Where will CBI come up with USD after RV?

[dfmfit]

When the dinar RVs, where will the CBI come up with the USD or foreign currencies to cover the value and the mad dash to cash out? Also, how much IQD is currently in circulation? It is estimated that there are Trillions of dinar in circulation. (27 trillion according to some sources). 27 Trillion multiplied by 3 (hypothetical RV value) equates to 81 Trillion in necessary funds. The GDP for oil is estimated to be only 80 Billion. This is a large discrepancy. How much does the CBI still hold? The amount in the USA alone held by individuals could potentially be greater than years worth of Iraq GNP.

Thanks for insight...

[eisch78]

Ok newbie...I mean in the nicest way possible. This question has been posed many, many times. Spend time and read through the forum and look it up for yourself. Too many people, myself NOT included, have spent valuable time and efforts to research questions such as these and have posted reasonable answers and thorough explanations. Just to have someone come on here, ask the same question over and over, and expect an answer, is not a good effort on your part. Due dilligence...

[hopefullbk]

When the dinar RVs, where will the CBI come up with the USD or foreign currencies to cover the value and the mad dash to cash out? Also, how much IQD is currently in circulation? It is estimated that there are Trillions of dinar in circulation. (27 trillion according to some sources). 27 Trillion multiplied by 3 (hypothetical RV value) equates to 81 Trillion in necessary funds. The GDP for oil is estimated to be only 80 Billion. This is a large discrepancy. How much does the CBI still hold? The amount in the USA alone held by individuals could potentially be greater than years worth of Iraq GNP.

Thanks for insight...

The theory is called fractional banking. I'm not claiming to understand it as its clearly very complicated. In simple terms, as we stand today, if we all were to run to the bank and empty our savings accounts, there isnt enough currency in existance to cover it now. So an RV would be no different, all in electronic credits. Exclude the RV and ask yourself the same question about the physical currency, or lack there of, in the world now.....the banks/gov dont have enough to cover it currently so with fractional banking, you dont need physical currency, its in electronic form. Again, I'm no expert but that is my laymans understanding. If I'm wrong, theres a lot of folks on this forum who are much more informed than me so you will eventually get an answer to your question.

[fbcatp]

Only three percent of 27T Dinar is in the hands of speculators. Forty percent held by bankers and other countries, the balance is in Iraq for their use. When you turn in your dinars, someone has to buy them inorder for you to sell them. May be a mad rush, but may be a slower payback.

[joe-dinar]

Here is a blog you can read and learn:

http://***********.wordpress.com/

[MPG350]

Ok newbie...I mean in the nicest way possible. This question has been posed many, many times. Spend time and read through the forum and look it up for yourself. Too many people, myself NOT included, have spent valuable time and efforts to research questions such as these and have posted reasonable answers and thorough explanations. Just to have someone come on here, ask the same question over and over, and expect an answer, is not a good effort on your part. Due dilligence...

Dont be a ******

[eisch78]

Dont be a ******

Relax

[quadraph0nic]

When the dinar RVs, where will the CBI come up with the USD or foreign currencies to cover the value and the mad dash to cash out? Also, how much IQD is currently in circulation? It is estimated that there are Trillions of dinar in circulation. (27 trillion according to some sources). 27 Trillion multiplied by 3 (hypothetical RV value) equates to 81 Trillion in necessary funds. The GDP for oil is estimated to be only 80 Billion. This is a large discrepancy. How much does the CBI still hold? The amount in the USA alone held by individuals could potentially be greater than years worth of Iraq GNP.

Thanks for insight...

I don't feel like answering your questions directly but if you care and have the time, check it out some of this info and remember despite what anyone says never be afraid to ask a question.

http://cbi.iq/index.php?pid=MonetaryPolicy

http://cbi.iq/index.php?pid=Statistics

Monetary Aggregates

Key Financial Indicators

Fractional Banking

http://en.wikipedia.org/wiki/Fractional-reserve_banking

[BamBam]

Yep, had the same question for many months! It takes a lot of reading to understand it, unless you just take someone elses word that it will be done. Below is an article that explains it extremely well, (in layman's terms). Take care.

Thought you would enjoy understanding this:

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! 

[doc9574]

Thank you Bam Bam I had often wondered that myself just hadnt come across the info yet

[Stamp]

Should we have 'FAQ' thread?

