We’ve had such a positive response to the “Eye on the Economy” segment! Here is a follow up article by Fox519 from last week’s episode 14-11:


Our Money is safe right?

This seems to be the number one question I get asked aside from how I came up with my radio name.  The short answer is: No, your money is not safe, it is slowing being stolen away from you in taxes, and soon to be not honored at your local bank.

This past week I brought you a report on my weekly spot on Radio Free Redoubt.  This particular Eye on the Economy that seemed to resonate with all of you… very loudly.

I have received more emails on this than any other broadcast I have brought you.  The news I broke about American banks beginning to reject old currency due to a little know FED policy seems to have shaken many of you to begin questioning how solid our financial future is.

I wanted to make sure that since this news broke, that you all are very informed about how this change will be affecting us in the Redoubt and abroad.   First off let me quickly recap the news for you.

On March 19th I was part of a meeting at the bank I work at that was discussing operations and the future of banking.  A topic arose prior to the meeting about what to do with old or damaged currency that we see customers bringing in.

Here is what the bank’s response was to us;

{REDACTED} may see an increase of out of balances for mutilated currency sent to Garda.  In the past, Garda has been accepting mutilated currency; however, when Garda was shipping it on to the Federal Reserve Bank for their credit, the FRB has been denying credit.  Because the FRB will not provide credit, Garda has tightened what they will accept/provide credit for.  If you have questions regarding shipping mutilated or contaminated, contact {REDACTED} 

money 2Unfit Currency:  limp, worn, soiled, heavily creased or wrinkled, perforated, or patched, or where more than 50% of the bill is intact.  Unfit currency can be shipped via Garda/Loomis in non-strap amounts (clearly indicate on the bundle that it is UNFIT.  It can be shipped in the same bag as fit currency as long as it is clearly marked “UNFIT CURRENCY”.   It needs to be broken down by denomination on the shipment slip. Branches have the authority to return “UNFIT CURRENCY” unfit currency to clients for shipment to the FED follow procedures in the operations manual section {REDACTED}.


Contaminated Currency:  currency that has been damaged by or exposed to contaminants poses a health hazard or safety risk and cannot be processed under normal operating procedures.  Examples:  exposed to blood, urine, sewage, dye-packs, mold, etc.  There are specific instructions in the Operations Manual {REDACTED}.on how to ship Contaminated Currency through {REDACTED}.


Mutilated Currency:  less than 50% of the bill is intact and/or in such a condition that the value is questionable and special examination is required to determine its value.  Common causes of mutilated currency:  fire, water, chemicals or explosives; animal, insect, or rodent damage; and petrifaction or deterioration by burying.  Mutilated currency cannot be shipped via Garda/Loomis.  Please refer {REDACTED}.


Let me be perfectly clear here.

This was policy that I recapped to you was not the “banks” policy being rolled out here.  This was the FED’s own policy.  The FED is not honoring their own currency shipped to them by banks. They want you the consumer to handle it.

I want to just add a bit of clarification to how banks normally handle cash flowing through their vaults.

When a client brings in his or her fiat currency to deposit, it is normally taken into a teller drawer and then processed onto a larger vault in the branch once the teller reaches his or her drawer limit.

Then once to twice a week the “excess” cash that the banks take in is shipped to their “central vault” so that their branch does not have too much cash on hand.  Too much cash equals a higher possibility for theft and or robbery.

Now… normally the cash vault service like Garda or Loomis Fargo would then take the cash and ship it to the FED where it is counted, serial numbers logged and then it is then cleaned and “re-integrated” back into the currency system.  If dirty or soiled bills are discovered during the process of counting, those bills are then destroyed and replaced by additional bills so that one serial number replaces an old one… think of it this way… they have to replace one “IOU” with another or, one “bond” with another.

But … that is now changing.  Now when you present fiat currency to be deposited, and the teller discovers “limp, worn, soiled, heavily creased or wrinkled, perforated, or patched” bills in your deposit, they can be pulled out and returned back to you per the FED policy.  The teller may help you package the bills up with a letter and send them to the FED for “exchange”, but more than likely they will just give you the instructions and the envelope and send you on your not so merry way.

