I have reviewed the LETS schemes. As much as I admire the initiative, I
also feel that unless other reforms are implemented, it will sacrifice an
individual's liberty and freedom in favour of the "community".

Basically, the system gives every community who chooses to adopt their
own currency, the financial status of "nation state". In order to function,
the community assumes the right to levy fees (taxes) on businesses which
come to the community, so that the local currency will be "backed" by a
certain amount of national currency. Thus who ever controls the financing
of the community currency can control the nature of "outside" business in
the community. Thus an individual seeking to by "outside" products may
find it impossible, because outside suppliers refuse to pay the "taxes".

Also because the currency CAN NEVER leave the community, this puts
effective limitations on transactions between individuals  inside
and outside the community.

In short, its the money-system of the nation state revisted, emphasizing
the rights of the community (mini-nation) over the individual.

The best way to safe guard the freedom and liberty of the individual is to
legalize some sort of system of truely individualized money-creation.

Harry Veeder

On Mon, 9 Jun 1997, Ernie Yacub wrote:

> there already is a lot of personalized money circulating in the economy and
> it does not require reformation of the "banking/money system."
>
> there are over 1000 LETS community currency systems in the world with new
> ones popping up every day...there are many HOURS systems like the one in
> Ithaca, n.y.
>
> the commercial barter networks turn over billions in proprietary currencies
> every year. (they're not really "barter" networks though)...computers do
> the banking/accounting.
>
>
> >
> >I say individuals DO HAVE THE RIGHT TO CREATE THIER OWN MONEY FOR OTHERS
> >(BUSINESSES) WHO CHOOSE TO ACCEPT IT. The technical problem lies with
> >reforming the banking/money-system so that personalized money can begin to
> >circulate in the economy. This is a just view of money creation rather
> >than an economic view of money creation. It also cuts across all economic
> >theories about money from Adam Smith to Marx to the Neoclassical school.
> >
> >
> >Harry Veeder
>
>
> ernie yacub
>
> community currencies...abundant, interest free money that always comes home.
>                 http://www.gmlets.u-net.com/go/
>