin, the “Godfather of Crypto & Blockchain” will be the Keynote Speaker!

Other presenters will include:

  •  Giuseppe Literra, Founder of Sardex & Local Pay, Sardinia, Italy
  • Will Ruddick, social entrepreneur and founder of the Grassroots Economics Foundation
  • Dr. Lee Oi Kum, SME Visionary, Singapore & Malaysia
  • Caroline Macdonald, COO, BBX, Artamon. Australia 
  • Dariusz Brzozowiec, Co-Author, University Research Paper on Economic Security of Regions During the Covid-19 Period in Poland.
  • And, of course, yours truly.

Because of the key role that the exchange of value plays in the lives of every person on Earth, and in light of the evident failures of existing systems of money, banking and finance, anyone can benefit from participation in this IRTA convention. Don’t miss it!

Ticket prices are extremely reasonable and are available on Eventbrite at: 
https://www.eventbrite.com/e/irta-2020-virtual-convention-tickets-117110644089?aff=affiliate1

Hoping to see you there,
Thomas

Walking Away: From the “New (Old) World Order,” into the Old (New) World Order. Part I

ObeySleep1

Global pandemic, social distancing, widespread shut-downs, testing and “tracing,” economic crisis, and more recently, massive protests and social unrest, not just in the US, but around the world — What does it all mean? Like virtually everyone else in the world, my attention lately has been focused on that question.

I don’t feel terribly anxious about Covid-19, even though for me personally it poses a significant existential threat. Although I’m fortunate to have no chronic illnesses, I am well advanced in years, and according to some recent reports, my gender, blood type, and ethnic heritage may put me further at risk.

I am more concerned about the social, political and economic impacts of the situation and governments’ reactions to it which may turn out to be more disruptive than the pandemic itself. At the same time I am hopeful, even optimistic, that this crisis brings with it great opportunities for positive changes that are long overdue.

Read the full article here

The true pathway to peace, prosperity and freedom

For the past four decades E. C. Riegel has been my primary source of insight and

E,. C. Riegel

inspiration on the concepts and mechanisms of money and exchange. Writing mainly from the 1920s thru the 1940s, his is vision is acutely penetrating and his expression clear and almost poetic. For that reason I and a few others have made every effort to make his work known to a much wider audience. His most important works are freely available to be downloaded and I have listed the web links on my website under the Library menu item at https://beyondmoney.net/library/.

I realized very early in my peace and justice work, that the primary obstacle to peace, justice, and freedom, lies in the centralization of power and the concentration of wealth. Riegel and others helped me to see that the global money and banking system is the main instrument by which that is made possible. Riegel opened my eyes to the true nature of money and the fact that we the people already have in our hands the power to create true money. He pointed out that “Heretofore, economics has located the source of production at one point and the source of money at another, with the result that synchronization and balancing of issue between wealth producing power and money power were impossible.” Riegel then laid out a way to bring those two powers together, a plan which I, in all modesty, have enhanced and adapted to present conditions.

I’ve lately been in the process of preparing a document containing excerpts from Riegel’s 1944 book, Private Enterprise Money, along with my comments, much as I did years ago with my annotated précis of his book, Flight From Inflation. That may take a while to complete but I would rather not delay in sharing with my readers a little gem from pages 106 in which Riegel presciently described our present predicament. Here it is:

THE SURPRISE WEAPON

Society is in the twilight of a passing day. The state now undertakes to finance the economy, and, since a free economy is manifestly impossible where the state assumes the responsibility of supplying the money circulation, the politician is compelled to choose between fascism and communism. Under either choice liberty is abolished and the people are enslaved. As the planners all over the world adopt their devices for a managed economy, and ideologists and sloganizers prepare their implements to condition the minds of men to their control plans, and the cause of human freedom seems defenseless, there falls into the hands of the people a surprise weapon that will turn the tide of battle and give the people mastery, not only over their private affairs, but over the would-be political planners. This weapon is the people’s money power as defined in the following pages. It will change the whole course of human events into the paths of liberty, prosperity and peace.

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Community Currencies — Questions and Answers

I receive a steady stream of requests for information and advice, which I’m not able to address as fully as I might like. For the most part, the answers that people seek have already been expressed in my various writings, presentation and interviews. Still, I understand and share the desire to save time and effort by finding shortcuts to enlightenment. So I take these inquiries as opportunities to rethink and work out better ways of explaining the ideas I’ve been trying to get across for many years.

