Editors note: … This incredible article, written by someone under the name “Mountain Goat”, was forwarded to me for possible inclusion on our site. After reading it I knew it was one you all should read and pass on to everyone you know. The Save America Foundation does not necessarily agree with the writer and as with all things financial recommend that you all do your research……….Fred Brownbill.
I am afraid this post may be a bit longer than usual so I hope you don’t fall asleep..lol… But I felt that at this point in time when most are getting discouraged I needed to again point out some history lessons to you. After all the future is full of the past! I hope this helps.
I know that in the past Iraq has had several revaluations in the month of September so this seems to be an excellent month for them for this purpose. But I also have to tell you I know for a fact that the USA has been trying desperately to get this revaluation done and out to the public for exchange as quickly as they can. There are many reasons for this and its called Global Reset. But why is this so important and why now? Remember no global reset without this revaluation of the Iraq dinar. This currency is the base currency for the rest. It is all linked together.
Any other currencies such as VND (Vietnamese Dong) , IDR,(Indian Depository receipt), WON (South Korean Wong) etc,, will be re-balanced in relation to the rest of the currencies too but are just normal revaluations (even though some might go a bit higher than normal). You can take these into any bank any time and exchange as you would any currency left over from you European vacation or foreign trips. Did you hear me…no rush, no 30 day time period. Do not put these funds from exchange in the same accounts used for Iraq dinar exchange funds. Keep them all separate. It is important.
So why is this revaluation so important?
What does being a base currency mean exactly?
First let me address why the IQD (Iraqi Dinar) revaluation is important
You have to know some facts in order to understand what is happening here now. Going back to 2010. When Iraq announced it finally formed its government (the term GOI – Government of India) we as investors began celebrating too because we thought the RV was very close at hand. This was a benchmark we knew would bring us our cash. But what happened? Why did it not RV in 2010?
It did not RV is 2010 for a couple main reasons:
1) Maliki decided he was not going to play along and be part of the process, instead he decided to take on dictatorship attitude. He refused to carry out agreements made that would share his power and actually complete the government. Instead of having an actual completed gov’t he seated over 3,000 positions at proxy positions. These were not appointments, elected officials that were reviewed and approved by the parliament, which makes them legal. So instead he basically stacked the deck in his political favor so he had allies all around him to support him, gain strength and do his dirty work for his future dictatorship plans. Yes he had some plans for Iraq but not what everyone thought….
2) In 2008 the USA experienced the economic impact of the mortgage crisis. Bad securities (backed by bad mortgage contracts) sold by the federal reserve to back our national debt. It took until 2010 to come up with some scheme and a way to try to resolve this crisis. All kinds of money was dumped into the banks to keep the liquidity and from them going insolvent (broke). This seemed to be a temporary solution since the money flowed out as soon as it was loaned to them. We all heard about this on the news. So where did all this money go? This did not work so a new plan was needed. This was now a global financial issue not isolated to the US banks.
3) New banking laws and structures were necessary in Iraq so they could operate with the international community in the future and this would take time to put into place.
4) There was also the issue about sanctions being lifted as a requirement for an RV and the question is still uncertain for many. Would and could Iraq have RV’s without getting out of Chapter 7 sanctions? Coupled with the Maliki game playing at the time it was very doubtful. Negotiations also with Kuwait were ongoing and not yet settled. No way!
So in reality in 2010 there never was going to be an RV, there was no plan for it and it was just a lot of hype and misunderstanding on the part of the “intel providers” at the time. This too is when many of the intel providers began their conference calls and continue to this day. But most importantly this is when many of you first invested.
So the plan to solve this now global economic problem was to seed large sums of Iraq dinar in the 3 zero notes of provisional currency in any bank that needed funds to meet the new liquidity requirements of the banking laws.
The problems with this strategy were:
a) this Iraq currency was almost now worthless – so how could it help?
b) if you are having liquidity issues now due to the economic collapse - how do you pay for the dinar to be used as seed?
