The coming currency devaluation -- Is this true?

[Emillereid]

Cliff Droke
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.

<snip>




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.

<snip>


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. They 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."


<snip>

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.





October 9, 2003




Clif Droke is the editor of the Bear Market Report newsletter, a 3-times weekly forecast and analysis of stocks, markets, gold stocks, and equity cycles. He is also the author of numerous books on finance and investing, including the top-selling "Moving Averages Simplified." Visit his web site for free samples of his analysis at www.clifdroke.com

http://www.gold-eagle.com/gold_digest_03/droke101003.html

Anybody know if there's any truth to this two-tiered money thing?

[Spazito]

1. Wow!

I have never heard of this, will be VERY interesting to know of others have!

[Francis]

5. It's not coming

it's here. It has been US polcy for some time to allow the dollar to drift downwards. It has lost about 6% against the euro in the last couple of years
As for a two tier currency I think that has to be tosh
The introduction of color in the bills is to try and stop forgeries

[Dogmudgeon]

8. Dollar v Euro

The dollar has lost more like 15% relative to the Euro.

The Euro started at about 88 cents to the dollar; it's now about a buck and a few pennies. This all happened over about two years.

We won't need a fiat from the Fed; American currency is undergoing a rapid devaulation. Combined with over-valued stocks, that could give a guy a serious dependency on Prilosec®.

--bkl
Attention, Neo -- take the Little Purple Pill!

[Francis]

13. You are right !

Meant to say 6% in last couple of weeks

[Dogmudgeon]

17. Check this out ...

http://www.brookesnews.com/032305exchangerates.html

Note the peaks:



--bkl

[SidDithers]

18. Buck and a few pennies is actually more like $1.17

from finance.yahoo.com

http://finance.yahoo.com/q/bc?s=EURUSD=X&t=2y


Sid

[Dogmudgeon]

19. Egads!

Until I saw your post, and the chart, I thought $1.05 was pushing it.

Not exactly tickety-boo, is it?

--bkl
By the way, check out the website I got the graphic from. "Right wing" is an understatement!

[Pab Sungenis]

20. Actually...

The Euro started at near parity with the Dollar when it was created January 1, 1999. When the Euro notes and coins came around in 2002, the Euro was down to 88 cents. Now it's well over a dollar, about $1.17 yesterday, if I remember correctly.

[ctex]

30. The EURO is back where it started

The EURO was worth $1.18 when introduced on 12/15/98. It then dropped slowly, but steadily hitting a low of $0.86 in the first week of Feb. 2002. Since then the EURO has bounced back reaching its starting price of $1.18 yesterday.

IMO, in the longer run the outlook for the EURO is not so good since European demographics weigh against Europe's economy growing as rapidly as that of the US.

[Maple]

2. LOL bear in mind

that this guy is trying hard to sell gold.

Hype.

[Dogmudgeon]

9. Selling gold

It's the perfect market for gold, too.

The best investment is in one's intelligence.

--bkl

[Dover]

14. Did you read it? This article is hardly hype for gold sales........

..unless his intent is to have people convert their bullion coins to numismatic coins.......

...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.

..snip..

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.

[RobertSeattle]

3. Aren't Gold nuts always pushing this kind of stuff?

They seem to always have an argument, regardless of economic or political conditions, that its a good time to buy gold. (They rarely mention when to SELL!)

[Maple]

6. Well it IS....

for THEM. ;-)

[Andy_Stephenson]

23. I am not a "Gold Bug" but a prudent investor.

I have 35 ounces at an average buy in of $297.00 and ounce. Gold closed today at $370.00 per ounce. Who is the fool?

[Systematic Chaos]

4. I don't know anything about it for sure

but to me it sounds like the complete fruition of all the mounting destruction to our economy and standard of living we've had to endure for the last half-century.

Like I said in a post once before, I truly believe that, in the eyes of the powers-that-be, America has been used and exploited for everything we're worth and now it's time to rape and pillage elsewhere.

[nadinbrzezinski]

7. My only quiestion is

will this wake people up?

[DiverDave]

10. Oh, right, Clif

I got lots of extra money from my unemployment check to buy gold.

Thanks for the tip though!

edit for punctuation.

[ender]

11. its bullshit.

i'm sure that he used this same damn spewage when the big-face bills came out.

utter bullshit from a goldbug.

[Francis]

12. It's no bad thing

with the downward drift American exports become cheaper to most of the world and imports become more expensive.
Major problem is China where the yuan is tied to the dollar, so when the dollar goes down the yuan goes down with it.
The Japanese also will but dollars to maintain the dollar/yen xrate

[dofus]

15. Yeah, right.

So all of a sudden all those countries which currently accept U.S. currency will not accept the new bills? And they'll pull the old ones from circulation here? Really?

I repeat what some others have said: this guy is trying to sell gold. He's talking through his rear end about the two tier system.

