05/22/2012
Organized Barter Systems
Growing To Alleviate Financial Stress
The
current global recession has placed enormous financial pressure on
every business sector, every level of government, and virtually
every individual on the planet. The prolonged economic downturn has
tested peoples� confidence in once-respected financial institutions
and government-managed monetary systems.
The
recent proliferation of barter exchanges, community currency
systems, online barter sites, government sponsored trade systems and
mutual peer-to-peer credit clearinghouses are proof of the validity
of alternative capital systems� ability to provide meaningful
alternative markets to allow businesses and individuals to maintain
their status quo and even prosper.
China, France, Ireland and other countries are seriously examining
the feasibility of launching their own government sponsored barter
systems. On December 8, 2011, the City of London released a report
titled �Capacity Trade and Credit: Emerging Architectures for
Commerce and Money� with the goal of creating a barter hub of sorts
for Europe in London. In the U.S. more than twelve states have
legislation pending to create state currencies to serve as an
alternative to the currency distributed by the Federal Reserve and
commercial banking system.
�The barter and trade industry is justifiably receiving an enormous
amount of attention now from both the public and private sectors as
a viable solution to replace lost business activity caused by the
recession,� says Michael Mercier, President of the International
Reciprocal Trade Association (IRTA), the thirty-three-year-old
advocate for the global barter and trade industry. IRTA (www.irta.com)
anticipates a continued sharp increase in new private, quasi
public/private and government backed trading systems in the next
decade.
The
U.S. government officially recognized organized barter via the Tax
Equity and fiscal Responsibility Act (TEFRA) of 1982, which
categorized barter exchanges as third party record-keepers and
mandated that all barter sales were taxable events requiring the
submission of 1099B forms to the IRS. Many other countries are now
using the same approach towards organized barter for their taxation
model, as they move towards final approval of their own barter and
trade systems.
As
the global recession continues, and with little optimism about a
meaningful recovery happening anytime in the near future, all types
of barter and trade systems will continue to flourish and provide
much needed long-term financial relief to business owners and
individuals alike. And when the global economy does finally take a
turn for the better, organized barter and alternative currency
systems will continue to play a meaningful role in increasing
commerce and improving the bottom lines of businesses and consumers
worldwide.
For
more information please contact IRTA Executive Director Ron Whitney
at 757-393-2292 or ron@irta.com.