Here are my notes on the issue - may be somewhat incoherent, but YES we can create our own currencies.
The Wörgl Experiment
One Schilling note with demurrage stamps from Wörgl
Wörgl was the site of the "Miracle of Wörgl" during the Great Depression. It was started on July 31, 1932, with the issuing of "Certified Compensation Bills", a form of local currency commonly known as Stamp Scrip, or Freigeld. This was an application of the monetary theories of the economist Silvio Gesell by the town's then-mayor, Michael Unterguggenberger (de).
The experiment resulted in a growth in employment and meant that local government projects such as new houses, a reservoir, a ski jump and a bridge could all be completed, seeming to defy the depression in the rest of the country. Inflation and deflation are also reputed to have been non-existent for the duration of the experiment.[citation needed]
Despite attracting great interest at the time, including from French Premier Edouard Daladier and the economist Irving Fisher,[3] the "experiment" was terminated by the Austrian National Bank on September 1, 1933.[4][5]
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Freigeld has several special properties:
It is maintained by a monetary authority to be spending-power stable (no inflation or deflation) by means of printing more money or withdrawing money from circulation.
It is cash flow safe (a scheme is put in place to ensure that the money is returned into the cash flow – for example, by demurrage – requiring stamps to be purchased and periodically attached to the money to keep it valid).
It is convertible into other currencies.
It is localized to a certain area (it is a local currency).
The name results from the idea that there is no incentive to store or hoard Freigeld as it will automatically lose its value after some time. It is claimed that as a result, interest rates could decrease to zero.
Theory
According to Gesell, all human-produced goods are subject to expensive storage, whereas money is not: grain loses its weight, metal products rust, housing deteriorates. Therefore, money has a supreme advantage over all other goods. John Maynard Keynes renamed the concept of basic interest articulated in Gesell's book The Natural Economic Order with the more familiar term liquidity preference. Being "liquid" – having money – is a great advantage to anybody, much more so than having comparable amounts (past utility) of any product. The result is that people will not even provide zero-risk, inflation-corrected credits unless a certain interest rate is offered. Freigeld simply reduces this "primordial" interest rate, which is estimated to be somewhere around 3% to 5%, by an absolute, in order to lower the average interest rate to a value around 0.
Current examples
E-gold is an example of a modern private currency in which demurrage is applied. In this case there is a gold storage charge of 1% per annum. The demurrage associated with e-gold is arguably expended by the currency operator to help cover real storage costs.
Bernard Lietaer's terra is a commodity basket currency proposal similar to Keynes's bancor or L'Europa[clarification needed] and bearing a demurrage charge.
The chiemgauer is a regional community currency in a part of Bavaria, using a demurrage system.
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Demurrage is the cost associated with owning or holding currency over a given period. It is sometimes referred to as a carrying cost of money. For commodity money such as gold, demurrage is the cost of storing and securing the gold. For paper currency, it can take the form of a periodic tax, such as a stamp tax, on currency holdings. Demurrage is sometimes cited as economically advantageous, usually in the context of complementary currency systems.
While demurrage is a natural feature of private commodity money, it has at various times been deliberately incorporated into currency systems as a disincentive to hoard money and to achieve other perceived benefits. In particular, for long-term investment financing, it affects the dynamics of net present value (NPV) calculations. Demurrage in a currency system reduces discount rates, and thus increases the present value of a long-term investment, and thus gives an incentive for such investments.[1]
Unlike inflation, demurrage gradually reduces only the value of currency held: it functions as a negative interest (a tax) on currency held versus inflation that also reduces the value of savings or retirement funds and increases CPI. A positive interest rate is a subsidy. Both inflation and demurrage reduce the purchasing power of money held over time, but demurrage does so through fixed regular fees, while inflation does it in a variety of ways.[2] Inflation is certainly not always everywhere a monetary phenomenon.[3] Inflation is not always easy to predict & it does not stay fixed through time, but the level of demurrage is fixed by the Government.
