Posted by: energyblogwalter | April 28, 2006

Local Currencies from Banks?

Dear RoyalBank,

With the upcoming petrocollapse or basic instability of oil in the next few years at our doorstep, does the royalbank have any local currency initiatives? (see http://www.energybulletin.net/primer.php)

I was thinking that a local currency, city-based for example, would protect us from disruptive pricing, and I would like be able to support it.

For example; Not sure what role currency is going to play here. If the financial markets are all assuming it's a market price problem not a geological limit problem then the fallout of that would crash our currencies. With local currencies, this would protect us as we work locally, then there would be no reason why our wages would be affected by the middle east petrocollapse. So then we could keep paying that mortgage.

Although in the short term higher prices will spur energy development, the mid term issues are not going to be higher prices, but enough affordable energy for everyone. If cars and trucks are too expensive to use, if highways are too expensive to repair, then an economic system that relies upon moved goods and people around will also stop being used. Food and other products will then be in short supply.

Remember, oil is not a market problem, but a geological limit. Normally higher prices would spur development but if there is literally less and less oil every year, the prices will literally have no ceiling. Suddenly the rather democratic use of vehicles will also end and will be limited only to the rich. Unemployment can only follow.

If banks were to setup a local currency market as a bullwark against price fluctuations for local goods and services, then these seperate city networks will keep the banks working into the future and our communities along with it.

Banks will need to be a real player in helping us prepare our country for relocalization by introducing local currencies alongside our existing currency system.

Please let me know of any ideas royal bank has along these lines.

thank you
walter

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