A few weeks ago I blogged about the emergence of a local currency in Tenino, Washington. (See https://gizadeathstar.com/2020/07/a-fly-in-the-globalist-ointment-local-currencies/) In that blog, I speculated on the emergence of local currencies as a response to the loss of faith in the "Big Central Banking-Fraud" model of money. I further speculated that, while most local currencies are piggy-backed on national currencies, a point might come when that backing changes from the national currency to local hard and soft assets.
Well, local currencies are back in the news, and according to this article sent in by V.T., there's a couple of very interesting reasons why they are emerging as local (and I strongly suspect, eventually even regional) solutions to the complete mess of things the banksters have made. The trouble is, the two reasons are mentioned only in passing, but they leaped off the page when I read them:
Now, of course, if this trend toward moving to local and regional currency solutions continues, it won't be long until Mr. Central Bankster hires his goons for a few assassinations, and sends in his gorillas to smash printers and facilities and break a few knee caps, or, like the unfortunate mortgage broker of a few years ago, "assisting" people to commit "suicide" by wielding a nail gun to the back of the head (remember that one?) And yes, this development is, in my opinion, is why Mr. Globaloney and Mr. Bankster are talking about gun grabs, secession, and financial "resets" (Look carefully at two articles in tomorrow's "honorable mentions". The magic virus has so many uses!).
As the article avers, the trend of local currencies is increasing.
The real question is why? The article briefly mentions two reasons, and upon a little reflection, one can see that they're both related. Here's reason number one, in a little context:
ince the launch in May, cities from Arizona to Montana and California have been in contact with Tenino for advice about starting their own local currencies. “We have no idea what is going to happen next in 2020,” adds Fournier. “But cities like ours need to come up with niche ways to be sustainable without relying on the larger world.”
Such so-called complementary currencies — a broad term for a galaxy of local alternatives to national currencies — have been around for centuries; according to research published in the journal Papers in Political Economy in 2018, 3,500 to 4,500 such systems have been recorded in more than 50 countries across the world. Typically they are localized currency that can only be exchanged among people and businesses within a region, town, or even a single neighborhood. Many are membership programs limited to those who have signed up for the scheme; they typically work in conjunction with rather than replace the official national currency.
They take many different forms. Relatively few are based on paper money; many are now purely digital or are exchanged via smart cards. Their goals also can span multiple economic, social and environmental objectives. Some complementary currencies aim to protect local independent businesses. Some promote more equal and sustainable visions of society. Others have been founded in response to economic crises when traditional financial systems have ground to a halt. As the coronavirus pandemic brings on a wave of social and economic tumult, all three challenges appear to be in play at once.
“In times of crisis like the one we are jumping into, the main issue is lack of liquidity, even when there is work to be done, people to do it, and demand for it,” says Paolo Dini, an associate professorial research fellow at the London School of Economics and one of the world’s foremost experts on complementary currencies. “It’s often a cash flow problem. Therefore, any device or instrument that saves liquidity helps.” (Emphases added)
Here's reason number two, again in a little context:
As in Tenino, the Brazilian city of Maricá, in Rio de Janeiro state, combines a local currency with a basic income program. Around 80,000 residents, nearly half of the population, receive 130 reais ($35) each per month, without any conditions about how they can spend the money. Launched in 2014, the money is distributed in “Mumbuca,” the city’s local currency, which is not accepted in the rest of Brazil.
“This can become a model on how a city can efficiently disburse social benefits during the pandemic, supporting poor families while they stay at home and also small business during the crisis,” says Eduardo Diniz, professor of banking and technology at the São Paulo School of Business Administration, who has been researching public policies using community currencies since 2014.
In May 2020, Maricá residents spent 30 million reais worth of Mumbuca, according to Diniz. The key to the success of Mumbuca has been strong participation of local government. “Historically, it was a very poor city,” says Diniz. “The decision to invest this money through the currency means they have been able to build schools and hospitals with it. The same money is passed through the economy again and again.”
Other research has demonstrated the value of keeping cash flowing close to home: One study in Canada showed that independent retailers recirculate 2.6 times more money into their communities than chains. In addition to encouraging people to shop locally, complementary currencies can incentivize positive or philanthropic patterns of behavior. (Emphasis added)
So notice what we have: (1) A response to the lack of liquidity, at (2) a local level. Solution: create liquidity (money) that circulates locally.
But wait a minute! Why should there be a shortage of liquidity (money, cash) locally, when we've been watching the central banksters creating trillions in "quantitative easing" (and even quadrillions in derivatives)? Where's all that "quantitative easing going" anyway? It's another case of missing money, though of a slightly different sort. Supposing Mr. Central Bankster - we'll call him I.M.A. Grifter - decides to stimulate the economy. To do so, he creates massive amounts of fiat money, which is then loaned at interest (but steep discount) to Mr. Big Banker - call him G.I. Luvmoney (for all you Game of Life fans). Mr Big Banker takes that money, and invests in the stock market (or if he's a pension fund manager on the payroll of China, in a few Chinese companies) and a few mortage-backed "securities" that have been bundled together in large tranches, driving the prices of stocks up, while the local factory owner is shut down due to the planscamdemic. G.I. Luvmoney then forecloses on a few factories, and the houses of the employees, picks up properties on the cheap, and resells them to other Big Banksters who also have their fingers in I.M.A. Grifter's central bank pie. Notice that the vast bulk of this liquidity circulates among the banks, and is being used to manipulate stock markets, and buy - or seize - hard assets on the cheap. (See this informative video, which, oddly enough, was sent to me by Catherine Fitts, at the same time that one of this website's forum members also spotted it: https://www.youtube.com/watch?v=U_A4wUXlVAM)
Very little of this massive liquidity makes it to "the deplorables." That is to say, very little of it actually finds its way to a locality.
Thus, faced by a liquidity crunch caused by the likes of I.M.A. Grifter and G.I. Luvmoney, localities are simply creating their own liquidity. As the two systems continue to draw apart, expect the local currency phenomenon to grow, and become regional. And the crucial step, as I blogged in my previous article on the subject, will be when those cities, counties, states and provinces, realize that the key step to wider circulation, is simply to change the backing from the national currency to hard assets they control. At that point, expect a fight. So besides investing in hospitals and schools (not a bad idea by any means), investing in defending them would be smart too.
And as for the backing of those local and regional liquidity solutions, can you say "Texas Bullion Depository" or "Utah goldbacks" or "Ithica Hours"?
See you on the flip side...