Anna needs some carpentry work done but Joe doesn't need a hairdresser. Payment may be part cash to cover materials. In turn, another member of LETS, Cathy, needs a haircut and she arranges with Anna to have her hair cut. Cathy then informs LETS office of the transaction. It reflects the real wealth - the people's initiative, skill and effort.
Money is based on scarcity -it comes from outside the area and soon leaves it.
An ECO cannot be seen, heard or felt. It cannot be lost or stolen. An ECO exists only within the LETS accounting system. Here it passes from account to account, as members trade with each. All LETS accounts start with a zero balance.