TNT – Friday


TONY – Good morning, TNT. It’s Friday, February 27. 2015 and yes, I can say it once again I never expected to be here. But I can start this call by saying I DO expect to be doing another call before Monday morning.

DC – It is a very good day for all of us. Everything is beautifully lined up in Iraq and the USA. Iraq is just trying to get the timing right. That’s the summary. West to east: All the banks across the US have been prepped and are ready – big 4 and major banks. They’ve had codes tested. The CBI has sent encoded codes thru the BIS and all the central banks push them thru to their member banks (like their major banks). In the actual exchange centers the technical staffs have received the codes and loaded them into their proprietary systems. The last one was successfully received last night at 6:30 PM. They have also done a very few test exchanges. The vast majority of the bankers are ready and will receive the “go” after it happens. But technically it has been populated throughout the world and it is NOT on Admin Hold. It is “live” but restricted.

T – Everybody knows we received this info yesterday. They used to call us and say what not to say. We have gotten NO direction of what we can say. So if we got all the info, someone else has to have it as well.

DC – We’re not giving any single-source info. All info today is dual-sourced, typically at least 3. In order to protect our sources we normally get 3 sources.

DC – I got a funny call about 2 different banks in Dallas that their exchange center employees were sent home because it’s snowing. LOL! We’re not stopping a world-wide event because of a little snow – LOL! We understand again that all the major banks are ready, as well as the Tier 2 systems. They were tested out as well. Anyone concerned about not having a major Tier 1 bank, be assured the Tier 2 system was tested out around the US successfully yesterday. The banks themselves have not been notified, so the vast majority of those Tier 2 employees will be confused when it comes out.

DC – In Washington, they’ve been quite supportive this week. All the Admin types have been supportive. They have been very cautious in their recommendations to Abadi (“if you think there’s a problem, don’t”). But they’re not being restrictive of it. They have restricted cautiousness over the past several weeks. IMF/BIS are coordinating the timeline and have had a little confusion coming out of Iraq about when they want to do it. Otherwise, they’re very supportive to get this done. UST, intelligence agencies, etc. are all supportive.

T – So, they did testing and some exchanges. They stopped those exchanges until Sunday (VIPs). The rates haven’t changed in 3 days so they’re locked in. Multiple banks now have them as “live” rates. Confirmed. We’re looking good.

DC – I’m going to say this: THIS DOES NOT MEAN THE RV HAS OCCURED. It hasn’t happened until you can spend the money. Don’t do anything stupid. Anything can happen to stop it, but we’ve never been this close. Please be cautious.

DC – Iraq has been very, very busy this week. Remember on Sunday when Abadi got his people together (Federation people, reps from the US, UK, Australia, China, CBI reps, etc.) and they said to wanted to wait and brief the Sunnis and he agreed on Sunday to hold up. They agreed to wait until Tuesday and on Wednesday they published most of the rest of the budget, which triggered a lot of the technical things getting pushed thru. So on Wednesday the CBI pushed thru codes and ran tests throughout the country (except in Mosul) and those ran successfully. The CBI has been pushing this forward technically and procedurally. It still has to wait for the 2 bosses: Shabs and Abadi. They have notified all security, elite police forces, guards in all the right places to be on high alert. They have also alerted security agencies worldwide to be ready since this is the biggest financial transaction the world has seen.

DC – Shabbibi is getting rave reviews by everybody, even his skeptics. This is building confidence inside Iraq this is going down. The rumor mill in Iraq is saying that since most of the banks have been closed sporadically all week, they’re running tests, some for few hours, some all day, some just during lunch, making sure this all runs as smoothly as possible. This is a confidence game to make sure it happens smoothly. They deserve this financial deal and it’s important we understand they take it very seriously. From a lot of the tech staff at CBI, IMF, etc. they feel extremely confident all systems are “go” and they can deal with security issues quickly.

