This page has been archived and commenting is disabled.

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.

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 04/18/2012 - 17:35 | Link to Comment GrinandBearit
GrinandBearit's picture

Like someone said above... alternate currency maybe, but not barter.

Wed, 04/18/2012 - 18:42 | Link to Comment SilverIsKing
SilverIsKing's picture
Hey Tyler, forget about deleting this story from the site.  Instead, please change the title to, "The Birth Of Alternate Currency: How One Greek Town Dropped The Euro And Moved On"

Much thanks.

Wed, 04/18/2012 - 19:24 | Link to Comment Temporalist
Temporalist's picture

It is barter but with a record of credit.  They barter services as well and then can use the credit so they don't always have to perform tango lessons to pay for child care.

Wed, 04/18/2012 - 22:44 | Link to Comment FeralSerf
FeralSerf's picture

.

Wed, 04/18/2012 - 18:04 | Link to Comment CH1
CH1's picture

This is not true barter.

Who the hell cares? They are ACTING!

They can always improve their system, move to a different one, or whatever. But the failure to START - where all the brilliant talkers fail - has been overcome! They are alive.

Wed, 04/18/2012 - 15:45 | Link to Comment resurger
resurger's picture

Long Drakhma, Sohrt EUR

Wed, 04/18/2012 - 16:55 | Link to Comment Brother Revegen...
Brother Revegend Magoun's picture

I buy 100 puts on EUR/TEM @market GTC

Wed, 04/18/2012 - 15:45 | Link to Comment WALLST8MY8BALL
WALLST8MY8BALL's picture

When in Greece - Drop the Euro, not the soap!

Wed, 04/18/2012 - 15:48 | Link to Comment dwdollar
dwdollar's picture

I wonder who operates this account database. Will they sell out?

It's only a matter of time before the operator realizes he/she/they can print their own 'Tem' and live for free.

Wed, 04/18/2012 - 15:48 | Link to Comment maneco
maneco's picture

Goldman Sachs is probably looking at it already!

Wed, 04/18/2012 - 19:27 | Link to Comment Temporalist
Temporalist's picture

There is a simple solution to this.  A truly transparent system that shows how many "credits" there are in the central account, that is publicly accessible, and updated daily (weekly, whatever) so that people know not what each individual has but how large and quickly the system is growing in aggregate.  Then, they can say, we will "cap" the credit here and if need be expand it minutely with the approval of the participants.  If they get feedback and the people want to keep the cap they can. 

What will really be the problem is when people aren't spending their TEM fast enough and want to get interest on it.  It is not truly a bankster system until there is interest accruing and fractional reserve accounting.

Wed, 04/18/2012 - 16:09 | Link to Comment 323
323's picture

any system can be secured from undetected tampering, even from someone with full access

Wed, 04/18/2012 - 16:51 | Link to Comment Metalredneck
Metalredneck's picture

Demitrious PapaBernankous?

Wed, 04/18/2012 - 15:48 | Link to Comment TideFighter
TideFighter's picture

"One is forced to produce in order to consume" should be the ZH Header. Goldbugz and SilverBugz take notice.

Wed, 04/18/2012 - 16:05 | Link to Comment gaoptimize
gaoptimize's picture

You don't need to call us out or rub it in our face.  Noone is paying closer attention.  I junked you because money is convenient (store of value, multi-party transactions where barter is inefficient) and history shows people choose gold and silver as money.  Admitedly, it is a cost to the system and theoretically bitcoin or its ilk could be more efficient.  There will probably be a place for both and hybrids such as digital gold.

Wed, 04/18/2012 - 17:16 | Link to Comment Al Huxley
Al Huxley's picture

You know, the only way I get gold or silver is to first produce something - I can't just create it out of thin air the way the govt makes money.  Then I use the gold/silver to store the value of my production for later use.  You really need to think a little more before you start typing.

Wed, 04/18/2012 - 19:12 | Link to Comment NotApplicable
NotApplicable's picture

Produce something? Why don't you just steal it?

Worked for FDR.

Wed, 04/18/2012 - 15:47 | Link to Comment carbonmutant
carbonmutant's picture
Black Markets in Spain; Bartering in Greece

Free markets are headed underground...

