TNT – Monday

Good morning, TNT! Today is Monday, May 11, 2015. We’re getting started, and DC will tell you some things you didn’t want to know, and some things you do want to know. The links should be working now. We are here on a Monday doing this call, once again.
We had 366,000 on our call; we only have 20K in our forum. There have been 100K unique visitors so far this month on the website. We have less than 1,000 people donating to the site, and they are carrying this through for everyone. I’ve been trying to drag this out, but we need to pay the bill so that we are here when we DO make the announcement. We cannot stretch it out any longer…
We did the call on Friday, and waited a little while longer then DC called me and asked if I got a call, that the package is ready and they are ready to go. So you know where we were on Friday evening, that this is ready to go. But here we are, right now. DC knows why it didn’t go and let’s see if he tells you.
DC: I understand there are some special listeners today. Some are convinced that this is all baloney. That is Tony, and he started this about five years ago, and I’m Winston or DC and I’ve been helping out for two years. I undersrand that there are some new listeners who have been briefed by the banks that this is really happening. We start from East to West, out of respect for Iraq.
In Iraq, they exchanged another big group of people. That is different than exchanging in the US, where we take dinars into the bank and get dollars. In Iraq, they bring currency into the banks and that is credited to their accounts. Iraq hasn’t used banks much in the past and they don’t have a lot of currency in the streets, so it’s not as vast an operation as in the US. Iraq paid another tranche of military people in the provinces. It doesn’t mean the entire country has RVed, because it has not. We are still waiting. It’s a complicated, sticky position. Iraq did this last big tranche last week expecting the US would allow it to go through, so they did it, and then the US said, “Wait, we want X, Y, Z.” Banks ramped up across the world, ready to get going with another tranche exchanging in the Iraq. It’s more converting your bank accounts there, and that went through on Saturday morning, which is why we got calls on Friday night saying that it was going down. Another couple went through over the weekend, and they plan to exchange more today. Quite a few have exchanged, but it’s not the whole country. A lot of people at the CBI and the Iraqi government are now up a creek because they expected to have the global announcement and now they are up a creek.
On television they are saying the same they have said for a month, and in the mosques they said it would happen this weekend; they are all saying this is part of the economic reform, and to push it forward. A lot of people are stressed out and angry because they are in this weird position and the US has not acquiesced yet. It should have gone over the weekend but the US has asked for it be delayed until this week. So that is what we are waiting for, again.
Tony: The number they are exchanging at is over a dollar, less than two dollars. This is more than they have seen for years. That calmed everyone down because they haven’t seen that much in years. They are really excited in Iraq. Two weeks ago, they started on the outside and are working their way in to Baghdad. Their cards haven’t changed but they have friends and relatives in other areas who have exchanged, so they know it’s being done. On television in Iraq, they are explained the lower denominations while on Iraqi television in the US, they are saying “economic reform is coming to an end.” And meanwhile people are asking TNT if we are ready, and we’re saying “No.” because we haven’t received the word or the packages.
DC: The early numbers are to lessen the impact. There is a plan, and Tony and I will debate the plan of whether to go for the $1-2 rate or start to the $3.22 rate. Tony, you take the side of the $1-2 rate.
Tony: If Iraq were to go for the lower rate, that will let them develop their economy slowly rather than making people super-rich overnight. It lets people buy what they require, and they can gradually bring it up to the true level without shocking the economy. Coming back from zero, with no electricity or food, it was a smart thing to do: gradually put the cards out, the lower denominations and coins, the price changes for a people that was not really used to using card or bank accounts. “The first mouse gets the trap.”