Now that you have been “properly” informed by the bank teller on what to do, you now have to send your “cash” through the postal service in the hopes that it actually reaches its destination so that it “may be” honored and exchanged for fresh clean crisp bills.

Welcome to the beginning of the currency soft kill.

You see after the meeting on March 19th I began looking into this and discovered that this policy was being enforced and that several clients were having horrific experiences dealing with the FED on getting their “unfit currency” exchanged.   The person I spoke with informed me that she had sent her monies back 3 times and it had still been sent back to her. She felt like she was out of options… I advised her to go spend it on something then return it in the hopes that she could get newer bills.

So… this begs the question, why would the FED do this?

Well… the short answer is this, if you no longer give your IOU’s value… you no longer have to honor them, or count them on your balance sheet.

Now… will the FED not honoring your 40 dollars, make a dent in FED’s balance sheet? With 7 trillion dollars of debt on their books and 60 billion dollars being printed each month… No your 40 dollars probably won’t.  But what if the number was higher?  What if that number was 40 billion?  Now that would make a dent in the debt reduction.

But there is something more below the surface here and for it we have to look to history to understand it;

Beginning in August 1921, Germany began to purchase foreign currency with Marks at any price, but that only increased the speed at which the Mark declined in value. The lower the Mark sank on foreign exchanges, the more marks were required to buy the foreign currency demanded by the Reparations Commission.

During the first half of 1922, the Mark stabilized at about 320 Marks per Dollar. This was accompanied by international reparations conferences, including one in June 1922 organized by U.S. investment banker J. P. Morgan, Jr. When these meetings produced no workable solution, the inflation changed to hyperinflation and the Mark fell to 800 Marks per Dollar by December 1922.

In January 1923 French and Belgian troops occupied the Ruhr, the industrial region of Germany in the Ruhr valley to ensure that the reparations were paid in goods, such as coal. Because the Mark was practically worthless, it became impossible for Germany to buy foreign exchange or gold using paper Marks. Instead, reparations were paid in goods. Inflation was exacerbated when workers in the Ruhr went on a general strike, and the German government printed more money in order to continue paying them for “passively resisting.”

By November 1923, the American dollar was worth $4,210,500,000,000 German Marks.

Now eventually the German’s designed the Mark and forced the acceptance of the new currency by not honoring the “limp, worn, soiled, heavily creased or wrinkled, perforated, or patched” bills.

You see when a country stands on the brink of complete disaster and the central bank cannot find a way out of it… the first thing they do is attempt to rid themselves of an old currency that they cannot back.

They, the FED wants money in a digital form, they don’t want a bunch of IOU’s out floating around.  Digital currencies are easy to create …. And make go away… just look at Bit Coin as an example… one minute it is around and the next minute… Mt. Gox is missing $800,000 worth of bit coins and it is nowhere to be found.

Paper currency is hard to control… it “flows” like water through an economy … imagine this, if you can’t take your bills to the bank to exchange them… imagine what would happen when a business attempts to deposit those bills and the tellers begin rejecting them?

Now, with this information in mind… please don’t run out screaming and shouting that the currency is collapsing… that is a brilliant way for you to get arrested, and then you can’t help your family or friends survive what is coming at us.

If you have “limp, worn, soiled, heavily creased or wrinkled, perforated, or patched” bills in your safe at home, take them down to your local bank and see if they will exchange them for newer currency, you could also do it a “Money Tree” or a check cashing location.

Better yet… invest into Silver, Gold or Lead!  Hope that adds some clarification to my story and thanks for reading.

For Eye on the Economy… Fox519 signing out… God Bless
If you are looking to invest in Gold and Silver, a listener sent in a link to a Veteran and Christian owned Coin shop in North Idaho called Coin Revival. The website has some great information on coins and investing.


UPDATE: A reader submitted this comment after the broadcast last week:

In response to what Fox519 was saying about banks not taking wrinkled or faded dollars. I was telling a friend who just got back from spending a few months in Roatan Honduras and they said they were experiencing this vary thing now! People, stores, banks would not except US currency that had any sort of little tear of blemish. They found themselves trying to “pawn off” these bills to others while having to watch the bills they received and this was only with US currency.