The Realm Community

Join us and help to create a more resilient community economy Our community exchange system gives you the opportunity to do something about boosting our community economy and providing security for our future. There is no shortage of skills and resources available in the Lancaster and Morecambe area but competition from around the globe keeps on increasing! We can sit around and tighten our belts expecting someone else to sort it out for us or we can do something about it ourselves, now.

Why doesn't our national currency buy as much as it used to? Our national currency, the pound sterling, is brought into existence whenever people take out loans from banks. Government borrows currency and call it issuing Bonds. Businesses borrow currency and call it Investing in the Future. Individuals borrow currency and call it taking out Mortgages and Personal Loans. The banks control the creation of money and when a loan is taken out new currency is being effectively created out of thin air but unfortunately they can't create money to cover the interest payments. This means that as time goes on more and more loans are needed in order to pay back all the previous debts and interest owed by other people and businesses. Very simply, inflation of the currency supply, through governments injecting currency through quantitative easing and the issuing of bonds for public deficit spending, leads to escalating debt. So our national currency reduces in value and we get used to having to work harder and borrow more and more in order to pay off our loans.

What can we do about it? Simple - we can create our own currency that stays within a completely separate community economy. We're not allowed to create pounds sterling because the banks have the monopoly on that and it would therefore be illegal for us to do so. However, we can create community currency because this is perfectly legal. In fact, currencies are nothing special, it is simply a means of recording the value of a transaction between a buyer and a seller. It is an accounting procedure. So the Realm Exchange keeps records of the transactions that occur between buyers and sellers. It uses the terms Realms to act as units of measure for the value of the goods and services transferred. So there is nothing illegal about anyone buying something from somebody else and using Realms to measure the value of the transaction that occurred. 

How is a Realm created if not through Debt?

A Realm is created when someone decides to send us £'s for conversion. We then store the current value of these £'s as gold on the website. This Gold is then stored in a vault along with everyone else's Gold to serve as a backing for Realms. The value of 1 Realm will always be held as equivalent to 1/1000th gm Gold so we can always exchange your Realms back to Gold if you wish to. This makes the Realm a currency that is backed 100% by Gold as many national currencies once used to be. Some financial analysts consider Gold is undervalued at present compared to the amount of fiat currencies in existence around the world therefore it is possible that its value could rise very much higher against a declining £ in the future. However, all members of the Realm Exchange must realize that the price of Gold can go down at times as well as up compared to £'s. This is not because the value of Gold is volatile. It is because the value of fiat currencies fluctuate against each other, dollars to pounds, or euros to dollars, and we have devaluations and revaluations from time to time by central governments. However, over time gold has been known to retain its value i.e. the amount of goods and services that it can purchase, because it is a real substance that remains pure and does not deteriorate.   

How does this create community liquidity? Each time that someone converts their national currency into Realms their account in the Realm Exchange is increased by the amount of Gold converted from their pounds.  That person or organisation can then make a purchase using Realms with another account holder so that as a community we keep that value within our local community. As long as we are recording the transactions and the value is being passed around frequently then local goods and services can exchange hands many times and everyone is benefitting from this. It is not possible for Realms to be spent outside the Realm Exchange so as more and more Realms are created and passed around between us the size of the Realm community's local economy grows. The only time Realms disappear from the community is if an account holder decides to redeem their Realms and convert them back into Gold again. They may do this at any time, so long as the community as a whole has sufficient gold in storage at the vault but they will get a better return on their investment if they keep spending their Realms within the community. Since the value of Realms is fixed to the value of Gold there is no need to convert them to get the benefit of increases in value. Just spend them again within the community. Prices of goods and services will reflect the value added. Bear in mind that the value of the Realm can also go down as well as up compared to the £.

Why limit this to a 25 mile radius around Lancaster? There are other reasons why we want to encourage local trading. It has become more and more difficult for local business to compete with global markets yet we need to reduce the environmental impact of global transportation as well as bring jobs and industry back to the local area. Encouraging local businesses to develop and thriving local communities to be re-established can only be a good move. By developing our own local currency that cannot be spent outside our community we give local business an advantage over any other business that is located outside our area. Within the marketplace of The Realm Exchange only the local business, owned and operated here, can advertise its goods and services.

What about Credit? How is this Debt different from that created by banks? We live at a time when money is not flowing as much as it used to so we recognize that local businesses are not stretched to their full capacity. Rather than go to a bank to take out a loan to buy what you need from a local business you can ask them if they will allow you to purchase their goods or services in Realms and you can borrow the amount of Realms if you have taken out a credit facility on the Realm exchange. Effectively what we are doing here is allowing the membership to create currency through loans rather than relying on banks. The difference is that no member of the Realm Exchange is allowed to charge interest. Instead, once created, Realms can be spent with other members immediately or whenever required. Overdraft facilities for Realms allow those borrowing this currency to pay it back in their own time through earning Realms from other members or by converting £'s into Realms to pay off the overdraft. There is no time limit required to do this and no interest charges incurred. Everyone benefits from this arrangement and it frees the community from limits caused by lack of £ sterling to buy Gold to convert into Realms. 

How are Realms useful to the community as a whole?

We live in an age of under-employment where there is useful work that needs doing for the community but no money to pay for it. If you have a community project that needs money to make it happen then the Realm Community can issue Realms to workers on this project which they will then be able to redeem with local businesses and organisations for goods and services. The Realm Community as a whole takes responsibility for paying back this loan from the ongoing revenue generated by users of the Realm Exchange. Please contact us if your organisation has such a project so that we can arrange the funding appropriately.