Thoughts on a "next level" Barter System.

Some time ago LETS (Local Energy Trading System) became quite popular. So popular, that Centrelink and the Tax Office even had to make some rulings as to what was classed as income from one's involvement in such a group. (It was decided that if you offered your hobby or leisure time it wasn't taxable - but if you offered your normal work, it was).

However, most systems started to struggle, and the reasons were much the same.

* It required too much energy input from a dedicated core group of people
* Each system became an exclusive "club"
* Being usually run by committees, prompt and minimalist action grew into problems (often of ego).
* Also, to put it simply - Life often got in the way.
* As the pace of human activity increased, people had less time and motivation to stay involved. Even though the value of their work in AU$ was slowly eroding, they had less time to do anything else about it.

I believe that the LETS concept is still very valid. The central theme of not being able to "export" your wealth from your local area (as your "currency" isn't valid elsewhere) is critically important. It keeps people gainfully employed locally when Federal Dollars can't. It allows users to access necessities when the Federal system doesn't or can't assist.

However, to become a viable alternative in an electronic economy, it needs to be taken to the next level.

From my perspective, the following therefore needs to happen:

* A LETS system is no longer a small club. ALL the local population is automatically a member - whether they trade or not. In this way EVERYONE has access and can contribute to trading activity.

* It would be ideal if the Local Councils can be encouraged to administer the system (after all, they have a vested interest in it doing well, once they change their current mindsets! This will happen when they run out of Federal dollars as they will no longer be readily available. Austerity is wonderful in changing minds!).
The Council also needs a labour force, has equipment, has infrastructure, land, premises, halls etc etc.

* To stop the tyranny that hoarding eventually fosters, it would be beneficial if the currency became a depreciating currency - that is, it is worth x% less each month. What then happens is that the velocity of currency in the system increases, and many more opportunities are created. Idle or hoarded "money" is useless in terms of the wider economy.

To see how well this worked, have a look at the Austrian town of Worgl in the 1930's ... http://www.lietaer.com/2010/03/the-worgl-experiment/
In fact, Worgl Council found that residents were paying their rates in advance!!

* Eventually all systems in a country could unite and be better served by being online, similar to say eBay (without the auction component). One would now have the whole country as One's local system, and you would look at services and offerings available anytime. Recording trading activity is also done automatically.

Naturally the major benefits of this is far wider choice, ability to source items and produce not available locally, ease of activity using the Internet and therefore a far more streamlined, user-friendly experience.

So how about we get together and create some magic, eh??