As local, state and federal governments continue to spend more than they take in and provide fewer, lower quality services in return for tax dollars, many local communities have privatized. There are now whole cities that are privately owned, with services previously provided by government now provided by the market. That’s a great opportunity for Open Currency.
The federal government runs the military, Social Security and Medicare, interstate commerce and interstate highways. The state government runs public schools, state roads, Medicaid and polices the highways. The county government runs the sheriff’s office, the county roads, public utilities, the libraries, and administers Medicaid. The city government runs zoning, the city schools, garbage collection and other local services.
None of it works very well, especially financially. Governments at every level are bankrupt. Ironically, a bankrupt city government will sometimes get “bailed out” by the bankrupt state government, which in turn may ask the bankrupt federal government for a bailout if the numbers become too bad to fudge.
Meanwhile, the “services” these entities provide increase in cost and deteriorate in quality, which was low to start with. It certainly isn’t perfect, but that’s just the way it is.
It doesn’t have to be that way.
Kurt Wallace recently spoke to Adrian Moore about what’s going on in Sandy Springs. There is still a local government that acts as administrator of various services, but most of what most people think of as city or local government services are provided by private companies. That’s a huge step towards eliminating government completely in these areas.
It’s also a perfect opportunity to introduce a local currency.
Local, state and federal governments are becoming increasingly interconnected as financial problems grow worse. Local governments depend upon funding from the state and the state depends upon funding from the federal government, often in order to administer federal government programs like Medicaid or for law enforcement initiatives in drug enforcement or “homeland security.”
All of this interconnected funding means using the U.S. dollar, which is losing value every month as the Federal Reserve prints more of them to fund quantitative easing. That means that purchasing power is transferred away from local savers and towards those who receive the new money: Wall Street.
By taking many of these services away from the government, local communities can break the cycle and keep that purchasing power within their communities. That leads to more capital accumulation, increased local production and even greater independence.
The key to success is not only a local currency, but a sound one. Many local communities have had the right idea in establishing their own currency, but have made the mistake of basing it on paper. Paper currencies fail, as the U.S. dollar is failing now.
AOCS exists to expedite the implementation of metal as money, promote local enterprise and rebuild local community wealth. Establishing a metal-based local currency is the surest way to protect the purchasing power of local communities and prevent it from being transferred to connected interests through inflation.
For privatized cities trying to make it on their own, an open currency like those promoted by AOCS is a perfect fit.