Barter is New Medium of Exchange as Credit and Payment Systems Collapse.

[Antaletriangle]

http://www.naturalnews.com/025500.html

In just the past week several pillars of the Fortune 500 have declared more than 75,000 layoffs worldwide. This is an indication that the global economic and credit crisis is getting worse, not better. Yet Americans remain optimistic that the crisis will blow over soon. Part of this optimism is based on their continuing ability to get what they want using a credit card, or paper money that carries no intrinsic worth. In other parts of the world this no longer works. High food prices and the credit crunch have forced some countries to revert to the ancient practice of bartering, a practice that is also seeing a revival in America correlated to the financial crisis.

A recent article from the Financial Times reports countries from Malaysia to Morocco say they have reverted to the ancient practice of bartering for food, making deals to import commodities ranging from rice to olive oil.

The following three paragraphs are from the Financial Times article:
"The revival of these trade practices, used rarely in the last 20 years and usually by nations subject to international embargoes and the old communist bloc, is a result of the countries` failure to secure trade financing as bank lending has dried up.

"The countries have not disclosed the value of any deals, and some have refused even to confirm their existence. Officials estimated that they ranged from $5m for smaller contracts to more than $500m for the biggest.

"Josette Sheeran, head of the United Nations` World Food Programme, said senior government officials, including heads of state, had told the WFP they were facing difficulties obtaining credit to purchase food."

Credit is continuing to dry up in the U.S.

As of now, credit is still available in the U.S. although requirements to get it are much tougher. When payments are not made on time, credit is cancelled or interest rates are jacked up as high as 32 percent per year. The dollar still has some value as long as global investors continue to view the U.S. as the last safe haven. But right now feels a lot like being in the eye of a hurricane. Some actions yet to come include the Federal Reserve lowering the fed funds rate to zero, the new stimulus package proving to be a dud, further carnage to the balance sheets of banks as the commercial real estate market implodes, and significantly more layoffs. Following these event there will be little left to do except allow natural market forces to take over.

Globalization is the great economic leveler

The point of globalization is to homogenize and harmonize the population of the world to allow for centralized government. This means a leveling of incomes and standards of living throughout the world. Globalization was sold to citizens of countries where the standard of living was high as being the way to bring an increase in living standards to the developing countries. The fact that these developing countries are now resorting to the barter system is a graphic demonstration that this is not the real direction globalization is taking.

In order for developing countries to advance economically, resources and wealth must flow in their direction. This is not happening. Less developed countries often depend on the export of raw materials and commodities, but world wide depression means prices for these materials have collapsed. Unqualified labor has constituted the main comparative advantage of less developed countries, but exploding levels of layoffs have swelled the world`s pool of workers willing to do anything to support their families. Elevating the standard of living in poorer countries necessitates huge capital investment in infrastructure and institutions, but world capital markets have dried up.

If less developed countries cannot elevate to levels promised by proponents of globalization, there appears to be only one other alternative. The standard of living in richer countries must fall to allow for the success of the globalists` goals of homogeneity.

Signs of return to the barter system are already appearing in the U.S.

Caught in the grip of the credit crisis, small business owners are resorting to the barter system as a way to keep their precious cash in reserve. Frozen capital markets mean little new money is finding its way to Main Street. Loans to small businesses have fallen by 30 percent from pre-crisis levels, so cash is prized. Small businesses have historically been the growth engine for the American economy, creating the bulk of new jobs. Now without credit, they are shedding employees at an alarming rate.

Barter exchanges may be one of the few businesses to thrive in today`s environment. According to a recent New York Times article, barter exchanges range from publicly traded entities like International Monetary Systems and Itex Corporation to smaller companies like U-Exchange.com. Membership and transactions are growing at a rapid rate, with one exchange reporting a 70 percent increase in business since the beginning of the credit crisis.

In the past, bartering involved the simple exchange of goods between one person and another. Today multiple parties can meet through online exchanges and accumulate credits that can be used against future transactions. Participants from around the world can participate. Hundreds of exchanges are available online. Bartering in the U.S. is estimated to generate more than $3 billion in business, and this figure does not include direct bartering between corporations. Some of the barter exchanges even offer credit to members who have been turned away by traditional lenders.

Websites like SwapThing.com offer swaps for $1. They have millions of items listed ranging from antiques and electronics to comic books. Sites like these make bartering seem like fun, something the kids might enjoy.

Even on the individual to individual level bartering is on the increase. Watches, baseball cards, cupcakes and cookies, artwork, a journal entry, a bike and a dog were all accepted in a single day as barter for dentistry in Tupelo, Mississippi. In St. Louis, out of work contractors are eager to barter for basic goods and services that include legal counsel. A New York attorney has offered to prepare simple wills and healthcare proxies in exchange for getting his floors sanded and his house painted.

