TNT – Friday

TONY – Good afternoon, TNT. It’s Friday, December 12, 2014 and we are late because of Pam and DC. It’s a great day and I’m feeling superfantastic. DC, how are you feeling?

DC – Really good.

T – Nothing but good news.

DC – Instead of east to west, let’s overview like we did on Wednesday. We talked about the two parties getting together and more of that is continuing from the USA and other locations. Many teams are in Baghdad and Iraq coordinating, including the IMF, BIS, China, Switzerland, etc. to make sure coordination with their own systems goes well. They are there to make sure it works correctly. Folks buckled down on Tuesday to fix procedural issues, which is due to a lack of communications. We’re grateful that’s being done. Our understanding is that there were a few procedural issues yesterday as well as some technical issues. There’s also some small legal issues they addressed.

DC – Frustrations are really high which has caused some rioting. ISIS is still on their heels but they are def in defense mode. Right now we’re playing “whack-a-mole.” For those reading articles, the anti-corruption stuff is ready. US banks are prepared for this to go through and are on call. On the technical side they are working with teams in Baghdad, Washington and Switzerland. On TV they are saying economic reforms are ending very soon. Everything’s done and they’re just fixing minor things.

T – Everything is good. Nothing about a rate change. They paid out this many people differently than how the masses will be paid out.

“LIVE” CALL-IN STARTING NOW.

C – How do you know that the people giving you the info is telling the truth?

DC – Honestly? We don’t. I never take any one person’s info as “gospel.” You just can’t. Do I believe my guys are intentionally lying to me? Sometimes they are giving inaccurate info and it’s about figuring out how it goes. The situation is very fluid, so everyone will be aligned for a little bit then things changed. Almost all of mine and Tony’s sources are giving us the best they have at the time. They tell us up-to-minute info but during the course of the day or week we get other things that don’t seem to fit. We don’t throw it out because we want to see where it fits into the puzzle. We don’t repeat things until we get 2nd and 3rd confirmations.

T – Even when they give us misleading info, they don’t know they are giving us misleading info. We get a whole lot of parts from a lot of people. They only get their info and they believe in that one person or agency. We believe in all.

C – A friend of mine, retired from the secret service, quotes Warren Buffet: “don’t vote for any incumbent and then we will have a balanced budget and citizens will be taken care of.”

T – Without naming names, that concept makes sense but if that happened we’d lose the influence we have worldwide, as well as all the experience and knowledge.

C – You’ve been talking about people exchanging. Where are the banks getting those rates since the rate hasn’t changed on CBI.

DC – From Oct 13 last year thru this year, they’ve been paying based on FBC – Forward Based Contracts. There are people who have cash, but with a lot of restrictions (1% access/month, 2% up front then SKR the rest, etc.). There are a lot of variances of those contracts. Then as of 10/31 this year they reached a point where they started using the real system, dinars & USD gets moved around, just like they will when they start us soon.

DC – The rate comes from the pre-agreed contracts with China and whoever else is buying, as well as the rate in the past 45 days has been coming from the CBI at 3.58.

C – Why is this stuff kept so tight with no leaks?

DC – Are there leaks? Tons of them! That’s how we get our info. It’s coming out like a sieve. In terms of how to get on the list, we know how but don’t have the connection. Banks don’t want their entire workforce to walk off the job in the next couple of days. They’ve been put in a precarious situation. The bankers don’t want this info getting out there, so folks have had to sign horrendous NDAs similar to those of us in intelligence have signed. They’re keeping this as tight as possible, but it’s a losing battle.

T – They’re leaking out info to us to make sure we get treated fairly. They’re not trying to get us paid, just giving us the info on how many people are going thru, how the lists are being done, payouts, etc. That’s the only reason we know how the payouts are being done.

C – So no one is going to reveal that info? I’m beating a dead horse?

T – They already had those lists and their own system. I know some high-up people who are being told “no.” There were no payouts yesterday because they all thought they’d be doing payout today. We hope something happens today thru the weekend.

C – When Iraq releases the rate will the USA go with it or hold back and not exchange anybody else?

DC – What we understand is that once Iraq goes and it’s available for the Iraqi citizens, the rest of the world will turn on. Each country is up and will follow their own rule of law. The USA plans to let this out by contacting each bank which have their own procedures to run. Some banks have their own 800#s and call centers and others say they aren’t participating at all. You will call the 800# of the bank of your choice for location X and exchange.

C – You said the USA reserved the right to let its citizens exchange at its own pace.

DC – Yes. The general public will flow from the internet people. The question is whether they’ll cut off during the Christmas holidays. Some banks will, some will just slow down. So it’s Friday so they are going to let the internet go and not wait 72 hours. The WINDOW IS NOW. Bottom line is we won’t wait 72 hours. Since it’s Friday the likelihood is they’ll probably let the internet folks go, but they can chose to wait until Monday.

