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Gold, Flat Earth and LETS

by Andy Ryrie

Local Exchange Trading Systems have been getting widespread media coverage - particularly in the last year. LETSystems make 'good copy' by being a bit quaint and funny yet striking a ring of sanity in a frantic and uncaring world.

LETSystems are certainly fun, but they also have a serious side. They have extraordinary potential for tackling the widespread unemployment, poverty, social and environmental decay we see today.

Government strategies to alleviate these difficulties usually consist of 'throwing cash at problems'. One community's inward investment is another community's outward investment.

Introducing Holistic Economics

Conventional economics shares a fundamentally mechanistic framework with conventional medicine. Both throwing cash at problems and drug therapy produce short-term relief rather than dealing with underlying causes.

Once it was thought that the world was flat. If the planet was made of gold would we all be rich? LETSystems are introducing holistic economics.

The first generation of LETSystems is now a dozen years old. The number of this type of system has grown rapidly in the last two years.

Although these LETSystems are very wonderful in many ways, they do have limitations. Notably, that their inherent characteristic if not being able to trade with account- holders from neighbouring systems, restrict them from fulfilling the potential LETS clearly has for widespread economic, social and environmental regeneration.

Second generation LETSystems are now emerging. By facilitating transactions between neighbouring LETSystems, they are as big a step on from the first LETSystems as they in turn were from one to one barter swops. These Registry networks are a potentially powerful tool for transforming destructo-culture into permaculture - tackling unemployment and poverty and enabling sustainable human behaviour. One of the beauties of these Registry networks of LETSystems is that neighbouring systems with different variations on the theme can co-exist harmoniously rather than competitively or confrontationally. There is room for everyone.

The Canterbury LETSystem

*230 ACCOUNTS TURNING* - *2,000 TALES/MONTH* The Canterbury LETSystem was launched in March '94 with the intention of complimenting the mainstream economy so that the advantages of trading in local currency alongside sterling can be widely accessible. WE now have 230 account-holders and monthly turnover of over 2,000 Tales and expect to be making the transition to a Registry network in the coming months. The Canterbury system rents an office for Tales and recently bought a photocopier for 100% Tales which is serviced by a professional engineer....for 60% Tales.

*FOOD AVAILABLE*
The first two shops in East Kent are now accepting payment in Tales alongside pounds. ADM Computing will now take 10% Tales on hardware and 30% on consumables and software. Canterbury Wholefoods (who are paying two of their suppliers in Tales) is now accepting 20% Tales on organic produce - bread, milk, flour, rice, oats, cheese, beer, fruit & veg and frozen meals.

*KEEP ON THE RIGHT SIDE OF THE TAXMAN*
Adrian Bryant of ADM Computing, who have just had the outside of their shop painted for Tales says, "We have set up our in house accounting system so that this new currency is processed alongside pounds. We like trading in Tales as unlike pounds, our customers never have a shortage of them. We are happy to advise (for a few Tales) how other businesses can process these transactions and keep on the right side of the tax and VAT people".

Steve Baggs who edits the monthly newsletter, recently completed a post graduate research project on the potential LETSystems have for economic regeneration. Steve says, "The Canterbury system is clearly one of the fastest growing in the country, and by integrating with the mainstream economy could have a very positive impact on the people of East Kent over the coming years. Having now got the first shops in East Kent trading in local money we anticipate that others will see the purely commercial advantages and realise that using this new currency is not as tricky as it sounds and has great benefits for the community".


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Last Revised 06 January 1996 by Nigel Stewart