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Telegraph wrote:
Communities across America are bypassing the dollar and creating their own currencies in an attempt to help both consumers and businesses struggling in the recession.
The idea, borrowed from the Depression era when the currencies were known as "scrip", is designed to boost local spending and keep money circulating within the community.
The danger could be that this might happenTelegraph wrote:
Some of the currencies have been around for years but the recent economic downturn has encouraged others to follow suit. According to some estimates, there are now more than 75 local currency systems across the country.
Others include the Ithaca Hours in upstate New York and the Plenty in North Carolina.
Under US law, small communities can produce their own currency so long as it does not include coins and does not resemble federally-issued money.
Sounds pretty harmless in theory, and since it can only be spent in the local area, it may even work. Hopefully the GFC will come to an end either later this year, or early next year, so new currency wont be needed.Economists disagree on the usefulness of local currencies but history shows that even the most bizarre can catch on.
Joshua Norton, a British-born San Francisco eccentric who proclaimed himself emperor of the US in 1859 and started issuing his own money to pay his debts.
Despite such dubious provenance, the notes became widely accepted currency in the city.