Gresham's law that "bad money drives out good" suggests that demurrage fees would mean that a currency would suffer more rapid circulation than competing forms of currency. This led some such as German-Argentine economist Silvio Gesell to propose demurrage as a means of increasing both the velocity of money and overall economic activity.
“Only money that goes out of date like a newspaper, rots like potatoes, rusts like iron, evaporates like ether, is capable of standing the test as an instrument for the exchange of potatoes, newspapers, iron and ether. For such money is not preferred to goods either by the purchaser or the seller. We then part with our goods for money only because we need the money as a means of exchange, not because we expect an advantage from possession of the money. So we must make money worse as a commodity if we wish to make it better as a medium of exchange."
— Silvio Gesell, “The Natural Economic Order”
On the other hand, influential British economist John Maynard Keynes contended that Gesell's proposed demurrage fees could be evaded by the use of more liquid competing forms of money and that therefore inflation was a preferable method to achieve economic stimulation.[4]
History
One Schilling note with demurrage stamps from Wörgl
Demurrage-charged local currency was successfully tested in the Austrian town of Wörgl between 1932 and 1934, as a tax collected for the benefit of the unemployed, until the Austrian central bank stopped the experiment. Similarly, in 1936, the Social Credit Party-led government in Alberta, Canada, introduced prosperity certificates in an attempt to alleviate the effects of the Great Depression, with holders having to affix to the back of a certificate a 1-cent stamp before the end of every week, for the certificate to maintain its validity. Local scrip systems, many of which incorporated demurrage fees, were also used across the United States during the Great Depression, and the Bankhead–Pettengill bill of 17 February 1933 was introduced in Congress to institutionalize such a system at the national level under the US Treasury, as documented in Irving Fisher's book Stamp Scrip. Bernard Lietaer also documents in his book Mysterium Geld the use of demurrage currency systems in Europe's High Middle Ages' bracteate systems and ancient Egypt's ostraka – dated receipts for the storage of grain – and credits these currency systems with the prosperity of those societies.
In earlier real-life experiments, demurrage on money has been demonstrated to significantly increase the velocity of money in circulation forcing people to even pay their taxes in advance.[5]
The major central banks' post-World War II policy of steady monetary inflation as proposed by Keynes was influenced by Gesell's idea of demurrage on currency,[4] but used inflation of the money supply rather than fees to increase the velocity of money in an attempt to expand the economy.
List of alternative currencies
Airtime minutes. After the collapse of Zimbabwe's currency in 2009, citizens started using talktime minutes as an alternate currency.[3]
American Open Currency Standard (AOCS)
BerkShares
Bitcoin – well known cryptocurrency
bnote – Baltimore local Scrip[4]
Bristol Pound
Brixton Pound
Brownie points
Calgary Dollars
Canadian Tire Money
Commercial credit circuit[5]
Community Exchange System (CES) – global exchange network
Detroit Community Scrip
Digital gold currency
Dash (cryptocurrency) – Digital Cash
DigitalNote – cryptocurrency with blockchain-based deposits
Eusko – used in parts of the Basque Country
Eko – used at Findhorn Ecovillage
Fourth Corner Exchange
Ithaca Hours – Ithaca, NY
Kelantanese dinar (gold) in Malaysia
dirham (silver) in Malaysia
Local Exchange Trading Systems (LETS) – an example of mutual credit, is a type of local currency used in a number of small communities worldwide.
Monero – a decentralized cryptocurrency that provides anonymity along with untraceability.
NuBits – the world's first stable value digital currency.
Rábaközi Tallér[6]
Sardex, alternative currency used in Sardinia[7][8]
Stroud Pound
Tide detergent – In 2013, several reports[9][10][11] have indicated that Tide liquid detergent was used as a medium of exchange for drug deals in the United States.
Time Dollar – a state-sponsored alternative currency in the U.S
Tumin – alternative currency in El Espinal, Veracruz, Mexico
Toronto Dollar is another example of a backed local currency.
