Local currency would also provide a shock absorber in any depression era coming up, as its value remains only local and not global, hence anti-inflationary. Let's call this money security.
Quote from site follows:
"""Conventional money is based on debt and so is the root cause of the economic, social and environmental problems that beset us. It comes into existence when banks grant loans.
The amount of debt determines the quantity of money, which has nothing to do with the amount of money people need to live decent lives. CES 'money' is created by its users so it can never be in short supply. So long as you can offer something of value you can have from the community goods and services of like value.
Join the growing community who have discovered a new way of 'doing' money, a healthy money that will create a healthy society."""
For me, I'm interested in a totally seperate local currency, so in the event of a currency meltdown due to the pending American dollar bubble, I'm not affected. An example would be Ithaca Hours, http://www.lightlink.com/hours/ithacahours/ This would be preferred.
More commonly the approach has been a local currency backed by real dollars in the national currency and a percentage going towards community outreach programs and services. The http://www.TorontoDollar.com uses this approach. I believe that it could easily become like the Ithaca Hours though.
Local Currency Directory by Country:
http://www.schumachersociety.org/local_currencies/currency_groups.html
By: energyblog on June 21, 2006
at 11:26 pm
More detail from another site describing Ithaca Hours along with links to other cities where they use it.
http://www.transaction.net/money/ithaca/
By: energyblog on July 17, 2006
at 4:48 am