DC: We don’t know which will happen, although Tony and I have opinions based on smart people we are talking to. On the higher rate, the major plan has always been to come out at $3.22 or above. Changing it this late in the game creates a major mess and it doesn’t really save Iraq that much money in terms of their overall budget. The folks who originally designed the $3.22 or over are still in charge and directing things. It’s their baby and they are not going to change the way the baby is. A lot of the budget and projections are based on the rate being above $3.22, which was the old rate before Saddam Hussein. They want to bring it in close to what it was before. The financial implications also need it to be about that rate, and it’s close to rates in the surrounding currencies. Overall, they potentially want to set up some kind of shared currency like the Euro. It’s important to have those rates up for that reason, and also it’s a matter of pride. Iraq wants to be the wealthiest country in the world. Dr Shabibi has handled this extremely well, both with the rate increases, during Maliki’s reign, ISIL and the price of oil. It’s a lot of very skilled work and execution of a plan, so why would they screw up all that by changing this at the last minute?
That’s the debate on both sides; we just want you to understand what is going on. The $1-2 rate came up from the GOI and Parliament, in the minority parties. Those influential people make up the Federation Council, and they represent their parties. This has come up because several influential folks say that the higher rate will make too many people wealthy. The Finance Ministry explained in painful detail that those wealthy people would not damage Iraq, and those calling for that lower rate don’t understand what Shabibi is doing.
Tony: This appeases those who don’t want Iraqis to be too rich and don’t want those in other countries making money off their backs. This possibility only came up in the last two weeks, as people have started to use their cards internationally. That part works of them, and then after a number of days it will go international at the agreed rate. We don’t know how long they want to, have to or are forced to drag this out. It IS happening.
DC: In the US, all the bankers were really expecting this to go, and everyone was in the right place, ready to go… and lo and behold, it didn’t go through. They are all let down and highly agitated. They kept their technical staff on hold, and they were told early this week so they are calling their people. We understand that the US asked for the delay over the weekend, and I have not been able to get a straight answer as to why. I have heard a lot of speculation, but we cannot figure out what is going on. Like most Monday mornings, it’s slow ramping up on the information.
Tony: Some people have been given appointment times for this week. It’s still going and the rates are showing at the bank. There is no exact window of time, but everyone is gearing up. On Mondays, we get a little information, we do the call, then we get a lot of information. That’s what typically happens.
650 caller: You used the word ‘exchange’ a lot, even in-country. What is being exchanged?
DC: It’s all a part of switching out their existing notes with lower denominations and fils (the new coins). It’s mainly government and larger companies who are able to handle these changes; they are switching out their accounts so that where they had 3,000 dinar, they might get one dinar at a higher rate. Some have a small amount of dinar cash that they are now putting into their bank accounts.
Caller: I cannot find pictures of the lower denominations or coins. Can you provide a picture?
DC: They were online a year ago, and articles by the CBI and Finance Ministry explaining that online. Even if you cannot read Arabic, you can see the pictures. Look for ‘dinar training’ that has those pictures.
Tony: Anyone who has contacts in Iraq who can take a picture and send it to us, we will post it in the forum. In the past, they were asked not to, but if we can do it now, we will.
DC: Different banks and government departments have training videos that you can watch. I know they are out there because I’ve seen them. The vast majority of the markets have not switched over.
Tony: They are broadcasting them on television, so look for them.
Caller: Regardless of what happens internationally, why not just complete the internal RI?
DC: They could have done that 20 years ago, but cannot do it now. Even with normal shopping habits, Iraq has a very international market for foodstuffs, technology, and with more of an import-export focus than the US has. They move a ton of oil and other assets out of the country. So exchanging these tranches of people is a forcing function to move along this process that we have all agreed to. It’s causing a lot of tension. How do you exchange a group of retired teachers, and how do they buy things in the local market? How do you pay local suppliers at $3+ and international suppliers at 1166? It’s bizarre. You cannot go to the $3+ rate internationally and not in-country, or vice versa.
Tony: As long as the whole country doesn’t exchange, they don’t have to change the CBI rate. They have to go international. That’s really their escape route; as long as Baghdad doesn’t exchange, they are not forced to post the new rate internationally.
Caller: What are they showing as the international rate, if they are exchanging in-country at $1.16?
DC: The international rates are still $4-3; there are still a lot of cards at $3.58, or $2, or $1.16. Some still have their bank accounts at 1166. It’s a huge cluster-f**k.
