Community currency clearing: Difference between revisions
ok replacing with neutral word since who can be bothered looking up the 34-word name that describes the B4IS rules
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'''Community currency clearing''' is the grassroots equivalent of the [[w:Bank For International Settlements]] which clears transactions in national currency: | '''Community currency clearing''' is the grassroots equivalent of the [[w:Bank For International Settlements]] which clears transactions in national currency: | ||
That Bank sets up [[reserve requirement]]s so that no excessive amount of any national currency will be honoured as "[[hard currency]]" unless it meets some basic requirements to respect certain [[property right]]s, notably [[land ownership]], and [[corporate priveleges]]. Some countries, like [[China]], are outside the system and have "pegged" their currency to the [[US Dollar]] so they have the advantages of a hard currency without meeting | That Bank sets up [[reserve requirement]]s so that no excessive amount of any national currency will be honoured as "[[hard currency]]" unless it meets some basic requirements to respect certain [[property right]]s, notably [[land ownership]], and [[corporate priveleges]]. Some countries, like [[China]], are outside the system and have "pegged" their currency to the [[US Dollar]] so they have the advantages of a hard currency without meeting the "requirements". | ||
In reality, the Bank is a formality and currency transactions route around it, they are created by handshakes and by transactions in finanicial brokerages, insurance companies, etc.. But ordinary citizens using [[community currency]] like [[LETS]] or even such [[incentive scheme]]s as "[[Air Miles]]" or "[[Green Stamps]]" are also doing monetary transactions: without any global [[clearing]] scheme that would let you earn in one and then spend in another. | In reality, the Bank is a formality and currency transactions route around it, they are created by handshakes and by transactions in finanicial brokerages, insurance companies, etc.. But ordinary citizens using [[community currency]] like [[LETS]] or even such [[incentive scheme]]s as "[[Air Miles]]" or "[[Green Stamps]]" are also doing monetary transactions: without any global [[clearing]] scheme that would let you earn in one and then spend in another. | ||