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Here’s the power-point version of the presentation on open money I gave at the local currency preconference to the BALLE gathering in Burlington last month. The presentation came after a full day of folks like Bernard Lietaer and Tom Greco excellently setting stage by explaining how our current monetary system is both unstable and the structural underlying cause of many of our economic woes. They explained clearly how changing the monetary system is a necessary step for fixing our economic system.

Below is part of a talk I gave at the E. F. Schumacher Society seminar Tools for Change.

I’m assuming that at least one of the reasons why you are all here because you understand that the current economic order isn’t leading us down a healthy path. This is pretty easy to explain and to see as manufacturing jobs are outsourced, as land goes fallow and is developed into unsustainable strip malls, and as workers are more and more disempowered. These are very visible things that we hear about all the time in the independent media, and even in the main-stream media. But it’s much more difficult to see, let alone, explain, the role of our monetary system in all this. So my goal here is to give you the basic tools to explain why we need local currencies. That is the “The case for local currencies.”

Since mutual credit money is truly valueless, it cannot BE a unit of measure. It must USE a unit of measure. This means that there must be something with which to set the price of things. You could use chickens or bales of tobbacco or kilowats, or hours as your unit of measure in which the mutual credit money is denomitated, but you can’t really do this because the “value” of any of those things varys across and within communities. Instead, the proper unit of measure is a conventional money, which is determined by an arbitrage market. So in fact, I think what I’m claiming is that the true role of conventional money is to determine aggregate value of things, skills and time, to be a unit of measure. Once we have that (which we allready do), then we can do the bulk of our exchanging using mutual credit money. [tags]money,mutual credit,LETS,price,value[/tags]

For that last 2 years I’ve begun a process of examining perhaps one of the most fundamental ways that I “participate in the consumer economy” and that is simply my use of money, specifically US dollars. Before this period money seemed primarily mundane. Money was just a practical thing about living life. It’s there, and I didn’t question it very much. In my mind, the connection between money and spiritual matters was mostly from biblical quotes, for example “the love of money is the root of all evil,” “render to Caesar what is Caesar’s,” “seek ye first the kingdom of the lord and his righteousness,” the kicking out of the money-changers from the temple, and perhaps the most influential for me is where Jesus says “look at how beautifully God as clothed the lilies of the field, not even Solomon in all his glory was arrayed such as they, how much more will he care for you?” All of these quotes set up the primacy of ones spiritual life and faith in the divine provider over what ever promise of security we might find in money. In a sense, these are all more about the disconnection between money and those higher spiritual aims.