From the Radio Free Michigan archives ftp://141.209.3.26/pub/patriot If you have any other files you'd like to contribute, e-mail them to bj496@Cleveland.Freenet.Edu. ------------------------------------------------ >From toddb@elmer.wrq.com Mon Jul 25 11:40 PDT 1994 A week or two ago somebody posted a question about the "new" dual currencies for the U.S.. Here's some information on the subject and my personal beliefs on the subject. Personally I believe this is a VERY BAD thing for the average person in the United States. Why you may ask ? Becuase one of the currencies will be devalued (like the Mexican Peso) in order to defend the external Dollar which our international debts will be paid in. That means that all of a sudden the average person living in the U.S. can The offical explanation is that the dual Dollar idea is to help prevent counterfiting. However the changes being proposed for the Dollar are sufficent to prevent this. C O U N C I L o n "D O M E S T I C" R E L A T I O N S ACTION MESSAGE #48 - Tuesday, July 18, 1994 +++++++++++++++++++++++++++++++++++++++++++++++++++ INFORMATION ACTION MESSAGE #48 (Monday, 7-18-94 ) U.S. GOVERNMENT/FEDS PLAN TWO CURRENCIES FOR AMERICA When they devalue our currency will they devalue our debts? Will you be able to pay your home mortgage or rent payments? The headline for the first article on page C18 of the Wall Street Journal's Midwest addition for 7-14-94 reads "Treasury Plans a Whole New Look For U.S. Currency". This was also carried by the Associated Press, many large circulation dailies such as Chicago Sun Times and was announced on the ABC TV network news on that same morning. The reason given in the W.S. Journal for the proposed changes is to "incorporate new anti-counterfeiting measures". The article goes on to say that counterfeit notes account for only one-half of 1% of all circulating U.S. currency and the changes are a preemptive strike against counterfeiting, not a response to a real crisis. Weren't we told that the strip contained within the bills today was an anti-counterfeiting measure? That seems to contradict their reasons for a brand new currency today. We might ask then, "What is the real crisis that is bringing about the first major change in our currency since 1929?". Consider this....The financial pages of the nation's papers have reported daily for months that the U.S. dollar is falling in value against other major currencies of the world and therefore the U.S. bond market is dropping rapidly. If this decline in the dollar and the bond market persists, foreign buyers will continue to reduce their purchases of our bonds. To cut their losses the international bankers who own the Federal Reserve, control the United Nations and our U.S. Congress will raise our taxes and monetize the debt to keep the gluttonous U.S. government in business. (The U.N. is now calling for a "world tax" which will further line the pockets of the bankers.) Monetizing the debt means that instead of having the bonds purchased with already existing dollars they create new money in order to sell the bonds. The government makes its options to sell its short term bonds, notes and treasury bills because buyers know they will mature before there is too great a reduction in value. The long, 30-year bonds are not easy to sell with the dollar dropping in value because the bond-buyers know they will lose over the long run....the interest they make will be offset by the devaluation of the dollar. In order to sell these bonds they go to the only source that can buy them for nothing....the privately owned Federal Reserve. The newly printed money then goes into the money supply and creates inflation. This is a very confusing issue for all of us as the international financiers well know. A British economist is quoted as saying, "Not one man in a thousand understands this". ONCE AGAIN BIG MEDIA IS NOT GIVING US THE WHOLE STORY The currency change has nothing to do with counterfeiting. The real crisis is the collapse of the dollar and the U.S. bond market. To get the whole story, we have to look at U.S. Senate Bill S-2158 titled "To Require the Secretary of the Treasury to Design a New Counterfeit-resistant $100 Currency", which was introduced by Senator Patrick Leahy (D-Vermont). The key to the whole currency change issue is found in Sec. 3(b) of this bill which states, "the Secretary of the Treasury shall design and designate a domestic use $100 denomination bill, and a non-domestic use $100 bill". The bill goes on to require "substantially different coloration of the two bills so that they are easily distinguishable from each other and from the bills now in circulation". This dual currency is the part the media failed to disclose. They also didn't mention Section 4 "Notice of Currency Exchange". In fact the last sentence of the W.S.J. article erroneously states, "bills now in circulation won't be recalled". This is in direct opposition to what was stated in Sec. 4 of S-2158. After the currency exchange period our present currency will be worthless. If the real reason for the change is to prevent counterfeiting, why have different forms of the U.S. dollar for foreign and domestic use? Clearly, counterfeiting is not the reason. The plan is to devalue the dollars in our hands while leaving the dollars in foreign hands unaffected. For decades our government has, in violation of our Costitution, allowed Japan to dump their consumer goods into the U.S. market while refusing to open their markets to our goods. This has resulted in the sky-rocketing U.S. trade deficit with Japan which leaves us no money to pay for the goods they sell us other than monetizing our debt. As we said before, this creates inflation which again reduces the buying power of our dollars. This reduced buying power increases over time and results in the buyers of 30-year bonds losing their profits. To avoid this loss foreign bond buyers are demanding that the U.S. officially devalue the dollar by an amount large enough to keep the dollar from significantly depreciating over the years. However, this action alone will not help bond buyers from Japan if the billions of dollars they already hold are devalued in the process. Now the real reason for the two versions of the dollar becomes clear. In order to save the bond markets the domestic dollar will be sharply devalued to protect current bond buyers. On the other hand, the non- domestic dollar will not be devalued in order to protect foreign holders of the dollar. Big businesses in the U.S. which have foreign branches (where they can hold dollars in non-domestic form) can thus escape devaluation. This has happened in other countries which have installed dual currencies, such as South Africa and England, and has always resulted in sharply reduced living standards for the middle class. Once again, international bankers and multi-national corporations protect their assets and profits by throwing the burden on the backs of working Americans. The government has been sending up trial balloons for currency change since 1983 but has always backed off in the face of public opposition. HERE'S WHAT YOU CAN DO..... Call the U.S. Congress switchboard today at 202-224-3121 and ask to be connected to the offices of both U.S. Senators from your state. Give your name, town and the following message. "Please vote "No" on Senator Leahy's bill S-2158 because changes to a single currency are sufficient to combat counterfeiting. Dual currencies always destroy the middle class through the devaluation of the domestic currency." Then, call Senator Leahy's office (202-224-4242) and give this message..."Please amend S-2158 to provide for a single currency which will be sufficient to fight counterfeiting. Dual currencies are never instituted except to devalue the domestic currency and destroy the middle class". Let them know you don't object to a new currency if their motive is to stop counterfeiting. However, if that really is the reason then one currency is all that is needed....not a separate domestic and non-domestic currency. It is vital that we make these calls our top priority. If we fail to stop this dual currency we won't be able to afford to fight any other battles. If we make enough noise...if we let them know we realize what they're up to they will back off and Japan will have to open their markets to U.S. goods which will in turn generate the capital needed to keep the U.S. Government working (Constitutionally and otherwise). ------------------------------------------------ (This file was found elsewhere on the Internet and uploaded to the Radio Free Michigan archives by the archive maintainer. All files are ZIP archives for fast download. E-mail bj496@Cleveland.Freenet.Edu)