Wed, 04/18/2012 - 15:48 | Link to Comment NotApplicable
NotApplicable's picture

Hey look, it's Mr. Panos!

Fuck You, Malakas!

http://www.youtube.com/user/mrpanosblog

Wed, 04/18/2012 - 15:57 | Link to Comment tmosley
tmosley's picture

I thought of that guy when I saw the headline.  Specifically "Never trust a Greek who is broke.  He has money in the basement, ALL DRACHMAS!"

Wed, 04/18/2012 - 16:22 | Link to Comment Walter E Kurtz
Walter E Kurtz's picture

Greece has a problem?  No, you gave Greece the money, you have the problem!

Wed, 04/18/2012 - 15:49 | Link to Comment JustObserving
JustObserving's picture

You think the Bernank will allow an alternate currency in the US?  About the same chance that we get the truth on 9/11 or a US Congress that represents the people.

Fascism in the US is far too ingrained to allow any threats to the existing order.  Learn to bow to your lord and master, the Fed.  And the paper dollar. Keep drinking that flouoridated water.  And eating the toxic food.

Wed, 04/18/2012 - 15:55 | Link to Comment Bartanist
Bartanist's picture

There are always gray markets ... one just has to not attract embarrassing attention.

Wed, 04/18/2012 - 19:18 | Link to Comment Sean7k
Sean7k's picture

Black market revolution.

Wed, 04/18/2012 - 17:26 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

You think the Bernank will allow an alternate currency in the US?

Oh please.  First of all, he's an errand boy.  Second of all, as long his currency retains usefulness, it will stay.  The moment it's no longer useful, it and he are gone.  

The fascism you mention, which manifests for example as the NDAA and in other forms is not sign of strength, but of fear.  These guys are deathly afraid of something....do you know what it is (they do)?

Wed, 04/18/2012 - 15:51 | Link to Comment Ratscam
Ratscam's picture

for the greek speaking folks, here their website
http://www.tem-magnisia.gr/index.php

Wed, 04/18/2012 - 15:49 | Link to Comment tony bonn
tony bonn's picture

regardless of what wailing banksters proclaim, there is life after default. fuck the euro, central banksters, and the totalitarian politicians doing their wills....

Wed, 04/18/2012 - 16:09 | Link to Comment Bartanist
Bartanist's picture

And this is exactly why I believe that they will eventually resort to attempting mass extermination of people... as a burnt offering (ahem, holocaust) to their one-eyed god.

Wed, 04/18/2012 - 19:20 | Link to Comment Sean7k
Sean7k's picture

They burn sacrifices to their dicks? Who knew?

Wed, 04/18/2012 - 16:46 | Link to Comment Metalredneck
Metalredneck's picture

That's a mighty Icelandic attitude...

Wed, 04/18/2012 - 15:51 | Link to Comment csmith
csmith's picture

"Yes - it can be done, especially since one is forced to produce in order to consume..."

 

Hey, hey, hey, hey, hey....HEY!!!

 

EASY on that stuff...wouldn't want anybody to be gettin' any IDEAS now, would we?

Wed, 04/18/2012 - 16:00 | Link to Comment Sophist Economicus
Sophist Economicus's picture

Yup, in the end it always comes down to that, doesn't it.   There will be many a welfare lard ass on BOTH SIDES of the economic spectrum, that are going to learn that lesson the hard way...

Wed, 04/18/2012 - 16:08 | Link to Comment Bartanist
Bartanist's picture

It wil be interesting to see who the elitist globalist deficients con into attacking Volos militarily. After all one cannot tolerate examples of people who are successful at throwing off the evil banking empire (doom. doom, da doom doom ...). I am surprised Iceland has not been infiltrated and attacked by (what do they call the Al Qaeda dupes in Syria?) freedom fighters.

Maybe Al Qaeda will magically appear in Volos.

Wed, 04/18/2012 - 15:55 | Link to Comment flattrader
flattrader's picture

I lived in a small town that had an informal barter system.

We traded everything from raw milk to legal assistance.

Fortunately, those who drank the raw milk never needed the legal assistance.