DC – What are we waiting for? Dr. Shabbibi and Abadi’s “go ahead.” Nobody really knows, except for maybe 4-5 people in the world. They’re keeping it that close to the chest. The normal times (briefs before the evening news, etc.) are speculative and the news pouring out of Iraq is just guessing. The rumor in Iraq is they expect to be able to exchange their money on March 1 (Sunday). That’s not the “official” word, just what the man on the street is saying and the clerics are saying in the mosques. Does it have to wait for Sunday? No. They can go at anytime. They are absolutely ready. In summary for Iraq: We’re waiting for Shabs and Abadi to make an internal announcement for it to go. All staffs are supportive. Security is tight. And very few actually no when this will happen. Rates are still in the mid-$3 range and we expect that to go up a little bit. We will all be quite happy with the results.

T – Our banking contacts have been told Sunday is their day. Multiple contacts have said this in the banking world. That could mean you’re going to the bank, or 800#s comes out, or you make appts for Monday/Tuesday, etc. But it’s the same message that has been given to the man on the street in Iraq. They’re also being told Tariff Laws go into affect on Sunday. But also their new tax brackets go into affect on Sunday. This has to come from somewhere. Can it change between now and Sunday? Yes, but now it’s a whole lot more public. They did education on Wed/Thurs for the banks. It sounds like we could have a superfantastic weekend.

DC – Also, they haven’t had any bond sales or auctions for the past 11 days, so they’re spending money and not taking in much. They paid the Kurds for 13 months and they caught them up.

T – There were some actual bond transactions going on in anticipation of the new rates. Everybody agrees this should be our date. The LDs are out and they’ve removed the 50’s from their currency. They gave them a timeframe to turn them in. If you have one just take it to the bank with you.

DC – For those who just want the updated intel, that’s it. For those who want more info, in case this is the last time we talk I pray the historians get it right. A lot of political folks now get this as how big a deal it really is. What an amazing thing this is and that we are included in this process. I also want to thank our “elder statesman” we can’t name for helping us earn a place at the table after the Twitter campaign. Others could have done it, but he’s the one who made the calls and did everything for us. We was very patient with us and we are grateful for that. Also, please realize what Dr. Shabibi has done. He’s been involved in this for over a decade. He has moved the Iraqi dinar from over 8,000 steadily down to 1166 where it is today. That’s phenomenal to hold a rate for that long.

DC – A lot of the banks’ reserves were funded by sales of dinar to speculators. Did they have to have a healthy CBI reserve? Yes. Also currency auctions helped to build it up. Dr. Turki has also done a phenomenal job. Dr. Shabibi has had to put up with personal threats, had to leave his home country, etc. He has been a relentless advocate for Iraq. Dr. Abadi has done an amazing job in a short amount of time. He’s been dealing with ISIS, Iran, Russia, China pulling him from all directions and tensions being inflamed by jerks. He’s pulled it together and gained the trust of skeptical people. He will work with you until you’re a fan of his.

DC – The Finance Ministry, from top to the bottom, has done an amazing job. The CBI technical staff has been persecuted, they’ve received bomb threats, etc. It’s been years for them, not just a few weeks. The Security forces in Iraq got a bad rap but I’ve found them to be confident and skilled war fighters. The Kurds have done an amazing job keeping the Kurdish state together. I just want everybody to realize the sacrifices everyone there has made. And the volunteers who have fed us info over the years, it’s amazing what they went through for this. Those people know who they are.

DC – A janitor in Iraq has been one of my best sources. T – We got a call from the janitor in Iraq at the airport and his brother was standing right there and gave us info on the planes, how many pallets were on it, the tail numbers of the planes, etc. You can’t beat that info. We understand the ups and downs. It’s going to be a BIG up and down if it doesn’t happen this weekend. It gets to everybody and I’m proud of them, the Iraqi citizens. Every country has citizens just like you and me – people who just want to have a life, survive, provide for their families, etc. just like us. They are just trying to survive and love their country. I’m truly happy for them. For us it was an investment. For them it was survival. After 100 years they’ll finally be able to enjoy their lives. They’ve had to live this everyday.

T – We know they listen to these calls in the cafes. I’m glad we can play that part for the everyday citizen.

T – I wanted to thank everybody because we’re hearing we will get only 1 call for 15 minutes with only instructions.