DC – On Wednesday they kept running into procedural things so they decided to throw the kitchen sink at the bank. As soon as they’re done with the procedural things they’re going to release it. No more waiting for a special time. We don’t know about Forex.

C – Does the US Congress not ratifying the IMF agreement affect the RV?

DC – No.

C – Last night Pelosi was talking about bail-in’s. Will the new budget just passed affect us?

T – The Senate has not passed the budget yet. They postponed their vote for another 2 days. Hopefully they won’t use that as an excuse to delay. They did remove part of Dodd-Frank, saying banks couldn’t gamble with money that wasn’t theirs, and they changed they so they can.

DC – They loosened up the rules. You’re at the same risk you were at before. It doesn’t affect the revaluation.

C – If the silly games continue, Iraq and the rest of the world RVs and the US holds it up until Monday, can we exchange our dong before then?

DC – Technically no. If the UST holds up the banks, they will hold up the entire suite of currencies from revaluing here.
[20:48:05] Wei Ting & Wat Ching 4 Ka Ching! Angel: C – Will the dong and Zim revalue in the first basket?

DC – What we were told as late as a few hours ago is that everything will go at the same time in the same basket.

Derivatives are transactions that allow you to bet on the future price of a commodity or the direction of interest rates or the value of other financial instruments. For instance, airlines use derivatives to protect themselves against fluctuations in the price of jet fuel. Banks use the transactions to protect themselves from fluctuations in interest rates. Of course, derivatives also include things like the mortgage-backed securities and credit default swaps that brought Wall Street to its knees and fueled the financial crisis. So after the financial crisis, the Dodd-Frank reform bill included provisions that prohibited banks with government backing like FDIC insurance from engaging in transactions involving the riskiest of these derivatives, like credit default swaps, because if things went bad, taxpayers would once again be on the hook to bail them out.

C – Are the rates going up or down?

DC – I personally believe they will be fixed until after the holidays. Then it will ride the market after Jan. 2. After that point I have no idea what it will do.

Under Dodd-Frank, those risky transactions were to be pushed out into affiliates of the banks that didn’t have any government safety net. The banks hate this provision. They say it’s too complex and unworkable, and they’ve been lobbying to repeal it. And they managed to get language that does that into this bill.

Sen. Warren said on the floor of the Senate yesterday that repealing the so-called push-out rule would allow Wall Street to gamble with taxpayers’ money once again and, if something went wrong, get bailed out by the government again. But there are some Democrats and prominent reformers, like Federal Reserve Chairman – former Federal Reserve chairman Paul Volcker, who have actually supported the rollback.

T – Regardless of when it hits Forex, it’s going to go up like crazy. I think over the weekend they could rush us thru. As of this morning they said they were going to just blow thru Christmas and keep going.

That group agrees with the banks that the push-out rule does complicate the regulatory framework. And they say another provision of Dodd-Frank, called the Volcker Rule, largely takes care of the problem. It prohibits banks from using federally insured deposits to make investments for the banks own proprietary accounts. And that would include derivatives like credit default swaps. They also say pushing these transactions out of the banks means they would be less regulated

C – Should I hold some currencies?

T – How good is your heart? After the initial one you will see some adjustments every 90-100 days to the ones that need adjusting, probably for the next 2 years.

What you’ve got here is a split between centrist Democrats and populists like Sen. Warren. Until very recently, Democratic leaders said that they were comfortable with this deal and that, in fact, they got some additional funding for financial regulators in it. But now it looks like there may not be enough votes to pass it.

C – If I want to exchange some now and wait for Forex, can I do that?

DC – Don’t know how much tolerance you have to ride this horse.

C – Who’s not working together now?

DC – Since Tuesday they are all working together now. It was temporarily held up Wednesday night due to some minor procedural and technical issues. Nothing insurmountable. They’re just walking thru those last few issues before doing anything. I believe the issues were solved.

RECAP: DC – It is a wonderful weekend. Everybody is working together around the world, including many agencies in the USA. The technical and procedural staffs at banks worldwide are ready for this to go thru. They have addressed minor technical issues. Our understanding is it will go as soon as the last issue is solved and no one goes home until it does.

T – I think it’s superfantastic! Everything is “push, push, push.” Now Washington, DC is asking this morning why isn’t this done yet? Hopefully everything gets done. It’s the best we’ve seen it. We’ve never been this close with this many people all agreeing worldwide that it gets done. I’m happy. Hopefully nothing messes it up and we have the best week ahead ever. If anything happens over the weekend I’ll tweet it out. Enjoy the rest of your day.

END OF CALL.

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