Art Powell writes:
The ideas in this article are outside mainstream economic analysis but I believed they are mostly based on the economics I learned as a student at the University of British Columbia.
We look at the formula from the quantity theory of money which I prefer to call the connectivity formula because it shows how the real part of the economy connects with the financial. There have been many ups and downs in the Q part of this formula. These changes have impacted previous economic crisis. The underlying cause of the current crisis is probably the unsustainable use of resources.
Three ways of creating money are considered (gold, fractional reserve and Local Exchange Trading System (LETS) and the advantages and disadvantages of each. If there is anything that should be considered funny money it is fractional reserve money. Therefore I suggest we expand LETS into a National Exchange Trading System.(NETS)
Such a radical change in our financial organization would be an opportune time to make other changes on our economic organization. I would like to see the perfect competition model used as a guideline.
I believe subsidies should be given to consumers rather than producers therefore I propose that transfer payments and subsidies should be replaced with a universal subsistence program." (snip) ...
You are invited to read the complete essay "LETS Go To Market: Dealing With Economic Crisis" at this website:
NOTE: In the essay, Art Powell has included much relevant information about "LETS" (Local Exchange Trading System) and "NETS" (National Exchange Trading System) - worthy of reading and bookmarking for future reference.