Thinking that many of my followers might benefit from my recent responses, I’ve compiled some of them to share in this document.
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Q1: What is money and what is its purpose?

A: Money is a credit instrument that facilitates the exchange of value.
That’s a simply as I can state it.

Q2: Who can or should issue a currency?

A: Any business can issue a currency (essentially an IOU) to suppliers, who are willing to accept it. But to make it credible and acceptable to them, the issuer must be ready, willing, and able to redeem it in a timely manner. They redeem it by accepting it back as payment for the goods or services they sell. That’s all there is to it. But, it’s better if a group of sellers do this together with other others rather than singly. That can be done by organizing a mutual credit clearing circle (trade exchange) as I’ve described in numerous writings and presentations, e.g., Credit Clearing – Pure and Simple.

Q3: Why do communities adopt their own currencies?

A: There are various reasons why communities adopt their own currencies and there are various ways of issuing them.

Most of the hundreds of community currencies that have been issued over the past three decades in various places around the world have had the avowed purpose of keeping money circulating locally instead of “leaking out” to the wider world. The idea is that if money can be kept circulating within the community it will enable a greater number of local business transactions leading to greater community prosperity.

Most of these currencies have been backed by conventional money. That is all well and good, and there are various conditions and procedures that can be employed to maximize the impact, as I have described in my recent article, Monetary alchemy: how to turn bad money into good.

Another reason why communities issue their own currencies is to create “home grown liquidity,” i.e., to make up for the failure of the banking system to provide adequate amounts of exchange media to local businesses, especially the small and medium sized enterprises that for the backbone of every community economy. This type of currency is not backed by conventional money, but by the goods and services that local businesses stand ready, willing and able to sell. This type of currency may sometimes be spent into circulation by a single business then accepted back as payment for the merchandise it sell, but more typically, it will take the form of “trade credits” issued within a cooperative trading circle comprised of several hundred businesses and/or individuals. Illustrative of this are the scores of commercial trade exchanges that are operating in countries around the world, and the grassroots trade networks known as LETS, Local exchange trading system. For a comparison of the effectiveness of different models of currency and exchange systems, see my article, Local Currencies—what works; what doesn’t?

Q4: Do community currencies generally exist to solve a particular problem? In the case of Tenino, WA, I know the money is going primarily to low-income residents, but I’m curious why specifically they’re being given a local currency instead of cash aid in US dollars.

A: Yes, as described above, community currencies generally exist to enable more local transactions and/or to make up for the shortage of official exchange media (dollars).

I had not heard of the Tenino currency before, but after reading the article about it in the Seattle Times I understand that it is a dollar backed voucher currency in which theTenino2020 dollars are provided as a grant from the city government to eligible recipients. The city government may have their own reasons for giving out “a local currency instead of cash aid in US dollars,” but a couple obvious advantages of the local currency are that (1) it can circulate numerous times before being redeemed for dollars, giving a boost to the local economy, and (2) restrictions can be placed on how recipients can spend it. In the Tenino case, according to the Seattle Times, the local currency cannot be used to purchase alcohol, tobacco or marijuana. Of course some clever people will likely find ways to circumvent that restriction.

There are other restrictions that I would suggest be applied to maximize the benefits that derive from such a currency. These relate to who is allowed to redeem it for dollars (e.g., only local business operators), when they are allowed to redeem it (perhaps several months or years in the future), and on what terms (maybe at a 10% discount from face value). Each of these would encourage the local currency to change hands many more times and thus provide a greater stimulus to the local economy.

Q5: Does Tenino’s model resemble any other community currencies you’re aware of? How do these currencies differ from each other, generally?

The Tenino currency resembles a great many other local currencies around the world that are all backed by conventional money and follow the ‘convertible local currency’ (CLC) model. Examples include the Bristol Pound and Brixton Pound in the UK, Toronto Dollars and Salt Spring Island Dollars in Canada, and Berkshares in the US.

Further, Salt Spring Island Dollars and Tenino currency both have appeal as collectibles and will never be redeemed for dollars, thus providing a windfall profit for the community.

Q6: Many currencies base their value on how the public perceives its value. For example, the US dollar is the world’s most accepted currencies because people know they can spend it in most places. How do you convince individuals and businesses to use it and trust it?

