Global Currency Reset (GCR) & Revaluation Of Currencies (RV)
Historical Overview Part 2 of 2
(EDUCATIONAL PURPOSES ONLY)
FIRST BASKET CURRENCIES
FROM BANKRUPTCY TO BREAKTHROUGH
The task of resetting all sovereign currencies back to a par gold value, countries agreed to be audited to determined who might be closest or furthest from a common gold standard.
Those who were furthest away, were placed in a what’s been called the “first basket” of revaluations. Meaning, the above four currencies were grossly undervalued, and selected to redeem first at some pre--agreed international rate.
Other countries like our own United States, Japan, Switzerland, Great Britain, Germany and Australia were deemed overvalued, and placed in an opposite but similar first basket to revalue.
This is why you are seeing such wild swings in value per those countries central banks and treasury currency rates.
Now some countries (Zimbabwe, Iraq, Vietnam, Indonesia) have had such unstable political and monetary histories over the past fifty years that their currencies were deemed insolvent at some point by the IMF and World Bank.
Each was stripped of their international trading status, and fiscal sanctions were taken against their sovereign currencies, which equates to bankruptcy on a diplomatic level.
All four countries had to then earn the right to trade again within the international marketplace, going through years of compliance steps in order to “re--instate” their national currencies as good standing members of the global economic community.
The good news all four countries ultimately accomplished this Herculean task, and as a result, their currencies are being allowed back into the global marketplace—and this time gold backed per appropriate Basel lll standards.
But if one more deeply investigates how physical currencies actually revalue and redeem, be they in the first, second or third baskets… it’s important to consider the differences between three very different public rates all within these currency—as each of these rates will be initially offered to the public, with all three eventually merging into a single sustainable and trade--able global value benchmarked by gold.
Below are projected redemption rates for each of the first basket currencies. All rates can and will change based on traditional market forces, called “floating”:
IN COUNRY RATE: This rate exists so local currency holders can easily redeem to new gold backed currencies within the boarders of their own country. This rate is intentionally lower than other rates, as it is meant to ease citizens and existing population back into trusting their national currency as legal tender.
Remember, some of these countries have been in bankruptcy for many years, which means at onetime they experienced very public bank failures. So metal coins are often used to help the emotional healing process, all be it at lower rates to counter over spending.
VND (in Vietnam) : $ 0.08 USD
IQD (in Iraq) : $ 3.58 USD
ZWR (in Zimbabwe) : $ 0.00014 USD
IDR (in Indonesia) : TBD
INTERNATIONAL RATE: The international rate is determined by new global monetary authorities governed by BRICS Alliance members. Many would call this the “FOREX” rate, but in essence, it’s the currency’s pre--agreed upon price, consistent anywhere in the world with a monetary value pegged against the global gold standard.
In the old banking system, the international rate was backed by the USD (petrol dollar); whereas in the new banking system; this rate is backed in gold per Basel 3 compliance standards. Signed Non Disclosure Agreements (NDA) are not expected to be required in order to receive an international exchange rate.
VND (outside of Vietnam) : $ 0.46 -- $ 2.71 USD
IQD (outside of Iraq) : $ 3.90 -- $ 8.49 USD
ZWR (outside of Zimbabwe) : $ 0.04 -- $ 0.14 USD
IDR (outside of Indonesia) : $ 1.05 USD +
CONTRACT RATE: This rate requires a new account contract be signed between the bank and its client. Generally, the redemption rates are higher due to length of principal holding terms and additional restrictions placed upon movement of principal.
Contract rates vary greatly depending on the bank, your liquidity position and how long you’ve been a client with the bank your exchanging with. Not everyone will be offered a contract rate, but in theory everyone could receive it if prepared. NDA’s will need to signed in order to receive the higher contracted rates guaranteed.
VND (signed NDA) : $ 2.72 -- $ 20.00 USD
IQD (signed NDA) : $ 8.50 -- $ 38.00 USD
ZWR (signed NDA) : $ 0.15 -- $ 0.22 USD
IDR (signed NDA) : TBD
(*All in country, international and contract rates, are subject to change without notice; contract rates also limited to qualifying clients & specific disbursement pool amounts).
Currency redemptions are typically a very simple process. Normally, a customer brings their currency to a teller window, the rate is checked, and the teller simply converts the initial currency to another currency in the denominations of the customer’s choosing. But during this very unique and historic banking event, there will be additional precautions taken to protect the public from an overwhelming in--bank redemption appointment flow.
So much so, off--site redemption centers have been created, with security staffs, to ensure the safety of all involved given the high volume of GCR/RV traffic. Because as far as the banks are concerned, they’ve had time to prepare for this event for several years, but know the general public will be very excitable.
They know all of your questions before they arise, and have pre--written responses based on well--rehearsed psychological negotiating tactics to maximize their bank’s redemption profits.
Right now, literally, thousands of bank staff members are waiting for you to enter into their facilities and begin the GCR/RV exchange process. So while there may only be four initial redeeming currencies, they will all generate abnormal exchange profits, thus the banks are keen on keeping everyone calm, cool and collected.
