Alternative Currency: What and Why
Chris Lempa
Black Oak Report
October 1, 2007

Most people use money, but how many people think about the money that they use? My guess would be not that many.
   
Generally speaking, money is an instrument of exchange used rather than directly exchanging your goods and services for the good or service you desire. For many years, people far and near relied on gold, silver, and various other precious metals to serve as money.
   
Imperial governments soon realized that it was easier to control people if they controlled the money. Thus, they instituted a fiat money system. This form of money, as the name eludes, is created by law or decree. It isn't backed by anything other than a government's order and the support of the citizens. Currently, governments the world over have a virtual monopoly over money. Notice that I said a virtual monopoly.
   
In my wallet are $80 worth of Liberty Dollars—two $20 silver pieces (real, one ounce silver pieces), and $40 in silver certificates. The Liberty Dollar (www.libertydollar.org) is backed by silver and gold. Each coin is made of silver and gold while the paper is an actual warehouse receipt for silver or gold. Keen observers will note that an ounce of silver isn't worth $20. That is true and is explained on their website, but the Liberty Dollar isn't an investment, it is made to spend.
   
Another example are the numerous local currencies throughout the United States and the world. The E.F. Schumacher Society has been promoting local currencies through their publications and website. “Widely used in the United States in the early 1900s,” the website notes, “local currencies are a legal, but underutilized, tool for citizens to support local economies.”
   
Local currencies generally function one to one with US Federal Reserve Notes but are accepted within a single community. This way, more money stays within communities and therefore helps the economy.
   
The Learning Channel produced a television program called Making Money, which highlighted a small town that reported economic growth based on the usage of the Liberty Dollar. Local currencies have also served as a lending agent for locally owned businesses.1

It is no secret that locally owned business bolster a community's economy, so it should come as no surprise that local currency would do the same.

Chris Lempa is a streetwise professor in search of the perfect cup of coffee
and the perfect glass of water. He is a guest editor at www.Strike-the-root.com.
  You may e-mail him at 8lempa8@gmail.com.

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