Homebrew, hay, sewing, gardening, construction, fruit/veggies, chiropractics, massage..damn near everything but traditional medical care.

It was (still is) a thing of beauty.

Wed, 04/18/2012 - 16:09 | Link to Comment JustObserving
JustObserving's picture

Keep the name of your town secret.  Or the Feds will descend like a plague of locusts and the town will owe millions in taxes.

Good luck with your endeavor. More power and freedom to you.

Wed, 04/18/2012 - 16:14 | Link to Comment flattrader
flattrader's picture

Yes, you're right.

I moved, but is is still going strong from what I hear...it's been operating for decades and has an institutional memory that fails when authorities come close.

Wed, 04/18/2012 - 16:59 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Do I have to report to the FED if I bring salad to a grill party and get some beers in exchange? We do it on a regular basis.

 

 

Wed, 04/18/2012 - 16:15 | Link to Comment object_orient
object_orient's picture

You didn't mention weed, but I'll still guess northern California

Wed, 04/18/2012 - 16:26 | Link to Comment flattrader
flattrader's picture

No. Not NoCal.  You'd likely be surprised.

I was never in the market for weed myself, so I dunno.  Neither did anybody else.

Wed, 04/18/2012 - 21:00 | Link to Comment object_orient
object_orient's picture

Good to hear that barter systems can thrive elsewhere. I've only seen them active when intertwined with the black market. Weed makes up a huge part of NoCal's economy, and some trickles down to the barter system. Maybe it's a safer means of exchange? [To Utah data center: I don't live in NoCal or make my living illegally].

Wed, 04/18/2012 - 17:28 | Link to Comment GCT
GCT's picture

Right on Flattrader.  Some people realize what they produce can actually be traded for something they need.  I have done it as well.  You do not always need greenbacks if you and the other person can come to a mutual agreement.  You all ought to try it sometime.  Total freedom from the government as no money was exchanged.

I always see stop buying crap to starve the beast.  Barter system is much better!

Wed, 04/18/2012 - 17:41 | Link to Comment flattrader
flattrader's picture

GCT,

It was quite sophisticated in that in addition to the barter system, a buying co-op had been established for things that couldn't be produced by individual members and services needed from the outside...but only to a limited extent.

In the end, we were purchasing things at just slightly above wholesale...to cover the costs of running the co-op and any profiit went back to the members.

Wed, 04/18/2012 - 18:55 | Link to Comment NotApplicable
NotApplicable's picture

Funny how communities can flourish... but only in absence of a strong government.

Wed, 04/18/2012 - 19:02 | Link to Comment my puppy for prez
my puppy for prez's picture

Are there good resources or teaching tools to learn how to set up a local barter system?

Wed, 04/18/2012 - 19:25 | Link to Comment Sean7k
Sean7k's picture

Try alternativemarkets.org Pretty sure that is the address.

Thu, 04/19/2012 - 08:19 | Link to Comment flattrader
flattrader's picture

The system was established when I made the scene.  Like minded people invited like minded people.

After a few successful barter trades you suddnely discovered you were part of a vast network that crossed county borders.  Referrals were easy.  Three-way trades easily arranged over time.

This was strictly word of mouth.  Formal records didn't exist.

The folly is NOT in failing to keep a second set of books...The folly is in keeping ANY books at all.

Without records, everything is at best hearsay, rumor, innuendo or BS.

Just start talking to people to see what they can do and what they are willing to do for others.

 

Wed, 04/18/2012 - 15:56 | Link to Comment in4mayshun
in4mayshun's picture

Citizens of Volos,

We salute you!

Wed, 04/18/2012 - 15:55 | Link to Comment buzzsaw99
buzzsaw99's picture

Who run Bartertown?

Wed, 04/18/2012 - 16:01 | Link to Comment flattrader
flattrader's picture

In the situation I was involved in--no computer, no records, nobody knew nothing...and everything.

If you screwed a fellow member, you were out...shunned.

Kinda Amish.

Wed, 04/18/2012 - 18:55 | Link to Comment NotApplicable
NotApplicable's picture

Once again, another example of a functional community.

Wed, 04/18/2012 - 15:56 | Link to Comment Cursive
Cursive's picture

Spartans did not carry/own money In fact, only slaves were allowed to carry money. Sounds vaguely familiar.

