Category Archives: News

TNT Call Monday

PLEASE STAND BY FOR TNT CALL. NOTE: ONLY INTEL-RELATED INFO AND Q&A WILL BE TRANSCRIBED.
TNT CALL STARTING NOW….
T = TONY | DC = DC GUY | C = CALLER

TONY – Good afternoon, TNT. It’s Monday, August 4, 2014. I want to start by thanking you for the flowers, cards and condolences over the weekend. Many TNT people showed up from different states for the funeral service for my mother and I thank the TNT community. We’re going to get through it as a family and as a TNT family.

NOTE: Tony is adjusting his volume. Stand-by for techinical difficulties from Mission Control.

T – Things happened over the weekend and there were changes to our program, both pros and cons. Some things were unexpected over the weekend, but right now, at this very moment, things are great and on track. We will say what we can.

DC – East to west: In Iraq they have a PM selected and they were waiting for public announcements. Celebrations were planned but put on hold. The CBI, BIS, etc. has accepted everything. As they were getting close over the weekend the roller coaster started back up pretty strong, but now we’re back where pretty much everybody is working together. We are in a very good spot and expect things to move quickly.

DC – We pray this is the final push we need to get it done. T – Let’s talk about Iraq for a minute. It was a confusing weekend and people were hearing different things from different people. Why, right now, are the articles saying what they’re saying and people aren’t seeing the reality and why should they not pay attention to those?

DC – Quite simply, a lot of those articles are recycled. They were put out word for word 2-8 weeks ago. Some of those who understand Arabic get this. It’s a very standard thing and has gone on for ages. It’s partly a security thing and partly like the US has when they lean a certain way to support a particular view. A lot of them have been told not to say things or bad things will happen to them, so they recirculate old news. It’s also to keep speculators like us out of the process. The articles are all over the place. Almost 3 weeks ago they published they had a PM selected and a Cabinet selected. So I think they’re just waiting for the announcement.

T – So the article says they have a new PM and they told them that on TV but we haven’t seen it. Does that make us right or wrong? DC – Most people were expecting the PM and RV at the same time.

T – Friday we couldn’t talk about what happened on Thursday. On Friday morning we had one of our people was told to come back home because they have too much money for him to be over there messing around. If he told him that and put him on a plane Friday morning, then something significant must have happened.

T – This morning I was talking with TNT people and they were telling us what is being said at other sites, i.e., no RV, no PM, no $3.71, etc. I said they just don’t see it because certain things are happening in the back rooms and is not shared with them for political reason. They put out old or misinformation to the public until the exact time to misdirect. They are not digging deep enough to help people. Our goal is not to work for either side. They don’t pay us. We try to assist where we can.

T – We do things in the best interest of the people so that you are being treated fairly. We are viewed as the people’s representatives. Not to keep you in a cloud or anything else. At certain levels, tho, we can’t do things that are dangerous or would cause issues. There are certain people who want us to cause issues so we have to be careful. I don’t want to be another Snowden or Ollie North. I don’t want to be in politics either. We just provide you with the most info without causing rifts. Do we ask “how can we help?” Yes, we do. It’s still all about you and the people we support.

DC – Tony and I don’t work for anybody. We do this for free. We have been put in a position where we have taken responsibilty to help you. There are only about 250K who pay attention to this. Then they tell others and it grows to 4-6M people. We have the ability to get the info from all corners of the earth and our intent is to be a representative of the people. So we get calls and they’ll say, “hey DC Guy, I really need you to not say this right now.” We want everyone to be treated fairly and to be paid as much as possible. In so doing, we have gained respect from the politicians, etc

DC – For instance, there are several key meetings going on right now we were asked not to mention. The PTB feel we may be a necessary evil and they’ll call us and ask us not to talk about stuff.

T – So, back to Iraq. People keep hearing about Maliki and that he’s part of the problem. We know he’s still trying and today he was asked to leave the building, so to speak. You just don’t ask a person to leave unless it’s time and your time is over. We are still in a good place. We really went on a rollercoaster ride over the weekend!

DC – In the USA, everybody is dusting things off after that Rollercoaster ride over the weekend and are seeing how to get this done and are making positive progress. T – There were eye-opening events and new agendas over the weekend? People clearly letting it be known where they stand.

