I came across this story while browsing Drudge:
http://www.chicagotribune.com/business/chi-talk_moneydec03,0,2902061.story
We’re obviously not at a tipping point yet but the cracks in the dollar are starting to show. If this catches on I wouldn’t be surprised to see a very hard stance taken by the Federal government.
I live in Milwaukee so this will be an interesting development to follow as it unfolds, especially in how it gets reported. Isn’t it amazing what how people behave when confidence is lost in the official currency? While, on the surface, this local currency idea appears to be a product of a “buy local” activist movement, I think this will help to kick start discussions regarding economic liberty. If there is any success in launching this local currency, then it would be another feather in the cap of liberty. It is this and other random acts of liberty that will help to shape the public discourse on the problems with a burdensome federal system. The implications of this local solution is exactly the catalyst to spur economic recovery. As we all know, the IRS will put this on its hot list. The issue of taxation will inevitably jump to the forefront as a way to halt its progress.
Most definitely the IRS will go after it. Hell, even virtual worlds like Second Life were invaded by the long arm of the law:
Actually, I would think that local scrip would be protected by the First Amendment as a ‘free expression’. Private currencies such as Ithaca Hours
and Deli Dollars have been circulating for years. Breaking the Fed monopoly on control of credit seems to me like the ultimate rEVOLution.
The shopkeepers of Milwaukee are to be applauded for their foresight. In a hard depression, like the coming one,
credit will be shut down by the central bank. The depression is an engineered event. The neighborhoods will be able
to preserve some economic activity. What I find interesting is how many diggs that story got - means there is wide interest
in the subject, as there should be.
Ironically, it seems the addiction to credit (for some) could be motivating many who would normally not bother paying attention to local currencies to tune in this time.
I’ve heard that there is something like $900 billion in outstanding credit card debt. The government has already
shoveled over something like $8 trillion to the shady insider banker parasites with no end in sight. Would it not have made
more sense for the Congress to make available low interest loans (say at 5% simple interest) to the pathetic
credit card debtors so they can get out of their 20-30% debt? Of course, I’m not talking about Congress borrowing
the $900 billion into existence from the Fed, as that would aggravate the indebtedness, but rather printing it interest free.