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Wednesday, January 2, 2008

The Fallacy of LETS

A LETS network is a *CENTRALIZED* implementation of the Social Credit Monetary System.

A centralized issuing authority defeats the entire purpose of using an alternate monetary system.

With a centralized alternate monetary system, the IRS will demand that all transactions are reported. If you participate in a LETS network, you get a 1099 form at the end of the year. All your transactions were reported to the IRS for taxation.

Income taxes may *ONLY* be paid in Federal Reserve Points. A LETS network does *NOT* enable you to boycott the Federal Reserve, because you have to pay income taxes on your transactions.

An alternate monetary system with a centralized issuing authority CANNOT SUCCEED. The IRS will demand that the centralized authority report all transactions for taxation. The participants don't recognize any benefit from using the alternate monetary system, because they still must pay income taxes.

Only a decentralized monetary system can successfully replace government controlled money.

1 comment:

David_Z said...

You might have fun debunking The Common Good Bank. Its website describes it as a system of "local currency that is completely independent of the dollar."

Except that upon further reading, you'll discover that it's indexed to the dollar. It also involves "local governments."

Not exactly the yellow brick road out from under the Federal Reserve...

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