DC – People are dusting things off and moving forward, realizing the worldwide implications of this. They are prepared. T – We are still doing our part when it comes time, i.e., go to the bank, cash-out, make a difference in the world. DC – I would encourage any caller today to also mention how you’re going to make a difference. T – As long as it’s from the heart, there are some people listening to these calls and it changed the way they looked at us dinarians when they hear these plans. They see the sincerity of your hearts.

DC – Things look really good again and we can expect to see positive results. We can do a tweet or call tomorrow or tonight after we get info from the meetings today to let you guys know where we stand. T – We don’t know everything – we MIGHT have 60% of this figured out. LOL! I listen to other people as well. We don’t know every bit of everything.

T – For example, for years I didn’t believe in the Prosperity Packages. I didn’t think it was real, but after I got it from a high-level gov’t source I know it’s real. I know people who didn’t pay a dime and will receive more than they could ever imagine. You cannot buy your way into a lawsuit. If it had been presented the right way 2 years ago I might have been part of it, too. A very good friend of mine called me and they paid off her mortgage as part of the prosperity program. I know 4 people like that. It’s just something they are doing for the people. Who would have believed it?

T – I didn’t believe in the groups until I actually saw the contracts, who was getting what, how it was being divided up. I got verification from the UST from people I knew. Then I found out about crooks scamming people. I got really upset about the groups because one was trying to divide up a trillion dollars for putting their group together. It wasn’t the event but those associated with it that was bad. We put the truth out there, good, bad or ugly. We can do that.

T – We didn’t come here for the contract rate. If we don’t get that we don’t care. But we want the majority of folks to get what they want. We can’t quit now.

“LIVE” CALL-IN STARTING NOW. ONLY Q&A RELATED TO INTEL AND RV UPDATES WILL BE TRANSCRIBED.

NOTE: HOW CALLERS WILL “MAKE A DIFFERENCE” POST-RV WILL NOT BE TRANSCRIBED. WE ALL HAVE AWESOME PLANS!

C – I understand we have to be careful we are not the problem. I don’t get that other gurus can say things you can’t. It’s a Roller Coaster – Friday looks good but on Monday you say something happened. You say that some people let others know where they stand – was that in our favor? DC – We have more contacts than others have. We’re not going to burn the folks who are talking to us since they are trying to solve the situation. We are trying to placate the situation to get what we all want: to get paid.

T – We have the largest group of listeners. They have all of that down. We have 11 different countries plugged into our calls that are not plugged into other calls. We have gov’t people plugged into our calls and they take info they hear here to the table. We know power brokers are listening. We know how far our info-net stretches so we have to be careful because we don’t want to affect a global event. That’s not why we’re here. And that’s why they can say things we can’t.

C – With Iraq being a democracy now, has Iraq actually met in a public forum to take a vote? DC – They took a straw poll with an overwhelming majority for who won. Meanwhile, they have been on a Parliamentary schedule and have been asked to hold off due to some worldwide situations. The Sunnis were the most scared because they were the least represented in the past deal. On Thursday they voted on the whole package – PM and Ministers – and they are waiting to announce it in the Gazette and other areas.

C – Is there an specific important event that will be meeting at a public session tomorrow? DC – Perhaps the budget, then they’ll make announcements again and again.

C – I came across some old pre-2004 dinar. Are they legal? DC – I don’t believe they are. T – Don’t throw them away!

C – How many windows have been bypassed? DC said he’d let us know when we did. T – We didn’t expect to be here this morning. DC – We bypassed all the windows on Friday. There were 4 times on Friday, 2 on Saturday, and 2 or 3 on Sunday that were all bypassed. There are other windows today. There are meetings today where they are going over the windows.

C – So we look for windows on M/W/F? DC – No, they were ready to go and and the schedule was sent to the banks (int’l and domestic), the Admin, IMF, BIS, Bank of England, CBI, Iraqi banks, saying they were gunning for a window of time. We don’t know what will happen until the meeting today is over.

C – I heard there will be a new rate for the ZIM. T – They don’t want us talking about the Zim anymore because of what happened to the Rupiah. The rate changed so it’s too expensive for you to get. There were other currencies including that one that are now in the first basket so we can’t take advantage of later. There are 6M of you but they know you are not gamblers, so they are only going to give those who are strong and aren’t fearful of the opportunity.