Wed, 04/18/2012 - 20:18 | Link to Comment JuicedGamma
JuicedGamma's picture

Spratans just beat whatever they wanted out of you, or killed you.

Wed, 04/18/2012 - 15:59 | Link to Comment Conman
Conman's picture

Send in the the Gestap... i mean german tax collectors.

Wed, 04/18/2012 - 16:00 | Link to Comment EvlTheCat
EvlTheCat's picture

I wonder how many credits the guy/gal running the central computer has, and if people are being paid in said credits to run the operation?

Non the less, it is nice to see this happening.

Wed, 04/18/2012 - 20:35 | Link to Comment lakecity55
lakecity55's picture

It will be interesting to re-discover Life before the internets.

Wed, 04/18/2012 - 16:02 | Link to Comment SheepDog-One
SheepDog-One's picture

I just 'bartered' for auto repair work, an old Ruger ranch rifle .44 mag I really didnt have much use for, trade, straight up.

Wed, 04/18/2012 - 16:08 | Link to Comment gaoptimize
gaoptimize's picture

If to a good man, there could be future benefits to you on the other side of the deal as well.

Wed, 04/18/2012 - 16:08 | Link to Comment SheepDog-One
SheepDog-One's picture

He's my long time friend from grade school. 

Wed, 04/18/2012 - 16:05 | Link to Comment Chupacabra-322
Chupacabra-322's picture

I'll trade you three 9mm bullets for one .45acp bullet.  Or Bullets for bread. 

Wed, 04/18/2012 - 16:10 | Link to Comment SheepDog-One
SheepDog-One's picture

Exactly, I have a few .38 specials and ammo set aside that I picked up super cheap from pawn shop searches. If and when things get really bad, what will 1 .38 and 50 rounds for it be 'worth' to someone without? A truck? A bunch of food? 

Wed, 04/18/2012 - 16:05 | Link to Comment wandstrasse
wandstrasse's picture

the worst and most terrifying nightmare for elite bankers and politicians is people discovering their ability to create value and exchange these values with each other and hence discover that there is no absolutely no need for the leadership as we know it.

People MUST NOT discover their abilities and gain trust in themselves, they shall be frightened and fearful and spend their lives in submissive agony, awaiting help from 'above' to get them out of the mess they are in.

Wed, 04/18/2012 - 20:33 | Link to Comment lakecity55
lakecity55's picture

And that's why all kinds of silver was accepted in the early USA. It had an intrinsic value and was easy to carry around and divide (pieces of 8).

Silver was the People's money until the evil bankers voided it, I think, in 1873.

Wed, 04/18/2012 - 16:06 | Link to Comment DaveA
DaveA's picture

Same thing in Argentina a few years ago:

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

According to the blogger FerFAL, these barter markets eventually switched over to normal currency and their "creditos" became worthless.

Wed, 04/18/2012 - 16:08 | Link to Comment Scalaris
Scalaris's picture

Whatever Greece, 2009 is calling.

Wed, 04/18/2012 - 16:11 | Link to Comment Global Hunter
Global Hunter's picture

Well these Greeks in the town of Vanos must be a bunch of raving anti-semites to pull such a dangerous and subversive stunt.

Wed, 04/18/2012 - 16:12 | Link to Comment SheepDog-One
SheepDog-One's picture

'Anti-semites', lol I knew someone would bring it up eventualy. These Greeks must obviously hate Jews.

Wed, 04/18/2012 - 16:38 | Link to Comment WTFx10
WTFx10's picture

Just the jewish mafia

Wed, 04/18/2012 - 19:36 | Link to Comment CH1
CH1's picture

These Greeks must obviously hate Jews.

I know that was sarcasm and all that... but you'd be surprised how much antisemitism has been growning in Europe, etc. over the past decade or so. It's scary.

Wed, 04/18/2012 - 16:16 | Link to Comment Dezperado
Dezperado's picture

Carl Menger, you were right. Love you.

Wed, 04/18/2012 - 17:32 | Link to Comment Withdrawn Sanction
Withdrawn Sanction's picture

Indeed he was.

