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ovarB11
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The banks that cash in our dinar here in the states do."

It really does not matter what they do, it is the CBI that ultimately has to back an RV, and they do not do fractional banking. If they only have to cash in 1 trillion dinar at 1:1, where are they going to get that much USD?

Not if they use our dinar as petro dollars.....theres article around here that was posted several days that described that process.....your missing the big picture here LOD.....even though you cant believe it they can and will do whatever they need to do to complete their plan.....you still dont understand this was planned many years ago....this is modern warfair at its finest.....wake up LOD your missing a great show! Lol just think outside the box.....This thing will end as plan and you will NEVER no why or the truth for that matter.....it is what it is....just be thankful you were smart enough at one point to take a chance! :)

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This is a breakdown that helped me understand fractional banking when I first invested. It helped me understand. The numbers may be off slightly but you get the line of thinking.

Your math does not take into account fractional banking, nor does it factor in the other vast natural resources and lack of debt. You may also want to further read up on Petro dollars and the economics of oil.

Hopefully if your friends are invested they have done their own homework but I will repost it. You can also find out these answers from within this sight by doing some research. Most of the long time members and owners of the site will not take it as bashing if you take some initiative to learn the basics. Good luck!

How Fractional Banking Economics will allow a high RV EXPLAINED:

First off, I’ll use the exchange of a 10,000 IQD note as my example. To help explain the economics of this cash-in example, I will use a 1:1 cash-in ratio between the USD and IQD, that is given a two-tier payout, and a 2% bank spread.

What You Will Receive: If you were to cash in your 10,000 IQD note with a bank that charges you a 2% spread, you would personally receive a net take-home of $9,800 credited to your bank account.

What Your Bank Will Receive: Your Bank will receive a $10,000 credit to its Federal Reserve Account. They will also be able to add the $200 profit to their “capital account”.

If you don’t understand the “Fractional Banking“ concept that runs our country, you may want to, as that is what this is based on, and is what is behind this entire concept and plan. To learn more about this concept, I suggest you click HERE, and go to a video post I brought to the forum previously, and posted in my “Tidbits“ section.

Ultimately, the bank wins because they are able to gain $2,000 in lending power under the 10% “Fractional Banking“ model.

What the US Treasury Will Receive: First off, the US Treasury will receive $3,500 in estimated taxes in the quarter after the exchange, because you are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the “net cost” of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out –$3,500 in). Furthermore, the US Treasury’s rate is higher than the banking rate (we will use in this example 1.25), thereby further reducing their “net cost” from $6,500 to $4,000.

Oil Now Enters the Picture:

At some point, a Fed-appointed agent orders $12,500 worth of oil from Iraq. Payment will consist of a $12,500 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI in a form otherwise known as PetroDollars/PetroDinar. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

How the CBI “RECAPTURES” the Money: The $12,500 order is filled with 250 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for approximately $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)

What does all that mean? It cost Iraq $162.50 to bring back a 10,000 IQD note! Can they afford that? I think so! So, instead of paying out $12,500 for a 10,000 IQD note, they only pay $162.50! That doesn’t add to the money supply much at all does it! They receive their IQD back and place it in the CBI, or destroy it.

The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to $12,500 USD (which had a net acquisition cost of $4,000 USD for the US) for 250 barrels of oil (which has a TOTAL COST to produce of $162.50 USD for Iraq.

More completely explained, and simply put, it cost Iraq $162.50 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $12,500 worth of oil for a net cost of $4,000. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)

Other Factors that Strengthen Iraq’s Position and Ability to RV:

■DFI Funds Returned & Other Assets: $280+ Billion USD, plus other frozen assets (estimated at $100 billion) will be returned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD. ■CBI IQD Reserve Requirement Adjustment: The CBI will change the current fractional IQD reserve requirements from 100% to 15% at the appropriate time. As a result, the the total potential money supply will be raised in value to $2.8 Trillion (430 billion/15), while at the same time, the total physical IQD in circulation will be reduced by removing the large bills with the 3 zeros over a period of 2 years, as they have indicated. ■Oil Production Increased: Iraq will also execute the plan they announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury. ■Oil Futures & Forex Contracts Added: To further stir the pot, the CBI will continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market. Think of their impact in public markets. There, my friends, is how this plan will be enacted and made possible. Taking NOTHING, and turning it into SOMETHING, then bringing it back to a “manageable and reasonable something” that is accepted and supported by seeming endless supplies of oil. This is how the world’s ENTIRE NEW MONETARY SYSTEM will be regenerated and supported and backed, given, in essence, a re-birth and renewed for most governments and economic regions… even by “Black Gold”.