C – Is this the last day for the announcement? DC – There is a timeline in which they have to announce it. The question is how to interpret the 5th – tonight, tomorrow, midnight, etc. If they want to delay they will because they don’t care for time. DC – Already today they have asked for a 1-week extension.

C – Can you explain the Prosperity Packages? NOTE: THIS TOPIC HAS BEEN EXPLAINED NUMEROUS TIMES AND WILL NOT BE TRANSCRIBED AGAIN HERE.

C – It seems like these windows are thrown out to placate us and have no meaning. T – That’s what was talked about this morning, i.e., not going to happen, no PM, no Qi Cards loaded, etc. We give you info but not info they want us to give you. We are trying to tell you things are happening. It’s not just you but others out there they don’t want to know certain windows. We were told last week not to even give clues.

C – Does the budget being presented next Tuesday require an RV prior to it being released? DC – The  RV is in the budget and is on for tomorrow.

C – I read the RV has been taken away from the IMF and given to the BRICS. T – They asked not to antagonize anybody today. DC – In 2010, the IMF passed the deal that changed the fact that the USA had veto power. The USA first agreed then refused to ratify it. So BRICS formed their own bank to get some things done, issues, items in their countries and other countries they didn’t feel the IMF was treating fairly. No veto power – put the money up and you can play. So they put up $50M. Most of those countries are already part of the IMF, which is not particularly happy they did this. But they are operating independently of the IMF and provides motivation to everyone to play by global rules.

T – There are 5 separate groups like this planning to operate like this in the future. They will be using trade among each other. *There are more issues and things we just DON’T WANT to talk about right now…. DC – The bottom line is that it puts more pressure on everybody to get it done.

C – I have a banking question: We’re supposed to open 2 NIB accounts for each currency, then move them over to new accounts for security (one for taxes and the other for the remainder). If we’re “parking” the funds what am I doing at the 2nd appointment? I’m confused. What should I ask my financial advisor about parking my money? T – I’m not putting mine in NIB accounts because I want to earn interest. That is not one of my concerns. DC – I believe in earning interest. A lot of folks were worried about a Cyprus event. I’m not worried about that at all. But, everybody I’ve talked to who made money quickly, says to calm down, get out of debt, relax and get yourself straight. It will be a shock to the system in a very positive way. Take 6 months to calm down. If your wealth manager pushes agains this, find another WM.

C – You mentioned that people do not want us to have this. We know the USA is the hold-up. What is the reason they don’t want us to have this? T – This is a touchy subject. The people who want us to have it are fighting a good fight. It has to happen sometime because you can’t keep a country down – they are a democracy now. I can’t tell you what you want to know because that’s one of the things they’re concerned about. This is not the time nor place for us to do that. Everything we heard this morning is good. Let’s let this play out today and tomorrow.

RECAP: DC – Thanks for sharing what you’re going to do. It’s always nice to hear from the general folks because the PTB are listening. This RV is going to help others. This will inspire others to do good things as well. Life looks pretty dang good. Everything is back on track and Iraq has made major strides. It is out belief we are on a pretty tight timeline and we should remain optimistic about what we are doing. T – Again, thanks for the condolences and thoughts. I want to thank everyone who traveled from other states and attended the service. It was a ride this weekend! We don’t do this on purpose. We live it everyday when you get it M/W/F. We don’t take you on our rollercoaster. If they did more would give up. It’s not on purpose. It is what it is. Enjoy the rest of your day. END OF CALL.

United States: Process Is Its Own Reward: The IRS Modifies FATCA Effective Dates & Interim Compliance Standards

Keywords: IRS, FATCA, effective dates, compliance standards

On May 2, 2014, there were exactly 60 days until withholding and due diligence rules under the Foreign Account Tax Compliance Act (“FATCA”) became effective. Notwithstanding the fact that the US Internal Revenue Service (the “IRS”) has promulgated well over 1,000 pages of proposed, temporary and final rules, substantial uncertainty continues to exist over how the rules can be competently administered. The IRS, notwithstanding months of reiterating its commitment to the July 1, 2014 FATCA effective date, has just released Notice 2014-33 to provide some relief to affected financial institutions.

