Not happy with the dollar? Russia isn't, so the Kremlin is apparently putting forth an alternative international currency that would be more conducive to its interests, considering its massive gold reserves: a return to money backed by gold.
But you don't need to be a major superpower to trade in currency not backed by government fiat. In connection to my story on bartering, I briefly mentioned the trade-and-barter industry, which has a form of currency all its own--"barter points" that members of a trade-and-barter association use in place of money to price its each other's services. This can be useful for a few reasons. For example, U.S. exporters have faced a disadvantage recently as the dollar has strengthened. Trading in barter points rather than dollars is one way around that. David Wallach, president of the International Reciprocal Trade Association, told me that these alternative currency arrangements are useful when "there are not enough dollars in the system" to satisfy demand.
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cara of CA 10:39PM April 07, 2009
KingofthePaupers of NY 7:46PM April 07, 2009