Rethinking Money

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by Bernard Lietaer


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  ACKNOWLEDGEMENTS

  A special word of thanks to Ed and Deb Shapiro, Frank Baylin, Kimberly Kassner, Nigel Seale, Aureya Magdalen, Jean Houston, Paul Ray, Jan Coleman, and Sally Dunne-Lee. To Michelle Bishop for her diligent assistance with some of the research. Also, to our agents David Nelson and Neil Gudovitz at Waterside Productions for their consummate support and guidance.

  To Steve Piersanti, president of Berrett-Koehler, for holding a clear vision for the book with us, while guiding us through the rigors and practicalities of getting it down on paper.

  This book is the result of, quite literally, thousands of conversations over time and scores of interviews across the globe during the course of writing this book. Unfortuna
tely, while many discussions didn’t make it into the book, they were seminal in shaping our work. There are too many people to thank here by name for their time, contributions, and generosity of spirit. Know that you are all held in our hearts with deep and abiding gratitude.

  INDEX

  Abundance: in Curitiba, 142

  sustainable, 5–6, 55, 224

  value and, 80

  Accountability. See Fraud

  Administration on Aging, 84–85

  Age: of Enlightenment, 15, 29–30

  Information, 50, 201

  Modern, 173

  shift, 6, 15, 203–204

  of sustainable abundance, 224. See also Industrial Age

  Agent modeling, 188, 195–196, 237n2

  Airline, 195–197. See also Frequent flyer miles

  Alchemy, 39–40, 218, 223–224

  Alegres, 155

  American Open Currency Standard (AOCS), 113

  Amero, 200

  Anonymity, 185–186

  Apocalypse, 14

  Approach-avoidance, 4

  Arab Spring, 223

  Austerity measure, 1, 141–142, 145–146

  Austrian Central Bank, 178

  Austrian School of Economics, 35, 71

  Awareness campaign, 150

  Balance, 199

  Bali, 187–191

  Banco Palmas, 103–109

  Banco Popular de Brazil, 107

  Banjar, 187–190

  Bank access, 117

  BankAmericard, 192

  Bank crisis, 63, 70, 96–97

  Bank debt: amplifying business cycle, 52

  central banking and, 2, 40–41

  Chicago Plan and, 3, 69–70

  Federal Reserve Act and, 25–26

  GNP and, 33–34

  short-termism and, 45–46

  Banking Act of 1933, 69–70

  Bank of America, 95, 192

  Bank of England, 25–26, 228n4

  Bank regulation, 63

  Bankruptcy, 3

  interconnectivity and, 32–33

  interest and, 39, 41

  of states, 20, 227n21

  in Weimar Republic, 236n10

  Bank Transfer Day, 95

  Barrier of entry, 108

  Barter: Cooperative currencies and, 66

  GNP and, 34

  inflation and, 91–92

  trueque clubs, 182–184, 183

  Basket: of commodities, 90–91

  of currencies, 113–114. See also Terra Trade Reference Currency

  Beauty, 152, 201, 223

  Bell Telephone, 96

  BerkShares, 75, 89–91, 90

  Bezant, 24, 65, 227n2, 230n9

  Bike repair, 84

  Biology, 32

  Biomimicry, 102

  Bioregion, 86

  Biowaste, 142

  Blaengarw, 159–161, 161

  Blame, 216

  BONUS, 170–171

  Boom. See Business cycle

  Boulder Gaian, 113

  Brazilian Network of Community Development Banks (CDB), 107

  Bridge financing, 121

  Bristol Credit Union, 114

  Bristol Pound (BP), 114–115

  Brixton pound, 75

  Brünningsche Notverordnungen, 179

  Bubble, 33

  Bullion, 27, 113. See also Gold standard

  Burden of expectations, 19

  Bureaucracy, 108, 126–127

  Burnout, 194

  Business cycle, 51

  bank debt amplifying, 52

  Terra and, 134

  Business-to-business system, 5

  Bust. See Business cycle

  Bus token, 141–143

  Butterfly effect, 31

  Capitalism, 4, 22. See also Competition

  Capivari, 109

  Carbon-backed currency, 116, 137, 201

  Carbon premium exchange (CPX), 116–117

  Carebank, 84–85

  Cash crunch, 148–149

  Cell phone. See Mobile phone

  Central bank: bank debt and, 2, 40–41

  Brazil, 107

  business cycle and, 52

  Swedish, 25–26, 35–36

  CEO turnover, 217

  Chance, 31–32

  Chaord, 192

  Chaos, 31

  Charity, 150

  Chicago Plan, 3, 69–71, 231n15, 231n16

  Chicago School of Economics, 35

  Chiemgauer, 74–75, 87–89, 88

  Child welfare, 80

  Civic, 146–148

  in Mae Hong Son, 205

  nonprofits and, 162

  Civil society, 224

  Civil unrest, 145–146, 181–182, 192–193

  Class, 18

  bridging, 83