As evidenced in many mainstream news articles and financial news media we saw over the next 2 years 2011 – 2012 large sums of money (in the billions) being transferred around to different developed countries throughout the world. The USA too seeded much of the Iraq dinar especially in its reserve currency stockpiles. But the USA did not seed much in its banks like the other countries and there was a reason for that. Instead in the USA the banks expected to take in large sums of the dinar from depositors and convert to actual banks deposits on their balance sheets. This is actually better than having dinar reserves for liquidity. So who is going to exchange all this dinar to dollars and deposit it in the banks or in investments? It is you and me that is who. We will make these seeds grow! So you see why this revaluation and the dinar is so important for the USA. Now lets look at the other countries too. So what happens to them when the dinar revalues? They too benefit since all their bank reserves get a huge boost in value overnight and thus bring them into liquidity requirements. They are now just on standby. The world awaits this IQD revaluation. Suddenly they (the IMF) will literally create all this wealth out of nothing..and I mean nothing. But the important part to remember is it is not really out of nothing since the new world order global Basel II laws say all currency now has to be asset backed. So the confidence level will be high that the currency values assigned actually have something tangible assets backing them.
Remember that paper currency is just an I.O.U. We forget this fact since we take it for granted and use it so freely each day. Do you know what an IOU is? An IOU (literally I-Owe-You) says that you owe me this amount of tangible asset ON DEMAND. You can create your own IOU simply by writing on a piece of paper what you promise to give the bearer of the paper in the future and sign it. A checking account check too is a personal IOU. Some people do it in poker games to back their chips..lol… It is illegal not to make good on an IOU. The government prints formal money for this purpose. It keeps commerce going and gives the general public a means to do the daily transactions with others instead of lugging around tangible assets all day long. Printed money makes it easy. It is getting now even easier since we are going to electronic banking where actual paper currency is not used anymore. This is tricky and opens itself up to a another whole set of fraudulent and bad practices. This I believe will be the ultimate failure in the banking systems in the future if not tightly controlled. Remember what they are doing in this global reset is a huge band aid and is not the final solution. They hope it will lead to stability and with that confidence will build once again and money will flow like before. It will take time but business will never be as usual since banking rules have changed.
Oh wait a second….didn’t the USA have banking rules and regulations in place as a result of the great depression. What happened to all this regulation? Yes the USA did but many of the laws have since been watered down and/or appealed for the benefit of the very wealthy. We have seen this through the many administrations over the years. Is this all crooked? Yes it is and this too is part of the problem. Funny how everyone ranks on Obama for trying to turn the clock back. Not that I am or am not an Obama supporter. There must be a reason why so many high ranking Republicans do not want to go along with his policies. The global community (the operative word is global) however did not have such stringent laws and rules in place. With globalization (you should be familiar with this term by now) money must now flow freely across borders. The whole financial climate changed since the 1930′s and it was time for a new set of major global reforms and banking laws. There was Basel one and this helped but now it was necessary for even more to tighten the rules with Basel two. The big question is - will this be enough in the long term? Read on…
Using the IQD as the base currency for Revaluation.
If you were in charge of coming up with one currency that could be used to gauge most developed nations currencies values what would you use? In the past it was the US dollar. It was stable and confidence was high that it was backed by something of value. After all was the USA not the riches country in the world? This in itself was part of the problem not the solution. So they had to find something else for base currencies. Today they have many base currencies so the dependency on one nations economy does not bring the entire global structure to its knees. Personally I would use a currency that has real solid value and is easily backed by gold or another asset with very high liquidity (can turn to cash very quickly). The Iraq dinar was picked as one with its potential for large much needed quantities of oil (black gold) and other natural exploitation (gold, silver, boxite, phosphorous, etc..).
So it’s Thursday – Where is the RV?
So you see nothing is coincidental. There is a plan. If you understand what I have said above you now know a bit of the plan. At least the part that directly impacts you. Only they are having issues not executing the plan to the final stages. The longer they wait (now not intentional) the more magnified the situation becomes. Some say the technical issue(s) are just an excuse to delay this due to actions going on with security in Iraq? I do not believe this for one second since I know better. I know personally people who are involved in getting the technical issues fixed, so this is real and happening. I can assure you. When this is fixed we will get our RV. Unless something changes I don’t see any more discussions about the rates.
What lurks behind the curtain?
We are hearing more and more issues coming out about the Vatican in Rome. Why is this all of a sudden? Why did pope Benedict all of sudden step down? Why did they put a Jesuit Pope (Pope Francis) in his place? And a Roman Pope too (oops I meant to say an Italian Pope). I won’t even go into this in any detail but think about this – remember Rome is just not only the head of the Roman Catholic church. Why did Hitler in WWII hesitate to go into the Vatican? Remember too how the Roman Catholic Church was established and what governing power ruled the world when it was established?