Barter should be a consideration in everyone`s emergency plan

On the survival level there appears to be some resistance against thinking about and planning for bartering. It may be that the idea of bartering between individuals for basic necessities implies a level of chaos extreme enough to be mind numbing and to cause a paralysis of will. However, anyone who foresees financial Armageddon may want to prepare a barter kit to keep along side other emergency provisions.

A barter kit should contain anything thought to be of worth and usable as currency in a barter transaction. Clearly food will have the highest priority in an emergency situation. People will need to eat, and food supplies may be interrupted or non-existent. Credit and payment systems must be working in order for food to be transported, stored and displayed in stores. Credit and payment systems must be working in order to access and use cash or credit. Having extra food beyond what your family will immediately need will have great value to someone who is hungry.

When planning your kit, remember that long-lasting and durable items will be in great demand in a
period of breakdown. People will quickly change their eating habits when hunger sets in and there is no other choice. Here are some items to consider in your barter kit:

Canned food items should be those that provide a decent level of protein as well as basic nutrition. Canned beans are a great choice. Canned vegetables, fruits, soups, and meats will be easily bartered or traded during a time of systems collapse.

Dried food items like dehydrated fruits, nuts and jerky should also be included, as anyone seeking nutrition will be interested in these.

Comfort food items will be in demand by people with sugar addiction and children who have been brought up to think eating sugary food is a treat. Drink mixes and hard candy will be valuable.

Basic personal care items are also useful for barter, as whatever items people have run out of will be in demand. Feminine hygiene products and soap would be good barter items.

Include several manual can openers in your kit.

Be sure the food in your barter kit is food that is in addition to the food you and your family will need to survive for a period of time. Plan your own food stash and your barter kit based on what your budget and storage space will allow.

Sources:

Javier Blas, Nations turn to barter deals to secure food, FT.com.

Micky Meece, The Cash-Strapped Turn to Barter, The New York Times.

stealthsurvival.blogspot.com.

[Swanny]

Good post.
Won't hurt to stock up with womens stuff.
Remember women will still want to look good even when they are starving to death

[THE eXchanger]

most definitely....it is all about how we eXchange
gr8 post !!!
i did a barter this morning
love/susan
the eXchanger

[Dantheman62]

Originally Posted by Swanny

Good post.
Won't hurt to stock up with womens stuff.
Remember women will still want to look good even when they are starving to death

Swanny, bwaHaHaHa!

[piers2210]

Outstanding post. Barter has been operating in many countries in recent years. i have seen many deals in africa, asia, middle east, central america, south america in recent years which did not involve money transactions (but they did need lawyers, sorry). This will likely become the normal method of transaction before long.

[gatestar]

My favorite small town, Nelson BC, famous for hippie types, artists, artizans and all type of forward thinking, creative people. Many of the hippies from the 60's settled near there and developed back-to-the-earth ways to live.

Barter was established more than 20 years ago. Nelson and area (Slocan valley, etc.) has a system called 'barter bucks'. If you have a skill or trade you get your name and skill on a list which is on computer now. How it works is this...you have a leakey roof. You call for a roofer on the Barter list. He comes over right away and fixes your roof. No money is exchanged although you might invite him or her to stay for dinner.

Let's say your trade is drywall or sewing. So when someone needs drywall or sewing, you do the job, records are kept of the hours and wage rate and a tally is kept.

Here are some interesting links re community developement

http://www.spruceroots.org/December98/Money.html

Communities of Light all over north ameerica...
http://www.creativeideasforyou.com/c...and.html#Links to Communities from F.I.C.

developing local economy...
http://www.progress.org/archive/currency.htm

[Carmen]

Swanny, I'll swap you a sack of spuds for that lipstick in yer pocket!!!!!

[Humble Janitor]

I've already bartered homebrewed beer for a microwave and several end tables for my brother, since he didn't have any money.

That is why I will continue to make beer. For me, I see it as a valuable tool for bartering along with a few other things that I don't really use, as soon as I figure out what I can afford to let go of.

[Carmen]

Yeah HJ, and I'm going to carry on producing wine. That should be a bartable product. Wonder if Swanny likes wine!!!!!

[Myra]

Be careful you two people will be beating down your doors for that Beer and Wine when times get tough!

[Carmen]

Thats alright, theres plenty. Never did like drinking alone'! But seriously though, an inventory of what you can barter, and what can be bartered with other people in the community, is an important consideration for future times. Skills can be bartered also.

[JesterTerrestrial]

This thread is music to my soul mission!

thank you Antaletriangle your a one man avalon info machine!

check out my market thread for some great links about barter stuff...here is the one that would be most useful.

LETS BARTER SYSTEM PAGE.
A comprehensive manual detailing all aspects of LETSystem design and development, by Michael Linton and Angus Soutar.
http://www.gmlets.u-net.com/



MARKET MARKET MARKET!!!

