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        ID-6            Critical analysis.            December 12th, 1985

        Critical Analysis. 

        There are two characteristics of conventional money that render 
        it ineffective as a proper support for the convivial community.

        Conventional money, being universally distributable, has no 
        inherent tendency to remain in circulation in any particular 

        Conventional money, which is the essential life blood of the 
        economy, derives from agencies external to the community.

        The combination of these factors cause excessive dependency upon 
        circumstances external to the commnunity and essentially beyond 
        its control.

        Communities dominated in this way tend to become of merely 
        geographic significance, having little or no infrastructure which 
        might reflect self-direction. 

        Few means appear to exist by which such communities can be 
        induced or coerced into rational management of the flow of 
        conventional money.

        No boundary conditions exist or can legitimately be created that 
        retain conventional cash without detrimental consequences ,such 
        as trade restriction.

        However, it is entirely possible to create a specifically local 
        currency which ensures a money supply to the community it serves, 
        simply because the money is unuseable, and thus unwanted, beyond 
        that community.

        An organism is defined by its skin, a boundary layer that 
        selectively allows the free transfer of some materials while 
        retaining others.

        The more complex the organism, the more its activity is related 
        to internal processes than to transfers across the skin.

        The only skin possessed by a community in present circumstances 
        is geographic and is related to transportation costs.

        Since the last half century has seen transport costs steadily 
        decline, most of our communities have been reduced, by excessive 
        dependence on imports and exports, to extremely primitive and 
        ineffective economic processes.

        You need skin.

        Landsman Community Services Ltd.              ID-6      Page    1

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