The coming currency devaluation

Gold-Eagle.com ^ | Oct 10, 2003 | Cliff Droke

[Starwind]

The book Currency Recall: The Coming Monetary Reorganization of the United States by Lawrence Patterson is at Amazon.com.

Anybody know this book/Author...have a link to the monograph?

Some strong statements made that need verifying.

[Starwind]

hedgetrimmer posted this article on another thread, and it is well worth reading and discussing, I believe.

Anybody got any further info on what the article claims?

[Support Free Republic]

Hi mom!

[Alter Kaker]

This is simple absurdity to anyone of economic knowledge. New design does not mean new currency. Are there two quarter systems? Old quarters circulate overseas and 50 state quarters circulate only in America? Of course not. The sky is not falling, not on America, not on Israel, not on anybody.

[glorgau]

Or it could just be that the reason is the stated one - to deter counterfeiters. Also, there is a bunch of narco cash that has to be flushed out of the hiding places in this world.

[Starwind]

New design does not mean new currency.

Clearly it is new currency distinguishable from the old, and if they can't be exchanged as has been contended:

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.

It seems a further restriction on our ability to take our cash where we wish and spend it as we wish.

Presumably there would be some mechanism to take cash on a foreign trip, but the article seems to imply a lot of reporting might accompanying such an exchange (at customs?). It is not to hard to understand how this can be used to 'track' bringing cash resulting from foreign bullion sales onshore.

The point of the post was to vet this article. Might you have any information to support your viewpoint?

[Mike Darancette]

Wow, the depth of paranoia in this article is amazing.

[agitator]

Bills were introduced over several years (95-97 IIRC) to introduce a dual currency ostensibly to reduce counterfeiting & money laundering by Leahey & Kerry. There was to be no currency recall - however - careful reading of the bills indicated that exchange of old money for the new "domestic" money was to be on a dollar for dollar basis; exchange of the old or new "domestic" money for the new "external" money would be by *value*.

It was clear to me at the time that this represented a dual currency system where the "value" (or exchange rate) of the two currencies were *not* linked.

Knowing how the value of the (alleged) dollar is in proportion to how much it is inflated by greedy politicians with their fingers on the printing presses, it is not inconceivable that we might wind up with the Rubles while foreign settlements between governments and multi-nationals would be conducted with dollars as we know them today.

This is not my imagination, the bills existed at the time and I didn't read them incorrectly. I recently looked for copies of them and found incomplete portions of them on the web but not the original text - the offending portions of which were in the last couple of paragraphs.

[tonyinv]

Not to mention terrorist money. Wasn't there hundreds of millions of dollars found in Iraq? I say force everyone to exchange the old greenbacks for the new bills.

This would force the money into the banking system wouldn't it? I dont know, just guessing.

Hasn't a collapse of the menetary system been predicted since day one?

[Starwind]

There was to be no currency recall - however - careful reading of the bills indicated that exchange of old money for the new "domestic" money was to be on a dollar for dollar basis; exchange of the old or new "domestic" money for the new "external" money would be by *value*.

It was clear to me at the time that this represented a dual currency system where the "value" (or exchange rate) of the two currencies were *not* linked.

These seem contradictory statements. Could you please clarify? If domestic and foreign bills exchange at a "dollar for dollar basis" wouldn't their value in fact be linked and equivalent? Could you give an example of what you meant by exchange by "value"?

[Alter Kaker]

Clearly it is new currency distinguishable from the old, and if they can't be exchanged as has been contended:

This happens every year for American government, no matter if new design or not. As old bills return to banks, they are exchanged by government for new bills. You cannot ask for old bill.

It seems a further restriction on our ability to take our cash where we wish and spend it as we wish.

Existing bills will be legal for use in America for ever. I do not understand concern.

