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RV AND THE DINAR HOW FRACTIONAL BANKING WORKS


KeithZ
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tHIS IS A POST i RECIEVED FROM A FRIEND ON HOW THE RV IS POSSIBLE AND HOW FRACTIONAL BANKING WORKS:

THIS IS A FRIEND OF MINE WHO IS ASKING THIS QUESTION, CAN SOMEONE PLEASE ANSWER FOR HIM? THANKS!

FOR SURE THIS IS A NEWBE QUSETION. FOR THE REST OF US OUT HERE WHO ARE STILL ON THE FENCE ABOUT THIS ISSUE, WERE IS THE MONEY COMING FROM? IF I BUY 1000 DOLLARS WORTH OF DINAR, IF AND WHEN THE DINAR AMOUNT IS PAID OUT WERE DOES THE FUNDS COME FROM. HOW COULD A NEW GOVERNMENT TAKE IN 1000 DOLLARS OF AMERICAN MONEY AND PAY OUT 1 MILLION OR WHAT EVER THE PAY OUT IS BACK WITH THEIR MONEY. THAT DOES NOT SEEM ECONOMICALLY RESPONSIBLE OR FEESIABLE. i NOT SURE IF I AM BEING CLEAR ENOUGH WITH MY QUESTION AND I KNOW YOU ARE FAR BEYOND THIS WITH THIS ISSUE, BUT STILL, I CAN'T GET PAST THAT. WHY WOULD A NEW GOV'T GO ALONG WITH THAT?

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!

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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 have a pretty strong feeling it was PLANNED this way too. Good stuff.

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Keith, THANK YOU!!!! I have asked similar questions and got beat on the head and told go read! This is what I have been searching for all along! Dang, I got it now in easy to understand writing. Thanks for explaining it so well! I have felt like a third year kindergarten student with this investment. God Bless You and Yours!!! Go, Go, Go, RV!!!

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tHIS IS A POST i RECIEVED FROM A FRIEND ON HOW THE RV IS POSSIBLE AND HOW FRACTIONAL BANKING WORKS:

THIS IS A FRIEND OF MINE WHO IS ASKING THIS QUESTION, CAN SOMEONE PLEASE ANSWER FOR HIM? THANKS!

FOR SURE THIS IS A NEWBE QUSETION. FOR THE REST OF US OUT HERE WHO ARE STILL ON THE FENCE ABOUT THIS ISSUE, WERE IS THE MONEY COMING FROM? IF I BUY 1000 DOLLARS WORTH OF DINAR, IF AND WHEN THE DINAR AMOUNT IS PAID OUT WERE DOES THE FUNDS COME FROM. HOW COULD A NEW GOVERNMENT TAKE IN 1000 DOLLARS OF AMERICAN MONEY AND PAY OUT 1 MILLION OR WHAT EVER THE PAY OUT IS BACK WITH THEIR MONEY. THAT DOES NOT SEEM ECONOMICALLY RESPONSIBLE OR FEESIABLE. i NOT SURE IF I AM BEING CLEAR ENOUGH WITH MY QUESTION AND I KNOW YOU ARE FAR BEYOND THIS WITH THIS ISSUE, BUT STILL, I CAN'T GET PAST THAT. WHY WOULD A NEW GOV'T GO ALONG WITH THAT?

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!

Keith - an arduous post - lots of thought went into this. The only hole I found...what about Exxon oil contracts that take a large cut (PSD drilling rights) of the profits from Iraq - they don't get all the profits. Plus what is also left out is governments reserve the right to create money our of thin air - by fiat - and therefore, if that new money rate is accepted by the rest of the world, IMF, etc., then it is traded worldwide and regains its former value relative to pre-war status and oil reserves. If it is recognized.

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Amazing post. It is just a bit more complicated as hame55 pointed out but from an understanding of fractional banking the overall concept is sound.

IMO this is why US has been giving away Trillions to various entities world wide apparently placing US in greater and greater debt but with the knowledge of what was on the horizon with Iraqi RV being there ace-in-the-hole to re-capitalize the world banking system from the bottom up.

My only thought is, and it is not one I like to think about, is what may happen stateside if the US dollar is replaced as world reserve currency somewhere in this plan to stabilize the shaky system that is even now rumbling. It is one gargantuan house of cards that most every nation in the world has been participating in since it's creation in the early 30's with the seminal planting of the Federal Reserve and the creation of the US dollar. Most all other fiat money supplies are directly placed upon that foundation and if it begins to crack apart no amount of bailouts, cash infusions, market manipulations, in the minds of fiat money creators can stop the cataclysm that could ensue. They will lose control of the "Frankenstein Monster" they created and the world economies and that have benefited all these years could collapse overnight leaving all of us looking out through the rubble and most asking WTF just happened.

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Amazing post. It is just a bit more complicated as hame55 pointed out but from an understanding of fractional banking the overall concept is sound.

IMO this is why US has been giving away Trillions to various entities world wide apparently placing US in greater and greater debt but with the knowledge of what was on the horizon with Iraqi RV being there ace-in-the-hole to re-capitalize the world banking system from the bottom up.

My only thought is, and it is not one I like to think about, is what may happen stateside if the US dollar is replaced as world reserve currency somewhere in this plan to stabilize the shaky system that is even now rumbling. It is one gargantuan house of cards that most every nation in the world has been participating in since it's creation in the early 30's with the seminal planting of the Federal Reserve and the creation of the US dollar. Most all other fiat money supplies are directly placed upon that foundation and if it begins to crack apart no amount of bailouts, cash infusions, market manipulations, in the minds of fiat money creators can stop the cataclysm that could ensue. They will lose control of the "Frankenstein Monster" they created and the world economies and that have benefited all these years could collapse overnight leaving all of us looking out through the rubble and most asking WTF just happened.

This is not how fractional banking works. It sounds nice but fractional banking only applies to money on hand vs money loaned out. Banks are only required to have a % of their total deposits held in cash. They can loan out up to 85 - 90% of their deposits turning this digital money into MBS (mortgage back securities) thus maintaining requisite amount of assets.

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