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Local Exchange Trading Systems

Local Exchange Trading Systems
A local exchange trading system (also local employment and trading system or local energy transfer system; abbreviated to LETS or LETSystem) is a locally initiated, democratically organised, not-for-profit community enterprise that provides a community information service and record transactions of members exchanging goods and services by using the currency of locally created LETS Credits.[1] History[edit] Michael Linton originated the term "local exchange trading system" in 1983 and for a time ran the Comox Valley LETSystems in Courtenay, British Columbia.[2] The system he designed was intended as an adjunct to the national currency, rather than a replacement for it,[3] although there are examples of individuals who have managed to replace their use of national currency through inventive usage of LETS.[citation needed] A number of people have problems adjusting to the different ways of operating using a LETSystem. Criteria[edit] Of these criteria, "equivalence" is the most controversial. Related:  Alternative Currency

Local currency See Emissions Reduction Currency System for community based initiatives aimed at emission reduction In economics, a local currency, in its common usage, is a currency not backed by a national government (and not necessarily legal tender), and intended to trade only in a small area. As a tool of fiscal localism, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or uncomfortable with traditional bartering.[citation needed] They encompass a wide range of forms, both physically and financially, and often are associated with a particular economic discourse. All are currencies that have different designs and serve different purposes than conventional money. Terminology[edit] Local currencies are sometimes referred to as a community currency. Characteristics[edit] Theory[edit] Advocates[who?] Benefits[edit] The Wörgl experiment dramatically illustrates some of the common characteristics and major benefits of local currencies.[1] 1. 2. 3.

Berkshire Local Currency Accounting Procedures for BerkShares Summary of Discussion November 21, 2006 (Updated on February 6, 2009) Berkshire South Community Center with Alan Glackman, C.P.A., P.C. Asa Hardcastle of Zenn New Media, President of BerkShares, welcomed the group and thanked the businesses represented reminding them that they are the heart of BerkShares. He went on to say that the then 10% discount program was only the first stage of trade in BerkShares. As of November 21, 2006, over 250,000 BerkShares had been issued by the participating banks. Asa then introduced Alan Glackman and Robin Markey who referenced the basic system for accounting with BerkShares as described on the BerkShare web site. Accounting Procedures for BerkShares Table of Contents Setting up your accounting system for BerkShares Receiving payment in BerkShares Paying invoices in BerkShares * BerkShares are cash. Depositing BerkShares Exchanging Federal Dollars for BerkShares Supporting Non-profits with purchase of BerkShares

Snohomish Mutual Credit System > Local Currency > LETS Barter An 1874 newspaper illustration from Harper's Weekly, showing a man engaging in barter: offering chickens in exchange for his yearly newspaper subscription. The inefficiency of barter in archaic society has been used by economists since Adam Smith to explain the emergence of money, the economy, and hence the discipline of economics itself.[2] However, no present or past society has ever been seen through ethnographic studies to use pure barter without any medium of exchange, nor the emergence of money from barter.[3] Since the 1830s, direct barter in western market economies has been aided by exchanges which frequently utilize alternative currencies based on the labour theory of value, and designed to prevent profit taking by intermediators. Economic theory[edit] Adam Smith on the origin of money[edit] Adam Smith, the father of modern economics, sought to demonstrate that markets (and economies) pre-existed the state, and hence should be free of government regulation. Limitations[edit]

Alternative currency An alternative currency (or private currency) is any currency used as an alternative to the dominant national or multinational currency systems (usually referred to as national or fiat money). They are created by an individual, corporation, or organization, they can be created by national, state, or local governments, or they can arise naturally as people begin to use a certain commodity as a currency. Mutual credit is a form of alternative currency, and thus any form of lending that does not go through the banking system can be considered a form of alternative currency. When used in combination with or when designed to work in combination with national or multinational fiat currencies they can be referred to as complementary currency. Barters are another type of alternative currency. Often there are issues related to paying tax. List of alternative currencies[edit] Advantages[edit] Alternative currencies are reported to work as a counterbalance for the local economy. Disadvantages[edit]

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