CALL NOTES From KTFA By BullDogFord65
FRANK26 IQD CONFERENCE CALL MONDAY NIGHT WITH Q & A
MONDAY, APRIL 21, 2014 IQD update
Nova and Memphis joined Frank for the conference call
• Frank introduced Nova, and for the first time, Frank is opening up a call to financial discussion with Nova as he is a licensed financial consultant
• Frank said that the CBI is revealing more and more each day, they cannot keep the MR hidden
• Nova came on the call at this point and began with explaining what the BIS and IMF have been doing and that they can no longer hide what they are doing; while in Nova’s opinion, none of the things that we are seeing speak to the rate being released “tomorrow,” but in his opinion, it certainly speaks to something happening; yesterday they took another big step in Nova’s opinion
• Nova said that the job of central banks is to control the monetary system, working through very large banks; these very large banks then work with medium and small banks; central banks do not work directly with small, local banks, or even medium-sized banks
• Yesterday the CBI made a statement, and really the statement came from the board of directors or board of governors – this is very significant, these are very powerful men; because these directors or governors do not release statements or speak to the media, the fact that they are speaking is extremely noteworthy; Turki reports to the board of directors, they are his boss
• The statement made by the CBI board was that banks around the world will be able to do business directly with the CBI – this includes medium and small banks globally
• Currently, the only way for large banks to participate in business with the CBI now is through the auctions; with this announcement, the CBI is saying they will now do business globally with medium and small banks; in fact, the CBI has to create additional bylaws to do business with these medium and small banks, it is a real pain to do this;
the reason the board gave is that they are doing this for “special situations” – what is the special situation? Central banks are open 24/7, 365 days – there are no special situations – unless it is what we are all waiting for, in Nova’s opinion, an international rate
• Nova stated that not everyone in Iraq will buy bonds or gold, so what other special circumstances could there be, other than a new rate?
This is also another way for the CBI to control the MR and pull in 3 zero notes – with all banks dealing directly with the CBI, they can directly gather in the 3 zero notes; Nova said he expected to see “cartwheels” being done on the forum due to this announcement
• Memphis agreed with what Nova said and commented that in his opinion, the CBI does not really wish to do business with third party banks, it creates much more work for them, however it makes perfect sense that they will do this to have control over the process and also to hoard currency, the 25K notes and other currency
• Nova is convinced, in his opinion, that this move is also done right at the very end of the MR, in Nova’s opinion, it’s not something that is done if there is a long time to go before the rate is released, it’s one of the very last things that they will implement before the rate is released because it’s not easy for the CBI to do, it’s a pain to deal with all of these banks, so in his opinion, this item would be one of the final steps before the rate is released; Memphis concurs
• Nova said to illustrate how big this is: in the USA, you cannot charter a bank to have a direct line to the Federal Reserve, the only way to have a direct line to the FedRes is to buy a bank that already has a charter with the FedRes – this is how much central banks do not want to do business with third parties, and again why,
in Nova’s opinion, it is so significant what the CBI has done to open up to do business with any bank
• Frank asked the family to look on page 1 of today’s thread on the forum, Walkingstick has put together all of the articles to which Nova has referred; read and study them
• Frank also observed that by the CBI announcing they will do business with banks around the world – this is international
• Frank commented that for the past 2 years, the Iraqi citizens have been hoarding the 25K notes, they have created their own system of handling transactions and money, using the USD –
in Frank’s opinion, all has been set up to very smoothly pull in the 3 zero notes from those going to exchange; the Iraqi citizens will exchange their 3 zero notes for LD’s and coins; this has set up a smooth transition
• Nova agreed with Frank, if a smaller bank exchanges the 3 zero notes and has to go to a larger bank for their exchange, why would the larger bank turn in the 3 zero notes to the CBI?