Ven – a digital currency used in Hub Culture, a private social network[12]
WIR Bank – founded in 1934, oriented towards small and mid-sized corporations
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en.wikipedia.org/wiki/American_Open_Currency_StandardAmerican Open Currency Standard (AOCS) is a non-profit organization opposed to fiat money and wishing to expedite the use of metal as money. In accordance with its mission, AOCS grants approval to new currencies, helps new currency issuers to establish brand identity, and encourages merchants to accept AOCS-approved currencies. AOCS was started in 2007 by Robert Gray, who was formerly a Regional Currency Office for Liberty Dollar and is currently the Executive Director of AOCS. Robert Gray testified before the United States House Financial Services Subcommittee on Domestic Monetary Policy and Technology when congressman Ron Paul was Chair of the Committee.[1]
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The Community Exchange System (CES) is an Internet-based trading network[1] which allows participants to buy and sell goods and services without using a national currency. While the relatively new system can be used as an alternative to traditional currencies such as the dollar or Euro or South African rand, the Community Exchange System is a complementary currency in the sense that it functions alongside established currencies. It is international in scope.[2] It does not have printed money or coins[3] but uses computer technology to serve as an "online money and banking system" or alternative exchange system and as a marketplace.[4] It is an advance from an arrangement in which either one good or service is exchanged for another good or service, or commonly called barter, since it uses a digital unit of value.[2][3] While there are reports that the system is growing, in 2011 the system handles only a tiny fraction of international world commercial activity.
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Detroit Community Scrip, also called Detroit Cheers, is a local currency in Detroit, Michigan.[1] Modeled upon the local scrip that were used during the Great Depression, it is being used to restore local economic confidence. The Cheers are backed by US currency and are fully exchangeable for an equal amount of U.S. dollars, backed by several Detroit businesses. There are currently $4,500 worth of cheers in circulation.[2] Businesses can sign up to be issuers and print scrip after depositing a matching amount in U.S. dollars and then be entitled to print Cheers.[3] More than 25 businesses have signed up to accept Cheers, but many others informally accept them.[citation needed]
History
The Detroit Scrip was first issued in April 2009[3] by Foran's Grand Trunk Pub, The Park Bar or Motor City Brewing Works.[2] Including the issuers, there were 17 initial businesses accepting the Cheer.[2]
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en.wikipedia.org/wiki/Time-based_currencyThe Ithaca HOUR is a local currency used in Ithaca, New York and is the oldest and largest local currency system in the United States that is still operating.[1][not in citation given] It has inspired other similar systems in Madison, Wisconsin; Corvallis, Oregon;[2] and a proposed system in the Lehigh Valley, Pennsylvania.[3] One Ithaca HOUR is valued at US$10 and is generally recommended to be used as payment for one hour's work, although the rate is negotiable.
The currency
Ithaca HOURS are not backed by national currency and cannot be freely converted to national currency, although some businesses may agree to buy them.[4]
HOURS are printed on high-quality paper and use faint graphics that would be difficult to reproduce, and each bill is stamped with a serial number, in order to discourage counterfeiting.[2][5]
In 2002, a one-tenth hour bill was introduced, partly due to the encouragement and funding from Alternatives Federal Credit Union and feedback from retailers who complained about the awkwardness of only having larger denominations to work with; the bills bear the signatures of both HOURS president Steve Burke and the president of AFCU.[5]
While the Ithaca Hour continues to exist, in recent years it has fallen into disuse. Media accounts from the year 2011 indicate that the number of businesses accepting Hours has declined.[6] Several reasons are attributed to this. First has been the founder, Paul Glover, moving out of town. While in Ithaca, Glover had acted as an evangelist and networker for Hours, helping spread their use and helping businesses find ways to spend Hours they had received. Secondly, a general shift away from cash transactions towards electronic transfers with debit or credit cards. Glover has emphasized that every local currency needs at least one full-time networker to "promote, facilitate and troubleshoot" currency circulation.