C – Do you know what’s happening with the Zim? T – The ZWL is at 35K for $5. They have that one. ZWD and ZWR is at .13.

C – Is the dong still at .08? DC – In the system it’s still at .08 but people have been paid more than that in the past week. It was over the .47 this past week – people were paid higher.

C – What constitutes a “Tier 3” bank? We have a county bank with branches. DC – We use the “tier 1, 2 and 3” terms loosely. There are caps on the individual tiers based on their holdings. Tier 1 is basically the big ones with their own foreign currency departments. Tier 2 banks outsource their currency departments but are big regional banks (Compass, for instance). Tier 3 banks are the county banks. Almost all Tier 2 and 3 banks use the old Bank of Ireland system.

DC – Let’s say you have $10M dinar and the rate is $3. That’s $30M USD that will screw up their deposit ratios, which are very important. I’m not convinced they have that totally worked out. I’ve been told Treasury has set up special accounts so it won’t screw up those depository ratios. Many banks have CDAR accounts and the front guys will spread that around to them.

C – Will the last call be recorded? DC/T – We don’t know. It might be. But it’s basically going to be here’s the info in 15 minutes.

C – What about 770 accounts for investments? DC – I don’t know about them.

C – How about annuities? DC – Annuities pay a monthly income for a certain amount of time or the rest of your life. I think annuities are a good idea for people who don’t want to fuss with it and just want a monthly check. There are different types of annuities for the elderly, disabled folks, married people, etc. You need to study and find out what you’re comfortable with. But be careful with interest rates as they rise in the next several years.

T – I love the security of annuities. When was the last time you heard of a life insurance company going bankrupt? It’s peace of mind, especially if you don’t know what you’re doing.

C – The big issue is a lot of companies eat up the profit with fees. DC – Yes, that’s the big problem.

C – Will the WMs have access to higher rates for savings accounts for us? DC – Most WMs will give you higher rates, but most will have minimum requirements of $100,000. Municipal bonds are good due to the tax advantages (tax-free).

C – Once you’ve done your exchange and before you have invested, if the bank fails will you lose the money the WM has made for you? DC – Let’s say your WM puts you in a CD for $100K, $100K in Apple stock, and $100K in muni bonds. If the bank fails, anything over $250K is not protected. But the Apple stock and muni bonds are not affected by a bank failure. They are safe.

DC – You can use CDARS which spreads out your investment in $250K slices. I strongly encourage you to watch what Janet Yellen says (Fed Chairman). She’s one of the most powerful person in the world.

C – How far do you see the USD falling? DC – Max 3% and probably only 1%. A large part of the delay was to protect the USD so that nothing happens to it. Now they believe they have done that and it will move only a little bit. However, if you’re invested in stocks or commodities, prices are going to be volatile. It’s going to be a wild ride. The smartest people I know have said to stay out of everything for 6 months.

C – Regarding the final call, if you only get 15 minutes how will we find out what the contract rates are and which banks to call? DC – I agree. LOL! T – The best we can give you is to shop around. Make the banks compete against each other and against the exchangers. Like Pam will say, “you know the info, you know you know it, just think about it because we’ve discussed all the scenarios.” You just have to stop and think.

C – I’m specifically interested in the contract rates. If I make appointment at 4 banks for contract rates and by the time I get finished with the last appointment and return to #1 for a contract rate, it may be gone. What’s the best strategy? T – This is what I would do: if you call and they won’t give you the rate until your appointment, call all 4 and ask for the current rate NOW and then make appointments at all of them. The banks will be competing with each other for your business. If they say the contract rate is gone and you know it was at one time in double-digits, tell them you’ll wait a few days because you know it will go up when it hits Forex. History says that will happen. You have to see when enough is enough. And if the banks won’t give you that rate you know the exchanger will. Call them up and place a sell order.

DC – I agree with that. They had to do away with the coordination of rates among the banks because of legalities. So shop around like you would with anything else.

