Posted Jan 4, 2013 by Martin Armstrong
Some people are claiming that Greece is doing away with the Euro because people are bartering. This is simply not the case. There is a collapse in public services. The social safety net is gone. This is the collapse of Marxism. As a result, at the local level alternative forms of money are emerging. This ALWAYS takes place in such economic crisis situations. By no means is this a rejection of the Euro. It is merely following the same case where hundreds of cities in the USA during the Great Depression issued their own currency. The problem was simple. The USA was following the now German model of austerity. That led to a SHORTAGE of cash. Locally, cities began printing their own money to survive. There was no means to pay people or for people to pay taxes. The history books omitted this epic event because it reflected badly on government. It was impossible for Roosevelt to sell the New Deal if everyone was told the truth that governments defaulted on their debts and austerity caused a shortage in cash that forced local government to issue their own money.
US Depression Scrip exists for pretty much the same reason we see barter coming back in Southern Europe. People are circumventing taxation and no longer are relying on government. They expect nothing, but are no longer willing to pay taxes for nothing. This is not a rejection of the Euro as some are touting. It is a reaction to the collapse of socialistic-government. Governments are getting desperate. This is why they are treating the Vatican like Iran. Anyone who refuses to spy on your neighbor they are bullying into forced submission. What’s next? They invade the Vatican?