Notice 2014-33 provides for an 18-month enforcement transition period for withholding agents and foreign financial institutions (“FFIs”) that undertake “good faith” efforts to comply with FATCA. Specifically, Notice 2014-33 provides that 2014 and 2015 will be regarded as a transition period for purposes of IRS enforcement and administration of FATCA. In addition, the Notice provides other welcome changes that should ease the administrative burden of implementing new FATCA compliant on-boarding procedures, including the IRS’s intention to amend both the standards of knowledge for withholding agents for accounts documented before July 1, 2014 and the definition of a reasonable explanation of foreign status.

IRS Light Touch Enforcement of FATCA Rules

In Notice 2014-33, the IRS announced that it will treat 2014 and 2015 as a transition period for purposes of enforcement and administration of FATCA. While no details are offered by the Notice, presumably this means that no penalties will be asserted for inadvertent failures to withhold, for failures to include FFIs in expanded affiliate group (“EAG”) filings1 or for misclassifications of FFIs. Transition-period treatment is granted only to entities that have put forth “good faith” efforts to comply with the requirements of FATCA. The Notice provides a couple of examples of “good faith” efforts.

First, the IRS will take into account whether a withholding agent has made “reasonable efforts” during the transition period to modify its account opening practices and procedures to document the FATCA status of payees, to apply the standards of knowledge rules provided in FATCA for classifying payees and account holders, and, in the absence of reliable documentation, to apply the required presumption rules. It is worth noting that the general rule uses the phrase “good faith” while this example uses a “reasonableness” standard. In either case, however, the standard leaves substantial discretion with the IRS to determine whether a taxpayer has provided the required level of effort.

In the second example provided by Notice 2014-33, the IRS stated that it will consider an FFI’s good faith efforts to identify and facilitate the registration of each member of its EAG. It is unclear how an entity would demonstrate it has made a good faith effort to identify and register the members of its EAG. It would seem that if one or more entities have been identified as potential EAG members, but have been left out of the EAG filing, the good faith standard should be met if the FFI has maintained internal written documentation for its decision. In addition, the process by which the FFI sought to determine its EAG should be documented.

Extension of Obligations Treated as Preexisting Obligations

An extremely helpful change provided by Notice 2014-33 is the expansion of obligations that constitute “preexisting obligations.” Under the FATCA regulations, withholding agents are generally required to implement new account opening procedures for accounts opened, or transactions entered into, on or after July 1, 2014.2 Accounts opened prior to such time are referred to as preexisting obligations.3

Preexisting obligations generally must be due diligenced by June 30, 2016.4 The due diligence required on accounts opened by entities after June 30, 2014 has been in limbo because the instructions for the Form W-8BEN-E (the new IRS Form for entities to certify their FATCA status) still have not been released. In response to this and other challenges, Notice 2014-33 provides that “preexisting obligations” will be expanded to include obligations issued, opened or executed before 2015 by entities (as opposed to individuals), providing affected financial institutions with an additional 6-months to implement new entity account opening procedures.5 This change to “preexisting obligations” will not be available for obligations held by individuals. Thus, the status of an obligation opened after June 30, 2014 as a preexisting obligation will depend, in part, upon the characterization of the payee. The IRS stated that it created this disparity in favor of entity obligations because the procedures for documenting individual accounts are less complex than those for entities.

This change will also be available to FFIs that are eligible to claim the benefits of an Intergovernmental Agreement (an “IGA”). Treasury intends to update the due diligence procedures described in Annex I of the Model 1 and Model 2 IGAs to incorporate the change to entity preexisting obligations. IGAs that have previously been signed, or jurisdictions that have reached an agreement in substance, will be permitted to adopt the revised due diligence procedures pursuant to the most-favored nation clause contained within its IGA.

Outside of this change to preexisting obligations, the Notice does not otherwise affect the timelines for due diligence, reporting or withholding. Specifically, the Notice does not impact the timing to diligence obligations held by prima facie FFIs opened between July 1, 2014 and December 31, 2014. Furthermore, if a payee identifies itself as a nonparticipating FFI (or a limited branch), withholding is required from and after such time, regardless of whether the obligation would otherwise be a preexisting obligation.

