[GJM] Urstromtaler - Local Currency in German Saxony-Anhalt

Wed Feb 7 14:17:15 MST 2007

Co-learners 

  I urge everyone to read and take note of this message.  As the U.S. takes
a plunge into economic and environmental chaos, the only way for communities
to survive the crises will be to delink from the national economy as
inflation sets in, and rely on a local nonusurious currency which acts as an
accounting system only.  One in which currency is not also a commodity which
can be bought and sold. 

 For anyone not understanding this, when you purchase a home and pay points
on a mortgage loan, for instance, you are in essence "purchasing the use of
this money for a period of time"  and paying a fee "up front" in order to do
so.  And, in addition, you are also paying an interest fee  amortized over
the life of the loan. The same is true of credit cards, and other types of
loans.  

 In a system that acts as an "accounting system" only and in which interest
is not charged, it is still necessary to charge an administrative fee or
transaction fee as a "handling charge". One and a half to two percent is
deemed to be a fair and viable charge which would keep the system healthy.
, 
 There are many different kinds of local currency systems available.  In
order to assure your community's security (and your own) familiarize
yourself with several of these and be prepared to participate in creating a
viable system for your community as the housing bubble bursts, oil prices
escalate, and global climate change moves in and jobs disappear.

eco  . . .              

Urstromtaler - Local Currency in German Saxony-Anhalt      

    Posted by:      "Tom J. Kennedy"      
      tom at cyberclass.net      

      Tue Feb 6, 2007 2:40 pm        (PST)    

            Urstromtaler - Local Currency in German Saxony-AnhaltGreetings
TCN readers and/or otherwise:

Sepp Hasslberger forwarded to me this BBC story that has just been published
 It is a good story about a usuryfree local currency in the German
Sachsen-Anhalt province.

Read it and keep it in your archives for sharing with fellow-Canadians
and/or fellow Americans who still doubt that this idea can work to help
re-build our local communities which are in a steady state of economic
decline.

Enjoy this day!

Working with you for 'peace and plenty' by 2020

AND 'Living in usuryfree heaven in 2 oh oh 7'

I AM

Tom J. Kennedy otherwise known as 'Tommy UsuryFree'

www.cyberclass.net

www.cyberclass.net/usuryfree.htm

www.myspace.com/usuryfree

www.neuworldorder.com

****************************************************************

Germans take pride in local money

By Tristana Moore

BBC News, Magdeburg, Germany

The next time you venture out for lunch in Magdeburg, check what kind of
loose change you have in your wallet.

Like any other city in Germany, the normal currency here is the euro. But
bizarrely, they also have another currency in circulation: the Urstromtaler 

Before you doubt its existence, it is not "Monopoly" money - it is very real
 At a jewellery shop in the city centre, Gerfried Kliems explained how
people use the regional currency.

"It's quite simple," he said. "The money you spend stays in the region. When
I accept Urstromtaler in my shop, I then have to see how I can spend the
local banknotes. You get to know everyone who's participating in this
project, and at the end of the day, you have a good feeling about life."

More than 200 businesses are using the regional currency, including shops,
bakeries, florists, restaurants. There is even a cinema which accepts
Urstromtaler.

'Local boost'

Frank Jansky, a lawyer, launched the regional currency in Magdeburg. "We are
fostering links with businesses in the whole region and through the contacts
that we develop, we are supporting the domestic German market," he said.

"All the businesses have signed contracts, and it's official. We have our
own banknotes and we have an issuing office in the city centre."

At the Urstromtaler "central bank" in Magdeburg, which is no larger than a
small office, the banknotes are issued at a rate of 1:1 against the euro.

The banknotes have a time limit and lose value after a certain date, so
people are encouraged to spend their money quickly.

Campaigners argue that the currency can help boost the local economy.

The unemployment rate in Magdeburg is about 20%, and like other areas in the
former communist east, many young people have left to look for work
elsewhere.

Dilapidated, run-down houses and old factories still dot the landscape, even
though billions of euros' worth of subsidies have poured into the east since
the fall of communism.

"Everyone who uses the regional currency develops a social network. People
get to know each other," said Joerg Dahlke.

"It's also good for the environment, as you are not buying goods from big
supermarket chains who import their goods. Instead you are buying products
from regional producers," he said.

The Bundesbank is keeping an eye on what we are doing - regional currencies
are still in a legal grey area

Frank Jansky

It is easy to dismiss the regional currency as a gimmick, but supporters
take it very seriously.

"We are disillusioned with the euro, as it doesn't bring many benefits to
the local community," said Joerg Dahlke. "But at the same time, we don't
want to get rid of the euro completely.

"Our regional currency runs in parallel to the euro. Of course, we still
need the euro for big purchases," he explained.

Residents can choose to pay one-third of their purchase in the local
currency, and the rest in euros, or sometimes they can pay for their
purchase entirely in Urstromtaler.

The phenomenon is not limited to the state of Saxony-Anhalt.

'Social money'

Regional currencies have sprung up all over Germany.

According to Professor Gerhard Roesl, author of a report commissioned by the
Bundesbank, there are at least 16 regional currencies in Germany.

"The regional currencies are not really a threat to the Bundesbank, although
technically they are illegal and could pose a problem. The Bundesbank
tolerates the local currencies, which are regarded as a kind of 'social
money'," said Mr Roesl.

Frank Jansky and representatives of other regional currency projects are
lobbying the federal government to introduce a change in the law.

"The Bundesbank is keeping an eye on what we are doing. Regional currencies
are still in a legal grey area. But there are other comparable financial
schemes, like 'miles and more', which also pose a challenge to the status
quo," said Mr Jansky.

"We are supporting our regional economy and culture, which will benefit
future generations."

And in case anyone thinks it's an old-fashioned system, they have now
launched an online banking system for the regional currency in Magdeburg.

Story from BBC NEWS:

http://news.bbc.co.uk/go/pr/fr/-/2/hi/europe/6333063.stm

Published: 2007/02/06 14:09:06 GMT

© BBC MMVII

The individual is supreme and finds its way through intuition.

Sepp Hasslberger

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