So, here’s the summary for all the “players” involved, giving ballpark numbers, and not taking into account superfluous costs, fees, and other small details that don’t really affect the larger picture:

■Investor’s Net Gain: $10,000 –$200 = $9,800 x .65 = 6,370 for an investment that cost $10 ■Bank’s Net Gain: $200 added to “capital account”, plus $2,000 they can use to loan out. ■US Treasury Net Gain: $2,500 from the .25 spread on top + $3,500 in quarterly taxes = $6,000 ■CBI/GOI/Iraqi People Net Gain: $12,500 – $162.50 = $12,337.50 + Profits from “Other Factors” ■Overall Net Gain for All Involved: $6,370+$200+$6,000+12,337.20 = $24,907.20 This is the wealth that was generated from a single 10,000 IQD note that was given an original value of approximately $10! Is that amazing or what?! You tell me… can Iraq afford NOT to RV?!!! Will the IMF allow them to NOT RV their currency, but simply replace their large denoms for smaller ones?!!! LOL!!!

In this scenario, EVERYONE WINS… and the IQD is slowly (over 2 years) taken back in to the CBI… eventually destroyed, leaving a manageable M2 behind, having created HUGE WEALTH throughout the world to re-supply what was allowed to be destroyed in the “great bleed” over a period of just a few weeks a couple of years ago, even the greatest redistribution of wealth the world has ever seen. Believe it or not, it has happened for this very purpose, and it IS coming!

I've really enjoyed this thread. You guys should do more of these types of discussions. I buy the rationale for fractional banking scenario. Where you loose me is the "Oil trade" scheme. I guess my questions surround, your stated production costs. You state their negociated production cost per barrel at $1.50 correct? I know that most of the production will be by large American oil companies correct? I seriously question that an American oil company will work for $1.50 per barrel. Can you answer? Cause if you can't your theorem that it only costs $162.50 to buy back 10,000 dinars is also in question.

best regards

wingit

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Forgive my monetary ignorance. So Iraq will be allowed to electronically magically presto....push a button and give themselves an extra 2 Trillion USD worth of electronic dollars? Even if it is not backed by anything... the US would allow that kind of additional inflation? Or do it themselves which is equally inflationary. ? I guess I'm trying to ask questions when I dont have enough foundation to even understand its frame of reference. Sorry...I guess I'm hoping to luck into some spoon feeding :)

I could be wrong, but it's my understanding that, instead of Iraq, the US Treasury will pay us when we cash in our dinar, which they will then keep on hand as reserve currency, and eventually the US will use it to buy oil from Iraq. In this roundabout way, Iraq is paying those of us who invested in dinar with their future oil instead of with the US dollars they have on hand. We will not get either barrels of oil or huge piles of dollars to hold in our hands, but rather an electronic deposit to our account. Most people wouldn't take that all money out of the bank all at one time, anyway. In fact, most of our money will be invested rather than spent (although I believe plenty will still be spent on fun things. haha). When some of our money changes hands each time we invest part of it, again it is an electronic deposit into other accounts leaving an electronic trail of sales and purchases, plus a record of who now owns what and how much. I feel like I've already said too much and doesn't just add to the confusion, so I'll stop here. But I hope this helps.

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Well everyone this week is the key for this to happen. If we do not see the Erbil Agreement wrapped up this week, I believe the Kurds will set back on their own agenda.

Friends embedded with Kurds say they have been playing nicely, but are at a point that they need to make some very important decisions.

Exxon is getting ready to come to town, and the Kurds are ready to welcome them.

http://www.ekurd.net...2/invest804.htm

http://www.cbsnews.c...in6497879.shtml

http://www.iraq-busi.../tag/kurdistan/

My boys tell me Exxon is their regardless of any decision made in the near future dealing with Iraq and RV. The only difference will be the tone of how this is handled. We can do this as a unified Iraq, or we can do it as Kurdistan.

IMO you will see some great thing happening this week, or you will see the wheels fall of the wagon again.

One thing I know for sure is you should have a good idea what will happen by end of this coming week.

I can tell you the Kurds are not the holdup, and they will not be held down.

Great piece of Intel......I've been tracking Exxon as well, This is positive news, Someone posted that the GOI is trying to purposely stall the budget, the Kurds are taking advantage of the situation:

Kurds seize on Iraqi crisis to advance bid for oil, land / Sam Dahger

Iraq—Iraq's Kurds are using a contract with Exxon Mobil Corp. and a national political crisis to strengthen their region's control of resource-rich patches of disputed land, raising the stakes in a long-running standoff with the central government in Baghdad.

