Replies

Thanks for the heads up.

Haynes writes:

Again according to Droke, Patterson asserts that the new bills will circulate domestically while greenbacks will circulate offshore all over the globe. "With the coming two-tiered currency system," Droke writes, "foreigners will continue to be allowed [sic] to use the greenbacks while U.S. citizens will be stuck with the 'crayola currency' which cannot be exchanged."

But Haynes has mis-attributed the quote. Droke cited 'commentator Terry Savage' on the issue of non-exchangability, not Patterson, though I quibble.

Some of Haynes points (like the reasonableness of advertising peachbacks) seem like straw-man arguments. Others, just seem to lack precision in their target?

Droke:
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."
Haynes:
Supposedly, Patterson sees the value of the new dollar being cut as much as 50%, when convertibility to the old greenbacks is suspended. While I agree that the dollar will probably suffer horribly over the next few years, the loss will more likely come from the Fed's excessive printing and our FedGov's reckless spending. Everyone holding dollars, Americans and foreigners, will share the loss.

Neither writes very clearly, but I think Droke was saying that easy greenback convertibility to/from bullion would end and that bullion profitibility would lose 50% of it's value. Not that the Peachback would lose 50% as Haynes criticized.

I can't evaluate Haynes' dissection of Droke's quoting Patterson's patently inaccurate statements about reporting requirements on gold coin sales, FWIW.

Haynes does point out the $20 peachbacks are already being introduced into circulation now (actually a couple weeks ago) without fanfare or restrictions - verified with a google search. I wonder what will happen when these bills show up in Panama or internationally and how prepared are other exchanges and merchants to accept the peachbacks?

Regardless, neither Haynes nor Droke has added much information or insight.

In hindsight, this thread has been more informative.