• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

The Birth Of Barter: How One Greek Town Dropped The Euro And Moved On

Tyler Durden's picture




 

Greece was the first country to defect from the non-default game theory regime of the European Union (a move which ultimately will be in its great benefit, as it is forced, very shortly, to default higher and higher into the 177% of GDP secured debt, until finally even the Troika's DIP loan is impaired). It has also become the first country to demonstrate that people can, contrary to apocalyptic claims otherwise by the global banker consortium which realizes oh too well it will be its death if people stop playing by the broken rules, exist under a barter regime. The video below shows how the Greek town of Volos develops its own bartering system without the aid of the euro. Yes - it can be done, especially since one is forced to produce in order to consume, and borrowing infinitely from the future becomes impossible.

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Wed, 04/18/2012 - 18:21 | 2356370 LowProfile
LowProfile's picture

Just give 'em the bare minimum for property taxes.

And if they come after people for not declaring barter as income, fuck 'em, let 'em try and put EVERYBODY in prison for tax evasion.

I mean putting massive amounts of people that dissented in prison worked out OK for the USSR, right?!  LOLWAITWUT

 

Wed, 04/18/2012 - 18:46 | 2356427 agent default
agent default's picture

WHERE ARE YOU GOING TO GET THE DAMN CASH???  The Greek economy is frozen solid, it's more like an insect in a spider web and sucked dry by the Troika/ECB/spider. 

I blame the Greeks, they should have gone Dumdum on the Troika/EU/Sold out government shills of theirs,  yesterday.

 

Wed, 04/18/2012 - 19:02 | 2356484 Sean7k
Sean7k's picture

Money can be anything of value. The US started using the spanish reale for example, yet we had plenty of trade. Larger trade actions can be satisfied in whatever asset is acceptable to settle a contract: gold, silver, olives, oil, wine or even renimbi...

Wed, 04/18/2012 - 18:39 | 2356415 Sean7k
Sean7k's picture

Governments require the approval of the people to operate. When government loses that approval through its' actions and deeds, it is no longer viable. While governments can forstall this day through public assistance programs, once those programs are eliminated, the people have no reason to extend their approval.

This is the problem with austerity programs that focus on benefits the people have planned on for retirement. When granny goes rambo, the whole situation changes.

Wed, 04/18/2012 - 18:58 | 2356462 GeezerGeek
GeezerGeek's picture

When granny goes rambo the government realizes that it can ignore the approval of the people as long as it has lots of guns and bullets and police willing to use them.

Wed, 04/18/2012 - 19:05 | 2356500 Sean7k
Sean7k's picture

Sorry, government doesn't have enough resources to contain the people. Government depends on people following the law. The US couldn't handle three large cities in Iraq, they are getting kicked out of Afganistan. The US is one of the most highly weaponized societies in the world. 

Anyway, I doubt soldiers are going to fire on granny.

Wed, 04/18/2012 - 19:00 | 2356472 GeezerGeek
GeezerGeek's picture

When granny goes rambo the government realizes that it can ignore the approval of the people as long as it has lots of guns and bullets and police willing to use them.

Wed, 04/18/2012 - 19:05 | 2356503 MeelionDollerBogus
MeelionDollerBogus's picture

If you see how many protesters are facing Greek police and throwing firebombs you'll see police do NOT have the upper hand.

Wed, 04/18/2012 - 23:21 | 2357109 Milestones
Milestones's picture

If you're 23 and a single cop--maybe. Kids in in school and wife working-ya got to be an idiot to play that game. 300,000,000 guns vs. 1,000,000 cops. These fools are not 10 foot tall. It would be a slaughter.

We are getting closer however. The whole world has gone bonkers.             Milestones

Wed, 04/18/2012 - 18:43 | 2356425 CPL
CPL's picture

When the entire top end of the social strata is loaded to the tits with idiots and theives, why would they ever adopt that "government" again?

 

They won't.  The system requires that you contribute a real service and real goods first before being given recipt.  It is the abject opposite of credit/debt systems.  It actually rewards savings, hard work, real design improvements which the gains are gained from work.  Not a promise or an IOU.  You know, REAL capitalism.

