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Sign of the times - local communities printing their own "currency"?

Discussion in 'Off Topic [BG]' started by Relic, Apr 7, 2009.


  1. Relic

    Relic Cow are you?

    Sep 12, 2006
    Robbinsville, NJ
    very interesting...

    http://www.usatoday.com/money/economy/2009-04-05-scrip_N.html

     
  2. tplyons

    tplyons

    Apr 6, 2003
    Madison, NJ
    Fascinating... but does this go against the constitution? Or is this actually legal?

    Either way, I'd love to get my mitts on some of this stuff.
     
  3. kserg

    kserg

    Feb 20, 2004
    San Jose, CA
    Disney has their own dollars - so i guess it's ok.
     
  4. Marlat

    Marlat

    Sep 17, 2002
    London UK
    Its probably not illegal - you can agree to swap anything for anything, but the GOvernment would not be bound to recognise the value of the "faux dollars" which are in circulation. You are left with a risk that if you hold a bunch of this fake money, at any time, teh community could decide to stop recognising the value of that money (or it could be devalued by printing more) and you have no protection because at that point, it just becomes paper. The real value in money is that the government / federal reserve recognises its value and therefore the people (both internally and abroad) accept its value. You don't have that benefit with fake money.

    Basically all this is a group of people getting together and giving a notional value to something that is otherwise worthless and then using that as a method of exchange. It is exactly the same way that real money started, but real money has government recognition. With these fake money you may as well be exchanging potatoes for a car.
     
  5. Passinwind

    Passinwind I know nothing. Commercial User

    Dec 3, 2003
    Columbia River Gorge, WA.
    Owner/Designer &Toaster Tech Passinwind Electronics
    It's entirely legal, but I'm not conversant with the finer details. We've had "River Hours" available here for a number of years, with kind of so-so acceptance in the community. I'll see if I can scare up a $3 bill for you...:cool:
     
  6. Any time you go to a fair you buy ride tickets and food and drink tickets- and accepted as monetary payment. Then after the fair you're stuck with all these leftover tickets...
     
  7. MakiSupaStar

    MakiSupaStar The Lowdown Diggler

    Apr 12, 2006
    Huntington Beach, CA
    Can someone bring me some cereal?
     
  8. jive1

    jive1 Commercial User

    Jan 16, 2003
    Alexandria,VA
    Owner/Retailer: Jive Sound
    There's actually some type of value behind any type of currency such as gold or silver. No currency, whether it is backed by a federal government or not, is worth anything unless there is something of value behind it.

    For these local currencies, the value that is behind it is either a precious metal such as gold or silver, or US currency which is also backed by gold or silver. So it's not fake money, it's real, and has real value.
     
  9. fitbass3p

    fitbass3p

    Oct 7, 2006
    Madison, WI
    This used to be true. However, US currency has been fiat since we went off the Silver standard in the 1970s: "The most widely-held reserve currency, the US dollar, is a fiat currency. Federal Reserve Notes receive no backing by anything." (emphasis mine)
    So, there's no inherent value other than the fact that the Government gives it a value, and people believe that the system can continue functioning as it is. Confidence is the only thing keeping the system going, not gold, silver, or any other commodity.

    http://en.wikipedia.org/wiki/Fiat_currency

    /rant
     
  10. We have had these in our town for years. Not all that popular.

    lowsound
     
  11. tplyons

    tplyons

    Apr 6, 2003
    Madison, NJ
    fitbass is correct.

    The American Dollar has not backed by any precious metal, but rather the belief that it has value. I suppose these local bills are backed by Federal bills, but those are backed by nothing.

    Feeble, I suppose, but it's been working for a while.
     
  12. I'm not sure I'd call it "currency", but I've been trading sex for beer and groceries for years. Buying a car is a pain in the ass, though.

    Mike
     
  13. Literally.
     
  14. jive1

    jive1 Commercial User

    Jan 16, 2003
    Alexandria,VA
    Owner/Retailer: Jive Sound
    Interesting. Wasn't aware of that.

    So local currencies are in essence fiat currencies in that they are backed by US currencies. I wonder if any local currencies are backed by gold or silver.
     
  15. Chriss62

    Chriss62

    Jul 24, 2000
    Austin, Texas
    Whore Foods? (Whole Foods?)
     
  16. Relic

    Relic Cow are you?

    Sep 12, 2006
    Robbinsville, NJ
    alls I can say is that had better have been one helluva car...
     
  17. jive1

    jive1 Commercial User

    Jan 16, 2003
    Alexandria,VA
    Owner/Retailer: Jive Sound
    The car was more a fringe benefit, me thinks.
     
  18. jive1

    jive1 Commercial User

    Jan 16, 2003
    Alexandria,VA
    Owner/Retailer: Jive Sound
    I have relatives who call it that.
    :D
     
  19. Chriss62

    Chriss62

    Jul 24, 2000
    Austin, Texas
    I see what you did there.... Or wait. Did I do it?:confused:
     
  20. WickedPissah

    WickedPissah

    Jan 22, 2008
    Boston
    Kind of like a gift card, innit?
     

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