[Wayne & Leah High]

Ok newbie...I mean in the nicest way possible. This question has been posed many, many times. Spend time and read through the forum and look it up for yourself. Too many people, myself NOT included, have spent valuable time and efforts to research questions such as these and have posted reasonable answers and thorough explanations. Just to have someone come on here, ask the same question over and over, and expect an answer, is not a good effort on your part. Due dilligence...

Really??? And you are an ADVANCED MEMBER....your reply to this "newbies" post is absolutely pomp-a$$, obnoxiously arrogant and down right RUDE!!!!!!!!!!!!!!!!!

"...I mean in the nicest way possible..." why even include that in your statement...you obviously made absolutely NO ATTEMPT what-so-ever to be NICE in any shape form or fashion in your reply AND IF YOU DID make an attempt; you failed miserably!!!!!!

Get off your high horse "ADVANCED MEMBER" soap box you freaking JERK - there is no reason or justification for you or ANYONE to treat this person or as you classified him/her "newbie" by replying in the manner in which you did!!! Who appointed you "good effort/due diligence monitor??? I hope your reply in this instance is the direct result of a really bad day or headache or SOMETHING other than the fact that this is simply your nasty little pathetic personality. I am sooo tired of seeing people get slammed on this site for asking a question - yes there is a lot of information on this site - which sometimes makes it a little difficult to find answers to questions that might come up from time to time. I too have had questions from time to time, but I certainly don't ask them on here - it's NOT that I don't make "...good effort..." its BECAUSE of the overwhelming amount of information that is provided for one and secondly - sometimes; even when post are read - some people don't understand what they mean and need a little help - so if you can't or REFUSE to give a direct answer in a respectful manner....why don't you just MOVE ON to another post vs being a complete jacka$$ such as you have done in this instance??????

Absolutely RIDICULOUS!!!!!

[jte70]

Brisco thanks for the synopsis.

[araiderfan]

Dont be a ******

I dont think he is being an *******, There are several posts on where the money will come from and how Iraq will benefit some are simply opinions, some are opinions with a little fact and some are extremely well thought out and broken down for even the laymen and noobs. MP was simply pointing out that instead of clogging up the boards with another of the same topics, (especially one that can be difficult to break down in a way that is easy to understand) a newbie should spend a little time reading older posts.

My suggestion for the original poster of this topic search the site for "fractional banking" there are a couple posts on it and it explains what is in it for the investor, the broker (or whatever source cashes you out) future investors, the federal government, Iraq and even the rest of the world....

good luck

I dont think he is being an *******, There are several posts on where the money will come from and how Iraq will benefit some are simply opinions, some are opinions with a little fact and some are extremely well thought out and broken down for even the laymen and noobs. MP was simply pointing out that instead of clogging up the boards with another of the same topics, (especially one that can be difficult to break down in a way that is easy to understand) a newbie should spend a little time reading older posts.

My suggestion for the original poster of this topic search the site for "fractional banking" there are a couple posts on it and it explains what is in it for the investor, the broker (or whatever source cashes you out) future investors, the federal government, Iraq and even the rest of the world....

good luck

PS - the one thing I do get tired of is having people base those that dont have many posts or joined recently (ya I notice this applies to me too), however keep in mind that just because someones user name is new, or their posts are low may not mean anything at all. I have been cruising here almost a year for the great information that I find especially from doc!) but some of us choose to not post "thanks, great info, go RV, or whatever because just like this question wont further the boards, those useless responses are only needed once or twice, not 40 times whenever someone posts something interesting, just to get your posts up.

[jmw]

Fractional reserve banking doesn't work...not in this case anyway....yes it does allow for an increase in our money supply but only through loans...not through an exchange process...Plus the CBI has to cover the change in value and they don't have the ability to alter the money supply of other countries. Iraq is not able to RV or RI based on the current M2 (27 trillion).

[hopefullbk]

Fractional reserve banking doesn't work...not in this case anyway....yes it does allow for an increase in our money supply but only through loans...not through an exchange process...Plus the CBI has to cover the change in value and they don't have the ability to alter the money supply of other countries. Iraq is not able to RV or RI based on the current M2 (27 trillion).

I thin I understand what you're trying to say but your answer is somewhat vague. Please expand. I would like to hear your thoughts. Thanks.

