Re-Posted for our newest readers……From Recaps Archives……
If anyone is wondering how We will be getting so much money for exchanging Iraqi Dinar when we paid so little for it-Here is a GREAT explanation. Enjoy. From Recaps Archives a few years ago.
REMEMBER: The figures and procedures may have changed over the years but the basic concept will help you understand what is happening when we exchange
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!
For the people who do not understand how this can happen $$$$ posted by FREEWAY BILL
Let me just say that I am not a guru. I do not claim to know when the RV will happen or what rate it will come in at. Does not matter. So many people have used the abundance of money involved makes it impossible for it to happen.
Let me give you some things to ponder:
There were originally 30 trillion dinar printed. Well over 80% of that amount has been accounted for and is in the hands of Iraq. That leaves 6 trillion dinar out of which US, China, Russia, Brazil and other countries hold a substantial amount of these in their countries. So let us say that there is 1 – 1.5 trillion is out in the hands of regular people, trusts, etc. How could Iraq possibly cash in this much at one time?
They can’t! Or Can They?
China and the US have signed agreements that they each will take all of their dinar and all that they cash in from their citizens in OIL @ an agreed upon rate of $32.00 per barrel for however long it takes. Now taking the total of 6 trillion that is supposedly out there which would be multiplied by the rate that we will set at $ 4 just to go from a number of some kind.
So now we have $ 24,000,000,000,000! Seems like an amount that just will not be possible? Read on.
24 trillion dollars will transform to 750 BILLION barrels of oil @ $32.00. That is what it will cost Iraq to payoff. That is still a lot of money, right? Well, considering that one barrel of oil cost Iraq less than $ 2.00 per barrel to process which means that Iraq can pay off ALL of the Dinar still out for $1,500,000,000 while coming out of sanctions, becoming a powerful country and a part of the UN and WTO and go forward.
Being that this RV would basically make it so the US will be able to pay off most or all of their national debt along with the other countries involved would be doing the same making the World Economy would get a tremendous shot in the arm and everyone would be on a better playing field meaning World trade would be enhanced and the US and China emerge as the strongest and Iraq comes out as either the richest or the 2nd richest country in the world.
So, my friends, the RV can happen and actually if you take Iraq’s assets, it could actually justify RVing at upwards of $ 8 – $ 12 and this calculation would work and still leave Iraq with a smidgen of debt compared to the assets they have.
So rest assured that there will BE NO LOP because it is not necessary and it would deflate this entire plan and not help anyone and Iraq would not emerge as a stable government or friend to anyone.
So, poke holes in this if you wish. I would be interested to see what anyone can come up with that will change these numbers. I am not a genius, just an investor that has to reason out everything I invest in to see where the return can come from and how much it can actually reasonably be…
I didn’t come up with this plan, but whoever did was a genius. This is historic. People have said to me, “How can you invest so little and gain so much?”
Well, not in our lifetime has any country been completely destroyed, government and all with the agenda to build it back up. This plan was IMO in place before the first boot hit the ground in Iraq. It all makes sense.
Please feel free to credibly pick this apart if you can. I have studied this to no end and I keep coming up with the same numbers.
GOD BLESS THE USA : FREEWAY BILL,