Limited Branches

A limited FFI, or a limited branch, is an FFI that is prohibited from complying with FATCA because of local law rules.6 Notice 2014-33 provides certain relief to limited FFIs and limited branches. Pursuant to the Notice, the Treasury Department and the IRS intend to amend the FATCA regulations (i) to permit a limited FFI or limited branch to open US accounts for persons resident in the jurisdiction where the limited branch or limited FFI is located, and accounts for nonparticipating FFIs that are resident in that jurisdiction, provided that the limited FFI or limited branch does not solicit US accounts from persons not resident in, or accounts held by nonparticipating FFIs that are not established in, the jurisdiction where the FFI (or branch) is located and the FFI (or branch) is not used by another FFI in its EAG to circumvent the obligations of such other FFI and (ii) to provide that, if an FFI is prohibited under local law from registering as a limited FFI, the prohibition will not prevent the members of its EAG from being treated as participating FFIs if the FFI is identified as a limited FFI in its FATCA registration by another member of the EAG (the Lead FI).

Indicia of US Status

As previously mentioned, the Notice provides that the IRS further intends to amend both the standards of knowledge for withholding agents for accounts documented before July 1, 2014 and the definition of a reasonable explanation of foreign status. Coordination regulations treat a payer of amounts subject to FATCA withholding as having a “reason to know” that a payee may be a specified US person (subject to FATCA withholding) if the withholding agent has a current telephone number for the account holder in the United States and no telephone number for the account holder outside the United States, or has a US place of birth for the account holder. The coordination regulations also provided a transitional rule to allow a withholding agent that had documented the foreign status of a direct account holder prior to July 1, 2014, to continue to rely on such documentation without regard to whether the withholding agent has a US telephone number or US place of birth for the account holder (absent a change in circumstances).

Pursuant to the Notice, the Treasury Department and the IRS intend to amend these rules to provide that an account holder will be considered documented prior to July 1, 2014, without regard to whether the withholding agent obtains renewal documentation for the account holder on or after July 1, 2014. Accordingly, a withholding agent that has documented an account holder prior to July 1, 2014, will not be initially required to apply the new reason to know standards relating to a US telephone number or US place of birth.

Conclusion

Notice 2014-33 provides welcome relief on a number of pressing FATCA issues. The IRS will not hold taxpayers liable for pratfalls if they have made real efforts to comply with FATCA. Taxpayers and FFIs that desire to take advantage of the IRS largesse will be required to demonstrate that they have been taking FATCA seriously and that compliance failures result from inexperience and not from neglect.

Learn more about our Tax Transactions & Consulting and Tax Controversy practices.

Footnotes

1 See Treas. Reg. § 1.1471-4(e).
2 A participating FFI is required to implement new account opening procedures on the later of July 1, 2014, or the effective date of its FFI agreement, and a registered deemed-compliant FFI is required to implement new account opening procedures on the later of July 1, 2014, or the date on which the FFI registers as a deemed-compliant FFI and receives a GIIN.
3 Treas. Reg. § 1.1471-1(b)(104).
4 See Treas. Reg. §§ 1.1471-2(a)(4)(ii), 1.1472-1(b)(2), and 1.1471-4(c)(3).
5 This expanded treatment of “preexisting obligations” to those obligations held by an entity that are issued, opened or executed on or after July 1, 2014, and before January 1, 2015, as a preexisting obligation for purposes of the due diligence and withholding requirements does not apply to the documentation exception under Treas. Reg. § 1.1471-4(c)(3)(iii).
6 Treas. Reg. § 1.1471-1(b)(76) & (77).

Originally published May 5, 2014

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

The Dongs Revaluation is Imminent

By JC Collins  Philosophy Of Metrics.com

vietnam_dong

The currency of Vietnam is called the dong and has been pegged to the US dollar for a very long time. The dong has been devalued consistently over the last 4 decades to facilitate the exportation of dollar inflation. Within the country the dollar is predominately used and loans by local financial institutions are predominately denominated in dollars. But all of this is about to change.

The Vietnam Business Forum has been working on methods of stabilizing the Vietnamese dong and its Macroeconomic Policy Working Group (MAG) has just released its recommendations and they are dramatic to say the least.

As reported by Vietnamese Dong News, the following quotes are taken from the substance of the MAG report.

“Yuan, the currency of China, the second largest economy in the world, and Vietnam’s biggest trade partner, has never gotten a foothold on the foreign exchange market in Vietnam.”

The implication from the report is why would Vietnam continue to use and peg the dong to the US dollar, who it does only marginal trade with, when in reality China is Vietnam’s largest trading partner.

“Experts: heavy dependence on US dollar not good for Vietnam.”

Extremely self-explanatory.