[padunsky]

the way i see it......newbie or not......we are all in the same boat.....out on the same limb.....all wanting the same thing! everyone was a newbie at some point in time.....doesn`t matter if it was 10 years ago, 10 months ago, 10 weeks ago, 10 days ago, or 10 minutes ago! as a comparison......how can you expect a 20 year old to know as much as a 60 year old? so please please please everyone remember......the only stupid question is the one that remains unasked!

i give the newbies credit for even asking or voicing an opinion on here.......who wants to be put down and critized the way some of you do.....ease up everyone and lets enjoy the ride TOGETHER. afterall the one you`ve been puttiong down is going to be the one you`re partying with when this thing does come down!

and yes, i`m a newbie but have been afraid to come on for fear of the lashing i will get......so i turn to my friend who introduced me to this......she has been in this since day one and is a wealth of knowledge!!!!!

[chuckray]

the way i see it......newbie or not......we are all in the same boat.....out on the same limb.....all wanting the same thing! everyone was a newbie at some point in time.....doesn`t matter if it was 10 years ago, 10 months ago, 10 weeks ago, 10 days ago, or 10 minutes ago! as a comparison......how can you expect a 20 year old to know as much as a 60 year old? so please please please everyone remember......the only stupid question is the one that remains unasked!

i give the newbies credit for even asking or voicing an opinion on here.......who wants to be put down and critized the way some of you do.....ease up everyone and lets enjoy the ride TOGETHER. afterall the one you`ve been puttiong down is going to be the one you`re partying with when this thing does come down!

and yes, i`m a newbie but have been afraid to come on for fear of the lashing i will get......so i turn to my friend who introduced me to this......she has been in this since day one and is a wealth of knowledge!!!!!

it is difficult to find information by digging through thousands of old topics--just ask a question and ignore the jerks--most people will be more than happy to help

[Frank61]

Ok newbie...I mean in the nicest way possible. This question has been posed many, many times. Spend time and read through the forum and look it up for yourself. Too many people, myself NOT included, have spent valuable time and efforts to research questions such as these and have posted reasonable answers and thorough explanations. Just to have someone come on here, ask the same question over and over, and expect an answer, is not a good effort on your part. Due dilligence...

AMEN........

[okane]

the way i see it......newbie or not......we are all in the same boat.....out on the same limb.....all wanting the same thing! everyone was a newbie at some point in time.....doesn`t matter if it was 10 years ago, 10 months ago, 10 weeks ago, 10 days ago, or 10 minutes ago! as a comparison......how can you expect a 20 year old to know as much as a 60 year old? so please please please everyone remember......the only stupid question is the one that remains unasked!

i give the newbies credit for even asking or voicing an opinion on here.......who wants to be put down and critized the way some of you do.....ease up everyone and lets enjoy the ride TOGETHER. afterall the one you`ve been puttiong down is going to be the one you`re partying with when this thing does come down!

and yes, i`m a newbie but have been afraid to come on for fear of the lashing i will get......so i turn to my friend who introduced me to this......she has been in this since day one and is a wealth of knowledge!!!!!

Well said, though Wayne and Leah's response was way more fun to read!!!!!! I think ALL questions should be directed to my teenagers, they know everything ..... just ask 'em, they know it all

[araiderfan]

Fractional reserve banking doesn't work...not in this case anyway....yes it does allow for an increase in our money supply but only through loans...not through an exchange process...Plus the CBI has to cover the change in value and they don't have the ability to alter the money supply of other countries. Iraq is not able to RV or RI based on the current M2 (27 trillion).

O.K. a huge misconception that I would like to clear up JMW is the M2 which you have pointed out. For arguments sake lets use your stated M2 of 27 trillion. Keep in mind not everyone who owns part of that 27 trillion are speculators like us. I think that the number I read was somewhere around 30% meaning you are now down to 9 trillion in speculation (the remainder of which either is not in circulation or is being used as currency to pay Iraqi debt).

so right away upon RV you the maximum that will be turned in is only a third or so of the entire M2 of the country.

Next the best way to explain the remainder (someone previously posted) is to think of this as purchasing stock. We purchased the stock prior to the company (Iraq) going public (the RV). Once this occurs we sell our stock (Dinar) and other speculators will then purchase what we have dumped on the market with the hope that the base opening price will increase again. So even once our 9 trillion or so is sold back there will be many others who are going to be purchasing it instantly. So to answer how they can pay for the 27 trillion in outstanding printed money, they wont have to. There will be a constant revolving door of buying and selling of the dinars.

As a side note fractional banking is the essence of what is taking place here. An increase in the money supply available, an increase in federal taxable receivables and an increase banks lending power. Read the posts here on fractional banking, the cross reference it with a little googled research on the same subject (its a hard, dry topic to read about however crossing your reads here with the wikki article on it will in fact show you how it applies)

Hope that helps!