From their phone operators, tellers, managers and wealth managers, all have been trained to address your concerns quickly and effectively; this so the exchange process can flow smoothly and quickly. But the exchange process actually begins with your appointment setting phone call.
Each operator will ask for your zip code, which currencies you own, and in what amount and denominations. From this information, they will schedule you in a specific branch or redemption center in terms of potential deposit qualifications.
Once you enter their branch or redemption facility, they will again qualify you based on your identification, physical currencies held, denominations, volume and home address. If you demonstrate consistency with all your answers, they will then assign you to new accounts / wealth manager team that will assist you in your exchange.
However, if you appear negative or indecisive, or worse confused, they may ask you to reschedule your appointment so others who are better prepared can go ahead of you. Why? Because banks are in the business of making money, not friends… so the less drama the better. So be prepared to redeem on time and quickly, in a controlled manner, or be prepared to wait as others go ahead of you because time is money.
We recommend being early, respectful and understated in all your dress, words and actions. These are well trained GCR/RV bankers do not want to hear stories about your life’s calling, nor what you will do later that day with your sudden windfall. So by no means get excited pre or post--exchange, as many of these bank employees may have been lied to about the GCR/RV being real. Most were told to tell customers who asked that it was a scam.
So get in and get out … do the best you can to maximize this first basket of currencies opportunity, and celebrate in the privacy of your own home, keeping all joy to yourself out of respect for the process and courtesy to others who are not as fortunate.
Arrive with all your documentation in hand, in a well organized binder, along with all your physical currencies, purchase receipts, gift letters, legal entity documentation, IRS tax information, existing bank account documentation, as well as a pre--made list of cashier checks you want made out to specific people, with specific amounts.
Having this done prior to your exchange appoint, will separate you from 95% of those redeeming, and potentially give you an edge on getting offered the higher contract rates and/or higher interest bearing programs.
Remember, any bank can deny service to anyone they do not wish to work with.
Also, if you feel the need to bring along an associate or family member, it will be allowed, but if said associate or family member shows concern or undue negativity over the redemption rate or process, it could dramatically hurt your bottom line. So control their attitudes and limit their questions, especially if you feel the appointment is headed the wrong direction.
Let the general rule of thumb be: Less Drama = More Money. And most of all, do as much banking negotiating homework as possible prior to your appointment.
The quality of your questions will demonstrate higher investment IQ, and thus potentially affect the rate and term you ultimately get offered. Why? Because the contract pool is limited to a set amount, and the bankers will be seeking high volume and high investment IQ clients to offer the contract rates too.
So sew for the worst, hope to reap the best, and get as much as you can in the most gentle and loving way.
MULTI--CURRENCY ACCOUNTS (MCA)
Every wise wealth manager will advise individuals to take their time and think through all major investment decisions. Measure twice, cut once is the old carpentry adage, but in the case of the GCR/RV, the opposite is true. Time is money… short and long term. So know that bankers and wealth managers alike will simply not have the time to answer too many questions or wait on clients to make decisions their attorneys tell them is acceptable.
The sheer volume of new clients expected to flood their banks is overwhelming during the first few weeks of GCR/RV redemption. Therefore, it’s wise to design your own in--bank wealth diversification strategy to prudently manage all your new, sudden and large volumes of liquidity.
Multi--Currency Accounts (MCA) are one proven way. They are sophisticated business oriented bank accounts typically for international account holders with multiple currency needs to service expenses.
An MCA allows them to control liquidity all over the world from a core host bank near where they live. And though their wealth might be held in multiple foreign currencies, all are considered liquid assets in the US banking system, thus a bank can freely lend against them as if they were USD currency.
Clients generally diversify a certain percentage away from a core currency and diversify into other foreign currencies; thus hedging risk while still maintaining constant liquidity anywhere in the world. MCA’s are good at protecting principal if their bank’s host country’s suddenly has an economic melt down, as they need to move funds quickly without traveling out of the host country.
Also, MCA’s can be used an speculative investment tool by dividing up a core or host currency into several smaller, different emerging foreign currencies, thus diversifying wealth across more continents, countries and cultures.
MCA’s are a time tested and practical financial mechanism for accomplishing the goal of wealth diversification during your initial redemption appointment—especially for rookie investors because it’s as easy as opening a new bank account.
Plus, most major banks offer dozens of different currencies positions inside of your MCA, yet it is wise to go with established currencies with stable governments for the bulk of your funds, especially countries that have long histories of supporting their currencies with gold.
Below is a textbook wealth diversification strategy using an MCA, that in now way replaces a certified investment advisor’s counsel, but for the time being does allow you some diversification options in the 20 minute window you may have to redeem, and let you walk out of the bank with some peace of mind.
Traditionally, trusts have been used to minimize estate taxes while offering other benefits as part of a well--crafted estate plan. A trust is also a fiduciary arrangement that allows a third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. A trust can also buy, hold, manage and sell many hard asset classes.