A: Political currencies, like the US dollar, have the support of their governments and central banks. The US dollar has the “full faith and credit” of the US government behind it and it must be accepted “for all debts, public and private.” These are the factors that cause it to be generally acceptable as payment. As the global reserve currency, the US dollar is in high demand among the banks and governments of other countries, despite the fact of rapidly rising UD government debt and the dollar’s continual loss of purchasing power.

Community currencies do not have those same advantages so they must stand on their own feet as credible credit instruments. What makes such a currency credible, sound, and acceptable in trade is its redeemability either in conventional money, or in goods and/or services that are generally desired and needed.

Q7: If a community currency wants to survive for the long-term, what does it need to do?

To survive long-term, a community currency must be issued into circulation on a sound basis or foundation; it must be usable as payment for a wide variety of essential goods and services; it must be have the support of the local business community.

Specific design and operation details are provided in my various writings and presentations, including my article, How to Bring Liquidity Into an Economy, Free of Interest, Inflation, and Boom and Bust Cycles, and my most recent book, The End of Money and the Future of Civilization.

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After the Great Pause–toward a New Society

Recent events have made it clear that there is no going “back to normal.” It seems to me that in this time of flux there are many possibilities, but I think they boil down to two fundamental choices. The world can continue on the trajectory of increasing concentrations of power and wealth, and dominance of the many by the few, or society can begin to decentralize and move toward community empowerment and local control.

Many are calling for people to embrace “a new human story founded on the principles of connection and diversity” and argue that such a story is already emerging.

The upcoming online event called World Localization Day promises to move our collective consciousness in that direction. I’ve already registered to participate and suggest that others do likewise. It will be happening next Sunday, June 21. This global event will be streamed three times: starting at 4pm in Sydney, 4pm in New York and 4pm in London. Registration fees are on a sliding scale, or even free for those with scant means.

As the website says:
After COVID-19, we can return to stressful disconnected lives and climate catastrophe, or we can slow down, scale down and rebuild our connections to each other and to the Earth.

Check it out.

My latest article in Medium

The global money system: not the kind of normal we should get back to describes the urgency, and the opportunity, of ushering in a new, more equitable and sustainable economy based on the deployment of the innovative mechanisms of exchange and finance that I have long advocated. We need to ask ourselves what it is that keeps us on the treadmill. We try to get ahead but so often we end up simply standing still or falling farther behind. We are all chasing after that thing that everyone demands from us–money. The problem is that there is never enough money in the right places to fairly distribute the vast amount of wealth that the economy produces. What if we could all stop chasing after money? Money scarcity is an artifact of the interest-based, debt-money regime. Better means of exchange are available; we simply need to organize and use them.

A Conversation About the Dysfunctions of Money, and the Need for Decentralized Exchange Alternatives

This conversation, sponsored by the Praxis Peace Institute, is Episode 8 in our podcast series. It was recorded on April 10, 2020 and covers such critical questions as:

  • What is the essence of money?
  • What are the functions of money?
  • Where does money come from?
  • How does money enter the economy?
  • Who controls the issuance and flow of money?
  • Why does total debt in the world keep growing?
  • Is the system of money, banking, and finance stable, fair, sustainable?
  • Are there better ways to “do” money?
  • Why have local currencies not been more successful?
  • Are there any success stories?
  • Is there a “magic formula” for making an alternative money system work?

It continues with a discussion of the history of local currency efforts in Sonoma County, California and a description of straight forward approaches to creating local liquidity that is independent of banks and conventional money.

The Economics of Peace, Justice and Sustainability

This video is based on a presentation I gave at the Economics of Peace Conference in Sonoma, California in October, 2009. My prescriptions for reclaiming the credit commons and creating a new “butterfly economy” remain completely relevant, and their implementation is becoming ever more urgent.

A PDF of the slide show can be downloaded here.

The Exchange Revolution

In November of 2009, I gave a presentation at the conference on Michigan’s Future Energy, Economy & Environment, at Crystal Mountain Resort in Thompsonville, Michigan. More than 10 years later, this presentation is still timely.

Ken Freeman has recently augmented and adapted recordings of that presentation to produce this new video, titled, Exchange Revolution, which has now been posted on our Beyond Money Podcast site. It is a comprehensive description of the what and how of transcending the political fiat money regime, and building a new equitable system of value exchange.

It can also be found on YouTube at https://youtu.be/MvTMcvVzNuQ. The transcript can be found here.