The coming currency devaluation

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

[Centurion2000]

Are there two quarter systems?

Yep, 1964 and earlier coins ..... and the crap minted since.

[kingu]

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.

Such a plan does not exist, the article writer is hawking gold. The 'author' he's quoting was the editor of 'Crime News' in a 2001 story. This is just the typical scare tactics that gold marketers use to bump the price of gold so that the traders can get out of the market just before one of the major sales by countries divesting themselves from large hoards of gold. The next major sale is in December, which means these traders have to bump the market so they can have some form of profit before the bottom falls out again.

[nopardons]

I doubt that agitator has ever worked in a bank or knew anyone who worked in currency. I, OTOH, know both.

What those here, who revel in being frightened to death by imagined shadows, don't know, fills volumes and WHY anyone ever believes them, is beyond me.

The new paper money is being made to foil fraud and counterfitting, which has once again become a HUGE problem. It has NOTHING at all, to do with a two tiered money system.

[Gatún(CraigIsaMangoTreeLawyer)]

Thank you. But somehow, there is still something wrong. Unfortunately, my brother the banker just left on a two-week vacation and I won't be able to speak with him until he returns so I can share his comments with all of us. The acid test during his absence will be if we start to get multicolored bills here in Panama. I'm not saying you're wrong. I am saying that I'm not satisfied with our comments yet.

[Gatún(CraigIsaMangoTreeLawyer)]

Ref post #23. I agree with you.

[Starwind]

the article writer is hawking gold.

Well he's doing a terrible job of it.

From the article: 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.

Seriously, do you think he's encouraging people to go out and buy gold because they'll profit from it?

The author may be a crackpot about a dual currency, but then you can't argue he's shrewdly selling gold either.

[nopardons]

Thanks. I don't talk about things I don't know much about/nothing at all about, unlike so many here. I've stated facts . Your brother the banker WILL concur with what I have posted. :-)

[calljack]

Most of the "money" in the world is in electrons not cash.
How much "money" are you worth??
How much "cash" do you have??
Most of the money in the world exists only in ledger entries
in bank accounts anyway.

[wardaddy]

Bump.

I am a bit concerned about rising mortgage rates. I've gotten lazy and spoiled. I have a bank board review on 11-9 for a big (for me) package and I fear they will raise the ceiling on my balloon with equities obviously rebounding.

Can't have it all can we?

[Starwind]

The acid test during his absence will be if we start to get multicolored bills here in Panama.

If the author is correct, you won't ever see multicolored US currency in Panama - only in the US (I presume you're not referring to the canal zone?); Panama would continue to see the existing 'greenbacks', and said greenabcks woul dbe minted anew to replace worn out bills; Panama would not receive the muitcolored currency to replace worn out bills.

I am saying that I'm not satisfied with our comments yet.

Me neither.

Perhaps you can persuade him to post (or let you post) his comments upon his return?

[Gatún(CraigIsaMangoTreeLawyer)]

On a lighter note, and I'm serious, the Panamanian public has not been educated on the new change. I can see the population refusing to accept these new bills thinking they are phony. I dread walking into a supermarket and trying to pass a new twenty off. But then I again, note to self, don't worry..use credit card. Don’t leave home without it.

[agitator]

Read my post again. If you were to exchange existing dollars for the new "internal dollars," that exchange would be one for one; $1 old for $1 new "internal" money.

When you went to exchange old or new "internal" dollars for the new "external" dollar, that was to be done by value, i.e., implying that there could be different values (purchasing power) for the "internal" dollar vs. the "external" dollar.

In otherwords, you're going on vacation to Ecuador (which uses dollars as currency) and it might take $50 US "internal" dollars to buy $35 US "external" dollars to take with you.

Considering how politicians enjoy theft by the defacto devaluation of our currency by printing too much of it (where they get to spend the new money before you get it), and considering how certain elements of govt think it's the duty of American citizens to transfer the product of their work to every third world ____hole for no good reason, with a dual currency with a floating exchange rate between them they would be free to inflate our new "rubles" without affecting the value of the external dollars.

That would mean they could steal the value of our "rubles" without interfering with international settlements based on the dollar, or mucking around with the long term planning of multinationals using the external dollar.

[nopardons]

Not " most " money is in " electrons "; that's how it is transferred though.

My personal wealth and where it resides, is none of your business.

[agitator]

P.S. Mind you, I'm talking about bills that are now 5-7 years old and I know of no such bills currently introduced. I'm only referring to what I read at the time and suggesting the potential danger *if* a dual currency system were to be introduced.

[nopardons]

Use your credit card, if you are worried. Eventually, everyone, everywhere will get the hang of it all. LOL

[Gatún(CraigIsaMangoTreeLawyer)]

No need to ask my brother now because your statement was correct.

[nopardons]

You knew that was coming and NO, we can't ever have it all.

[Starwind]

I can see the population refusing to accept these new bills thinking they are phony.

Actually that would be the same concern of the US Treasury. The US population can accept a new bill. But there are many countries (Oil producing countries) on whose acceptance of the dollar and US currency we don't want to jeopardize.

Hence why the old currency would continue to circulate internationally.

If not being able to exchange that old currency with the new US domestic currency (except at borders and banks) and that helps track drug profiteers, so be it. But if the exchange rate is not one to one, how does it get set and that would seem to lead to problems.

But US bills in commerce internationally, isolated from US commerce domestically except by customs exchange (ostensibly) will lead to each currency having a different value because they no longer flow freely among those two different markets.

[nopardons]

Thanks and yes, it was. :-)

[Capitalism2003]

Buy silver.
Buy gold (silver is a MUCH better value in my opinion.)
Put it in a safe place and forget about it.

Then rest easy at night.