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The Blue Ridge Mountain

Exchange
An Overview

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Project Objectives – 1 of 2
To establish a citizens’ local currency
cooperative known as the Blue Ridge Mountain
Exchange (BRME) in order to enable the people
of the Roanoke region to control their own
economic, social, and cultural destiny.

To further the growth of jobs, income, meaningful

work, and opportunities for people and
businesses whose livelihood is threatened and
human potential held back by economic
conditions over which they have no control.
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Project Objectives – 2 of 2
To create a trading and bartering platform that promotes
new and expanded economic activity, including, as a
component, use of a legal complementary currency
operating parallel to the official U.S. money supply. This
is sometimes called a “LETS”—a Local Exchange
Trading System.

To support the platform with an organizational and

systems infrastructure that facilitates efficient and
effective trading for economic sustainability,
development, employment, farming, manufacturing,
conservation, and delivery of goods and services.

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Why Is BRME Needed? – 1 of 3
• Most U.S. currency enters circulation as bank-created
debt that must be repaid with interest. This sucks money
out of the local economy, as do chain businesses. The
U.S. economy today, including the federal deficit, is over
$50 trillion in debt. This is over $167,000 owed by every
man, woman, and child. Interest payments alone are
between $2-3 trillion per year out of national income of
$9-10 trillion.

• A complementary currency can enter money into

circulation and be available for continuous use without
incurring new debt from bank interest.

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Why Is BRME Needed? – 2 of 3
• The U.S. is in the longest recession since the Great
Depression. If and when a recovery takes place, experts
predict it is likely to be of the “jobless” variety. In fact, the
U.S. will never again have a full-employment economy,
because so many of our jobs have been exported to
foreign countries and eliminated by automation.

• The recession is hitting local businesses the hardest,

including the Blue Ridge region. Local businesses lack
the capital reserves and access to credit to survive when
consumer purchasing power keeps going down due to
unemployment.

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Why Is BRME Needed? – 3 of 3
• Bank credit is also being restricted due to high
capitalization requirements. Federal stimulus dollars may
help create or preserve jobs but are highly inflationary in
the long run so cannot continue to be used forever.

• Complementary currency isn’t just a system for “hard

times.” It puts people in charge of their own money
supply whenever and wherever they have goods and
services to sell. It’s the way monetary systems are
meant to work and the key to local and regional
sustainability.

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 Organization
BRME would be organized as a non-profit citizens’
cooperative.

BRME would be a membership organization

headed by a Board of Directors and Steering
Committee and would employ a small
professional staff to conduct its business.
Volunteers would play a key role in publicizing
and expanding the system.

BRME would be headquartered in Roanoke. It

would function throughout the region.
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 Operations—1 of 3
 Members would join by paying an annual membership
fee in U.S. currency and would be provided a discounted
amount of complementary currency.

 The system would utilize a central automated database

where members would have their debits and credits
recorded and where they could make payments to each
other using the complementary currency..

 Currency would also be available in the form of paper

notes or spent using purchaser-signed trading slips
(similar to paper checks). Debit cards, or value-added
cards, might also be used.

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 Operations—2 of 3
 Once spent, paper notes in circulation could be re-spent
by anyone. Membership in the system would not be
required to spend the complementary currency within the
community.

 Prices would be offered and/or negotiated between

sellers and purchasers as in any other marketplace.

 Members who offer goods and services would have a

free listing in an on-line directory and in a monthly or
quarterly newspaper-type advertiser with paid display
ads.
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 Operations—3 of 3
 Members could qualify to maintain a line of credit within
the system. This feature will make the system a full-
service business financial support operation.

 BRME would not be a bank, however. It would facilitate

lending among members, but would be a record-keeping
institution.

 Members who receive the paper currency in trade could

deposit it in their accounts. Non-members who receive
the currency could hold it to re-spend or could join the
system and deposit it.
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Cur r ency – 1 of 2
 Exchanges would be denominated in a legal
complementary currency known as “Nokies” (named
after Roanoke).

 Nokies would be based on a $10 unit. It would be

printed in $1, $5, $10, and $20 denominations. Designs
would utilize professional artwork.

 Nokies would be professionally printed. Current

technology equals or surpasses U.S. currency.

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Cur r ency – 2 of 2
 Anyone could spend Nokies, which would be accepted
in trade by merchants and service providers who may
or may not be members of BRME. Only members
could deposit Nokies in their system account or accept
checks or plastic cards.

 Many members would accept Nokies as a percentage

of the total price of transactions, with the remainder
due in U.S. currency.

 Nokies would not be redeemable in U.S. dollars.

 Members may also supplement employees’ wages and

salaries with Nokies. 13
Legal Authorities – 1 of 2
 BRME would operate under the laws and
regulations of the Commonwealth of Virginia
and the United States of America.

 The IRS, FBI, U.S. Secret Service, Federal

Reserve, and Treasury Department have all
declared the printing and use of local
currencies to be legal. Nokies would be a U.S.
government-accepted money system.

 Complementary currencies must be

denominated in dollars and readily
distinguishable from U.S. currency. Similar
currency systems thrive in dozens of
communities around the United States. 14
Legal Authorities – 2 of 2
 Counterfeiting or theft of Nokies would be
punishable by law.

 Earning of Nokies by businesses or

professionals would count as taxable income,
which is why members would also take in a
certain amount of U.S. currency. Members
would be responsible for filing their own
personal and business tax returns.

