Promoting Local Currencies

What is local currency?

Comparing Currencies

 Fiat currencies or rare minerals.


So here’s a short introduction to the main systems.

1. Fed Notes, Euro, Yen

The current system. This fiat money is created through fractional reserve banking by private banks. Every dollar in circulation, except for actual paper notes and coins, were created by somebody going into debt with a bank. The bank creates the new money the minute it is lent out. Mind you: the entire loan is created when taken out: a bank needs deposits, but it does not lend the deposit!

It creates new money next to the deposit.They then rape their customers by slapping interest on this freshly printed money. This is the system everybody hates and of which all in their right mind want to get rid of.


2. The Greenback

The Greenback was neither debt free, nor interest free. However, that is what most people mean when they use the term Greenback: paper printed debt free by Government and spent into circulation by Government.It would be better to call it the Continental, George Washington’s money. Or Colonial Scrip, because the colonies also printed their own units in this way.


3. Public Banking, Hamiltonian Banking

This would continue the same way of creating money we have today: interest bearing, fractional reserve banking. But the banks would be owned by the Government and not by the private banking cartel. The Government would get the interest. Of course, one would have to assume Government is a different entity than the Money Power, which is not a foregone conclusion, although not entirely irrational either.


4. Social Credit

Social Credit is a debt free unit printed by the Government, but handed over to the populace, the same amount for every individual, to have them spend it into circulation. It would amount to a basic income. While printed by Government, it clearly does not empower Government but the individual. Such a scheme also would not require heavy handed laws, simply because the populace would have a great incentive to accept this unit: they would get paid to do so!


5. Regional Currencies

Most Regional Currencies in Germany (e.g. the Chiemgauer), England (e.g. theBrixton Pound) or the US (e.g. the Berkshare) are simple euro/pound/dollar backed units. Usually 1 Regional Unit = 1 euro.

But when buying them, one usually gets one for maybe 95 cents (providing an incentive to pay with them) and when converting them back to euro, one gets only 95 cents (providing an incentive to spend them, instead of converting back and taking them out of circulation).

Regional currencies on this basis are always provided by private market players. Participants simply agree to use them, based on the value they add. No coercion necessary.


6. Mutual Credit

Mutual Credit comes in many guises. Well known are Mathematically Perfected Economy (MPE) and BIBO units.

Also the famous Swiss WIR is based on Mutual Credit, as are most ‘barter’ (a misnomer, they use their own Mutual Credit based units to pay, just not national currencies. So it’s not really barter) networks worldwide.

Mutual Credit is used to create non-state (MPE is a proposal to implement it as a Government unit)  interest free credit based units. As with Regional Currencies no coercion is necessary, all participants join of their own choice.

Mutual Credit is just simple bookkeeping. When opening an account one gets a credit line and can start spending by going into debt. When doing so, the unit is created. It is so mindblowingly simple it boggles the mind how the banks have gotten away with their silly antics for so long.

Mutual Credit is undoubtedly the unit of the not so distant future, although Social Credit may be a good alternative for Government units.



These are the basic architectures that hold sway today. As can be seen they are very different beasts altogether. Hamiltonian banking and the Greenback empower Government. Social Credit, Regional Currencies and Mutual Credit empower the commonwealth and the people.

Private banking, either based on gold or fractional reserve banking favors the Money Power and the ultra wealthy.

Anthony Migchels

Mutual Credit, the Astonishingly Simple Truth about Money Creation
The Swiss WIR, or: How to Defeat the Money Power
Social Credit
Bitcoin, Impressive, but Flawed
Regional Currencies in Germany: the Chiemgauer
Ellen Brown’s Public Banking


Mineral Currencies

Gold and silver.



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