What compromises and transfer of wealth was made at this time?
Then when control was turned over to the Roman Catholic church- how long did they rule the world? Where did all the great wealth of the Roman plunders go in it’s downfall?
That is all I will say about this. Its can get really interesting really fast. There is more to this global reset that meets the eye….much more…
I know this is a very long post already but let me address one more issue that I hear on lots of the conference calls. I think it needs to be put to bed once and for all since there still seems to be lots of confusion. I hope this helps.
Federal Reserve Notes (money) vs US Treasury Notes (money)
Oh yes..you just knew this was coming…didn’t you? So to begin to distinguish let me say first that there is a plan to convert the USA over from the federal reserve currency to the US treasury currency. This plan was scheduled to begin in the fall of October 2013 butt may be delayed to early 2014.
Why are they doing this?
They are doing this because the confidence of the public is very low for the federal reserve currency is backed by anything. They want to rebuild confidence and since all countries are going now to an asset backed currency the US currency must now also be renewed in confidence too and new paper currency printed to back the assets on the USA list. They also need to add some new security features too. They are also planning a new North American Alliance currency in the near future too that will replace the Canadian, US and Mexican currencies. Like the Euro they say it will create yet more ease of commerce between these nations. Like this concept the bigger plan for the middle eastern countries too is to have one common dinar. They would be moving much more aggressively on this plan now but Egypt and Syria and roadblocks that need to be overcome. Iran now is in a state that might consider any notion of a getting a higher value to their currency. So what really happens when a nation gives up it currency to join a common alliance? Does it lose it autonomy, its sovereignty as a nation? Something to think about. Germany did not want to join the EU but was essentially forced into it and almost pulled out a few times. Germany is a very wealthy country and is one of the base currencies for the Euro. As a base currency it is a donor nation and was picked to give many large donations to keep other EU nations a float until this global currency reset is kicked off. It hopes in the long run to receive much of these funds back.
The problem most dinaran callers seem to have is how will this be done as it relates to the Iraq dinar exchange. We have heard some bank stories. Let me say this - don’t put the cart before the horse it will never work! Don’t panic either. Slow down and think about what I am now presenting here. Since this, I believe, is the root of the all the confusion.
First let me tell you that any wrinkled, torn or old faded currency now in circulation is already turned back into the US treasury for replacement. They print the money today and replace it. How do they do this? There is a system already set up so that the your local banks take in this old money and return it to the federal reserve system for replacement. It is a simple trade – old for new. This is exactly how they intend to do the switch from the old federal reserve notes to the new US treasury notes as far as the consumer is concerned. It will be a gradual process like they always do to replace the old bills. Slowly they will introduce the different denominations into circulation. If you don’t pay attention you would not even see any difference or know they were doing this.
Also remember banks don’t typically have lots of cash at hand. If you ever need more than a couple thousand dollars in cash you should make a special request from your bank so they can order the money from one of the main branches of the Federal Reserve bank. They will have a stack of nice fresh, crisp bills waiting for you when you arrive. Be careful though in that anything over $10,000 gets tracked special by homeland security for money laundering and terrorism. They have done for years now and this is not anything new. This is for your protection. Take a few minutes now to poke around this web site and see how the federal reserve system now works. The new structure will not be much different. It will probably even have some of the same people employed. See if this makes any sense.
So now the juicy part.
The US treasury has decided that part of the implementation of rolling out the conversion from the Federal Reserve to the US Treasury is going to happen when you exchange your dinar at the bank.
They will track all US dollars from proceeds from the Iraq dinar exchange in US treasury notes electronically only. You must be careful that these funds are also in a segregated account from the rest of any other money you have in the bank. VND or other currency exchanges are to be also in a separate account so its not mixed with IQD. If you don’t do this you will be screwed from what is coming next. Next is the taxation on the funds. They will tax these funds differently than Federal Reserve funds since the value will be different (now asset backed). If you mix federal reserve with US Treasury you will be taxed as all Federal Reserve and you will be sorry since the tax would have been lessened knowing it was all US Treasury and from the Iraq dinar exchange. I am not a tax person and we all wait for the final IRS tax rules to be published but I am hearing there will be a quick flat tax on the dinar proceeds and it will not be too bad on us. On the other hand currencies such at the VND, IDR, etc.. will be taxed as usual (whatever usual is?) But this is what I am hearing so just be careful.
