The Euro is a fiat currency as well and will eventually fail just as the dollar is failing now. Competing currencies with backing would make the economy stronger.
For those worried about counterfeiting: If the "money" is in the form of gold or silver tokens/rounds/blanks then it would be impossible to counterfeit. Gold and silver hold their own value by their very nature. The current fiat currency circulated by the Federal Reserve is likely to be useless very shortly. My personal opinion - the wise among us will be stocking up on whatever forms of silver - or gold - they can afford.Want to see the effects of rampant hyperinflation? Just go to Google News and enter the words: Zimbabwe inflation Can you imagine paying for something with a $200,000,000 dollar bill? <a class="user" href="http://www.google.com/hostednews/afp/article/ALeqM5iu66soJbsRg6i1pCqVacQzO_Dt3Q">http://www.google.com/hostednews/afp/article/ALeqM ...</a>If you don't think something similar could happen here, think again. Hang onto your shorts, people - it's gonna be a rough ride.
TastyWheat is right. The only way to preserve local value is to decouple its economy from the dollar altogether. Ithaca Hours and all the rest are simply alternative Federal Reserve Notes, and they will tank in value right along with the dollar. For example -- 1 Ithaca Hour = $10. So what happens when $10 in 2009 buys 1/10 the stuff it did in 2007? Do Hours increase in value to account for that inflation? No, they don't... their value tanks too, taking down everyone's purchasing power.Even if some town managed to create a currency decoupled from Fed Notes, it would still have to be convertible to Fed Notes so everone can pay their federal taxes. Otherwise the SWAT teams will be deployed with guns a-blazin'.Not to mention that building a 10% loss for local small business right into the currency defeats the entire purpose. Aren't local currencies supposed to be helping local small business? As a small business owner I would never participate in such an obviously idiotic scheme. What are people thinking??
vusysDec 4, 2008
Some town here in the UK did that, people brought the money and sold it on eBay for a profit. It had the exact opposite effect intended.
Closed AccountDec 6, 2008
The Euro is a fiat currency as well and will eventually fail just as the dollar is failing now. Competing currencies with backing would make the economy stronger.
Closed AccountDec 6, 2008
more like Banksters!
kcindyDec 6, 2008
For those worried about counterfeiting: If the "money" is in the form of gold or silver tokens/rounds/blanks then it would be impossible to counterfeit. Gold and silver hold their own value by their very nature. The current fiat currency circulated by the Federal Reserve is likely to be useless very shortly. My personal opinion - the wise among us will be stocking up on whatever forms of silver - or gold - they can afford.Want to see the effects of rampant hyperinflation? Just go to Google News and enter the words: Zimbabwe inflation Can you imagine paying for something with a $200,000,000 dollar bill? <a class="user" href="http://www.google.com/hostednews/afp/article/ALeqM5iu66soJbsRg6i1pCqVacQzO_Dt3Q">http://www.google.com/hostednews/afp/article/ALeqM ...</a>If you don't think something similar could happen here, think again. Hang onto your shorts, people - it's gonna be a rough ride.
ciaran036Dec 7, 2008
Since when was it a problem with the European countries to be using their own currency? It never, ever was!
rabbitmountainDec 18, 2008
TastyWheat is right. The only way to preserve local value is to decouple its economy from the dollar altogether. Ithaca Hours and all the rest are simply alternative Federal Reserve Notes, and they will tank in value right along with the dollar. For example -- 1 Ithaca Hour = $10. So what happens when $10 in 2009 buys 1/10 the stuff it did in 2007? Do Hours increase in value to account for that inflation? No, they don't... their value tanks too, taking down everyone's purchasing power.Even if some town managed to create a currency decoupled from Fed Notes, it would still have to be convertible to Fed Notes so everone can pay their federal taxes. Otherwise the SWAT teams will be deployed with guns a-blazin'.Not to mention that building a 10% loss for local small business right into the currency defeats the entire purpose. Aren't local currencies supposed to be helping local small business? As a small business owner I would never participate in such an obviously idiotic scheme. What are people thinking??