Business and Personal Finance Dictionary

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• MUTUAL CREDIT SYSTEM
  
  A system in which the currency necessary to mediate a transaction is created at the time of the transaction as a corresponding credit and debit in the balances of the two parties. These systems (LETS and Time Dollars, and the proposed ROCS), unlike fiat currencies, do not require any centralized money supply management. "... I--who with others 'coined' the LETSystem word to express the ideas of consent, collaboration, invitation, possibility--regret the extent to which others restrict their understanding to the local. Certainly, local is good, local is essential, and local will happen--but let's not lose sight of the bigger pictures.... I don't just care about local people - I also care about my childrens' childrens' children (none yet born), and about trees, who don't seem to give a damn about me, and about international and inter-community harmony. I care about the weather. The essence of a LETSystem is that it tends to generate positive social behaviours amongst its users. It makes it possible for us to deal equitably with all sorts of people. In my own little world and system, there are plenty of people that I don't 'care' about, nor want to care about. I wouldn't trust them for a second in a situation where they might rip me off--and I don't have to. You don't have to care -- it is only necessary that we act as though we do, and that's the behaviour that a mutual credit system develops in its users. So act now, then you will be able to care as much as you choose, later, if you like. " Michael Linton
  
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