Tony: Government workers are being paid at $3+; ordinary citizens are getting $1.16. That’s just the way it is.
609 caller: I’m a new caller. I’m just trying to understand how the process goes. There are about six million people holding dinar? How will they be paid? That’s a lot of money.
DC: There are Dinar 101 articles I urge you to read. This is based on oil credits over 50 or 100 years. The rate was based on $3.22 before the US invaded Iraq. We devalued their currency with the intent to revalue it later once there was a stable government. The government holds dinar, and through the purchases of speculators, the Iraqi government has pulled in the old currency and now has reserves of dinar, oil, gold and assets, they can revalue dinar to the old rate. The money for you will come from whomever exchanges you. The higher exchange rates come from China; they need three times the oil they have in-country, and this allows them to buy at a discount rate (like coupons), somewhere from $22-48 depending on the contract rate. If you are getting it from the US Treasury, it’s based on an agreement with the Central Bank of Iraq (CBI). Those who exchange directly with the CBI will put them on their balance sheet as long notes paid out based on already-accounted-for expected currencies.
Dong was supposed to happen several years after the dinar, and Zim a few years after that, but because dinar is taking so long, and because Tony told people about dong and zim, they had to bump those up to be revalued at the same time as Iraqi dinar. It’s a different situation when you have millions making money off this rather than a few thousand (as with the Kuwaiti dinar). They are trying to get ahead of the speculators. Also, the Bush administration designed this plan, and when the Obama administration came in, they folded in several currencies, making it a global event rather than just Iraqi.
Caller: How do I get an SKR from a bank?
DC: You can find banks who will do that, but it’s not necessarily a good idea because the contracts we have seen say they can change the rate whenever they want to. We wouldn’t want the currency to leave our hands.
Tony: Some people in groups were expecting to hear this weekend, then their terms were being changed.
617 caller: DC, you said on the last call that the caps are going to be done according to your SS number or EIN.
DC: Yes, and also for the zim.
Caller: What are the zim and rupiah rates now?
Tony: Rupiah is $1.18, and zim is 19 cents minus six zeroes, cap of half a billion USD.
828 caller: DC, you said that you didn’t think they could hide this past Sunday.
DC: Yes, one of the people in the process said it would be public by Sunday. That was a direct quote from someone in the process.
Caller: But now you are saying it’s the US administration asking for a delay? Why would they not be saying the same in a few more days?
DC: You can take it in a negative light and anticipate delays until 2017. However, I’m talking to a lot of people in the Obama administration who want this to got through right now. If you can understand what they are after, you can understand this better. The last month has been about minor tweaks to the entire process. The conspiracy theorists may say this is to keep down the middle classes, but I’m not going there. They have done some pretty big tranches and it’s pretty common knowledge in Iraq that some have exchanged and some have not. How long do you think that will fly in a country that is dealing with ISIL and all the rest. They really don’t have the option to ignore what ‘s going on in Iraq because someone in the US is nitpicking and ignoring the bomb going onff. I think they will have to let it go. Many elder statesmen around the world are trying to motivate people to get this done, not least for the humanitarian funding that will ensue. This is a great way to expand the global economy and do good things. They are trying to deal with an integrity problem.
Caller: What are the chances of doing this call on Wednesday?
Tony: I don’t know. We’ll probably get a better feel for it after this call, when someone from Iraq gets in touch with what they didn’t tell us. Some have appointments for this week, and we’ll tell you what we can on Wednesday.
703 caller: How much longer? When is enough enough?
DC: I think we are all at the point of disbelief. Even the most positive folks on here would be frustrated with this stop and start. It drives us all crazy, and I’m shocked they can do this… and these are the people doing this! The actual governing people are saying “I don’t know how to do this, how else this can be done.” The next response has to be “Sir, why don’t you just do it?” And if they could, they would, so there must be issues we cannot go into.
Tony: When he called me and said, “Did you get the call?” it was clear someone was expecting to call us, and yet we are still sitting here waiting.
