Your thoughts on having a local currency?

[begood2]

I have been reading where some regions of the country have been using a local currency to stimulate the local economy. In some cases they use an exchange rate of 95 Federal dollars to equal 100 local dollars! It is an interesting concept, but I'm not sure how easy it would be to detect counterfeit bills and how the IRS would respond to someone being paid wages in local currency!

BerkShares: Local Currency for the Berkshire Region

[Palerider]

I wonder how they would figure the tax rate on this..

[Dravin]

I'm not sure how easy it would be to detect counterfeit bills and how the IRS would respond to someone being paid wages in local currency!

How do they handle citizens being paid in foreign currency? They could theoretically treat it like somebody who has US tax liability being paid in GBP or Euros.

Edit: Foreign Currency and Currency Exchange Rates

[begood2]

I wonder how they would figure the tax rate on this..

What would happen to the person that claimed that he earned no federal wage dollars......so he didn't owe Federal income taxes!

[begood2]

Some other local currencies:

Detroit Cheers

The Ithaca Hours of New York:

North Carolina Plenty:

Some communities are printing their own currency - CNN.com

[Moksha]

[Mahone]

Oh, wait...

[Blackmarch]

I have been reading where some regions of the country have been using a local currency to stimulate the local economy. In some cases they use an exchange rate of 95 Federal dollars to equal 100 local dollars! It is an interesting concept, but I'm not sure how easy it would be to detect counterfeit bills and how the IRS would respond to someone being paid wages in local currency!

BerkShares: Local Currency for the Berkshire Region

It could work, depends on the community.. Probably also depends on the majority of the jobs that people do as well.

But, if it's very high quality currency, it might get it's own value for collector's sake if nothing else (like the old mormon coins, which were generally of a higher quality than other coins used in the US at the time).

[Hemidakota]

If the country falls to a global currency and value worth through commodities, then I am all for Utah issuing its own money and to recede from the union.

[ferretrunner]

Great... let's get Utah, Oregon, Idaho, and Washington together and all recede. :-) The Civil War II, the Sequel.

Seriously, local currencies can boost the local economy, depending on how many of the retailers will accept it. And what the process is for changing it back into US dollars for non-local bills. I rather doubt US Bank would accept local currency to pay your mortgage, for example.

[hordak]

As far as i understand all money is pretty much worthless (since we left the gold standard) except for it's perceived value.(even gold's a perceived value) But at least the US Government currency has this...

"This note is legal tender for all debts, public and private"

Without that backing you're just buying coupons/ gift cards.

I wouldn't convert hard earned green backs into walmart or target gift cards (that i could spend and get just about anything i needed with them anywhere) I wouldn't do it with this (at least in any greater amount i would by a gift card. E.G. If i planed on getting a message i might buy one for the cost and save a couple of bucks, but i wouldn't go trade in a whole paycheck .