Also, as he indicated, barter does not scale well, which is why money emerges.  No worries though, it wont take very long for the banksters to be starved out.  You dont produce (i.e., add to social totals), you dont eat.  Bankers are many things, but productive (i.e., a social contributor) is not one of them.

Wed, 04/18/2012 - 18:02 | Link to Comment Dezperado
Dezperado's picture

Exactly :-)

Wed, 04/18/2012 - 16:17 | Link to Comment ChacoFunFact
ChacoFunFact's picture

Time Banks have been around for a long time and are currently being used in Maine.  Hour Exchange Portland.  Earn time credits for doing work.  Time banking can pay unorthodox dividends, too.

Wed, 04/18/2012 - 18:53 | Link to Comment dwdollar
dwdollar's picture

Last time I heard, a Rockefeller was promoting time credits (I think he owned one of the exchanges). No thanks.

Wed, 04/18/2012 - 18:57 | Link to Comment NotApplicable
NotApplicable's picture

Institutionalized = Controlled

Thu, 04/19/2012 - 09:50 | Link to Comment ChacoFunFact
ChacoFunFact's picture

Please site a reference to your claim.

 

In the meantime, everyone else can check this out:

http://www.hourexchangeportland.org/howitworks.php

Wed, 04/18/2012 - 16:34 | Link to Comment riphowardkatz
riphowardkatz's picture

How do you pay pensions in barter? and how do you pay for free medical services in barter and provide for free university educations and food stamps and section 8 and disability insurance? how do you bail out too big too fail banks when you barter? how do you pay for social security with barter?

so selfish that they want to trade their effort that has market value for other people's effort that has market value without thinking of all the people who put in no effort into creating market value.

Wed, 04/18/2012 - 16:57 | Link to Comment mrdenis
mrdenis's picture

The State Of Utah Monetizes Silver And Gold .........http://www.youtube.com/watch?feature=player_embedded&v=WCbrOzhwkXc

Wed, 04/18/2012 - 17:25 | Link to Comment Quinvarius
Quinvarius's picture

This is what happens when bankers forget money exists to serve the economy and not them.

Wed, 04/18/2012 - 17:59 | Link to Comment walküre
walküre's picture

Beautiful. Almost brought tears to my eyes.

How do they pay for their ZNGA accounts or purchase anything through FB? LOL

Wed, 04/18/2012 - 18:25 | Link to Comment NOTfromSanFrancisco
NOTfromSanFrancisco's picture

 

 

Good for Volos!

Wed, 04/18/2012 - 18:25 | Link to Comment zerozulu
zerozulu's picture

In a barter town, who own fuel, rules.

Wed, 04/18/2012 - 20:45 | Link to Comment Decolat
Decolat's picture

Ethanol. Very versatile. A fuel, an antiseptic, a cleansing solvent, a cocktail, a Moltov cocktail, etc.

Wed, 04/18/2012 - 18:35 | Link to Comment The Alarmist
The Alarmist's picture

But ... but ... but if they are bartering crap, how are they going to pay for the Mercedes they import from their financing vendor?

Wed, 04/18/2012 - 18:39 | Link to Comment Soda Popinski
Soda Popinski's picture

It's only a matter of time before the bankers send in their Russian mercenaries to tear down the markets and re-introduce worthless paper currency.  Coming to a town near you in Amerika.

Wed, 04/18/2012 - 18:40 | Link to Comment navy62802
navy62802's picture

That's some badass shit right there. Awesome.

Wed, 04/18/2012 - 20:28 | Link to Comment lakecity55
lakecity55's picture

We should try this in the USA

F*CK ben and his crappy helicopter.

Wed, 04/18/2012 - 18:41 | Link to Comment Eric L. Prentis
Eric L. Prentis's picture

The Greeks gave us democracy and the root words for many of our words.

 

I am betting on the Greeks!

Wed, 04/18/2012 - 18:54 | Link to Comment TWSceptic
TWSceptic's picture

Why are these terrorists not arrested yet?

 

Doing all their free trade and barter, ignoring the fiat money and institutions that promote it. They should be locked up indefinately.

 

On a serious note, it's quite interesting to see how people manage to go back to what always worked, when technocrats / fascists have taken over their country.

