Breaking Free from the Federal Reserve
The control of money is a fundamental attribute of sovereignty. For an independent Vermont, continuing to use the U.S. dollar would mean remaining subject to the monetary policy of the Federal Reserve, an institution whose goals (controlling national inflation, maximizing employment) might not align with Vermont's priorities (ecological stability, local resilience). Therefore, serious separatist economic plans invariably include the creation of a Vermont currency. This is among the most daunting technical challenges, touching on everything from public confidence to international trade. Proposals vary widely. One camp advocates for a classic, state-issued fiat currency, the 'Green Mountain Dollar,' backed by the full faith and credit of the Vermont government. This would allow Vermont's own central bank to set interest rates, control money supply, and perhaps even engage in 'quantitative easing for the people'—directly funding green infrastructure or social programs. Another camp, wary of state power, proposes a currency backed by a tangible asset, such as a basket of Vermont's key commodities: kilowatt-hours of renewable energy, gallons of maple syrup, or board-feet of sustainably harvested timber. This 'commodity reserve' currency would tie the value of money directly to the real wealth and productive capacity of the state, theoretically preventing inflation and encouraging ecological production.
Transitional Tools and Complementary Currencies
Recognizing the immense difficulty of launching a primary national currency overnight, many plans emphasize transitional and complementary systems. The most discussed model is the expansion of local currency or time-banking systems that already exist in rudimentary form. 'BerkShares' in the Berkshires of Massachusetts provide a working example of a regional currency accepted by hundreds of businesses. A Vermont equivalent could be scaled up, initially circulating alongside the U.S. dollar, to keep wealth circulating locally and strengthen community ties. Time-based currencies, where people exchange hours of labor (e.g., an hour of carpentry for an hour of dental work), foster a non-monetized, reciprocal economy. Digital ledger technology (blockchain) is also explored for creating secure, efficient local exchange systems, though often with skepticism due to its energy consumption. The ultimate goal is a multi-layered monetary ecology: a national currency for major state functions and international trade; robust local currencies for regional commerce; and active time-banking networks for neighborly exchange. This diversity is seen as a strength, making the overall economic system more resilient to shocks in any one part.
- Fiat Currency Model: The 'Green Mountain Dollar,' managed by a Vermont State Bank.
- Commodity-Backed Currency: Value tied to renewable energy, agricultural output, or timber.
- Local Complementary Currencies: Scaled-up versions of systems like BerkShares for regional trade.
- Time Banking: Formal networks for the direct exchange of services and skills.
- Digital Infrastructure: Exploring low-energy blockchain or other tech for efficient local exchange.
The psychological hurdle is as significant as the technical one. Money is a social agreement based on trust. Convincing people to accept and hold a new Vermont currency would require immense confidence in the stability and competence of the new state. It would likely involve a period of dual circulation, with fixed exchange rates, and possibly a constitutional guarantee that the currency cannot be debased. The benefits, however, are portrayed as transformative. A sovereign monetary policy could target full employment in green sectors, fund a just transition for workers, and avoid the boom-bust cycles driven by Wall Street speculation. It would recapture seigniorage—the profit made from issuing currency—for the public treasury. Most importantly, it would complete the circle of self-determination. If a community does not control its money, its control over its economy, its environment, and its future is always partial and contingent. For separatists, a Vermont currency is not an accessory to independence; it is its beating heart, the tool that would allow the new nation to finance its unique vision without begging or borrowing from the system it sought to leave.