MoneyMoney

Monetary reform and Monetary reform and complementary currenciescomplementary currencies

What iWhat iss Money ? Money ?

Functional Definition – what money Functional Definition – what money doesdoes

Money is a:Money is a:

Medium of exchangeMedium of exchange Measure of value Measure of value Store of valueStore of value

These roles are These roles are incompatibleincompatible

Amongst money's many functions, that of the Amongst money's many functions, that of the lubrication of a fully functioning economy is the most lubrication of a fully functioning economy is the most basic.basic.

This role may be incompatible with the role money now This role may be incompatible with the role money now plays as a commodity in international speculation. plays as a commodity in international speculation. From the perspective of the local economy, the use of From the perspective of the local economy, the use of money as a global commodity is entirely destructive.money as a global commodity is entirely destructive.

Money is sucked out of the local economy to areas of Money is sucked out of the local economy to areas of the world where it can attract a higher rate of return as the world where it can attract a higher rate of return as investment capital.investment capital.

The inadequate supply of money that remains The inadequate supply of money that remains condemns certain areas to a permanently low level of condemns certain areas to a permanently low level of economic activity.economic activity.

Money is fiat moneyMoney is fiat money

Not supported by collateralNot supported by collateral Not related to economic activityNot related to economic activity 1944: Bretton Woods: dollar acceptable 1944: Bretton Woods: dollar acceptable

as backingas backing Since 1971 simply created by fiatSince 1971 simply created by fiat Importance of reserve currenciesImportance of reserve currencies

Money and globalisationMoney and globalisation

The finance industry lies at the heart of The finance industry lies at the heart of globalisation. Of the total international globalisation. Of the total international transactions of a trillion or so dollars each transactions of a trillion or so dollars each day, 95 per cent are purely financial. day, 95 per cent are purely financial. Globalisation in not about trade; it is Globalisation in not about trade; it is about money.about money.

‘‘the financial system now completely the financial system now completely dominates the real economy of goods dominates the real economy of goods and servicesand services

Money and growthMoney and growth

Money is created as debtMoney is created as debt Hence pestering by banks to borrow Hence pestering by banks to borrow

moneymoney Hence massive increase in debtHence massive increase in debt As money supply increases economy As money supply increases economy

must grow to match itmust grow to match it Hence obsession with economic growthHence obsession with economic growth Hence destruction of the planetHence destruction of the planet

0

500

1000

1500

2000

250019

70

1973

1976

1979

1982

1985

1988

1991

1994

1997

2000

GDP index

Broad money (M4)index

1966 1971 1976 1981 1986 1991 1996 2001 2006

0

1

2

3

4

5

6

Anything you haven’t Anything you haven’t understood?understood?

Role play instructionsRole play instructions

How is the present money system limiting your How is the present money system limiting your life?life?

How can you imagine changing your life for the How can you imagine changing your life for the better if money were not object?better if money were not object?

What skills could you share and benefit from What skills could you share and benefit from from others if you did this outside the money from others if you did this outside the money system?system?

What would be the limitations of a local What would be the limitations of a local community money system in your life situation?community money system in your life situation?

Around the world in Around the world in community community currenciescurrencies

Economic disaster in Economic disaster in ArgentinaArgentina

As in many non-reserve-currency economies, Argentina As in many non-reserve-currency economies, Argentina suffers from being under-monetisedsuffers from being under-monetised

This makes it vulnerable to citizens’ exchanging their pesos This makes it vulnerable to citizens’ exchanging their pesos for foreign reserve currencies or sending them overseas.for foreign reserve currencies or sending them overseas.

Exacerbated by the pegging of the currency to the dollar, Exacerbated by the pegging of the currency to the dollar, which meant that once the dollar’s value began to rise on which meant that once the dollar’s value began to rise on the foreign exchanges from 1995 onwards, Argentina’s the foreign exchanges from 1995 onwards, Argentina’s exports became more expensive than those of competitor exports became more expensive than those of competitor countries whose currencies could devalue against the countries whose currencies could devalue against the dollar.dollar.

The financial crisis in Mexico in 1994, followed by those of The financial crisis in Mexico in 1994, followed by those of the Asian Tigers, Russia and Brazil from 1997 to 1999 the Asian Tigers, Russia and Brazil from 1997 to 1999 undermined confidence in Argentina’s ability to pay her undermined confidence in Argentina’s ability to pay her sizeable external debt.sizeable external debt.

Response was resort to Response was resort to complementary currencycomplementary currency

Anything can become Anything can become moneymoney

Building firm IRSA was accepting grain as payment for Building firm IRSA was accepting grain as payment for luxury apartments in 2002luxury apartments in 2002

By November the global corporate GM was prepared to By November the global corporate GM was prepared to accept cereal crops in payment for its pick-up trucks accept cereal crops in payment for its pick-up trucks under an arrangement known as the Chevrolet Harvest under an arrangement known as the Chevrolet Harvest PlanPlan

Ford rapidly followed suit. Acceptable crops included Ford rapidly followed suit. Acceptable crops included soya, maize, wheat and sunflower.soya, maize, wheat and sunflower.

Banks were prepared to lend farmers money to buy Banks were prepared to lend farmers money to buy trucks, machinery, agrochemicals or seed in exchange trucks, machinery, agrochemicals or seed in exchange for grain, which never left the silos but was sold on for grain, which never left the silos but was sold on directly for exportdirectly for export

Time banking in WalesTime banking in Wales

Coordinated by John Rogers at NewportCoordinated by John Rogers at Newport

            

                                                                                              

The ChiemgauerThe Chiemgauer Uses principle of Uses principle of

demurragedemurrage Electronic and Electronic and

paper moneypaper money Back one-for-one Back one-for-one

by eurosby euros Can be exchanged Can be exchanged

back for a 5% feeback for a 5% fee Accepted by 150+ Accepted by 150+

shopsshops

http://www.chiemgauer-regional.de/http://www.chiemgauer-regional.de/

The Yamato Love The Yamato Love MachineMachine

A local electronic currency based on credit cardsA local electronic currency based on credit cards Cards were given to 73,000 residents, each with Cards were given to 73,000 residents, each with

10,000 monetary units called ‘love’ already 10,000 monetary units called ‘love’ already encodedencoded

The loves can be used in exchange for discount at The loves can be used in exchange for discount at local shops or to buy second-hand goods local shops or to buy second-hand goods advertised on the city government’s websiteadvertised on the city government’s website

Loves can be earned in return for voluntary social Loves can be earned in return for voluntary social welfare activities, advertised on the website. welfare activities, advertised on the website.

          

ボランティアや様々なサークル活動の募集等を掲載しています

   

          

あげます・くださいの情報を掲載しています

　              　           

         

          

ショッピング情報が掲載しています

   

          

地域通貨の管理を行えます

http://www.city.yamato.kanagawa.jp/http://www.city.yamato.kanagawa.jp/