Trusts are arranged in many ways and can specify exactly how and when said assets are to pass on to beneficiaries. Since trusts usually avoid probate, your beneficiaries may gain access to these assets more quickly than they might to assets that are transferred using a will.
Additionally, if it is an irrevocable trust, it may not be considered part of the taxable estate, so fewer taxes may be due upon your death. Assets in a trust may also be able to pass outside of probate, saving time, court fees, and potentially reducing estate taxes as well. Other benefits of trusts include:
Control of your wealth: You can specify the terms of a trust precisely, controlling when and to whom distributions may be made. You may also, for example, set up a revocable trust so that the trust assets remain accessible to you during your lifetime while designating to whom the remaining assets will pass thereafter, even when there are complex situations such as children from more than one marriage.
Protection of your legacy: A properly constructed trust can help protect your estate from your heirs’ creditors or beneficiaries who may not be adept at managing money.
Privacy and probate savings: Probate is a matter of public record; a trust may allow assets to pass outside of probate and remain private, in addition to possibly reducing the amount lost to court fees and taxes in the process.
There are numerous trust entities one can make with your new wealth, however it is always wise to follow the advice of legal counsel when choosing what is the best fit for your individual goals. Below are the two types of trusts widely accepted as the core foundation for all trust entities:
Also known as a living trust, a revocable trust can help assets pass outside of probate, yet allows you to retain control of the assets during your (the grantor’s) lifetime. It is flexible and can be dissolved at any time, should your circumstances or intentions change.
A revocable trust typically becomes irrevocable upon the death of the grantor. You can name yourself trustee (or co--trustee) and retain ownership and control over the trust, its terms and assets during your lifetime, but make provisions for a successor trustee to manage them in the event of your incapacity or death.
Although a revocable trust may help avoid probate, it is usually still subject to estate taxes. It also means that during your lifetime, it is treated like any other asset you own.
An irrevocable trust typically transfers your assets out of your (the grantor’s) estate and potentially out of the reach of estate taxes and probate, but cannot be altered by the grantor after it has been executed.
Therefore, once you establish the trust, you will lose control over the assets and you cannot change any terms or decide to dissolve the trust.
An irrevocable trust is generally preferred over a revocable trust if your primary aim is to reduce the amount subject to estate taxes by effectively removing the trust assets from your estate.
Also, since the assets have been transferred to the trust, you are relieved of the tax liability on the income generated by the trust assets (although distributions will typically have income tax consequences). It may also be protected in the event of a legal judgment against you.
The GCR/RV is clearly the once--in--a--lifetime global debt jubilee, thus there’s little doubt government’s worldwide have updated taxation laws to collect their portion of our windfall. That said, it is wise to expect traditional Capital Gains taxation (short--term 1 year or less, long--term 1 year + 1 day). Although, a flat tax or “Historical Asset Tax” may ultimately be assessed on GCR/RV redemption currencies, and range anywhere from 14% to 20% at the Federal level.
At the State level, taxation will more than likely be assessed per existing tax laws, and largely dependent upon personally reported income (see 50 State chart below):
Whatever your final tax rate, be sure to save a healthy portion of your profits specifically for eventual tax exposures (which you’ll be paying on a quarterly versus annual basis now), and always make sure you consult with your accountant or CPA as soon as possible to determine how best to move forward in a legal and ethical manner, so you can quickly pay your fair share but not a penny more.
Look, nobody wants to pay taxes, but everybody seems to end up doing so in the end; just keep in mind it’s far more important that you sleep well at night versus stressing out over ROI’s or profit maximizations, given how fortunate you were to receive these kinds of returns in the first place.
Just keep everything in perspective and remember to enjoy the GCR/RV process…including the taxation portion of it.
TREE OF LIFE
This money, for whatever heavenly or earthly reasons, has been placed in your care to help yourself, your family and other families. So always look to be of service and do no harm.
For just as there will be many new choices to make post--GCR/RV in terms of lifestyle, there are also choices to be made in terms of who you will allow to participate in your wealth. Meaning, you might need to reconsider everyone currently in your stable of friends and professionals given your newfound wealth.
Not only must your inner circle be familiar with all areas of the law, estate planning, tax, investment and diversification, but they also must understand the delicate privacy needs of high net worth and ultra high new worth clientele. As well as be in alignment with you morally and spiritually, sharing common values as human beings.
Make sure to work slowly, always thinking about sustainability and protection all your resources. Listen before you speak.
Remain patient, prudent and selective with all your words and actions no matter the chaos swirling around you—because as you have probably heard many times before, with great wealth comes great responsibility—well, great responsibility now falls squarely upon your shoulders.
Try always to remember that pure thoughts create pure results, while impure thoughts create impure results. It’s simple but practical wisdom. And while it is your new job to protect these assets, consider the task of blessing the huddled and tired masses with a portion of your wealth, seeking out the less fortunate in society and providing those in need with generous contributions, love and prayer… for God is watching.
May your heart forever be filled with His infinite grace and eternal peace… in Christ.
https://www.dropbox.com/s/snw1vaicuvh412z/Global Currency Reset_Revaluation of Currencies_Historical Overview_2015.pdf