[Swanny]

Originally Posted by Carmen

Swanny, I'll swap you a sack of spuds for that lipstick in yer pocket!!!!!

I'll swap it for your puppies

[Carmen]

Have'nt got any pups at the moment Swanny. How about one of these
DSC00022.JPG

Cheers

Carmen

Hope this works. Im only just learning to post pictures

[Carmen]

Sorry didnt work

[piers2210]

Hey Carmen, got any of that famous Pinot Noir????

I'll trade you my microwave hehehehe. Only joking. I've dumped it, i couldn't even give it to Oxfam on this occasion. But when i cleared out my flat over xmas i did give them everything i haven't used, read or played for the last year.

[Carmen]

:Yep, piers2210 plenty of pinot. Gave my granddaughter money for Christmas and then took them op shopping in the New Year. They had a great time, never been op shopping before. Im sorry to say I gave away my micro wave, should have put the axe through it!!!

One thing about storing stuff, heck it takes up a lot of room, and I've got a farm!!! There's stuff everywhere. I will have to go through and biff or give away stuff that is of no use in the future. I can see that. If you are in the vacinity, stop by and I'll give you a glass of Pinot.:thum b_yello:
v

[piers2210]

C, thats a deal.

Its a great discipline to "cleanse" your property of unused or unwanted stuff...you feel so much better afterwards, its amazing what negative energy stuff which has no purpose anymore can seep into your place.

When the spaces are clear and the surfaces clear you breathe an amazing sigh of relief, and feel so much better. I don't know why, but its true. I guess it cos you always need only good energy around you, not dead energy.

Atb, Piers

[Czymra]

Man, if I'm in New Zealand you can be dead sure that I'd invite myself.

Regaring bartering, I'm getting rid of all I can't carry at the moment so I can go trekking. Not sure what is left to barter there really as most things of value aren't really portable.

Also, I'm not sure if trusting online sites is any good for bartering. This concept strikes me to be a local concept.

[Swanny]

Originally Posted by piers2210

C, thats a deal.

Its a great discipline to "cleanse" your property of unused or unwanted stuff...you feel so much better afterwards, its amazing what negative energy stuff which has no purpose anymore can seep into your place.

When the spaces are clear and the surfaces clear you breathe an amazing sigh of relief, and feel so much better. I don't know why, but its true. I guess it cos you always need only good energy around you, not dead energy.

Atb, Piers

Yea that's true, I had a big clear out and tock loads of old stuff to the charity shop a couple of weeks ago, feel much better and like to walk around my spare room just because I can

[Starlah]

[QUOTE=gatestar;109189]My favorite small town, Nelson BC, famous for hippie types, artists, artizans and all type of forward thinking, creative people. Many of the hippies from the 60's settled near there and developed back-to-the-earth ways to live.

Thanks for your links Gatestar...bartering can be great fun and seems to me much more useful than currency. Just this morning I arranged a barter...fair trade jewellry for free fuel to do grocery shopping.
I'm familiar with Nelson, Kaslo, and Houston, etc. Spectacular little towns with beautiful scenery.
__________________________________________________
The End is the Beginning, and the Beginning is Now...(Its Been Said Before)

[THE eXchanger]

i started a process of sorting a lot of things to get rid of

one by one, i list them onto a website

and, one by one, they get turned over for cash

i did start to add, a list of things,

that i am willing to barter for,

and, ironically today -- i did a barter/or a swap with someone

and, i sold one item, for $25, that i paid $10 for

wish, i could do that, with everything i got

*********************************************
one friend of mine, Bill, who moved to costa rica to develop land
cashed out about 400,000 in rrsp's
and, left canada -- he'd retired from the railroad

anyway--he, sold everything in his house
in approx 3 weeks, running a garage sale ad,
that ran daily for 4 hours

he would take stuff out to the garage, sell it

and, the next night, take out more stuff

he said, it was amasing how quick all his things disappeared that way

and, also, he got a good price for everything too

he left, with just what fit into his van/truck

and, he said, he never looked back, just forward

we accumulate a lot of junk !!!

however, what is junk to one man, is often treasure to another



*************************************
then, shortly after he cleared out his own home
both his parents died, and he cleared out their house,
exactly the same way

**************************************
i coul d likely eliminate the mortgage
with my collections of stuff

love/susan
the eXchanger

[piers2210]

Nice story, susan - whether its bartering or giving away, it feels good to offload dead energy, and let that dead energy re-energise in someone else's place. Sometime's people "borrow" something from me - i never "expect" it to be returned if it means something to them to keep it. After i read Robin Sharma's the monk who sold his ferrari i realised that we rarely really need many things in life. Just love.

Bye for now.