Re: Local Currency Article

["Don Jamison" <donjam@together.net>]

On the topic of commodity-base currencies, Ralph Borsodi's "market basket"
idea should be considered -- i.e. base the currency on a number of
commodities widely recognized as valuable in the community.  That way, the
currency isn't as vulnerable to market fluctuations.  Susan Witt at the E.
F. Schumacher Society knows about this.


-----Original Message-----
From: David Spitzley <dspitzle@gw.wash.k12.mi.us>
To: EOsubnat@cog.kent.edu <EOsubnat@cog.kent.edu>
Date: Tuesday, December 10, 2002 9:04 AM
Subject: Re: Local Currency Article


>>>> PBottissr@aol.com 12/09/02 11:02PM >>>
>http://www.norfed.com/?REFERER=NRC74095
>
>This has been growing and it might be the wave of the future.
>Paul R. Bottis Sr.
>-------------------------------------------------------------
>
>I've never been entirely clear why gold should be such a hot topic with
>money reformers, as I consider it to be basically shiny lead; if I could
>eat it, I might see the appeal.  What I'm curious about is how they deal
>with divergence between the value of the currency  and the monetary
>value of the gold as gold prices change.  If a $10 piece of gold scrip
>is supported by $15 of gold due to price increases, do they take the $5
>of gold and print a $5 bill based off it?  Given this is basically the
>same method used prior to central banking, it's presumably vulnerable to
>the same sorts of abuses, or at least a drift towards fractional
>reserves.
>
>Still, you have a point about the use of gold-based scrip as something
>which seems to be spreading.  One of my fellow Ph.D. students was
>actually listed as a contact person for purchase and redemption of one
>of the currencies.  Still, it occurs to me that a counterfeiter could
>have a field day creating spurious "gold-based" currency notes of a new
>style and using them in areas well-penetrated by the established gold
>notes.  Ironically, if they were accepted by a community as valid,
>they'd be worth just as much as the authentic currencies, as the
>willingness of people to accept a scrip is the only real measure of its
>value.
>
>
>David
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