Back in the 1930s, Henry Ford is supposed to have remarked that it was a good thing that most Americans didn't know how banking really works, because if they did, "there'd be a revolution before tomorrow morning". (Guardian 18 March 2014)
For the past five years The Small Green Consultancy, (SGCo) a local ‘think tank’, has been conducting practical research into how to keep more money in the local economy and, in 2014, teamed up with LESS CIC, a local environmental social enterprise, to run a pilot project of SGCo’s local money system. This was named the local Food Loop Game.
Food Loop asks customers to evidence spending with local food and drink businesses in the form of receipts, and that money is then tracked as it makes its way around the local food economy. With monthly reports on its progress. This means that customers and participating businesses get to track what their money is doing long after they have spent it.
The idea is to create ongoing positive feedback for all participants that will, in turn, encourage and reward further local spending. The longer we can keep our money flowing and changing hands locally the more financial liquidity we have as a community and the less restricted cash-flow becomes a problem.
The more real goods and services we can create and exchange locally the more added values we can create and the less likely it is that we will need to go to the banking sector for additional loans (with interest). This becomes even more the case if we build durability, resilience and increased capacity use (now much a product or service does for us before we have to replace it) into the products and services we create.
7 June 16