What if you want some CASH from your dinar proceed account?
Again I do not think you will get more than $10,000 dollars and that depends on the availability of the cash at hand that day in the bank you attend. I would think they are making special orders from the Feds for more than usual cash on hand for this purpose. For security sake though, why would you want to take home $10,000 in cash? I do not recommend more than a couple thousand at most, if any. You will receive the current Federal Reserve notes not the new US Treasury notes. These are not even ready for distribution as of yet. I know you are now all confused but don’t. Getting the current Federal Reserve notes now does not really matter. Its the electronic tracking that is important.
Talk about a future devaluation of the US dollar
First let me say there has been way too much hype and almost panic about this topic. I need to put your mind to rest and here are a couple items to help do that.
Do you know we have devaluations of the US dollar all the time? This expected devaluation will be bit larger than normal but the impact will be minimal since we will rebound quickly and the only real significance will be in the financial markets and your short term purchasing power. It will not impact your bank account in any way unless you decide to withdraw and spend the money or invest it unwisely.
This is why the markets can be dangerous if you do not have total control over your investments. If you let the banks talk you into a brokerage account and hand over the buy/sell authority to them (cause they are the experts…oh boy! ) you are mistaken. When the devaluation happens these investments may (and I mean might) take a huge hit too. If you had the power to control the buy/sell you simply hang on to them until the wave passed. Remember you don’t lose in these situations unless you bought high and think you have to sell short. This is called a panic. So hang on and wait for the value to rise again. But to do this YOU must have control not some high paid broker who could not care less about your money. All they want are commissions on their buy/sells for you.
A few last notes.
I am not an investment advisor/seller or broker of any kind. I speak on this topic from my very own experience and stories shared with me.
Many of the buy/sell transactions today (in these investment money markets and portfolios) are initiated by automated computer system algorithms with thresholds. They are for suckers! Sorry for being so blunt. They are set up to make the managers of these investment contracts and companies very wealthy not you. Bet you didn’t know this did you? These 401K plans are a typical example. There is so much overhead. Who do you think pays for it? You do! So each time a buy/sell is done in your behave someone gets a commission and that’s money out of your pocket. Sure they give you deals today with “small” quarterly fees. Look at the fees you are paying. Are these small fees for what you are getting? You pay them whether they make money for you or not. There should be laws against this. This is a crime and part of the problem. This is the only industry where you can get paid for losing someone elses money. Ironic is it not? Imagine that! This causes an erosion of your profits. A game they play. Just saying…so be careful in the timing and how you invest post-RV.
Best and safest approach to paying off your large notes, creditors and bills post-RV-
When you go into the bank to exchange your dinars have a list ready of all your major creditors you will want to pay off. I highly recommend (and I can’t say this enough) to get debt free ASAP before you spend anymore of the money on anything else. So when you go into the bank and exchange, after the exchange is all done and you have your deposit slip in your hand, ask the person you are dealing with if you can have some bank checks or cashier checks for the following list of creditors. Have on the list the creditors name (name to make the check out to) and the amount needed on each check. Simply hand the list over to the person and let them give it to a teller to prepare the checks for you. If you have millions in your account they better not charge you for any of these checks. When you get home mail these checks out ASAP and you are debt free at last…..freedom at last….lol….then open the bottle of champagne and celebrate. The chains of debt are finally gone forever….this is when you celebrate not before going to the bank. You want a level head when dealing with the bank. I also like Tony’s view point on spending the money- 50% saved for future taxes, 25% to pay off bills and creditors and 25% to enjoy immediately. It all makes good sense. He is a wise man!
Why are you asking for Bank or Cashier checks to pay off bills at the time of exchange?
You are doing this procedure because in case for some reason your account is frozen by homeland security. We should not expect this unless you are wiring out large sums but we are talking worst case here. Not to alarm you but this whole process has been weird. You will have these checks and at least you will have some immediate benefit from your investment until they free up your account. Also remember what happened a couple weeks ago. The rates went live on Thursday night EST and then they deactivated them. Some people exchanged already but their accounts got frozen. Once they hand cashier checks over to you its out of the account and its your money. So this too can happen. This funky stuff just might happen to you. All just precautions to think about.
Well I think this post is long enough. I sincerely hope all this information is helpful to everyone. So no more questions on the Federal Reserve to US treasury conversion..right… if you do have questions go back to this post and see if you can find your answer.
Written by Mountain Goat.