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Other Complementary Currencies
– 1 of 2
• The world’s largest and oldest complementary exchange
system is the WIR Bank of Switzerland with over 70,000
members. In 2002 Argentina’s complementary currencies
issued through trueques, or trading clubs, saved that nation
during a time of financial collapse.

• Answers.com lists 86 complementary currency systems

operating in the U.S., including Ithaca Hours (Ithaca, N.Y.),
Life Hours (Fourth Corner Exchange, Washington State),
BerkShares (Massachusetts), River Hours (Columbia River
Gorge, Washington State), Piedmont Plenty (North Carolina),
Anacostia Hours (Maryland), Bay Bucks (Michigan), and many
more. There are also dozens of locations with systems for
the exchange of labor hours. These systems have received
widespread publicity in the national and international media.
For a description of some of them, see the E.F. Schumacher
website at:
http://www.smallisbeautiful.org/local_currencies/currency_groups.html

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Other Complementary Currencies
– 2 of 2
• There are also a number of commercial bartering
systems worldwide that operate under the laws of
their host nations and exchange value through a
complementary currency called Trade Units. Many of
these are members of the International Reciprocal
Trade Association (IRTA), headquartered in
Portsmouth, VA, through which over 400,000
companies trade annual value of around $10 billion.
Examples of regional exchanges are the Vermont
Sustainable Exchange, Barter of America in San Diego,
California, and the Barter Business Exchange of Cary,
North Carolina. See the IRTA website at: http://
www.irta.com/AboutIRTA.aspx.

• BRME could eventually include a commercial barter

exchange that would interface with the Nokie system.
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 Benefits – 1 of 3
 The use of Nokies in regional trade through a
system managed by a citizens’ cooperative would
express real economic democracy. This system
would reflect that money and credit should be
viewed as public utilities that serve the free
marketplace, not just an authoritarian
bank/government monopoly.

 Nokies would be generated through the

production of goods and services within the
region and would serve to monetize the labor and
resources of the people of the Roanoke area.

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 Benefits – 2 of 3
 Nokies would especially help small businesses
which provide 60-70% of all employment, but
where half of new firms fail within a year. A
leading cause of failure is lack of affordable bank
credit.

 Because Nokies would stay within the region,

Roanoke would benefit from the “multiplier
effect” of the same unit of money being spent
over and over again. A $1 Nokie would have the
potential of fueling $10 or more in economic
activity. This is in contrast with $1 in U.S.
currency spent in a chain store, where a majority
of receipts exits the region within 48 hours.
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 Benefits – 3 of 3
 Widespread use of Nokies would generate new
economic growth and reduce unemployment.
Family farms could become profitable again.
Small-scale manufacturing that has virtually
disappeared could return.

 Use of Nokies would also tend to insulate the

region from shocks affecting the national
economy in a world where monetary decisions
made in far-off financial centers can destroy the
livelihood of innocent people anywhere in the
world. For instance, decisions to raise bank
reserve requirements made by the International
Bank of Settlements in Basel, Switzerland, has
tightened credit worldwide. 20
Timeframe & Scale of Operations –
1 of 2
 Discussions have begun with other LETS operators to
utilize an existing automated exchange system.

 With sufficient support, BRME could “go live” as early as

January 2011. Following start-up of the basic system,
various enhancement features could be phased in over
time.

 The effectiveness of the system would depend on the

size and diversity of membership. It would be essential to
reach a critical mass as quickly as possible.

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Timeframe & Scale of Operations –
2 of 2
 BRME would set an initial target of at least 500 business
members within the first three years of operations. At a
rate of $10,000 in trading per member per year, the
system could support $5 million in economic activity
annually and possibly more.

 Initial recruitment would focus on key businesses such as

grocery stores, farms, professional services, building and
maintenance trades, auto repair, retail, etc.

 Availability of business lines of credit could lead to rapid

growth of system utilization.

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 Management & Funding
 BRME would operate under a Board of Directors plus a
Steering Committee with member-elected
representatives.

 BRME would raise a working capital fund from advance

membership sales, loans, and donations.

 BRME would need pro bono legal and accounting

support along with volunteers for recruitment, marketing,
and community relations. Each member would have a
role in helping to “grow” the system.

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Next Steps – 1 of 2
 Incorporate as a non-profit citizens’ cooperative with the
Virginia State Corporation Commission and set up an
organizational structure in accordance with the by-laws.

 Engage in fund-raising sufficient to finance program start-up.

Recruitment of 150 members willing to sign-up in advance
would likely be enough initially. Sign-up would start in
September 2010.

 Publicize the website at www.OurNokies.org and create a

publicity brochure.
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Next Steps – 2 of 2
 Establish business accounts in the Roanoke area for banking,
printing, telephone and fax, accounting, and other services.

 Conduct an extensive program of community outreach to

include businesses and professionals with strong potential for
membership, local and regional media, government officials,
community organizations, churches, educational institutions,
business and trade associations, etc.

 Import, develop, and test systems and procedures to prepare

for the start of operations.

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Conclusion
 BRME would be a citizens’ cooperative,
owned and operated by the people of the
Roanoke region. It would be up to the
members to make the system work by using
the complementary currency, expanding its
reach, and protecting it politically.

 Even in the midst of economic disasters, the

spirit of the people remains strong. It is this
same spirit that created the American nation
and that is certain to make grassroots
private-sector endeavors like The Blue Ridge
Mountain Exchange a success. 26
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