LETS what?

I think you mean, what’s LETS. Anyway, LETS stand for Local Energy Trading System. It's a complementary currency - a localised trading system that operates alongside the conventional money economy, rather than replacing it.

How does it work

LETS groups use an imaginary local currency (all currencies are imaginary, of course) alongside conventional dollars, to encourage people to exchange goods and services with others in their town or neighbourhood. Trades are recorded on a central database.

What can be traded on LETS?

House-cleaning, massage, cooking, haircuts, gardening, face-painting, homegrown vegetables, bike repairs, babysitting, books, DVDs… you name it.

What’s wrong with money?

The main problem with money is some people don’t have any. And if no-one in a local area has it, nothing gets done. In contrast, anyone can participate in LETS, simply by being willing to offer some services, even if they have no “proper” money.

Secondly, most LETS currencies are based upon an hourly rate, so there’s no profiteering by marking up someone else’s work or getting rich on interest charges and financial wheeler-dealing.

Thirdly, LETS currency is local, encouraging people to use the resources and skills in their local community.

Whose idea was it?

The original LETS group was created in 1983 by an Englishman, Michael Linton, who was living in Comex Valley on Canada's Vancouver Island. When a local timber mill closed and many people lost their jobs, the local economy collapsed. Linton figured people still had skills and energy. All that was missing was money to pay for each others’ services. His solution: invent your own currency. But rather than issue coins and notes, transactions in this currency were recorded by the group administrator.

Australia was an early adopter, with Jill Jordan setting up the first LETS group in Maleny in 1987.

LETS goes online

In the last few years LETS groups have been moving to online systems where traders can enter transaction details into the system themselves, removing this burden from the group administrator. The most popular of these online systems is CES [www.community-exchange.org], created by South African Tim Jenkin.

What’s green about it?

LETS is a great tool for encouraging "localisation" - "think global, act local" and all that. It encourages recycling and reuse of stuff through the exchange of used items. Members can also exchange homegrown fruit and veggies grown, get things fixed they might otherwise throw away, share tools and so on.

Apart from anything else, LETS tends to attract treehugging types, so it’s a good way to meet other local greenies. While most LETS trading is done between individual members, most LETS groups have regular trading days that function as social events.

How big is LETS?

By one estimate there are 1500 LETS groups in 39 countries. In reality it's hard to say as some LETS groups can become dormant. There are about 35 groups in Australia, most now using the CES system.

With tough economic times ahead, and the streamlined CES online trading system, LETS could be set for a boom period. 

What about tax and insurance?

Insurance is left up to individuals trading, not LETS. Generally the taxman ignores LETS unless you are using it as your main business income, in which case you may have to charge a mixture of LETS currency and dollars (to pay the man).

How to I join?

See our LETS section.

Find out more

http://en.wikipedia.org/wiki/LETS