 

Wed, 04/18/2012 - 18:51 | Link to Comment Lazane
Lazane's picture

2012 potato project is planted, beyond that completed task I could care less who does not barter cause eventually everyone will, though they may not have a good or service to trade. 

Wed, 04/18/2012 - 18:52 | Link to Comment 10044
10044's picture

see what 'paper' money is?? CONFIDENCE, JUST CONFIDENCE

Wed, 04/18/2012 - 19:03 | Link to Comment Bastiat
Bastiat's picture

And guns: 

Definition of FIAT 1 : a command or act of will that creates something without or as if without further effort 2 : an authoritative determination : dictate <a fiat of conscience> 3 : an authoritative or arbitrary order : decree <government by fiat>
Wed, 04/18/2012 - 19:58 | Link to Comment navy62802
navy62802's picture

Speaking of guns. What are the gun laws like over in Greece? Are the citizens permitted to have personal firearms?

Wed, 04/18/2012 - 20:26 | Link to Comment lakecity55
lakecity55's picture

Yes/No. They have lots of stuff stored away from dubya-dubya 2 and Greek Army vs. Communists, in addition to whatever NATO stashed there during Gladio.

Wed, 04/18/2012 - 18:59 | Link to Comment Snake
Snake's picture

"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."

Greece? The first country ....? hmmmm, maybe not, please see below or, better yet, do a little research on the history of financial crisis.

Please, see:

http://www.xolimited.com/download/rpt/26.pdf

Read it, if cognitive dissonance allows you.

Wed, 04/18/2012 - 20:48 | Link to Comment tsuki
tsuki's picture

TEMS have been given non-profit status and encouraged by the Parliament.  Imagine Congress doing that?

 

http://www.freakonomics.com/2012/03/22/greeces-new-currency/

Wed, 04/18/2012 - 19:24 | Link to Comment bugs_
bugs_'s picture

when the macro solutions fail, micro solutions will present themselves and life will go on.

Wed, 04/18/2012 - 19:45 | Link to Comment tony wilson
tony wilson's picture

this town is full of evil do er individualists.

non team playing subversives.

just  like the evil do er assad in syria.

it will be the turk that will correct this,treat this localized disease before it spreads.

the turk will help his pink friends in the hope he will finally be allowed to join the club.

 a regional war and land grab should correct this  decadence this treachery against the godly goldman sack of's.

in time this brotherly greek love will be divided conquered.

it will traded for internicine bestial violence,murder,rape theft and death.

the benign red shield will always prevail.


Wed, 04/18/2012 - 20:22 | Link to Comment lakecity55
lakecity55's picture

So, when does the Wehrmacht show up?

We get to do the "Guns of Navarone" again!

Wed, 04/18/2012 - 19:50 | Link to Comment israhole
israhole's picture

"No mas" to judefetzen!

Wed, 04/18/2012 - 20:10 | Link to Comment Zgangsta
Zgangsta's picture

They should totally barter for some advertising, as I'm sure there are a lot of people that would want to join an honest system like this.

Wed, 04/18/2012 - 20:19 | Link to Comment lakecity55
lakecity55's picture

Coming to Amerikuh!

How 'bout some o these here silver dimes fer those .22's Pilgrim?

Wed, 04/18/2012 - 20:29 | Link to Comment Rathmullan
Rathmullan's picture

Bless them for their courage. But the "Holmes" of southern Europe?

Wed, 04/18/2012 - 20:43 | Link to Comment Pancho Villa
Pancho Villa's picture

During the US depression in the 1930's many stores, companies, and municipalities issued their own scrip because Federal money was so scarce.

 

Wed, 04/18/2012 - 20:58 | Link to Comment drysafe
drysafe's picture

I am sure the Greek equivalent of the IRS is happy about this - I am assuming nobody even remotely considered paying any taxes on those barter transactions. Yet I believe there is something in the tax code of most countries to the efffect of barter revenue still being taxable (and the tax being payable in "real" currency), based on the market value of the goods/services exchanged.

Wed, 04/18/2012 - 22:44 | Link to Comment indio007
indio007's picture

Tax is on income. There is no income on an even exchange as long as you don't do something stupid like declare a "market value".

