[Arthur] it seriously appears as though we are witnessing the steps within the process of iraq implementing their plan for economic/currency reform.
All of their recent actions point to that fact. There has been much conjecture and debate about just what the event we call the rv will look like.
Although their study is well documented which said that the reality rate was 3.22 and then it showed all the reasons why that would not be a good idea and why it should start at 1.13 or slightly higher,
But again, that was just a study and not a mandate as to what the cbi actually has in mind.
And then we have the recent articles showing the new denominations and some saying that means it will float from 1166 and all the refuting of that concept and so on and so forth.
The bottom line is, what we do know is that basil requirements dictate that, whatever it starts at,
It will eventually at some point in time be commensurate with their wealth which includes, oil exports, their burgeoning market economy, foreign reserves, their vast natural resources ( including phosphates, sulfer, etc),
And the gold they currently possess as well as the gold they intend to acquire in the future all of which is already well above that of their neighbor kuwait which we know currently has a rate of 3.55.
Charliet: i like ds (Dave Schmidt) call too. Everything makes sense. The old frn will be collected over time. For us in the u.s we just roll right into the new trn when it is released.
Our exchange will be in the form of trn with all of the banks. According to him if you use other exchangers beside the bank you may get the frn, you need to ask the exchanger what will you be getting as far as the u.s currency.
He said that people to beware of the china contract rate, even though they give a high rate for iqn they will exchange you into the frn.
All frn that need to come back to the u.s banks will get taxed or convert over to the trn at a lower rate.
in a sense that high contract rate would most likely work out the same as the street rate.
DS also said that iqn international rate would be 3.71 stable for 3-6 moths but vnn will not be anything over $1 and will fluctuate.
Wowzerz: TRN vs. FRN: I was listening to Dave Schmidt and what he said about the FRN (Federal Reserve notes, current US dollars) vs TRN (treasury reserve notes, new US dollars) totally makes sense to me.
I do believe that there will be new currency coming out in the US. It really makes a lot of sense, I think anyway.
Most of the FRN's reside outside of the US, so imagine the FRN being devalued and eventually phased out. Those in the US wouldn't have to worry because their currency is automatically converted to TRN which is asset backed and will hold its value.
So if you pay for anything in the US once this happens, a FRN or TRN are both a dollar but when the currency is taken to the bank by the vendor it is converted to the NEW TRN, all your accounts are now in TRN's the currency you get from the bank machines will be TRN's.
Let’s face it most transactions are digital anyway so it is really not going to affect the average person, the only ones that have to be concerned are the ones with really large amounts of cash. Really this will only be an issue if they can't prove the legality of it.
OK here is the really cool part all the illegal USD held in country or out of country will be tracked and seized and the crooks will get nothing unless they can prove that the currency was legally obtained.
So in one fell swoop a huge part of the American debt is eliminated. I see this a huge win for the American people and a huge hit for the drug dealers , smugglers, gun runners etc.
These people are going to want to get their currency to the bank as soon as possible because out of country it is worth a lot less than the TRN. So do they exchange out of country and lose maybe 30%-40% right off the bat and eventually it will be worthless. Or do they exchange in the US and get their accounts credited in TRN’s?
That would be fine for the average person but what about the Cartels and such that hold Millions and Billions of USD it is going to be like one big HOT potato!
A lot of this is my own thoughts after listening to the conference call.
I hope this isn't too confusing I apologize in advance for any grammatical errors.