Post From TNT By MacJedi
Understanding Contract Rates... Why, How, When and your safety.
The Question was asked: Do you know where I could find more information about what a contract rate is and how to negotiate with contract rates? Thanks!
I will give you the run down on that in the short version. The US, China and Iraq have worked together to form kind of an alliance which deals with oil futures.
This means that instead of Iraq having to foot the bill for all the money that will be exchanged, they will get the US and China to payout the money for the revalued currency as China seems to have most of the money in the world and the US just creates money out of thin air anyway.
So how are all the people going to get paid when the big fat bill comes in for this high value payout for currency that used to be next to worthless? Here is where the contract rates come into play...
China is willing to payout on exchanges done through their holding company... So let's just say for simplicity sake that they would have to payout a total of 10 billion in revalued monetary funds to people bringing in the Iraqi Dinar. This is done through funds already held by China.
So you, the exchanger get the healthy sum of digital money in your bank account from exchanging your foreign currency... China paid that to you in exchange for the foreign currency you gave to them.
Now it is China's turn to make a profit on this transaction. China now holds credits, let's call them units... One unit for every single Dinar you exchanged to them. These units will have a value at each intersection of the journey of the transaction until it reaches it's final destination.
First the near worthless currency was acquired at an International money auction more than likely from a US currency dealer. That dealer in turn sold it to a customer which was more than likely you and other similar people. At that moment, the dealer made a profit by selling high and buying low.
You now hold the currency in HOPES that it will be announced Internationally that it's value has increased and it is now tradable for a considerable higher rate than you paid.
This is the moment you can make some decisions. Do I run to the bank and exchange this currency for the International announced value? or do I secure an 800 phone number and attempt to make a contract rate deal?
So first understand what a contract rate deal is.
Here it is in simple terms:
Iraq has lots of oil, China and the US would like lots of oil... Here is the simple version of what will take place. The US and China want to get as much foreign currency units as they can get because this deal has offered China and the US upwards of $50 in oil credits per unit for every Dinar presented for exchange credit.
China does not care how much they spend per unit within reason but more so they care about how many oil credits they can collect.
If for every unit, China and the US can secure near $50 worth of oil, they win BIG! If Iraq does not have to foot the bill for the exchange money and instead all they have to do is provide oil to cover the bill and this can be done over a period of 60 years as this is what is considered oil futures, they will win big also.
When attempting to secure a higher rate than that which will be announced Internationally, your intent will be to connect with those who are offering a higher rate than the International rate.
This will be done through channels which are trained and informed as to the details in bringing you this higher rate. 800 numbers are said to be your connection to such extra ordinary situations.
Some exchangers will be lucky enough to already know trained wealth managers able to accommodate such transactions.
The basic idea to contract rates is that there is a bit of a competition between China and the US as to how many units can be collected and used towards oil futures. Over time we observed as China and the US offered more and more to exchangers to gain a loyal exchanger.
At one point the contract rates were said to have gotten as high as near $40 per unit, still leaving the offering countries a $10 per unit profit.
WIth the advent of early exchangers and the political need to limit the amount an exchanger can receive, that contract rate has made dramatic drops in value. It is hoped that there will still actually be a contract rate left by the time this becomes an International announcement... So we continue to hope.
The downside of taking the contract rate offered through the private exchange is your loyalty and silence through a signed Non Disclosure Agreement.
The penalties of breaking such an agreement and letting the proverbial "Cat Out Of The Bag" could result in criminal charges and an erasure of any funds received through this exchange event. Only the secret keepers need apply.
800 numbers are still said to be made available for a contract rate negotiation upon the International announcement of the currency revaluations. Those numbers will become public in a way determined by the designers of this coming event.
It has also been rumored that the Vietnam Dong may somehow be involved in a similar contract rate.
There is a possibility that he contract rate may have a very short shelf life after the announcement and even possible that by the time this actually does happen that the set pool for contract rates may be close to being exhausted, leaving only the International rates as the only choice for negotiations.
How to negotiate for contract rates if the opportunity does present itself.
Firstly... remember to look the part, act the part of a responsible money handler... Be respectful.
Secondly... Ask to see contract rates on bank screens and request the highest possible.
Thirdly... Be wise and offer a close knit partnership with your exchange officer in making the most of the funds for future gains.
Last but not least. Hold out at least 50% of your exchange proceeds as you still do not know how your government officials will seek to extract as much as possible through taxation.
Remember, money is an agreed upon value which translates into mass public acceptance... Money's value comes from human perception which at any one point can change...
Therefore don't forget the ways in which value can be converted into solid tangible assets which hopefully can stand the test of time better that perceptions can.
DAZ Comments: IMO IT WILL BE UNLIKELY THAT ANYONE WILL HAVE THE OPPORTUNITY TO REVIEW A CONTRACT RATE PRIOR TO FORMALLY AGREEING UNDER CONTRACT TO NOT DISCLOSE THAT INFORMATION
AND EVEN IF THE CONTRACT RATE OPTION IS NOT CHOSEN THE NDA WOULD THEN HAVE TO REMAIN IN EFFECT AS AGREED.
THE PURPOSE OF THE NDA IS TO PROTECT THAT RATE AND TERMS INFORMATION...SO TO VIEW IT WITHOUT THAT PROTECTION IS UNLIKELY
SO PLUG THAT INTO YOUR THINKING - DAZ
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