The BH Group Conference Call
Chairman Brad Hebner Tuesday morning 08-21-12 (transcribed)
BH: I hope everyone is handling their frustration of our investment with a calmness that always comes before the storm. Today I will focus today on a few key issues as there is no doubt in my mind that the process of the RV is over and we are just waiting for the banks to initiate the process to bring the blessing to a reality.
How’s that for coming out of the box with confidence and no taking up your time with idle chatter ? I do believe the process for the RV is over, so let’s see what happens.
As you know I have several contacts that gives us the pulse of the evolution of our journey on a daily basis and there is nobody that could make up all these things that are going on behind the scenes, but let’s just talk about some of the key facts that we know for sure that will bring our hopes and dreams to fruition.
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BH: I am not sure that you are aware of the major military movement that the U.S. has going on right now, especially with our Navy, with carriers and Stealth bombers heading towards the 5th fleet in the gulf area of the Middle East as this is area game of chicken as tension between Israel and Iran is starting to reach the boiling point.
Nobody is going to let Iran complete their nuclear development for military weapons. We are also bolstering our troop strength in Kuwait. The world has stepped up sanctions on Iran and the U.S. will definitely not be the one to pull the initial trigger, but they are showing their dominating military power just to let everybody know that no nuclear weapons will be developed by Iran.
Keep your eyes on this volatile situation as this could possibly affect our blessing as no one wants monies to get in the wrong hands for the wrong reasons.
BH: Back to the main point that I want to stress today is that the CBI has followed through with its’ plan to begin selling off a portion of its’ gold reserves this past week. The CBI holds some 80 metric tons which is increasing dramatically with the new finds of gold right underneath the streets of Baghdad, and I mean major veins.
Even if the CBI sold off a quarter of its’ existing amount there would be over 1 ¼ trillion dollars added to their coffers. Supposedly, there is about 35 Trillion dinars in circulation outside of Iraq.
The US Treasury holds the lion’s share of that amount and many other countries have purchased significant amounts of dinar.
China has been buying up dinar and silver like there is no tomorrow while even Italy and Greece each hold something on the order of 500 billion dinar and hopefully that will be enough to bail them out of their economic troubles.
BH: Now Dr. Shabibi signed off on an Ernst & Young year-end report recently stating that Iraq had a total of 76 trillion dollars in current monetary assets. For example cash, currencies, gold, treasury notes, diamonds etc. However, listen to this.
None of these figures take into account the receivables in oil revenues, oil reserves, proven gold and diamond reserves and other commodities. This is exactly what I have been talking about the last few weeks about the natural resources that are backing up the dinar that is the catalyst for the re-alignment of global currencies trying to get some fiscal balance in the world economy before it goes down the tubes.
So why should the CBI be worried about their finances when bankers are worried about prospects such as the CBI has faced, where you can never have enough money as they tend to be over cautious ?
BH: Last week the IMF announced that the CBI hit 130% of its‘ minimum needed asset requirements to begin the RV. That may sound great, but that’s 130% of 15% which means Iraq had cash reserves amounting to roughly 20 cents on every dollar of outstanding dinar.
If you assume that investors are going to cash in 5 trillion plus within a 2-4 week period of the announcement, and rate initially announced might be $3.86, that means the CBI would have to cough up approximately 20 trillion U.S. dollars.
So that is why it is selling off some of its’ gold. It’s a pretty smart move as they have a lot more where that comes from. Remember it’s all about Iraq’s assets and that’s got them covered and they can mortgage the heck out if them if need be.
Now Dr. Shabibi has indicated that he wants President Talibani to make the actual announcement of the RV. Talabani has already indicated that he will be calling the public event on Sunday, August 26th. It might just be logical to think that the RV will be announced at that time especially when you consider the following information:
In the last few days Shabibi has announced that it will release 1, 5 and 25 dinar gold filled coins for public use and trade starting Sept 1st . It makes no sense to issue these coins if the RV has not taken place.
What good are they when a loaf of bread cost 3000 dinar ? They have also said that 50, 100 & 200 dinar notes would be ready for printing in September as well. If indeed the coins will be released Sept. 1st and the notes later in the month, then August 26th or I think sooner, may have some real merit.
Meanwhile PM Maliki is outside the country persuading investors to bring their investment money to Iraq. You think he knows something we don’t know because nobody is coming in at 1170 dinar to the dollar.
Maliki has many suitors and one of the prime means is Mercedes Benz who is going to spend a lot of money in Basra to build a plant to produce the 500 series Benz auto that will see for approximately $120,000 each. Why would you build a plant if you don’t think you will have the buyers ? This gives some supporting credence to what we are about to see here in the U.S.
Yesterday, in the wee hours, a contingent from China and Christine Legarde came back to the U.S. and are ready to rumble and get this event in motion in my opinion.