C – My fear is getting on a call with the bank and they won’t tell you the rate. T – That’s probably right. I’m not bashing banks, but trying to look out for you. But there are always options out there. DC – The banks are in business to make money for themselves. But as a consumer I want the best value for what I can buy. Several banks have been told not to let the customer leave if they have over $100K dinar. T – Everything is negotiable.

T – It’ll be mass confusion. Do they know what kind of chaos they’re asking for ? 6 million people calling their exchange centers. Instead of fixed rate for everybody, done in 72 hours. DC – They believe only 1-5% will be shopping rates. The majority will take the $3+ rate and be done with it.

C – I read somewhere in Dinarland about banks failing. I was told the Big 4 have so much debt and they’ll be in trouble and we should be using credit unions and brokerage firms. DC – The best thing to do is diversify. Don’t rely on one bank. In terms of credibility and balance sheets of banks, they have improved a lot since ’08. My belief is the big banks are the most stable they’ve ever been. For instance, WF has tremendous assets, investors (Warren Buffet), and they’re closely watched by everyone. Because they are watching so closely, and they’re a prime contractor for the dinar exchange, they have much higher expense for doing business. Like a big ship you can put a lot on them but they can’t maneuver quickly. I do NOT think the entire banking system will collapse. That is a bunch of bunk. The best thing is to diversify as much as can and not be fearful.

C – I read that deposits over $100K makes you a shareholder in the bank and liable if it fails. DC – Anything over $250K could be considered equity in the bank. If you’re nervous about that adopt a CDARS account.

C – Anything new on the NDAs? We heard yesterday there were changes. DC – There are bunch of different versions of the NDAs. C – Something was shared that the new NDA requires you to leave your money in that bank for 48 months to get their contract rate. DC – Some banks would like to do that. Some have a 3-4 tier system. You take the $3 rate, take your money and run. Or leave your money for x-number of years and get a higher rate. What they don’t mean is every penny is on the deal and you earn income from it and put it in stocks, annuities, etc. and you can manage it.

C – When you do your initial exchange will they offer the int’l rate or try to sucker you in with a lower rate with a promise of a higher rate when you meet with the WM? T – If that does happen, they may come out with a sucker rate then it’ll go up when it hits Forex. It’s always going to be a gamble because you’re waiting for an appointment. It’s always going to depend on how much you have. You have to be prepared to negotiate. You know the rates. We’ve talked about them.

T – I would take at least the int’l rate right out the door. Then the WM will have to offer something higher. It’s your money. The banks are going to be competitive. If it doesn’t feel good, don’t do it.

C – Do you have anything on the bank package? T – No, and I don’t know that we will until the last minute. For whatever reason, legalities, etc. I don’t think we’ll get it until the last second.

RECAP: DC – Again, I want to thank everybody for being part of this and for allowing me to be part of your lives. We are waiting for Dr. Abadi’s and Dr. Shabibi’s timeline. The entire world is waiting on this. The expectation is this will go thru and the world is ready. They don’t care about time like we do, but everything looks great and we hope this is the best weekend ever. T – Iraq is ready, over-ready, finalizing, dotting “i’s” and crossing “t’s” and they’re about to take their shot. They laws are done. Their budget is done. Abadi has shown it. What you can’t see in the budget still counts. Tariffs and new tax laws take affect on Sunday. They haven’t changed that. Everything points to Sunday for the whole public world to see it. You’ve all gone thru this with me and survived. The people of Iraq have gone thru this in a battle for their own democracy. Local leaders making decisions in each province for their people. I’m proud to see this since Abadi has been in office in such a short period. A Global Currency Reset is about to occur during the next week and we never thought we’d see this in our lifetime. Currencies will revalue worldwide and we are part of it. I’m still trying to do the 4 events and we hope to get them started next month. I fully expect – and am planning my weekend around it – to have another call this weekend. We put the info out they gave us and nobody restricted us. If it was critical we would have been told what not to say, but we weren’t. I am looking for more news to come out. Enjoy your weekend but BE READY. It doesn’t have to wait until Sunday. It could be tonight, tomorrow, we just don’t know. So much has happened in the past 24 hours we haven’t even mentioned. Be ready. END OF CALL.


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