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This just sounds crazy. What are the credit notes backed by? I assume the shopkeeper can change them to euros. But does the city have enough euros cover all is

by chvid 10y ago

This just sounds crazy. What are the credit notes backed by? I assume the shopkeeper can change them to euros. But does the city have enough euros cover all issued notes? Or are they effectively running a ponzi taking the real 35 euros a day from the government and covering the refugee obligation with a credit note. This should not be legal (and probably is not).

jcbeard 10y ago
Legalities aside, there is a long tradition of giving out "fake" money to foreigners that can only be used in exchange for certain goods and services. In turn, local shopkeepers can use the certificates to exchange at some fixed rate for currency. The first time I ever heard about such a scheme was "occupation money." I have some of the German bills around here somewhere from my family members when they were issued them, here's a wikipedia page: https://en.wikipedia.org/wiki/Allied_Military_Currency https://en.wikipedia.org/wiki/Allied_Military_Currency. I think the best thing about these schemes is that they keep the currency local vs. enabling refugees from (understandably) sending the money back to relatives (who perhaps need it more).
- chvid 10y ago
  I don't have high thoughts about schemes like this. First off: Why plot pictures of communist leaders on the notes? My guess is that they know what they are doing and want to put the "fog of politics" over it. Don't accept our "patriot dollars"? I guess you hate our freedom, damn french person. Think our "refugee euros" are a ponzi scheme? Nasty racist bigot. Making sure that any discussion of the soundness of the scheme degenerates into a discussion of divisive politics. Secondly: The 35 euros pr. person the state gives the city to cover all expenses of taking in refugees is probably not a windfall. It is probably too little as it needs to cover everything from hospitals, schools, food, housing, processing cost and so on. (And not enough to give cash handouts for the refugees to wire back home.) But if you are a manipulative politician you can use the cash you get from the state to run a ponzi scheme and claim the temporary surge in activity is due to the benifits of multiculturalism, your forward-looking leadership or whatever.
Kenji 10y ago
What are the credit notes backed by? Hahaha, what are Euros backed by? Or are they effectively running a ponzi What is the ECB running? You have to remember, this is exactly the same thing as how our official money works. Someone just gives it out and creates it from nothing. Frankly, private currencies are the solution if the state-backed currencies fail, and they seem to fail more than they should. Not to mention, the Euro is dictated from outside, not even from a central bank in the country but from the ECB who has no clue what's happening and needed in South Italy. A classic disaster of centralism.
- chvid 10y ago
  The difference is that you have to pay your taxes in euros.

by chvid 10y ago

jcbeard 10y ago

Legalities aside, there is a long tradition of giving out "fake" money to foreigners that can only be used in exchange for certain goods and services. In turn, local shopkeepers can use the certificates to exchange at some fixed rate for currency. The first time I ever heard about such a scheme was "occupation money." I have some of the German bills around here somewhere from my family members when they were issued them, here's a wikipedia page: https://en.wikipedia.org/wiki/Allied_Military_Currency https://en.wikipedia.org/wiki/Allied_Military_Currency. I think the best thing about these schemes is that they keep the currency local vs. enabling refugees from (understandably) sending the money back to relatives (who perhaps need it more).

chvid 10y ago
I don't have high thoughts about schemes like this. First off: Why plot pictures of communist leaders on the notes? My guess is that they know what they are doing and want to put the "fog of politics" over it. Don't accept our "patriot dollars"? I guess you hate our freedom, damn french person. Think our "refugee euros" are a ponzi scheme? Nasty racist bigot. Making sure that any discussion of the soundness of the scheme degenerates into a discussion of divisive politics. Secondly: The 35 euros pr. person the state gives the city to cover all expenses of taking in refugees is probably not a windfall. It is probably too little as it needs to cover everything from hospitals, schools, food, housing, processing cost and so on. (And not enough to give cash handouts for the refugees to wire back home.) But if you are a manipulative politician you can use the cash you get from the state to run a ponzi scheme and claim the temporary surge in activity is due to the benifits of multiculturalism, your forward-looking leadership or whatever.

Kenji 10y ago

What are the credit notes backed by? Hahaha, what are Euros backed by? Or are they effectively running a ponzi What is the ECB running? You have to remember, this is exactly the same thing as how our official money works. Someone just gives it out and creates it from nothing. Frankly, private currencies are the solution if the state-backed currencies fail, and they seem to fail more than they should. Not to mention, the Euro is dictated from outside, not even from a central bank in the country but from the ECB who has no clue what's happening and needed in South Italy. A classic disaster of centralism.

chvid 10y ago
The difference is that you have to pay your taxes in euros.