  investing, 193–194

  in krama, 190

  merchant, 2

  middle, 2, 50, 75, 216

  underclass, 216

  upper, 29, 50. See also Education

  Clean development mechanism (CDM), 116

  Clearing network, 121–122

  Closed network, 115–116

  Cocais, 109

  Coin of the Realm, 113

  Cold War, 15

  College, 153–154, 193, 226–227n13

  Colonialism, 2, 223

  Commercial Credit Circle (C3), 74–75, 121–128

  currency crisis and, 148–149

  decentralization in, 128

  as regional currency, 201

  taxes paid in, 123, 128

  Commodity: basket of, 90–91

  Free Lakota Bank and, 113–114

  taxes paid in, 27

  Terra and, 137

  Common tender, 58

  Community currency. See Local currency

  Community Exchange, 83, 84

  Community service, 83–84, 165–166

  Compensated dating, 20, 227n19

  Competition: achievements facilitated by, 13

  efficiency measuring, 199

  Hub and, 130–131

  interest and, 37–40

  money system creating, 2, 9, 27–28

  among NGOs and nonprofits, 162

  paradigm, 215–216

  Complementary currency, 5, 58–59

  Complex flow network, 32–33, 61–63

  Complexity, 30–31, 32, 217

  Compound interest, 42–43

  Compulsory growth pressure, 2, 42–43, 52–53

  Compulsory reserve, 69–70, 228n1

  Computer: chaos and, 31

  education for, 83

  enabling currencies, 60–61. See also Internet; Mobile phone

  Concentration of wealth, 21–22, 49–53, 67–69

  Conjunto Palmeira, 103–108, 104, 105

  Consumerism, 20

  Consumption loan, 104–105, 106, 107

  Contraction, 51–52

  Cooperative currency: movement, 73–74

  mythos and, 222–223

  price impact of, 150

  social impact of, 132, 134, 152–153. See also specific topics

  Cooperative Currency Consumer Report, 194

  Cooperative of Teachers, 128

  Coral reef, 188

  Corporate scrip, 74, 199, 200

  Countercyclical currency: civic as, 147–148

  demurrage and, 67

  Terra as, 135

  WIR as, 100, 101–102

  Counterfeiting, 24, 184–185

  Creation Development Trust, 160–161

  Creative Currencies Project, 153–155

  Credit: access to, 96

  business cycle and, 52

  need for, 12

  short-term, 126

  in WIR, 100

  Credit card, 74, 101, 192

  Credit crunch, 121

  Credit money, 40

  Credito, 182–185

  Crime, 5–6

  concentration of wealth and, 52–53

  GNP and, 34

  Patch Adams Free Clinic and, 164

  social capital and, 46

  Crisis
, 12–13

  bank, 63, 70, 96–97

  currency, 148–150

  disaster relief, 167, 169, 169–172

  earthquake, 167, 169

  euro, 50

  of identity, 19

  subprime, 70

  Terra and, 134–135

  Crowd funding, 193

  Culpability, 216

  Currency. See specific topics

  Currency crisis, 148–150

  Cutback, 1

  Cycle, 51–52

  David Ellis Pawn Shop, 11–12

  Debt: in LETS, 76–77

  repaying, 206

  sovereign, 42–43, 70, 145–147, 227n21

  stimulus and, 23–24

  student loan, 17–18, 226–227n13. See also Bank debt; Loan

  Decentralization: in C3, 128

  in CPX, 116

  in principled society, 193

  subsidiarity and, 69, 231n14

  sustainability and, 219

  Default, 41, 110, 112. See also Bankruptcy

  Defection, 196–197

  Deflation, 167, 235n12

  Democracy: in Bali, 187–188, 190–191

  civic and, 147–148

  concentration of wealth and, 21–22, 52–53

  in principled society, 193–194

  regio and, 191

  social capital and, 46

  Demurrage: BONUS and, 171

  on Chiemgauer, 88

  concentration of wealth and, 67–68

  conceptual framework for, 176

  saber and, 155

  sustainability and, 67, 206

  on Terra, 136, 138–139, 206

  velocity and, 64, 68–69

  on wära, 179

  on Wörgl, 176–177

  Denver, 11–12

  Development, 33

  Disaster relief, 167, 169, 169–172

  Discounted cash flow (DCF), 45–46

  Distance tax, 89

  Diversity, 32–33, 62–63, 70

  Divine right of kings, 24

  Dixie Dollar, 113

  Doctors without Borders, 17–18

  Domestic care, 34

  Drill and kill, 156, 220–221

  Dual currency system, 65–66, 99–102, 103–10 7, 162

  Earthquake, 167, 169

  Earthship model, 165

  Ecological disaster, 34, 188

  Eco-money, 235n12

  Economic Literacy Program, 184

  Economics, school of, 28, 35

  Economic treadmill, 43, 52

  Ecosystem, 32–33

  Ecosystem, monetary, 59–60, 145, 199–202, 220

  Education, 14, 16

  for computers, 83

  Creative Currencies Project and, 153–155

 

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