Caller: Have you heard anything about the US military exchanging in Iraq, on bases?
DC: Pam asked us to look into that; I cannot confirm or deny it.
Caller: I love the US, but I wish they would butt out and let Iraq do its thing.
719 caller: Tony are you still feeling super-fantastic or not so much?
Tony: Not as excited as on Friday, but that was before the call was made Friday night. They had plans to make the full announcement on Sunday. The banks are ready to go and the rates are still there, but we don’t know why. DC says they are saying they don’t want it on the weekend, but that just doesn’t make sense. It was Mother’s Day, and a lot of people care about you guys; I’m sure we’ll get some answers tonight.
Caller: I have donated three times in the last few weeks, and last night I was banned from TNT. I’ve been on from the very first. I have emailed Pam and asked for an explanation. I’m HighDollarFolks on the board. Also, I had an email from a lady on the forum. She was confused by the Mtn Goat post, saying it will go into June. I wanted it to go this weekend just to prove the Goat wrong. But it looks like it is going into June at this rate. The Goat said it was all about the laws that are still needed, and quoted articles. But you can put anything you want in writing; that doesn’t make it accurate.
Tony: The laws have been passed fro some time, and have got that from members of Parliament directly. The HCL has been passed and they are now paying off on it. The security in the risky areas, they are being paid first so that people will come back to the Government side. Ramadan is early this year; it starts June11 and some think they will drag it out to then. However, there is a four-day holiday starting soon, and with every other action going on now, it just doesn’t make sense to drag it out that long. I don’t agree with those reasons as given.
DC: We talk to the people actively trying to carry this out. They are not waiting, they didn’t make all the calls they made in the middle of the night to bankers and presidents so that they could do this in late June. A lot of the laws are very important, and yes, they need to support HCL, the National Guard, some loan stuff that has to get done. Abadi has said that there will be no holidays until these laws are passed. That’s good leadership but it’s not related to the RV. Many seem to be confusing the HCL royalty issues with the RV. That is a different issue – the government will pay onto people cards, and they need the RV and the oil revenues in hand to do that. They need the taxes coming in to pay out the various welfare programs. So until the RV happens, those other things will not go forward. There is a confusion with the Arabic translations and also in the press. We are talking to people doing this, and they are dealing with every 1-2 days. It’s constantly being done. It could go on until June or January… but I don’t see it. Everyone in this entire process is stating that Iraq has made tremendous progress since August, and they have to give Iraq the respect it deserves.
Tony: There is NOTHING we know of that must be accomplished for the RV to happen. There will always something that needs to be done in Iraq. Right now, what we know, and those we are talking to (who at times we do not believe ourselves), they are telling us to get ready and don’t be 30 minutes from home. That kind of statement tells us that they are not waiting until June.
Caller; US, please let this go – we need the money.
DC: They are ramping back up, banks are taking appointment, and everyone is ready to go through. They are putting Iraq in an embarrassing situation and it’s a constant tension between the CBI, IMF and BIS. I hope everyone has a good couple of days and if it goes through we will let you know.
Tony: Let’s call it a day. If we get super-good news, we will let you know.
Pam: I don’t have anything. I’ll be here if we need to make another call.
Tony: We are astonished this didn’t go through this weekend. People in Iraq and elsewhere thought it would go through on Friday or Saturday. Saturday they were asked NOT to do it over the weekend – but they have always wanted us to do this at the weekend. The banks were told a flood of people would come through their doors on Monday morning. We’re being told this week and we are still in a great spot, but I can’t tell you for sure by Friday. The rates are still live, and the bankers are still in the banks, ready to go. Get ready so that you will BE ready when it’s time.
Even though we have had over 100,000 visitors so far this month, only 500 people have donated. Any new people, Pam has posted Dinar 101 in the Tony Blast section of our forum. Whether you are a member or not, that information is available to all.
Have a good day. If we’re lucky we will send out a tweet later today or maybe even have a call. Enjoy the rest of your day.

Leave a Reply