A Peaceful Solution for the People of Ferguson

Ithaca Hours: Local Currency 

A major issue ignored during the coverage of chaos and violence in Ferguson, Missouri is that of the local power structure.  Cities and counties become power centers because they claim a monopoly on “protection services” in a given geographic region.  It’s fair to be outraged at violent actions of individual people and the groups that sanction them but the root cause lies in the power structure. 

Police chiefs, mayors and city council people are only power centers if the community provides them with material means of support.  The primary means is, of course, money. 

     

Fortunately individual people can be power centers as well.  A substantial method of supporting yourself is to issue your own money.  Decentralized money puts the power in the hands of the people of Ferguson as opposed to politicians and government employees.

This is not a new concept.  Community currencies have provided solutions to social and economic challenges in cities around the globe including San Francisco, Ithaca, New York and western Massachusetts.  

As community currency becomes the dominate medium of exchange it's value to the region exceeds that of the "U.S. Dollar".  Anyone offering "protection" (i.e. police) to the people of Ferguson will compete to provide the safest and most cost-effective services in exchange for community currency (i.e. "Ferguson Hours").  

Each household, street or neighborhood will decide for themselves which agency they would like to support.  Of course families have the option of providing for their own self-defense if they choose.    

Democracy means people can easily withdraw consent  

If you no longer desire the defense services from your agency you can simply stop doing business with them.  This option brings the competitive environment that already exists between McDonalds and Burger King or between Wal-Mart and Target to the businesses in the defense industry.  A non-monopolized market for defense services will make for much safer streets of Ferguson. 

To begin exploring decentralized money listen to this two minute clip where Thomas Greco explains the basics.  His writings on community currency are a great source of inspiration for societal change.  

People can peacefully outgrow the centrally controlled dollar.  One available path is an increased reliance on localized money & credit.         

*Great detail about the recent events in Ferguson can be found at Vox.

Should Banks Have the Power to Create Money?

Should private banks have the power to create money?  "No" says Martin Wolf.

It is interesting and encouraging that the mainstream financial press is questioning the current banking regime.  Since many adults reject the reality of the banking system's foundation they may need to hear it from FT*, New York Times and WSJ in order to "believe".    

Those with an open mind can learn the simple truth about the financial system from many arenas.  Once the reality of the situation is understood there is hope of changing the foundation or just working around it.

Besides Wolf there have been many folks questioning the banking & money creation regime for decades.  One great author is Thomas Greco who writes at Beyond Money.  

In a response to Wolf he writes:

The problem is not private money creation, per se, but the monopolization of credit (money creation) in the hands of a private banking cartel and the collusive arrangement between bankers and politicians.

No matter how much you understanding the financial system I recommend reading Greco's work.

*Wolf's article was published in the Financial Times.