 

Wed, 04/18/2012 - 19:03 | 2356483 Bobbyrib
Bobbyrib's picture

In the video it seemed as though they had things that were perceived as valuable, but weren't vital to the survival of the community. The woman selling plants isn't vital to the survival of the community unless she is selling vegetable plants. Seems they just want to get as many people involved in the system to keep it going.

Wed, 04/18/2012 - 19:03 | 2356493 MeelionDollerBogus
MeelionDollerBogus's picture

in the long run the non-payment of taxes means non-enforcement of tax collection as even the police quit - they will be denied food & lodging soon if they choose the wrong way. Then they will die.

Wed, 04/18/2012 - 22:05 | 2356980 FeralSerf
FeralSerf's picture

In third world countries (in which group the U.S. seems to be rapidly headed for membership), police often don't get salaries.  They work for whatever they can extort out of the proles -- could be money, food, fuel, sex, drugs, or?.

Wed, 04/18/2012 - 23:39 | 2357158 MeelionDollerBogus
MeelionDollerBogus's picture

or precious metals - gangs bring in food for Zimbabwe to take away raw grains of gold, dug by hand. 0.1 grams for a loaf of bread

Wed, 04/18/2012 - 19:21 | 2356566 Malachi Constant
Malachi Constant's picture

You see the government requires taxes and taxes can only be paid in legal tender. So eventually you have to get rid of the government.

Here, fixed it for you.

Wed, 04/18/2012 - 20:56 | 2356837 lakecity55
lakecity55's picture

Yeah! At one time, the goobers in the gubbermint could only use tariffs and customs taxes.

And it worked!

Wed, 04/18/2012 - 22:18 | 2357008 smb12321
smb12321's picture

The real problem is that barter works locally but is impractical long distance (which explains why energetic trade started with the creation of currency).  Personally, I'd rather hand someone a silver dollar than cart around a chicken.

Wed, 04/18/2012 - 15:46 | 2355782 iDealMeat
iDealMeat's picture

The Birth Of Barter: ??   See craigslist >> barter

Wed, 04/18/2012 - 15:53 | 2355839 yabyum
yabyum's picture

I will give you four Frankin silver half dollars for that skinny hooker in the ZH ad for estabished men! Final offer my friend!!

Wed, 04/18/2012 - 15:57 | 2355853 tmosley
tmosley's picture

Joke's on you, you could have had her for three slick dimes.

Wed, 04/18/2012 - 15:59 | 2355861 hedgeless_horseman
hedgeless_horseman's picture

 

 

Cramer charges a bit more than that, and he ain't that skinny.

Thu, 04/19/2012 - 01:43 | 2355907 iDealMeat
iDealMeat's picture

Ha!  I'd take those Franklins and trade them to see Cramer get reamed by the donkey down in TJ..

 

 

Wed, 04/18/2012 - 16:11 | 2355912 tmosley
tmosley's picture

But he can't tell the difference between those and fake dimes.  So really, that ass is free.  Of course, I'd rather carve it up for dogfood, but what do you do?

Wed, 04/18/2012 - 16:02 | 2355875 Dr. Richard Head
Dr. Richard Head's picture

I just told her I protected Obama.  I banged her at night and I stiffed her in the morning.  HEY OHHHHH!!!!!   

Wed, 04/18/2012 - 17:36 | 2356233 yabyum
yabyum's picture

But Tmosley, I can afford to pay a little extra for quality. 1) Iam not a secret service agent 2) Iam a ZH established man!;)

Wed, 04/18/2012 - 15:57 | 2355860 SheepDog-One
SheepDog-One's picture

Yeah, how can something thats been around for thousands of years be 'birthed' today?

Wed, 04/18/2012 - 16:51 | 2356035 Brother Revegen...
Brother Revegend Magoun's picture

Yes, I know my opinion will not be popular, but the truth seems to be: BANKS DON'T NEED YOU. 

Wed, 04/18/2012 - 18:21 | 2356375 LowProfile
LowProfile's picture

Care to elaborate? (crickets)

Wed, 04/18/2012 - 19:05 | 2356489 Zero Govt
Zero Govt's picture

Brother R  "Banks don't need YOU"

There are 2 types of bank runs (ie. ways to collapse a bank)

1). other banks don't lend to the bank

2). it's customers don't lend to the bank

Have you got those bits?