 

The fundamental reason profit can be taxed because it is prima facie an unfair bargain. It is the amount gained in excess of the cost. As opposed to an even exchange.

Wed, 04/18/2012 - 22:49 | Link to Comment drysafe
drysafe's picture

Interesting. I agree with you. Now, here's how the IRS looks at things:

http://www.irs.gov/taxtopics/tc420.html

 

Wed, 04/18/2012 - 21:01 | Link to Comment pan
pan's picture

Local solutions bitchez!

Wed, 04/18/2012 - 22:04 | Link to Comment Colonel
Colonel's picture

Haggling bitchez!

Wed, 04/18/2012 - 21:20 | Link to Comment TN Jed
TN Jed's picture

Nothing to do with Greece but surprised I haven't seen it mentioned anywhere.  Syrian gold at 15% off?  I don't get it.

Syria selling gold reserves as sanctions bite: sources

http://www.reuters.com/article/2012/04/18/us-syria-gold-idUSBRE83H0RZ201...

Wed, 04/18/2012 - 21:26 | Link to Comment jomama
jomama's picture

way to shine a light on them... this will probably get shut down sooner than later.

Wed, 04/18/2012 - 21:32 | Link to Comment q99x2
q99x2's picture

She said, "This is how it worked before money was involved."

Really. Must be a tax related issue.

Wed, 04/18/2012 - 22:03 | Link to Comment Yes_Questions
Yes_Questions's picture

 

 

As if a thousands year old society needs the ECB to survive.  As if a young "Democracy" needs a central bank either.

Wed, 04/18/2012 - 22:31 | Link to Comment ekm
ekm's picture

The whole world has converted to Barter.

Has anybody noticed how much electronic money gets created, goes to Primary Dealers, goes back to the Fed computer and never leaves the computers at the Fed and ECB?

Nobody wants that money. China and Brics and doing Swap bilateral agreements that are basically Barter agreement.

WORLD BARTER FOR YOU. That's what Fed+ECB+BOJ+BOE+BOC did for you.

Wed, 04/18/2012 - 22:35 | Link to Comment indio007
indio007's picture

Most people's ideas about debt and barter are dead wrong , check out 

 

Debt the first 5000 years

http://www.amazon.com/Debt-The-First-000-Years/dp/1933633867

 

 

barter (v.) 
mid-15c., apparently from O.Fr. barater "to barter, cheat, deceive, haggle"

Wed, 04/18/2012 - 22:53 | Link to Comment Libertarian777
Libertarian777's picture

maybe now the anti Ronulan's can catch a wake up.

The latest i'm hearing is about Ron Paul wanting a '1 world gold currency'. Such BS.

This 'tem' is EXACTLY what Ron Paul is wanting to LEGALISE... COMPETING currencies. These people have spoken, this is what they choose to transact in. Yes its still paper/digital, but its chosen by these folks to trade in.

I'm sure if you went there with silver or gold coins they would also provide services to you in exchange.

Whatever your opinion on gold/silver though, the main point is FREEDOM TO CHOOSE.

Thu, 04/19/2012 - 01:24 | Link to Comment The Heart
The Heart's picture

Coming to a theater near you soon!

.

Thu, 04/19/2012 - 03:24 | Link to Comment Martel
Martel's picture

Barter system is much more efficient than generally claimed. For starters, there is no inflation. The main benefit comes from pushing the government out of equation. Value added taxes in Europe are generally around 19-23%, so by a barter system one can easily save 20% vs. fiat money. That evens out nicely some of the inefficiencies of bartering.

The governments keep on pushing fiat money, because it enables them to leech more efficiently. After all, somebody has to pay for that cognac and crème brûlée.

Thu, 04/19/2012 - 08:52 | Link to Comment ZeroPoint
ZeroPoint's picture

Who runs Barter Town? MASTER BLASTER!

 

 

Fri, 04/27/2012 - 22:55 | Link to Comment GreetingsFromGermany
GreetingsFromGermany's picture

Great idea - at the same time you can save taxes - something what is very popular in Greece. 

For sure the Germans will compensate even that.  

Do NOT follow this link or you will be banned from the site!