Ithaca Hours were started by Paul Glover in November 1991.[7] The system has historical roots in scrip and alternative and local currencies that proliferated in America during the Great Depression.[7]
While doing research into local economics during 1989, Glover had seen an "Hour" note 19th century British industrialist Robert Owen issued to his workers for spending at his company store. After Ithaca Hours began, he discovered that Owen's Hours were based on Josiah Warren's "Time Store" notes of 1827.
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www.sunnahmoney.com/gold-dinar-silver-dirham/#malaysiaThe Kelantanese dinar is a currency issued by the Government of the Malaysian state of Kelantan, which purportedly is in conformance with the concept of the Islamic gold dinar. The Kelantanese dinar is available in the form of coins of several denominations. These coins were first struck in 2006 by Mariwasa Kraftangan of Kuala Kangsar, Perak, a local producer of souvenirs and replicas of objects of art and culture, and launched by the state of Kelantan on 20 September 2006. The Government of Kelantan had suggested that the coins had the status of legal tender,[1] and the state-issued dinar sold out quickly, with many buyers seeing the gold dinar as a better choice than fiat money.[2]
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Tide detergent – In 2013, several reports[9][10][11] have indicated that Tide liquid detergent was used as a medium of exchange for drug deals in the United States.
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Advocacy for debt cancellation
Arguments for Debt forgiveness have long been made from people of all political orientations; as an example, in 2010 hedge fund manager Hugh Hendry, a strong believer in free markets, argued for a partial cancellation of Greece's debt as part of the solution to the Euro crisis.[23] But generally advocates of debt forgiveness simply point out that debts are too high in relation to the debtors ability to repay, they don't make reference to a debt based theory of money. Exceptions include David Graeber, who from a radical perspective, has used credit theories of money to argue against recent trends to strengthen the enforcement of debt collection, such as greater use of custodial sentences against debtors in the US. He also argued against the over zealous application of the view that paying ones debts is central to morality, and has proposed the enactment of a biblical style Jubilee where debts will be cancelled for all.[9]
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en.wikipedia.org/wiki/List_of_community_currencies_in_the_United_StatesIntra-company
The Barter Network[1]
Interstate
Blue Money Brattleboro, Vermont, and Chesterfield, New Hampshire
BNI[2] Delaware, Pennsylvania, Maryland, New Jersey
Disney dollar Disneyland and Disney World
Fourth Corner Exchange Pacific Northwest
RiverHOURS Columbia River Gorge (Inactive)
Arizona
Arizona Dollars Statewide
Tucson Time Traders Tucson, Arizona
Hawai'i
Aloha Hours Hawaii, USA (2013 - Current)
Kauai Barter and Trade Network Kilauea, Hawaii
realkauai.com/ohanamana/alohacash.org/Missouri
Chamber Bucks Maryville, Missouri
Kansas City Barter Bucks Kansas City, Missouri (Inactive)
Marbles Columbia, Missouri (Inactive)
Hermann Bucks Hermann, Missouri
Trounce Saint Louis, Missouri
Texas
Greyhound Bucks Taft, Texas (Inactive)
Houston Hours Houston, Texas
C-City Cash Colorado City, Texas
Washington
Bainbridge Island Bucks Bainbridge Island, Washington (no website found—outdated?) (Inactive)
BizX Seattle, Washington
Timebanks of Puget Sound Kirkland, WA
Fourth Corner Exchange Washington, Oregon, Colorado, New Mexico, Ohio, California
Kettle River Hours Kettle Falls, Washington (no website found—outdated?) (Inactive)
Kitsap Hours Bremerton, Washington (no website found—outdated?)
Lopez Island Hours Lopez Island, Washington (no website found—outdated?) (Inactive)
Skagit Dollars Mount Vernon, Washington (no website found—outdated?) (Inactive)
Snohomish Diamonds Snohomish, Washington
Sound Hours,[10] Olympia (Inactive)
SWEL Timebank Shoreline, Washington
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en.wikipedia.org/wiki/Local_exchange_trading_system---------------
en.wikipedia.org/wiki/Mutual_credit---------------
en.wikipedia.org/wiki/Counter-economics---------------