“The report released by MAG last week pointed out that Vietnam’s dollar-pegged foreign exchange policy has had a negative impact on its trade balance.”

This is obvious and timely. We covered the reasons for this in the post “Why the Vietnamese Dong will Reset”.

“In terms of Vietnam’s sovereign debts, its biggest creditors in 2012 included Japan (34.5 percent of Vietnam’s total foreign debts), the World Bank (28.8 percent), and ADB (15.5 percent). As such, Vietnam’s foreign debts have been valuated not only in the US dollar, but also in other hard foreign currencies, including JPY, SDR and EUR.”

Of course the SDR is the mechanism by which most sovereign debts will be restructured. Debt will be consolidated and packaged as SDR bonds.

“MAG’s experts commented that it is unreasonable for Vietnam to follow a dollar-pegged foreign exchange policy, while its trade and foreign debts depend on other foreign currencies.”

With China being Vietnam’s largest trading partner we can assume which currency is being referred to here.

“Therefore, Vietnam has been recommended to apply a new foreign exchange policy which allows it to valuate the Vietnam dong in correlation with more than one foreign currency. This will be a reasonable choice which helps both stabilize the exchange rates and ensure the flexibility of the nation’s policies.”

The operative phrase in the quote is “a new foreign exchange policy”. As stated, it is likely that the dong will be pegged to a basket of currencies. Which baskets now exist outside of the Euro and the SDR? None. But with the announcement of the BRICS Currency Market Stabilization Fund this week and its $100 Billion injection from the BRICS countries, it is possible and probable that the BRICS currencies will form a stabilization basket from which other currencies, like the ones belonging to the Next Eleven countries, of which Vietnam is a member, can peg too and stabilize.

“Now is the right time for Vietnam to follow the new policy, as it now has all the necessary conditions to do this. Vietnam has wide economic openness, but it not depend on any one trade partner.”

The right time is strongly implying imminence. The BRICS Development Bank and the currency market stabilization fund are vital components of the policy being described by MAG.

“Therefore, if it were to apply the policy, Vietnam would be safe from the shocks in other foreign currency markets, if and when they occur.”

This statement is suggesting sudden and dramatic adjustments to the foreign currency markets, which is likely focused on the US dollar and the coming changes to its status as the world’s primary reserve currency.

At this point I would recommend readers to revisit the following posts:

Why the Vietnamese Dong will Reset

Vietnam Seeks Dong Stability as Dollar Nears Collapse

The American Dollar is Dumping Vietnam

A Global Currency Reset

The New Exchange Rate System

And the whole SDR’s and the New Bretton Woods series, especially Part Three, sub-titled The Real Global Currency Reset.

It is almost surreal that what we have been describing from the beginning is now taking place. The world is on the verge of huge and dramatic changes.

The BRICS currency basket will eventually be integrated into the larger macro SDR basket, most likely at the end of the year when the 2010 Code of Reforms are finally passed and the Executive Board of the International Monetary Fund is restructured. This fits perfectly with what we have described as the local currencies of countries consolidate into regional currency groups which will then make up the SDR supra-sovereign basket. See the post “The Arcane SDR Supra-Macro Asset”.

The US dollar continues to be isolated around the world and the critical stage of actualization for major adjustments to the currency markets has arrived.

And for those who continue to propose that the BRICS Development Bank will compete directly with the World Bank and IMF, you will be severely disappointed when these organizations begin to announce macro financial agreements. I’ve already discussed how the World Bank has expressed its full support for the BRICS Development Bank in the post The Emerging Multilateral.

The World Bank is also openly supporting Vietnam’s policy group and mandates, as described here. Be sure to read the full article as the World Bank describes how China’s oil rig being placed in Vietnam’s Economic Zone has had no negative effects.

Additionally, the World Bank’s President will be visiting Vietnam on July 16th and 17th to strengthen the partnership. These are the same dates as the BRICS summit from which the official announcements of the New Development Bank and Currency Stabilization Fund will be made.

And as we’ve explained already, the World Bank has offered its full support for the BRICS Bank. This is not a coincidence and is making it increasingly challenging for those who attempt to convince us that their are two opposing sides to the economic reset taking place.

Its obvious that the Vietnamese dong is about to be revalued but how that revaluation will look on the other side is not clearly determined. Those who have dreams of getting rich from the dong reset may in fact see some sort of upside but it is just as likely that capital flow restrictions could very well hamper some of this.