[trogdor]

16. TFH - big time

:tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat: :tinfoilhat:

[junker]

21. it is historically accurate to say that every

time a new currency form has been introduced in all the previous fiat currency systems of the world, that within 3 months of the introduction of the new form of currency, the relative value of the currency had declined between 23 and 29 per cent.

It is also historically accurate to note that the current federal reserve notes are worth 1, that is ONE cent in 1913 dollars which is when wilson sold us into slavery to the fed and the dollar was introduced.

It is also historically accurate to note that there have been 4 attempts at paper currency in the US and 3 of the 4 have collapsed at huge cost to those holding their wealth in them at the time, and that we are currently living through the last days of the dollar.

It is also historically accurate to note that any time a country introduces a two tier currency structure, the currency in toto does not survive past 3 years of such introduction.

It is also of note that the current dollar structure is nearly 17 years older than the average age of paper currencies when their debt load against currency creation causes their destruction/implosion.

It is also of note that had you purchased gold when the dollar was at its peak, just 3 years ago, you would have been paying about 260 per ounce and the gold is now up and the dollar down though not in ratio nor proportion to what is expected over the next few years.

It is also of note that the dollar is being abandoned by foreigners in some number that will soon reach a wave, at that point we must re-import over 2/3rds of all of our currency. This will cause hyper inflation unless we repudiate which will cause global bankruptcy.

So just cause you think the dude is selling gold should not make you blind to the mountain about to crush you....it's called debt to value currency reduction index. And never in thousands of years has any currency survived as long as ours nor as debt loaded as ours. There merely is room for the straw on the load on the camels back. Oh, the camels is really all the sheeple that presume the americans will still be using dollars 4 years from now.

Bushie is the straw pitching asshole who will be sure to bring down the whole flucking financial structure now that all his friends have bought gold and silver.

Note also that most bullion coin sales of both gold and silver are into the 1 per centile of the rich. And we all know that this 1 per centile is 72 % republican....

so who will be the dickhead, eh? when the sheeit hits the fan of history in a bit and the buck is no more? Those with gold/silver or those without it?

especially since
1) the federal govt is selling off secretely all the gold in ft knox and annapolis and over half is already gone
2) they are doing it to suppress the price of gold in order to implement the 'strong dollar policy' which means that american tax payers are subsidizing foreign and republican purchase of 'cheap' gold and silver.

End of lecture. Further ignorance on your part is your own responsibility.

[Systematic Chaos]

22. DAMN, dude!

In-your-face, but very nicely put nonetheless. :)

I believe that everything you say is true (or at least well within the ballpark) as I have heard statements to such effect before, but for the benefit of those who don't think so could you please supply some links?

[Nottingham]

28. Well let me give a Wake up call here!

Gold is really hard to guard and when millions of people are starving they go after those safes where the gold is!

So All I can say is Bush better have lots and lots of people guarding him cause the PEOPLE can get his Butt!

:bounce:

Kings use to own lots of gold too but they got their heads cut off!

And this is the same economic disaster that hit germany with Hyperinflation where people brought wheelbarrows of German paper money and it was worthless. Lets face it if US gets this bad well thats what started WWII and thats what Bush is triggering here
and Economic disaster :nuke:

[leftyandproud]

24. no matter what color they paint it, it's PAPER...not backed by anything

hence, it has no intrinsic value...I agree with the gold freaks on this issue...We need to back the currency with gold and silver...honest money that can't be devalued by the morons in washington.

[quinnox]

25. Gold has done well

already. 'Is this true?' No. It's just another doomsday scenario to try and get people to buy whatever he is selling.

[leftyandproud]

26. US govt has 44 TRILLION in future obligations...

44 trillion dollar debt over the next 20 years.
Bush in charge.
Pushing for more tax reductions.

damn right, I'd be holding some gold and silver if I could afford it. Don't trust your future to the politicians.

[sweetheart]

27. your question begs more detail

best supplied: www.wizardsofmoney.org

The currency will collapse... like all overextended empires do before they break up. Keep your "wealth" in non-dollar currencies, property, energy futures (oil). Property is the best call... time to buy a run down farm in western nebraska.... there will never be a better time, and the value of a home-farm land holding is quite high if you're liberal and potentially having to "bunker" while a criminal government is put down through revolution and force.

Gold is a joke... stay away... best to hang with <current> inflated commodities (oil futures).

The huge drop in the dollar will happen when america leaves iraq, as likely at that point, the opec trading currency will shift to euro's as a message to america to "f*ck off".

Every material value you have in life will leave you... best to stay invested in those that really are valuable... and not what the pundits tell you...

[lostnfound]

29. The IMF warned that the dollar was in danger of dramatic collapse

a month or two ago. The IMF's chief economist said that other countries get to hang themselves a little bit with trade deficits; with the US they let the rope wrap around three times but eventually even the US can't withstand the trade deficits (especially with foreign investors jumping ship) and the dollar would collapse.

[Cascadian]

31. Well, start investing in Euros.

If this is true, I can no longer invest in US currency. I just won't. Euros will become a better currency to do business.

John