TNT Friday

T = TONY | DC = DC GUY/WINSTON | C = CALLER

TONY – Let’s get this party started. Good morning, TNT. It’s Friday, January 16, 2015. DC, lot of stuff to talk about and a lot of questions. Let’s get through our part first. Let’s ask some good, direct to the point questions because DC’s voice is weak.

DC – East to west: Iraq is still very much in the agreement they talked about and is ready to go. Everything is cued up and the question is the timing, be it today, tomorrow, over the weekened. For those who like details, we’ll go thru each section.

DC – Abadi has been working thru everything and they’re all trained up and they’re going thru game-day final checks, security, computer checks, etc. which started Wednesday thru today. It is quite rare they are ready to go today, their Holy Day. The bankers are meeting and working today in spite of being Friday. Abadi is coordinating that with the CBI, numbers are picked out, etc. There were some last-minute adjustments which we’ll discuss later (Swiss franc). There were some minor adjustments. They believe they have been given clearance by the USA to do it when they want to, per the Iraqis we talked to yesterday and last night. They believe they have full-clearance to move ahead. Celebrations are prepped and they’re just waiting.

DC – On ISIS they continue to make good progress. They are keeping ISIS in the corner. The Anwar Rehab and other intelligence work is accounted for. Customs agents in Iraq have put out limits on traveling with currency outside Iraq. We got that from 4 different folks. There is an 8-day ban since last Tuesday which is you cannot take more than 10K dinar out of the country. At the current rate of 1166 that means you can only travel with $10. They think this signifies the RV window, plus they heard mules were getting ready to move large amounts of dinar out of country.

DC – The CBI and Finance Minister and staff are in the USA and in other locations throughout the world are working as liaisons to make sure everything works properly. There’s not that much to do but they’re there in case something happens and they need to call someone.

DC – The CBI and Finance Minister and staff are in the USA and in other locations throughout the world are working as liaisons to make sure everything works properly. There’s not that much to do but they’re there in case something happens and they need to call someone.

T – Everybody is in agreement with the timeline. Banks were open on Friday, which was unusual. DC – Not all banks but some opened after morning mosque prayers. T – Were they open in anticipation or told something was happening. Something happened today in the financial sector that was highly unusual. This was actually scheduled to happen on Tuesday afternoon. So they discovered more currency hidden in the country that had to be cleared up. It was a large volume that invoived some politicians. That was the reason for the delay.

T – Everybody is in agreement with the timeline. Banks were open on Friday, which was unusual. DC – Not all banks but some opened after morning mosque prayers. T – Were they open in anticipation or told something was happening. Something happened today in the financial sector that was highly unusual. This was actually scheduled to happen on Tuesday afternoon. So they discovered more currency hidden in the country that had to be cleared up. It was a large volume that invoived some politicians. That was the reason for the delay.

T – Everybody in Iraq is ready. There is an agreement in place everybody says they can live with. And a final date in place everybody says they can live with. All of Iraq’s people and banks were told to look for something but not on this side. They won’t be told until after the fact. We are actually, because of what happened yesterday, in a better place. It was helpful.

DC – Europe: let’s talk about the Swiss franc. There are a bunch of articles if you like to read, CNBC, WSJ, Post. Bottom line is the Swiss central bank said they could no longer stay pegged to the Euro to keep transactions easy between their biggest trading partners. They Swiss agreed to a flat rate of 1.20 to Euro. They said they would print as much currency as they can since the rate is fixed, back in 2008-2011 (during the Euro crisis). What ended up happening is that more issues came up in the past year, i.e., more Euro crises, Greek crisis, etc. As a result Europe has been in a long recession, specifically a triple-dip recession in the UK. They were looking safe havens. So lots of folks wanted to put their money in Swiss banks. The Swiss franc kept going up and cost their gov’t a lot of money.

DC – They said forget the balance sheet and started quantative easing. It kept getting worse and worse. Meanwhile, Mario Drage decided to do quantative easing for Europe, buy bonds, print money, and force the safe havens. The UST 10 year bond and Swiss Franc and gold would go up. The Swiss said they couldnt do this anymore and didn’t let anyone know, including the IMF, which didn’t expect it. The Swiss didn’t coordinate it with anyone because they didn’t want anyone’s input. It took everybody by surprise which caused the biggest currency move ever – 17% gain in one day which shocked the system. Why is this important? It makes their exports more expensive (chocolate, watches, etc.).

DC – Another affect on the RV/GCR is that countries have been holding back the dam on any kind of monetary changes and wanted to adjust it later accordingly. But the Swiss said they couldn’t hold it back any longer, which gave other countries the impetus to move ahead as well. It put some cracks in the dam of the US controlling the situation and release the RV. Other countries are under pressure now to do the same thing as the Swiss. We believe those adjustments of rates and reloading of the systems which created a mess is a good thing. It was costing the Swiss gov’t and their economy will suffer in the short term.

T – Switzerland was part of the GCR and had been waiting like everybody else. They kept hearing Tuesday, Tuesday, Tuesday. They finally had the last straw and, unlike Iraq which had something held over their head, they didn’t have that. It was actually supposed to happen on the 22nd (the GCR was supposed to be disguised by this) and since they are not being threatened (unlike Iraq) they decided to go ahead and do it. It made the market fluctuate and affected their trade. They’re saying “we took the first step, who’s next?” Even throughout the day yesterday some were saying “who is going to fix this?” Now they have a reason to do beyond the GCR because other countries are affected. As far as dinarians are concerned, this is a good thing. Their QE that was supposed to start next week to disguise the GCR was going to collapse the world markets – creating money out of thin air. A lot of pople are happy except the people at the top who weren’t consulted beforehand. It is very, very positve as far as we’re concerned.

DC – In the USA, the UN Security Council are saying the same as are the IMF/BIS, which is dealing with the Swiss issue. It was some momentum for us. Admin guys are fully-supporting Iraq to get this done within a window of time they’ve been give. The expectation is they’ll let this rip now. Everybody is quite excited. Banks have skeleton crews and will pull everybody in upon completion with Iraq. They are waiting to hear from the UST and Fed.
T – Some people have been notified of appointments again. Everybody is on standby.

“LIVE” CALL-IN STARTING NOW

C – Regarding the Swiss franc move, do you believe the US has agreed? It makes me nervous. We’ve heard this before. What threat does the US hold over Iraq? DC – The G20 needs to say Iraq is ready and doing and RI. They deserve 3.22 plus inflation. They all have to say the same thing. If the US looks unsure it will cause the whole thing to fall apart. All countries must say the same thing. They need skin in the fame and don’t want to lose it. T – What is the US holding over Iraq? Our vote of confidence. All contracts they have are with US countries and must be approved by the DOD. We are an integral part of Iraq. DC – Obama is bound to see Iraq succeed. The US public would be irate with him otherwise. He has to make it succeed – it’s mutually beneficial.

C – So you believe all has been taken care of and it should go between now and the 20th? DC – That is what everybody is under the impression will happen. These guys are pretty high up there and they think this is the window.

C – What is the significance of the 22nd? DC – That was the day chosen for several major banks to do their own QE, and some emerging markets’ central banks will make some type of announcements.

Sorry guys – family situation is calling me away unexpectedly. ////no further transcript at this time.

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