[jmw]

I thin I understand what you're trying to say but your answer is somewhat vague. Please expand. I would like to hear your thoughts. Thanks.

Okay…I’ll try

O.K. a huge misconception that I would like to clear up JMW is the M2 which you have pointed out. For arguments sake lets use your stated M2 of 27 trillion. Keep in mind not everyone who owns part of that 27 trillion are speculators like us. I think that the number I read was somewhere around 30% meaning you are now down to 9 trillion in speculation (the remainder of which either is not in circulation or is being used as currency to pay Iraqi debt).

so right away upon RV you the maximum that will be turned in is only a third or so of the entire M2 of the country.

Next the best way to explain the remainder (someone previously posted) is to think of this as purchasing stock. We purchased the stock prior to the company (Iraq) going public (the RV). Once this occurs we sell our stock (Dinar) and other speculators will then purchase what we have dumped on the market with the hope that the base opening price will increase again. So even once our 9 trillion or so is sold back there will be many others who are going to be purchasing it instantly. So to answer how they can pay for the 27 trillion in outstanding printed money, they wont have to. There will be a constant revolving door of buying and selling of the dinars.

As a side note fractional banking is the essence of what is taking place here. An increase in the money supply available, an increase in federal taxable receivables and an increase banks lending power. Read the posts here on fractional banking, the cross reference it with a little googled research on the same subject (its a hard, dry topic to read about however crossing your reads here with the wikki article on it will in fact show you how it applies)

Hope that helps!

I appreciate your thoughts and trying to help me….Let’s look at the 9 Trillion you referenced…in your opinion who has to cover this…let’s say they RV at 1 to 1, so what was 9 billion US dollars worth is now worth 9 trillion US dollars. Now for arguments sake let’s say 1/3 of this “speculative” money is held in the US. With the RV there is now new wealth of $2,998,000,000,000….Now the current US M2 (money supply) is roughly 8.8 trillion dollars….our money supply would have a 30% increase with a low RV…and the Central Bank of Iraq would have to cover this amount.

…you used a stock analogy which is incorrect…money is debt..stocks purchase a piece of something. They are two very different items….in order to sell a stock you have to have a buyer and to buy a stock you have to have a seller…it is the demand or lack thereof that determines the value of stocks. Since money is debt whoever holds it can exchange it for something of equal value…but speculators buying it in hopes of it going up in value has nothing to do with it….also based on your theory in order to make money off of our dinar we would need other speculators to purchase $3 trillion dollars worth which is impossible…and that is just in the US alone. This would need to be repeated in every country that has investors.

Now fractional reserve banking…here is a good read on how it works….as you mentioned and others have as well…fractional reserve banking is used to expand our money supply…but the only way to do this is by making loans. When someone makes a deposit in a bank…let’s say $100,000 then the bank can use up to 90% of that to make new loans. This is then repeated several times which increases the money supply. The original $100,000 has the ability to increase the money supply by almost $1 million dollars. The problem is that when we turn in our dinar we will be getting money in our accounts we will not be taking out loans. Someone has to cover this wealth and that someone is the CBI…there is no other way to do it.

http://www.rayservers.com/images/ModernMoneyMechanics.pdf

Here is another good but difficult read on a study of currency appreciation…in both of the articles posted it discusses that the quantity of money is critical in determining its value.

http://www.economics...pers/2009_5.pdf

The CBI is not part of the Iraqi government … They can’t just make up a value for the currency it is based on the amount in circulation and their GDP. A lot of people argue that their oil can cover the amount of money needed for a RV but they can’t…I’ll explain this more if I need to.

Hope that helps

Edited January 3, 2011 by jmw

[jmw]

Yep, had the same question for many months! It takes a lot of reading to understand it, unless you just take someone elses word that it will be done. Below is an article that explains it extremely well, (in layman's terms). Take care.

Thought you would enjoy understanding this:

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! 

Was this yours BamBam or did you bring it from somewhere else...the reason I ask is I have some questions for you if you wrote it...the way it is described doesn't work on a lot of different levels and i would like to better understand how you were getting to the process....thanks

[pleasantvalleySunday]

Should we have 'FAQ' thread?

this is a tough situation for an FAQ in my opinion ... so little is actual fact lol

Adam's book is the best primer I've ever seen .... you can be brought up to date ... learn the lingo and come to the table as an informed member.. .... NEWBIES ....and please do not reply with "chill" here .... take the time ... we all had to

blessings,

pvS