Exxon Mobil's oil exploration and production deal with the Kurdistan Regional Government, announced in November, was effectively an endorsement by a global energy giant of development in Kurdish-controlled areas of northern Iraq, until then the domain of second-tier companies and wildcatters.

Despite opposition from Baghdad, Exxon Mobil is moving ahead with the project. It is now preparing for seismic studies and securing office space and accommodation for its staff in the Kurdish region's capital Erbil, a Kurdistan official said Monday.

Exxon Mobil declined to comment on the contract.

Kurds, meanwhile, are pointing to the Exxon Mobil deal to convince other major oil companies such as Total SA to sign on for other concessions, according to Kurdistan officials. Total declined to comment on its discussions with Kurdistan.

The semiautonomous Kurdistan region has signed more than 45 oil and gas deals and has been at odds with Baghdad for years over whether it has the authority to do so.

But the prominence of Exxon Mobil, and the fact that three of six exploration blocks awarded to the company are in disputed land in the northern provinces of Nineveh and Kirkuk, have entangled Exxon Mobil in simmering national and local feuds.

Kurdish leaders, who in addition to running their own virtual state in the north participate in the central government in Baghdad, are now openly using a conflict between Shiite Prime Minister Nouri al-Maliki and a Sunni-dominated faction in his coalition government to exact concessions from Baghdad on oil and land.

Kurds say they want to use a coming national conference—intended to resolve the political crisis in Baghdad—to settle their own disputes with the central government.

The Sunni faction on Tuesday ended a nearly six-week-long boycott of parliament and signaled it was ready to lift a boycott of cabinet meetings if a list of its own demands is met at the conference.

With Mr. Maliki depending on Kurdish support to help hold his government together, Kurdish leaders are looking to get Baghdad to compromise in exchange for their cooperation.

The Kurds' goals include redrawing internal boundaries in Iraq, holding a referendum in disputed areas to decide whether Kurdistan or Baghdad should control their territory, and passing a long-stalled national oil law that would recognize the Kurdish contracts and formalize revenue-sharing with the central government.

The timing, venue and agenda for the conference haven't been set. Mr. Maliki is expected to try to use Sunni Arab hostility toward Kurdish land claims in the north to avoid making major concessions to the Kurds.

He has already warned the Kurdistan government that its deal with Exxon Mobil could trigger a war in the area. His ministers have also accused the Kurds of oil smuggling, and threatened to end a service contract with Exxon Mobil in Iraq's south in retaliation.

Kurds have brushed off the threats. "We are dealing with these areas as part of Kurdistan," said a senior Kurdish official.

Some residents in the disputed areas view the Exxon Mobil deal as infringing on their own claims.

"The owners of the land, oil and all resources in Nineveh province are the Iraqi people in general and the people of Nineveh in particular," said Abdullah Humeidi Ajeel al-Yawer, leader of a powerful Sunni Arab tribe, in an interview in the northern city of Mosul, seat of Nineveh province.

Mr. Yawer also heads a political party that controls almost one-third of seats on the provincial council. "The central and local [Nineveh] governments must fix the situation and if they both are unable to do so, then we'll have our say," he added.

Mr. Yawer declined to say what he would do should the central and local governments' efforts fail. He commands thousands of armed tribesmen in his Shammar tribe, a group that was on the brink of war with Kurdish forces in 2005.

The U.S. and the U.N. stepped in to mediate that conflict and also facilitated a reconciliation between Nineveh's Gov. Atheel Nujaifi and the Kurdistan government.

With the departure of all U.S. soldiers from Iraq in December, tensions have risen again. Mr. Nujaifi called the Exxon Mobil deal a new wedge for militants to exploit. Militants "want to put us in confrontation with the [Kurdistan] region," he said in an interview.

U.S. diplomats in Baghdad said they hope the situation will remain under control because of common economic interests, the promise of oil-fueled prosperity and development in the area and the moderating influence of Turkey, which shares borders, business and political ties with all actors in northern Iraq.

Turkey has a strategic interest in boosting oil and gas exports from Iraq's north through its territory, analysts say.

Turkey's involvement could pave the way for the Kurdish government to exchange fraying ties with Baghdad for Turkish protection, says Joost Hiltermann, a senior analyst with the International Crisis Group and expert on Iraq's land disputes.

"You could see the emergence of an oil-rich, Kurdish-run Turkish vassal state in Iraq," he says.