They would not, they would hoard it and strengthen their balance sheet; by Sunday’s announcement, the CBI is going around the middle man and allowing the smaller third party banks to deal directly with them, to gather the 3 zero notes more efficiently
• Frank said in his opinion, this is all about control
• Frank gave a report from Delta: he asked us to recall the language law regarding adding Kurdish to the notes; Delta reported to Frank that once again the language law news is back on Iraqia TV, for the first time since February – again, timing; there has been nothing about the language law since February, and now it’s back in the news
• In Frank’s opinion, the CBI is pulling in as many 3 zero notes as possible by using all banks globally, but whatever notes they do not pull in will, in Frank’s opinion, co-exist, but they will not be found on the streets of Iraq
• Frank invited the family to look at the CBI website – look at what banks and investment companies are listed on the CBI website, you will see banks and investment companies in Michigan as the state with the highest Iraqi population is Michigan; one example is Al-Taif Money Transfer Exchange Co.; there are 33 investment companies that represent the CBI around the world, they are licensed with the CBI and give confidence to all doing business with them
Frank opened the line to questions
• Question: should we leverage the IQD to other currencies?
Nova will not speak to a certain currency, however the CBI and other central banks are balancing their assets with other currencies, but the leverage comes from the purchasing power – finding places where you can deposit IQD as IQD (rather than exchanging into another currency) should preserve the purchasing power; try to mirror what other major financial institutions are doing
• Question: how to diversify? Nova replied first look at your lifestyle, what do you want to do, where do you want to be?
Where you are and where you want to be will drive much of the diversification; how actively do you want to manage? Once you start to identify these things, begin to hedge your assets and plan what will the strategy be if the investment does not yield what is expected? Also, be sure to look at legacy planning, how to protect and preserve your assets for future generations, or to pass along to organizations, etc.
• Question: regarding LLC’s and revocable/non-revocable trusts, what is Nova’s opinion?
We don’t want to avoid payment of necessary taxes, want to be ethical and above-board in all things, and also legally protect our assets; what are the best vehicles?
Nova commented about a TV interview of US Supreme Court Justice Rehnquist some time ago, and Justice Rehnquist said there are 2 tax codes in the USA – one for the informed, and one for the uninformed;
every product or thing that we interact with every day is in some sort of entity like a partnership, LLC, etc; the tax codes were written for us to use the way they are written, we just need to work with the appropriate tax counselors to know what rules to apply and use the tools that are given to us in the tax code;
Nova stated that in his personal situation, he has no credit card, no bank account, no property, no car, nothing in his own name, it is all owned by his trust or LLC; his LLC’s and trusts deal with managing his assets while he is living, and distributes them and carries forward his assets when he is no longer living;
need to seek very good tax accountants and lawyers who know what states are the most favorable for assets, etc;
for some trusts, we would need to be in the $100 million plus range for them to do for us what we desire,
so the advice depends on the individual situation; all we have is from God, and we are accountable to be good stewards with what the Lord has blessed us, so seek out the best advisors and manage wisely
• Question: Is there anything Nova can offer on “Charitable Religious Trust”?
Nova has not heard of this – he has heard of a “Charitable Remainder Trust” but not a charitable religious trust.
Nova asked what is the caller trying to accomplish?
The caller said he has heard of a tax-neutral or tax advantageous trusts to give privacy and asset protection that churches, organizations and the wealthy use.
Nova replied that ultimately there is advantage to giving money away – the questions are about ownership and control; inside of a trust, you have control of the asset, but no ownership; in a charitable trust, the beneficiary is another person or an organization and applicable taxes apply; there is no such thing as a “tax neutral” trust, the amount of the tax break depends on the amount of money in the trust; again, having the right tax accountant is very important, and identifying what your goals are determine how to manage your assets.
• Question: In Nova’s opinion, will there be one RV or many RV’s with increasing rates?
In Nova’s opinion, we really need to see what the rate comes out at, if the first international rate is low, in Nova’s opinion we would see the rate increasing in a shorter period of time, and if the rate comes out high, then the rate would probably remain stable for a longer period of time, in his opinion.
• Question: What about irrevocable trust?
Nova: the key word is “irrevocable” so you’d better be sure – it is exactly what it says, you can give to a trust, but you cannot change your mind. They are useful tools, but you must be very sure.
There is something called “stacking” which is to compress taxes and create more layers of protection. An irrevocable trust does gives protection because you have given it away and it’s not yours anymore but because it’s permanent, you must be sure.
Nova advised that ultimately, we do not need to become financial advisors ourselves, we need to become good interviewers and start asking “who do you trust, and why?” “do they listen to you?”
Instead of being bogged down in the mechanics of how a trust works, focus on interviewing to find the right tax accountants and attorneys to set up the right vehicles based on your needs, wishes and desires.
