The $20 swill ....

Perhaps you recall what's been said here recently about Federal
racketeering, global conspiracies, perceived values, specious NGC
assurances and the convenience of numismatic paper trails? Well, they
aren't delusions.

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The Coming Currency Devaluation
by 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.

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).

http://www.gold-eagle.com/gold_diges...roke101003.gif

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).

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."

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.

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

(Nick Charles) wrote in message
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.

Nah, it's all part of the conspiracy to make US banknotes
so @#%@#$ing ugly that nobody wants to look at them, thus
encouraging the sale of Pepperidge Farm Goldfish so that
people will have something else to look at.

Perhaps you recall what's been said here recently about Federal
racketeering, global conspiracies, perceived values, specious NGC
assurances and the convenience of numismatic paper trails? Well, they
aren't delusions.

They aren't delusions? Why? Because a Mr. Patterson says they aren't?
Come on now!

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.

Why now all of a sudden? Why haven't you (or the godly Mr. Patterson)
brought this up with other revamped US currency issues? All because there
is a little bit of color to the notes now? There is not much difference
(besides color) look wise between the new and old $20 bill. If the looks of
the bills are what determines this why didn't it happen when the most
drastic change in recent memories to the US currency occurred with the
current (previous 20) notes. Why couldn't (or didn't) the current notes
(excluding the new 20 of course) circulate domestically only and the old
style notes circulate internationally - and thus create your two-tiered
currency system then? Why didn't it happen then?

When fully implemented, the new U.S. dollar will mean a "banana
republic" type currency and across-the-board devaluation.

Devaluation? By whom? And for what purpose?

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.

This is the part that is just laughable. Why would the US prohibit
Americans from transferring capital to any other world currency? This would
not only harm other countries (such as China - which does a lot of business
with the US) but would greatly harm the US on so many levels.

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.

Neither you nor Patterson have explained why the US would want to do such a
thing. Why don't you attempt that?