Reuters

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Forgive my monetary ignorance. So Iraq will be allowed to electronically magically presto....push a button and give themselves an extra 2 Trillion USD worth of electronic dollars? Even if it is not backed by anything... the US would allow that kind of additional inflation? Or do it themselves which is equally inflationary. ? I guess I'm trying to ask questions when I dont have enough foundation to even understand its frame of reference. Sorry...I guess I'm hoping to luck into some spoon feeding :)

Yep, this is exactly what we are hoping for. Iraq has an "Absolute Advantage = Situation in which an economy or individual can produce more of any good than another country or individual, with the same resources.

Some definitions:

Price System (market system)

– An economic system that allocates

resources based on relative prices

determined by supply and demand

– Prices signal what is relatively scarce

and relatively abundant

Markets

– Emphasize voluntary exchange

– Determine the terms of exchange

– Facilitate exchange

Voluntary Exchange

– Acts of trading between individuals

that make both parties to the trade

subjectively better off

Terms of Exchange

– The prices we pay for the desired items

Transaction Cost

– The costs associated with exchange

– Examples

• Price shopping

• Determining quality

• Determining reliability

• Service availability

• Cost of contracting

Changes in supply and demand

create a disequilibrium

The market price and quantity

adjust to a new equilibrium

Summary

– Increases in demand increase equilibrium

price and quantity.

– Decreases in demand decrease

equilibrium price and quantity.

When both demand and supply shift

– Simultaneous changes in demand

and supply put conflicting pressure

on price or quantity

– The resulting effect depends upon how

much each curve shifts

– Either equilibrium price or quantity

will be indeterminate

I've posted some basic economic definitions, there is an opportunity cost of everything in our economy, we give up one thing to enjoy the benefits of another and there is a price in this cost. The only thing that has no opportunity cost in resources that we actually use is gravity that keeps us planted here on earth. At one time air didn't have an opportunity cost until we started polluting it and now there is a price to pay for it. Iraq will RV...... PERIOD!!!

Essential features of the price system

– A price system (market system) allows

prices to respond to changes in supply

and demand for different commodities.

– The terms of exchange—prices—are

communicated in markets that tend

to minimize transactions costs.

ANTI-DUMPING PROCEEDINGS:

Dumping refers to the practice of a foreign firm charging a price in other countries that is below the price it charges in its home country.

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Well everyone this week is the key for this to happen. If we do not see the Erbil Agreement wrapped up this week, I believe the Kurds will set back on their own agenda.

Friends embedded with Kurds say they have been playing nicely, but are at a point that they need to make some very important decisions.

Exxon is getting ready to come to town, and the Kurds are ready to welcome them.

http://www.ekurd.net...2/invest804.htm

http://www.cbsnews.c...in6497879.shtml

http://www.iraq-busi.../tag/kurdistan/

My boys tell me Exxon is their regardless of any decision made in the near future dealing with Iraq and RV. The only difference will be the tone of how this is handled. We can do this as a unified Iraq, or we can do it as Kurdistan.

IMO you will see some great thing happening this week, or you will see the wheels fall of the wagon again.

One thing I know for sure is you should have a good idea what will happen by end of this coming week.

I can tell you the Kurds are not the holdup, and they will not be held down.

Now for the lighter side of things.

It all ends this Sunday!

Brady will not let the Giants shut him down again.

I would like to see it, but I think the giants will come back to reality to soon.

They have been playing way over their heads for the last two weeks.

Let’s see if they can keep it up for 1 more game.

My pick is the New England Patriots.

Great Info! I just hope your prediction for the RV is WAY better than your Super Bowl prediction .... ;)

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I could be wrong, but it's my understanding that, instead of Iraq, the US Treasury will pay us when we cash in our dinar, which they will then keep on hand as reserve currency, and eventually the US will use it to buy oil from Iraq."

I think there is a misunderstanding about foreign reserves. The US doesn't really need them. We ARE a foreign reserve and our currency isn't pegged.

The US TOTAL reserves are $488,928,295,253, which includes monetary gold, special drawing rights, IMF reserves, and holdings of foreign exchange under the control of monetary authorities.

Here is the U.S. latest position in international reserves.

http://www.treasury.gov/resource-center/data-chart-center/IR-Position/Pages/01272012.aspx

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I could be wrong, but it's my understanding that, instead of Iraq, the US Treasury will pay us when we cash in our dinar, which they will then keep on hand as reserve currency, and eventually the US will use it to buy oil from Iraq."

I think there is a misunderstanding about foreign reserves. The US doesn't really need them. We ARE a foreign reserve and our currency isn't pegged.

The US TOTAL reserves are $488,928,295,253, which includes monetary gold, special drawing rights, IMF reserves, and holdings of foreign exchange under the control of monetary authorities.