Then consider banks leverage customers deposits 10, 20, 50 to 1 ...what happens when customers take their money out? ...go figure

Wed, 04/18/2012 - 19:04 | 2356496 Bobbyrib
Bobbyrib's picture

Uh..they can print money that no one uses then print more and loan it to no one. /sarcasm.

Wed, 04/18/2012 - 17:22 | 2356166 walküre
walküre's picture

We

Don't

Need

Taxes

Either

Wed, 04/18/2012 - 18:18 | 2356371 skepticCarl
skepticCarl's picture

"We don't need banks"

Well, Einstein, show me just one country on earth that is functioning without banks. From Asia to Africa, North to South America, civilization has used "banks".  That your comment was liked by so many shows just how delusional, almost raptured, are the Zero-groupies.

Wed, 04/18/2012 - 18:45 | 2356431 Sean7k
Sean7k's picture

Well Einstein, show me how that negates his premise. Show me one country that had airplanes before the 1900's. Evolutionary changes are forced on civilization by necessity. The elimination of banks would be a welcome evolution.

Wed, 04/18/2012 - 19:03 | 2356492 Dave Thomas
Dave Thomas's picture

Well thanks for playing Carl! We'll send you off with a version of our home game! Round of applause folks!

http://www.youtube.com/watch?v=HmQnEyiGdGQ

Wed, 04/18/2012 - 21:05 | 2356863 Seize Mars
Seize Mars's picture

Thanks for calling me Einstein, I'll take it as a compliment. A bank is one of two things, possibly both. First, it's a safe place to store valuables. Clearly you don't need a bank for that. There are lots of companies to store valuables, (e.g. the Citadel, Perth Mint, Et cetera). Second, it's a place to borrow money. There is currently a profusion of "peer to peer lending" networks online these days. Even if they weren't there, you can still borrow from your friends or neighbors. What's wrong with that?

What else does your bank do? Well they issue credit, i.e. they print money. You sure don't need that!

Wed, 04/18/2012 - 20:59 | 2356852 Seize Mars
Seize Mars's picture

By the way, the brunette in the SnorgTees ad ("Geek is the new Sexy" shirt) is so hot!!!

So I went on SnorgTees and bought some crap.

Wed, 04/18/2012 - 21:11 | 2356879 Silveramada
Silveramada's picture

yes, imagine 1 oz of silver how good would do in a bartering  system... :)

Wed, 04/18/2012 - 21:41 | 2356936 philipat
philipat's picture

Does it involve Tulips?

Wed, 04/18/2012 - 15:35 | 2355754 Gene Parmesan
Gene Parmesan's picture

But... but... how will these transactions be taxed?!

Wed, 04/18/2012 - 15:40 | 2355775 JailBank
JailBank's picture

Yup this will be closed down quick for that reason alone. The gubment needs their cut. Tax man is like Paulie from Goodfellas. EFF YOU PAY ME!

Wed, 04/18/2012 - 15:44 | 2355796 LowProfile
LowProfile's picture

Gonna be mighty hard if the security guards are (formerly but no longer paid by b/k'd goobermint) the policemen...  Who are now employed by the town barter community (and live in town).

Wed, 04/18/2012 - 16:02 | 2355880 tamboo
Wed, 04/18/2012 - 15:48 | 2355823 hardcleareye
hardcleareye's picture

Hey, this is Greece we are talkin about....  gubment ain't going to be collecting NO taxes from these folks.... 

Wed, 04/18/2012 - 15:49 | 2355829 Gene Parmesan
Gene Parmesan's picture

Wait until the German/EU overlords find out though.

Wed, 04/18/2012 - 15:54 | 2355847 cossack55
cossack55's picture

Beware the Fallschirmjager II

Wed, 04/18/2012 - 19:05 | 2356497 GeezerGeek
GeezerGeek's picture

Another flavor of air pollution?

Wed, 04/18/2012 - 16:00 | 2355869 streetcrawler
streetcrawler's picture

Why do they plant trees along the roads in Greece? So the Germans can march in the shade.

Wed, 04/18/2012 - 16:53 | 2356047 Coke and Hookers
Coke and Hookers's picture

I thought that was in France...

Wed, 04/18/2012 - 18:02 | 2356318 ForTheWorld
ForTheWorld's picture

Because in some places, not everyone uses a car to get around, and it's far more pleasant to walk or ride a bicycle in the shade.

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