• Question: Regarding the CBI working with all banks globally, is this a way to hold down the value of the dinar?
Nova asked why? How does that benefit the CBI? How does it benefit Iraq to keep the value low?
If the dinar value is low, Iraq has to pay more for all goods and services – if the IQD increases in value, they have more purchasing power versus the dollar. There is no reason why the CBI would want to keep the rate low.
• Question: Is there a bank (in the USA) where the IQD can be deposited as IQD?
Nova said that we would need to go to a major law firm that either has offices outside of the USA or a relationship with another law firm outside of the USA, then create an entity in that country and opens a bank account for that entity, then we would need to fly to that location and deposit the IQD as IQD.
Nova said there is no bank in the USA that will deposit IQD without first exchanging to USD.
Nova gave an example, Apple has over 90% of their money held in other jurisdictions around the world as the tax consequences in the USA are too cumbersome; this is a legal means of managing wealth if you have sufficient dinar.
• Question: The caller is older in age and wants Nova’s opinion about single and dual life annuities?
Nova asked why is he doing this? Caller replied income stream.
Nova replied that interest is very low, and very possibly the caller is leaving income on the table; there may be much better investment vehicles.
Caller asked about foreign annuities;
Nova replied that it depends on who is the insurance company, and what if the dollar does devalue? There might be better cash management techniques, for example a cash management account.
• Question: If our money is deposited in a bank, can they take it, even up to 40%?
Nova answered yes, the way the laws have been rewritten, yes, it is a possibility.
Should we live in fear of it? No, but we should prepare for it with our attorney and accountant. In Nova’s opinion, a Cypress-style event is in our future, so we need to prepare appropriately.
• Question: Caller received an email warning that in the future, banks could confiscate our money, is there any truth to it?
Nova replied that for the first time in the history of banking, our bank deposits are considered a liability, and our deposits are the first thing that can be taken.
Many people want to create fear, however, a bail-in absolutely can happen (Cypress-style confiscation of deposits).
However, if you have a cash management account with an investment firm, that money is no longer in a bank and is not subject to bail-ins. Going forward, you want to position your cash in places that avoid a bail-in.
In Nova’s opinion, keep as little in bank accounts as possible, and work with your tax and accounting professionals to find other vehicles for your money that offer protection.
• Question: Caller used the example of giving $100,000 to a church; is it better to cash in the IQD, pay taxes and donate the remainder, or to give the church the dinar?
Nova replied that if you give the church the dinar, you can claim $100,000 as charitable donation and use it to offset your income made when exchanging dinar for your own use.
• Question: Setting up international accounts, can you work with a brokerage house?
Nova replied the key is you must physically go outside of the USA to deposit the money.
The problem with many of the Swiss accounts started because they set up a Swiss account in the USA and the deposit was made in the office in the USA, the account holder did not travel to Switzerland to make the deposit.
• Question: What would Nova consider an appropriate amount of dinar in order to go outside of the USA to set up an account?
Nova replied that is really an individual question on what you are trying to accomplish, and also considering the expense of doing it: hiring the law firms, setting up the international entity, paying for a private flight, having the bank, lawyers and customs meet you at the destination as you do not take that kind of cash on a commercial flight or thru the TSA, complying with FACTA; it needs to be “real money.”
• Question: How much cash can you travel with?
Nova said anything can be done within the law. Nova’s opinion is that he would never, ever go thru the TSA with dinar, in his opinion they will confiscate it and never get it back. Beware of taking a cruise, you deal with Customs. Nova’s advice is hire the right lawyers and accountants and then anything is possible.
• Frank thanked Nova for his patience in answering questions for an hour, and the take away is that we need to get our teams together, and in Frank’s opinion the time is growing short with all that the CBI is telling us
• Memphis observed that there are a lot of questions being asked on the forum about what to do to preserve our assets after the RV, and it’s so important to follow up with the appropriate advisors to tailor a plan to your specific needs and situation.
• Frank summarized that the CBI has done something remarkable by announcing they will do business with all banks and some investment companies globally; this is a pattern break for, in their words, a “special situation”; it is obvious this is about the MR; no one knows the date or rate, but in Frank’s opinion, he is convinced we are close and the rate will be released in this year, in his opinion
• Frank ended the call with prayer