Wednesday, April 8, 2009

Should Hawaii print its own currency?


Source: Quarterly Cafe

As Gov. Lingle and lawmakers quarrel over the state budget, there may be another option to help Hawaii's economy: Aloha Dollars.

As many as 75 communities across the United States are cashing in on a Depression-era idea: printing their own currency.

In Detroit, where the jobless rate is 22.2 percent, a network of local business owners have started printing their own money, called Detroit Cheers, and more than a dozen merchants have agreed to accept it as real money, according to a story in USA Today.

The idea is to keep commerce in Detroit and keep business flowing locally, instead of the money leaving the state or ending up in some corporate headquarters in Tokyo.

Alternative currencies have a history that extends back to the 1930s. There are obvious financial implications here, but local currencies were also originally created to emphasize traditional small-town values by building up the local economy and promoting trade within a community.

Interesting. The Aloha! I give you 75 Alohas for this apple! Not sure how it would work though or what the exchange rate would be or how it would stimulate the economy.

Perhaps Canada should start running on Canadian Tire money :)


1 comment:

King of the Paupers said...

Jct: When Argentina's government workers were faced with cuts, their unions talked 6 state governments into paying them with small-denomination state bonds which could be used to pay for state services and taxes and which everyone accepted as useful currency. So yes, Hawaii should print its own currency payable in taxes but it should call them bonds if there's any problem from the FEDS about currency creation.
Best of all, when the local currency is pegged to the Time Standard of Money (how many dollars/hour child labor) Hours earned locally can be intertraded with other timebanks globally!
In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture.
See my banking systems engineering analysis at with an index of articles at