THE FUTURE OF MONEY Bernard A. Lietaer - library.uniteddiversity ...

tool to do it. Historically, complementary currencies are the only tool
that has proved to have worked when the situation was at its worst,
like it was in the 1930s. Today, with the new information
technologies and what we already know about the way
complementary currencies operate, we can make such
experimentation safer than ever before.
Back to the future of private money?
History shows that it is easy for central banks to stamp out local
community currencies. However, trying to protect the money
monopoly in this way may resemble killing one small fox to protect
the chickens, while leaving a hungry pride of lions roaming around.
Consider the following observations by the Washington Post. In fact,
one of the most intriguing financial phenomena of this decade will be
the inexorable rise in the importance of 'private money' issued by
companies to lock their customers into their 'economic systems'. Once
upon a time, this kind of private money - or scrip - was associated
with railroad towns, the armed forces and the Great Depression.
Today, think of these shadow currencies as the 'scrip of the elite' ...
The issue is no longer individual or frequent-purchaser programs to
buy brand loyalty - it's the gradual fusion of these plans to create a
new kind of consumer-credit economy. It's only a matter of time
before a new generation of 'central bankers' emerges to co-ordinate
the exchange-rate issues. Citicorp credit card holders can 'buy'
frequent-flier miles on American Airlines as well as hotel and rental
car discounts. Selected American Express cardholders can buy
'membership miles' on other frequent-flier programs or purchase
phone time on MCI or Sprint via the Connect-Plus programs.
Corporate Scrips frequent-flier points and frequent-traveller credits -
are becoming ever more convertible to one another. This is an
economy that is now worth billions and growing. 'In the customer's