- After repeated warnings from currency analysts and market
advisors (including yours truly) that the U.S. currency system is on the
verge of becoming a blocked, two-tier system we now have confirmation that
the country is one step closer to realizing this. When fully implemented,
the new U.S. dollar will mean a "banana republic" type currency
and across-the-board devaluation.
-
- According to a CNN/Money news wire report of Oct. 7,
the new U.S. $20 bills will be released this week at banks across the country.
Meanwhile, the Fed and its Bureau of Engraving and Printing (BEP) will
hold a nationwide series of publicity events as part of a $33 million campaign
to let the world know of the new bills and to acclimate the public to their
strange new appearance.
-
- The new $20s are peach-toned with the presence of blue
ink, making it the first time in almost 100 years that a mass-circulation
U.S. note has prominently contained a color besides green and black. They
also contain an embedded vertical plastic strip and color-shifting ink,
whose appearance changes from copper to green as the bill is tilted against
the light. Below is what the front of the new $20 bill looks like (from
the BEP website). [Editor's note, which has a really odd name: the Money
Factory click]
-
- So, what is the significance of this change of color
in the U.S. $20 note? Well according to the Feds it is designed as a deterrent
to stop counterfeiters. But accordingly to currency analyst Lawrence Patterson,
who authored the 1994 monograph titled "Currency Recall," which
accurately forecast the new multi-colored notes, the new colored money
is part of a two-tiered currency system that will have drastic implications
for investors and non-investors alike here in the U.S.
-
- Patterson calls the new notes "crayola currency"
and claims they will circulate domestically while the normal green currency
that we've grown accustomed to will circulate offshore all over the globe.
According to commentator Terry Savage, "Two-thirds of the U.S. paper
currency is circulating in foreign countries." With the coming two-tiered
currency system, foreigners will continue to be allowed to use the greenback
while U.S. citizens will be stuck with the "crayola currency"
which cannot be exchanged.
-
- Patterson forecasts the coming use of foreign exchange
controls for the U.S. dollar domestically, which would prohibit Americans
from transferring capital to any other world currency. Again, this is discussed
in Patterson's now-classic monograph "Currency Recall" (which
I've read and highly recommend to students of currency policy and investors
seeking to retain the value of their investments). Buy from Amazon.
-
- Patterson states, "I want every one... to think
carefully about this... because we are coming very, very close to the end
of the freely convertible domestic dollar. The cut in value could be as
much as 50%... I believe those holding gold bullion bars offshore and bullion
coins domestically will be very surprised to find that special regulations
will prohibit them from profiting."
-
- He further maintains that coin dealers are under a strict
Treasury regulation and must report your sales of some coins but not others.
The rule is as follows: Coins with a premium above 15% do not have to be
reported. In addition to the 1099 report, filed by the coin dealer, you
have to declare any capital gains as well."
- He continues, "The existence of this rule, I believe,
indicates an intent to outlaw the ownership of bullion coins altogether!
However, the rule will not remain at 15% necessarily and could be changed
to a higher percentage, which is unknown at this time. Obviously, you do
not want to own any investment coins with a premium of 15% or less and
better stay at the 25% or 30% level to be safe."
-
- Patterson points out that complications for the government
would clearly arise should numismatic collectibles be forcibly confiscated
since the bullion coins' value can be determined by the London gold fix,
but not so for collectibles. "The price of the collectible coin may
or may not be easily determined as numismatic valuables are routinely auctioned
off at prices of not only tens of thousands of dollars, but hundreds of
thousands of dollars per item," he observes. "It is difficult
to imagine just how this would all be sorted out by the bureaucracy to
come up with a calculation of compensation that would relate to the market
value." He advises staying in the "safe zone" and exchanging
bullion coins not needed for emergencies (such as food or gasoline shortages,
et al) for numismatic coins with higher premiums.
-
- Obviously, the introduction of the new peach-colored
$20 bill is a test on the American public to see how they respond to the
drastic new changes. The CNN/Money article states that the BEP has launched
a multi-million dollar promotional campaign aimed at gaining public acceptance
of the new currency. For example, the twenties are being featured on game
shows, including "Wheel of Fortune" and "Jeopardy,"
sporting events, like ESPN's college football telecasts.
-
- The bills are also part of some consumer product tie-ins,
according to CNN/Money, and pictures of the bills will be on the side of
bags of Pepperidge Farm Goldfish. If the government succeeds in getting
the American public to accept the bills, the other remaining denominations
will obviously follow and plans will proceed for the blocked domestic dollar.
-
- mail: clif@clifdroke.com
-
-
- Comment
- From IZAKOVIC
- dragutin.izakovic@ri.tel.hr
- 10-10-3
-
- Hi Jeff...
- The article "The Coming Currency Devaluation"
By Clif Droke is all wrong.
-
- If I remember well, colored $ were conceived by Reagan
administration as a WAR MONEY, whose scope was to isolate domestic market
from the chaos in external world during the WWIII, which did not occur.
-
- This means that U.S., by introduction of rainbow colored
20$, starts a program whose scope is to protect the Homeland by devaluating
the greenbacks down to wall paper value.
- This is inevitable because the U.S. cannot never pay
back its foreign debt that, at this day, as You have noted, amounts to
an unperceivable amount of $6 trillion.
-
- http://www.rense.com/general42/TRIL.htm
-
- Greenbacks will be left to the world outside the U.S.
as a cheap wallpaper.
-
- U.S.external debt is a main reason why Bush started the
war against terrorism. The only problem is that nobody baited on it, so
the plan "B" was activated.
-
- IZAKOVIC
- <http://www.deepspace4.com>http://www.deepspace4.com
|