Much is known, as can be attested from the above information, but there still remains large components of this financial reset which have been well hidden. But let us not forget those around the world who have suffered tremendously under the past imbalances, none more so than the Vietnamese people themselves, who have shown strength and perseverance through decades of war and economic sanctions. The fact that they have modernized faster than any other country in the world is a testament to the power of the human heart and mind. – JC

RBC Sells First Bond by Canadian Bank to Satisfy Basel III Rules

Royal Bank of Canada (RY) said it sold
C$1 billion ($930 million) of junior-ranking bonds that comply
with Basel III regulatory capital requirements.

RBC’s bond issue marks the first by a Canadian bank that is
considered non-viability contingent capital by regulators,
according to Patrick MacDonald, co-head of debt capital markets
at the bank’s securities unit in Toronto. The notes are designed
to convert to equity if a bank gets into financial distress,
according to Standard & Poor’s.

So-called NVCC debt will be used to replace existing
subordinated securities, which are being phased out to comply
with international banking standards designed to prevent a rerun
of the 2008 financial crisis. Canada’s market for securities
that can be converted into capital in a crisis will eventually
reach C$20 billion, Moody’s Investors Service said in January.

Moody’s rated the notes Baa1, four levels lower than the
bank’s senior rating of Aa3. Standard & Poor’s rates the debt A-, two levels below the bank’s rating of A+.

A trigger event will convert the bonds into equity without
the holder’s consent, S&P said. For example, it defined such as
events as Canada’s bank regulator publicly announcing it has
advised a bank that the lender has ceased to be viable and
conversion of the notes would restore its viability; or the
bank’s viability will be restored or maintained; or the federal
or provincial government announces that the bank has accepted a
capital injection, or equivalent support, from a government or
agency to keep the bank afloat.

 

Central Banks Watch: Yellen, Draghi, Carney and Kuroda to Speak and BoC to Set Rates

Global markets are likely to receive fresh verbal policy signals in the week to 18 July with the chiefs of the European Central Bank (ECB), the Federal Reserve, Bank of Japan (BoJ), and the Bank of England (BoE) scheduled to speak at separate events.

The previous week was marked by easing in Iraq-related tensions, but fears of a banking crisis in Eurozone following a funding issue at Portugal’s largest bank Banco Espirito Santo had weakened shares and strengthened safe haven assets.

The latest assurances by Espirito Santo have ebbed fears of an EU-wide banking crisis, helping the dollar stabilise against the yen. Crude oil prices have fallen and gold has stopped rallying by the end of the last week.

Global markets are now waiting for fresh interest rate cues from major central banks making the upcoming week a significant one.

The BoJ and the Reserve Bank of Australia (RBA) will provide the details of their latest rate setting meetings, the former in the form of a monetary policy statement and the latter as the minutes of the meeting.

ECB President Mario Draghi will speak on Monday 14 July at 17:00 GMT, and the next day, BoE’s Mark Carney at 9:00 GMT, and Fed’s Janet Yellen at 14:00 GMT.

RBA’s minutes and BoJ’s statement are also due on Tuesday itself, and the BoJ chief Kuroda will address the press after the statement release.

From the G10 world, the Bank of Canada is the only central bank scheduled to convene for policy review this week. On 16 July, the BoC is expected to leave the main lending rate at 1%.

Rate decisions by South Africa, Brazil and Chile are also due in the week. South African Reserve Bank (SARB) has its main lending rate at 5.5%, Central Bank of Chile (BCCH) at 4%, and the Central Bank of Brazil has it at 11% currently.

The US Fed’s Bullard is also scheduled to speak this week, on Thursday at 17:35 GMT.

Zap!

——– Original Message ——–
From: 2goforth@safe-mail.net
To: 2goforth@safe-mail.net
Subject: MID WEEK POOFNESS REPORT
Date: Wed, 9 Jul 2014 17:12:28 -0400

Greetings and Salutation,

HI ALL

THE GRINNING PIGS ARE BACK. MIDWEEK TOO.

PLEASE PREPARE FOR THE RESET(S).

JULY 20, 2014 IS CONFIRMED AS THE DATE WHEN MANY ANNOUNCEMENTS WILL HAPPEN.