[Gatún(CraigIsaMangoTreeLawyer)]

This article does not make sense. Sitting here in Panama, we use U.S. paper currency. (Panama has none of its own. There is a special treaty between the U.S. and Panama about this that was passed early in the 1900s.) Bills wear out. The old ones are flown back to the U.S. for destruction and new ones are flown in which means the old ones will be replaced by the multicolored ones. Therefore, all $20 will eventually be replaced by the new ones all around the world. Maybe someone can explain it to me.

[nopardons]

American paper money, has historically changed, from time to time. Bills printed 100 years ago, and more, are useable as legal currency. When such bills go through a bank, they are NOT " traced " and as legal tender, they are valued at face value...whether backed by gold, silver, or neither.

The government's current change, in the way paper money looks, is to deter fraud/counterfitting.

[Starwind]

This happens every year for American government, no matter if new design or not. As old bills return to banks, they are exchanged by government for new bills. You cannot ask for old bill.

The article was not clear on this point (perhaps the book/mongraph is) but it would seem to imply the Treasury would print and maintain two sets of currencies - a domestic (new design) and a foreign (old design) US bill set (the old/exising design) but the two would not be exchangable. Worn-out new-design domestic bills could not be exchnaged for old design bills and worn-out old design foreign bills could not be exchanged for new-design domestic bills.

See agitator's post #8 for some hints at prior attempts in congress to establish a dual currency system.

[kingu]

Events marking the first purchases with the new $20 notes were held today in more than 30 U.S. cities. Later this month, the issue of the new $20 bill will be marked by international events in dollarized economies and in countries where U.S. currency is widely held, such as Russia and countries throughout Latin America.
-- From a government press release

The new twenties are the only 20's being released by the Federal Reserve system for one month, then we go back to the standard recycling of whatever comes by along with additional printing of 20's to replace those that are destroyed.

You're welcome to buy all the gold you want, I'm sure the gold market people would love to have a nice pop so they can sell their positions in anticipation of the next major gold sale in December.

[lelio]

Wasn't there hundreds of millions of dollars found in Iraq?

That's my guess for why the new $20 was introduced: boatloads of counterfeits out there.

Now that would be an interesting terrorist plot: bring in a billion fake $20s into the US and leave them in suitcases for someone to find. You'll start a craze to find the next suitcase full of dough and people will wonder if they are carrying fakes. I'm surprised something like this hasn't happened already.

[Starwind]

Bills wear out. The old ones are flown back to the U.S. for destruction and new ones are flown in which means the old ones will be replaced by the multicolored ones. Therefore, all $20 will eventually be replaced by the new ones all around the world.

See my post #14 re maintaining and circulating two sets of currencies, and agitator's post#8.

Maybe someone can explain it to me.

I'm looking to figure out what's true and isn't myself.

[nopardons]

What's TRUE, as opposed to people on FR, who imagine that they are " experts ", because years ago, they read some bill/s that were proposed, but NEVER enacted, is that banks get OLD paper currency from abroad and send them NEW stuff. At one time, bank employees were allowed to but the OLD bills, for face value, as " keepsakes ", curriosity items, whatever.

Old American paper money, that is worn, is redeemable at any bank. The government destroys worn out and defaced money.

These are the FACXTS and NOT the tinfoil, that some here pass off as " fact ".

[Starwind]

Bills printed 100 years ago, and more, are useable as legal currency. When such bills go through a bank, they are NOT " traced " and as legal tender

I agree we are told they are legal tender for all debts public and private, so I wonder how this would work.

But if a distinguishable new currency were introduced for domestic use only, and by law, not exchangable with the old-design currency circulating only outside the US, both could be "legal tender", just not exchangable without explaining where one got the currency they had.

Then there is the issue of exchange rate. Presumably they'd be $1 to $1, but then I assumed the Fed would never induce inflation either. Agitator in post#8 seems to suggest otherwise.

[Starwind]

You're welcome to buy all the gold you want, I'm sure the gold market people would love to have a nice pop so they can sell their positions in anticipation of the next major gold sale in December.

LOL! Thank you no, I'm not interested in trading gold.