Here is the U.S. latest position in international reserves.

http://www.treasury.gov/resource-center/data-chart-center/IR-Position/Pages/01272012.aspx

Perhaps I used the wrong teminology. It's been known to happen now and then in the past. haha I agree that we don't need the Iraqi dinar as reserves. But Iraq does need this help from us in this last step of getting from A to Z, which means to revaluate their dinar in order to have a currency that is recognized and valued by other nations, and, thus, to become a full-fledged player among the nations of the world. Furthermore, I understand that, when the plans were made about how Iraq (Shabibi) would do this, using our dollars was factored in. The planners knew even then that Iraq would not have enough dollars to do this. But rather than just giving Iraq the money when this time came, it was decided back then that our Treasury would exchange our dollars at the dinar rate to pay us dinar owners when we cashed in, and then later, the Treasury could use that dinar for future purchases of oil. To me, this plan was absolutely brilliant. It gave Iraq the means to revalue their currency so they could take their place and function financially in the world, gave us investors a fantastic return on our investment dollars, and gave our country a means to cash in at favorable terms on Iraq's future oil industry. Even if I'm wrong on this, I shouldn't be because this plan is so fantastic!! haha

Francie-very good way of explaining this investment. I am feeling very good about this week. Good to see you posting a little more often Francie. You have been kind of quiet lately, and I love hearing your opinions on things. God Bless!

Thank you so much, HisHands!! That is a lovely thing to say. I have been busy with other things, and will be for a while, but I'll check in when I can. I love being here, participating, and being part of the forum. But sometimes life interferes with what we'd prefer to do. haha Again, thank you. Fran

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  • 1 month later...

Well Tony I ain't attackin. But I will buy your 5 trillion still out there. That is still almost half of the US national debt. What the Newbie asked. has never really been answered. Where do all of those dollars come from? Anybody? :unsure::unsure::unsure:

I answered this above, it seems. lol Scroll up.

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One thing I know for sure is you should have a good idea what will happen by end of this coming week.

I can tell you the Kurds are not the holdup, and they will not be held down

:shakehead::lmao: :lmao: :lmao:

It's been over a month and we still don't know.....and when the Summit comes and goes this week, we still won't know? Good news is good news, but it doesn't mean the RV is just around the corner. We still have a ways to go B)

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One thing I know for sure is you should have a good idea what will happen by end of this coming week.

I can tell you the Kurds are not the holdup, and they will not be held down

:shakehead::lmao: :lmao: :lmao:

It's been over a month and we still don't know.....and when the Summit comes and goes this week, we still won't know? Good news is good news, but it doesn't mean the RV is just around the corner. We still have a ways to go B)

Totally agree with you...people have said a thousand times over what they think is going to happen haven't seem any of the predictions come true yet.

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One thing I know for sure is you should have a good idea what will happen by end of this coming week.

I can tell you the Kurds are not the holdup, and they will not be held down

:shakehead::lmao: :lmao: :lmao:

It's been over a month and we still don't know.....and when the Summit comes and goes this week, we still won't know? Good news is good news, but it doesn't mean the RV is just around the corner. We still have a ways to go B)

Have you EVER had a positive thing to say about this investment Timmy?

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1556 posts and not one yet. <_<

I know right?

He's so negative about the outcome,and always says how it's months if not years off.

Yet for some reason despite these beliefs;he finds it necessary to post several times a day sometimes and tell us how wrong we are.

something doesn't add up here

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Have you EVER had a positive thing to say about this investment Timmy?

Sure...but I'm not going to blow sunshine up your arse just because it might make you feel good for 5 minutes, especially if I don't have facts to back up those ridiculous predictions ;) Wouldn't you rather hear the truth...that there still are many things that need to get done, and we are heading in right direction, but HCL must get passed, chapter 7 needs to be removed, ect......instead of----tomorrow is the day, the Summit will be the end of the road, we'll see $3.22 RV by Friday, blah blah blah every day??? :P

I know right?

He's so negative about the outcome,and always says how it's months if not years off.

Yet for some reason despite these beliefs;he finds it necessary to post several times a day sometimes and tell us how wrong we are.

something doesn't add up here

You bet ya...something doesn't add up. Everyone who keeps saying tomorrow is the day and I've been through 7000 tomorrows and still no RV. You wanna bash me cause I'm negative...I wanna bash you because you live in fantasy land. JMHO ;)

Just because what I say doesn't line up with your dreams, doesn't make me negative.....on the contrary, I think I'm being positive by trying to look at the reality of the situation instead of wishing the RV to take place tomorrow?

So far...everyone who has predicted the RV was coming tomorrow has been WRONG......so why aren't you bashing everybody else. So far, I've been correct in my reasoning as to why there hasn't been an RV! B)

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