While this idea is not going to topple the existing financial structure currently in use across the world
It could if it incorporated Warriors Insurance.
Depressions occur because the wealthy people, via their bought politicians, tax the productive people for the support of the government -- the existence of which protects the asset value of the wealthy people from loss due to force and fraud.
The result is a few people have all the assets but nothing in which to invest them because they've taxed their economic base into oblivion.
Warrior's Insurance resolves that by making the barter economy include certificates that can be redemed with warrior insurers to pay insurance premiums for indemnification against force and fraud. Since the warriors used by the insurance businesses are drawn from the population at large, there is an inherent and natural wealth redistribution mechanism put in place that even Lysander Spooner would find acceptable. Since, unlike normal government, reinsurance networks would actually indemnify owners of assets if they lost value due to force and fraud -- asset value would skyrocket along with trickle-up (Keynesian) economic activity from the average citizens who are normally told they must sacrifice their lives "for the country" when, in fact, they are risking their lives for the protection of the assets of the wealthy. Under Warriors Insurance that fraud ends. Warriors become mercenaries protecting the assets of those who pay them. Not very "Christian" of those Warriors to do that, is it? Then again, it isn't very "Christian" of the wealthy to corrupt the government and monetary system for their benefit at the expense of those who sacrificed sons in wars and in fighting crime and in even such basic services as fire fighting on their behalf either. Since politicians are guaranteed to be bought, all's fair so far as I see it.
Here's in general how it might work in practice if similar circumstances arose in the United States:
First you have to recognize that the thing that creates demand for Federal Reserve paper is the threat of punishment if you do not acquire said paper for payment of taxes -- and that punishment now includes threats of Hepatitis-C (40% of prisoners in California prisons are infected) and HIV-infected prisoner gang-rape. So these pieces of otherwise worthless paper can be made quite valuable by simply not attending to this serious human rights violation that has rendered governmental authority illegitimate at its foundation -- selling its legitimacy out and allowing it to be usurped by foreign powers.
Reinstating legitimate government could theoretically rely on an "independent judiciary" but the judiciary is no more independent of the penal system than are the executive and legislative branches -- so the theoretic "independence" of the judiciary is a red-herring in this instance.
The situation is similar in Argentina, but in Argentina there isn't the intense interracial strife fueled by the presence of a highly biased system of punishment in which whites are not parts of gangs and are therefore raped at a frequency that is 10 times that of blacks.
(It is no coincidence that whites pay more taxes per capita than blacks and than it is that the government uses black gangs to do its dirty work against citizens in prisons.)
Under these circumstances it is difficult to mount a legitimate defense. Recapturing the legitimacy of the government is virtually impossible without some sort of mobilization.
This mobilization must first involve replacement of the payments of
punishment protection money to the usurpers with payments of
localized mutual insurance money to the various, now organizing,
local militias. This mutual insurance money would need to be issued
by local organizations and could be simply in the form of an
accounting book kept locally -- recording who deactivated how much of
their mutual insurance money issued by that locale so that inflation
could be controlled and coverage. The introduction of this money
would, of course, have to be under cover as barter organizations that
report their transactions to the extorters to pay punishment
protection. The function of the barter organization would, in fact,
be the indemnification of families that suffered _local_ losses due
to acts of war against them. Fair competition between local mutual
insurance companies would be encouraged so that people had local
choice, but the insurance function would have to remain under cover
to prevent this knowledge from leaking out lest the state authorities
governing insurance attempt to stop the relationships from forming.
With localized transactions occuring with localized money and
localized indemnification in the event of localize losses due to
force or fraud (aka acts of war), the next, natural, step would be
the exchange, between militias, of mutual insurance money and
corresponding guarantees between local militias. This would form a
de facto reinsurance network forming the backbone of mutual defense
treaties. With the mutual reinsurance network alliances there would
be a decreasing ability to maintain, as well as decreasing need for
secrecy regarding the indemnification function of the local militias -
- and a broader range of economic interests could start receiving
coverage as it became apparent that the militias had the resources
with which to destroy the collection powers of the Internal Revenue
Service-Federal Reserve's punishment protection money extortion
Then it would become a simple matter of economics:
Let's say you are annually paying the equivalent of 100% of your net
assets in to various governments for protection from HIV-HepC-
infected-ethnic-prisoner-gang-rape-infested imprisonment. This is
actually a not atypical load of punishment protection money to be
paid by a young man who may decide to join a local militia. It is
even typical of small businessmen who may _not_ join a local
militia. You can stop making those payments and pay either _nothing_
(if you are a member under orders of a participating militia's mutual
insurance company) or some fraction of your net assets that you want
protected from losses (varying depending on how confident the market
is in the militia's ability to protect the assets and the militia's
reinsurance network to indemnify in the event a local militia's
mutual insurance fails). Presumably also included in the protection
premium would be imprisonment insurance in the event that the
extortion racket does actually confiscate your belongings for failing
to pay them their punishment protection, and then punishes you -- for
all intents and purposes making good on their continued threats of
HIV-HepC-infected-ethnic-prisoner-gang-raping imprisonment -- a
situation in which there may be need to pay the Black Muslims and/or
the Aryan Brotherhood to provide the protection against the dungeon
sadists housed by the insurrection's authorities, or to otherwise
neutralize the ururpers' ability to subject you to such situations.
Once the stark reality of the economics were laid out for all too see
in this manner, I think it would be a matter of letting nature take
its course in the new warrior's marketplace. It would evolve into a
condition where the insurrection posing as the government would no
longer weild effective authority. That is the point when it would
make sense to reinstate the legitimate government -- but then a question -- a serious question -- is begging for
Why make basically the same mistake made by the founders, when you
have a superior system already operating?
PS: The centralized nature of some internet systems make them vulnerable to attack by hostile interests. A few years ago the guy who is now the main programmer of the new server for Napster wrote up a distributed barter system called "dbarter". "dbarter" was voted best work in progress by the 1999 Hackers Conference held annually by Silicon Valley founders in Santa Rosa, CA. Let me know if you want a copy and I'll send it to you in email. It's just over 650K in tar.gz form and runs on Linux in its beta form.
-------- Empty the Cities --------