IN THE MEANTIME, ALL TRANSACTIONS IN THE USA AND INDEED GLOBALLY, HAVE BEEN BLOCKED OR FROZEN AT THE MOMENT. VERY QUIET OUT THERE.

THIS IS NECESSARY WHILE THE SYSTEM UNDERGOES A CHANGE.

THE RV MAY BE BROUGHT OUT IN THE NEXT HOUR OR DAY(S). UNSURE. DEPENDS HOW QUICK IT CAN BE ALL DONE.

THE ISSUES IN IRAQ WITH THE VEGETABLE IN POWER (THE ONE WITH THE INTELLECTUAL AGILITY OF A SMALL SOAP DISH) ARE PRETTY WELL OVER. HE IS SMOKING A HOOKAH NOW. SOMEWHERE.

PROJECT STARTS ARE GOING TO BEGIN IN NEXT WEEKS FORMALLY FROM OUR SIDE, AS OUR PROJECT TRANSFERS HAVE BEEN RELEASED. SOME OTHER FUNDS HAVE ALSO BEEN RELEASED HERE AND THERE, BUT ONLY AT THE HIGHEST LEVELS.

SO MANY THINGS TO SAY, BUT CAN NOT. NOT YET. SUFFICE TO SAY YOU CAN ALL BEGIN REJOICING….SLOWLY. IT WILL BE SOME DAYS UNTIL THINGS SETTLE OUT AND THE CHANGES MADE PUBLIC, BUT YOU WILL BEGIN TO HEAR MUCH EXCITEMENT FROM THE GURUS WHO WILL PROFESS INSIDE INFORMATION ON THIS AND THAT – AND THE MAJORITY OF IT WILL BE TRUTH I WOULD SAY. DO NOT LOSE SIGHT OF THE MACRO PICTURE, AND THAT IS THAT THE END OF THE SLAVERY IS HERE, AND THE GLOBAL RESET, G.C.R., R.V., P.P.P., M.O.U.S.E., AND ALL ELSE IS HERE. NO MORE (HEADBANG)….OOPS, SORRY, THIS IS NOT SKYPE.

MAY THE PIGS BE WITH YOU.

IN LOVE AND LIGHT IN OUR SERVICE
ZAP

“GOD IS; I AM; WE ARE”
“BE GOOD, BE LEGAL, TELL TRUTH”

Copyright ZAP 2014

 

Portugal’s Largest Bank Misses Bond Payment;

Portugal’s Largest Bank Misses Bond Payment; Bonds Collapse | Zero Hedge
“Brussels, we have a problem.
As we warned 6 weeks ago, Espirito Santo International SA – is in a “serious financial condition” according to a central bank driven external audit by KPMG identified “irregularities in its accounts.”

Sure enough, the ‘ponzi-like’ maneuvers have left the bank unable to pay its bonds as Bloomberg reports bonds plunged to record lows after a parent company delayed payments on short-term notes.
More importantly, given the divisively dependent nature of the domestic sovereign bond market (and hence the health of the EU) and its banking system, it is noteworthy that Portuguese bond risk has surged to 4 month highs with the biggest 2-day spike in a year. As one analyst noted, “The bigger question is whether the government will have to get involved,” leaving the EU taxpayer on the hook once again (for fear of M.A.D. threats) as most critically, it “will have to step in to prevent systemic repercussions?”

 

As Bloomberg reports,

Banco Espirito Santo has been “adequately isolated” by the Bank of Portugal from the financial problems, Parliamentary Affairs Minister Luis Marques Guedes said on July 3. The bank was the only one of the three biggest publicly traded Portuguese lenders that didn’t request state aid after the country received a European Union-led bailout in May 2011.

Banque Privee Espirito Santo SA said yesterday the delay in payments of some debt securities issued by parent company Espirito Santo International affects “only a few clients.” Some investors have been asked to swap the commercial paper for stock and new long-term securities, according to Portuguese newspaper Expresso.

“The news flow in the last few days is confirming investors’ suspicions over how extensive problems are at the top of the group,” said Roger Francis, an analyst at Mizuho International Plc in London. “The market has huge uncertainty with reports of payments being missed and debt for equity swaps circulating widely.”

* * *

Of course the government says its “contained” – now where have we heard that before?
http://www.zerohedge.com/news/2014-07-09/portugals-largest-bank-misses-bond-payment-bonds-collapse