TNT – Monday Call


TONY – Good afternoon, TNT. It’s Monday, February 9, 2015. It’s a bright, sunny morning here in CA and the sun is out. It’s going to be a superfantastic day. We currently have 25,000 people listening. DC, is it going to be a good day? DC – I like today. T – We’re going to discuss/debate some things today but we’re both on the same side. There’s a lot of crazy and negative things going around. We look for actions, not words. The actions are contradicting the words.

DC – What we’ve got is, quick update, on Friday they got up to the plate and decided they weren’t ready. These were not “must have’s” and would take 3-4 days. They called the USA and asked for more time and were told okay. Most of the delays were related to banking laws. Banks were not prepared for the ISIS problem. Some of the major banks and major business institutions were saying they’re not fully-ready. The quickly said “sure, whatever, we’re ready when you are.”

DC – Let’s dig into the details. On Wednesday, we got to the plate and they said they’re not ready. Abadi ran off to Belgium for meetings and decided to meet again on Friday. They had many meetings and prep work and the CBI said they’re ready to go. The only folks not ready to go were formal advisors to Abadi concerned about some of Maliki’s goons who are still around. So Abadi and Shabs agreed to delay. Some said “what the heck, you’ve had years to get ready.” Some of the PMs said they’d like to complete some of the laws. Attorneys said that wasn’t needed but if they wanted it, then okay. As far as some of the banking laws, those weren’t fully baked, so they decided to delay 3-4 days.

T – The banks knew they were about to go int’l and had to accomodate the cards and people’s bank accounts, BUT they didn’t know how to they were supposed to process all of that. They were saying “we know we’re supposed to do but we just don’t know how.”

DC – So they said they needed 3-4 days to prepare and Abadi flew off to the UAE and is due back today. They’ll have more meetings this evening. The intent is when they’re finished and “done” it’ll go through. They have a general window but this latest pause is just that – a small pause. It is what it is. Throughout Iraq everybody seems to be ready.

T – Meetings are done. All laws have been passed. As of this morning they intend to make the signed budget public, as soon as these new banking procedures are in place. Abadi already told people on the 12th that economic reforms would go into effect. Abadi went to Germany on Friday and told everybody the budget was completed in record time. The GOI would not be making themselves look that bad by going to other countries and announcing.

DC – On TV this morning they’re saying the completed economic reforms will be completed by the 12th and the budget made public before then. There is one report the budget will be announced on the 11PM news tonight.

T – Iraq is saying the Qi Cards will be done and ready for international use today.
DC – On Saturday morning people showed up for work on their day off expecting the RV  to have happened. So a lot of people are angry (8 different people in different ministries).

T – The banking laws they expect, i.e., how to do auctions and accounting for auctions, need to be passed.

DC – In the USA they are just waiting. Policy now is to just let the banks know when it’s done. They’re not calling in people early. We are fully expecting the US to take a little longer than the 30 minutes ramp-up time. My contacts are saying 8-12 hours ramp up in the middle of the night. It could take a longer period of time, hours not days, to ramp up and get call centers manned.

C – What is the process for these banking laws’ reading and publication? When will they actually be approved and published? DC – Most laws have been read through. They can do several meetings in one day if they need to. They can vote to bypass it, especially the ones they negotiated years ago. Many pending items were approved a year ago but never published.

T – Remember, they had all the meetings and they agreed to these last week or the week before. They’re not arguing. The PM already signed off on the budget. It’s just a process they have to go through. Now the banks in the different regions are saying they’re not ready and it will be a mess if it’s not done before.
DC – What we’re saying is these laws are nice to have but not necessary. Given that the other issues are going on that are the real priorities (where half the banks in Basra don’t work, for example), they’re using the delays for preparation to add in these last-minute “nice to haves” in the banking laws.

C – Regarding contract rates, if a bank is giving different rates to different people, how are they regulating it?

T – They give you different options and offers until the money runs out.

C – These oil credits are going to be used by the UST to purchase oil, right?

DC – Correct.

C – So what is the UST going to do with all this oil? DC – It’ll be added to our strategic oil reserves.

T – The biggest advantage is it boosts the value of the USD.

C – I still have a problem with the differing contract rates. Were the rates negotiated back in 2003? DC – Yes. $32 for oil credit were negotiated back in ’03. Most of the contract rate is coming from China. Some of the dinar will end up in China but not all. What happens to that spread when rates are $32, $28, $.50, etc.? The UST gets some of the spread for reserves and expenses. Some groups are making $10, etc. What will go on the UST books is 3.58 X 4 Trillion. Not all of the outstanding 9 Trillion will be in the $3 range.

T – Let’s say I go to the bank and get 3.58 for my dinar. Does the bank get the difference between that 3.58 and the $32? The bank only gets the 2% spread. The bank wants to give you a large amount because they make more money. Regardless of whether it’s $3 or $30, the UST gets the $3 and China gets the $30.

C – How is the bank exchange going to happen? What if we have problems at the exchange? DC – They’ve already done a ton so they want it to go smoothly and simple. We are hoping there is a plan to funnel the phone calls. They are being timed to do this in 20 minutes or less.

C – The weekend comes and nothing happens. We don’t get anything because they change their minds so many times.

DC – We are giving updates 3X a week and unfortunately they continue to change their minds.

T – It is OUR FAULT YOU ARE CONFUSED BECAUSE WE GIVE YOU INFO THAT IS TOO UP-TO-DATE. We’ve probably involved you in the process too much. You’re getting live info as it happens. Then it changes in 3 to 4 hours. It’s too new and up to date. We accept our responsibility and for some people it may be too much.

T – You don’t hear anymore about the HCL, Article 8, who’s sitting on committees,, etc. anymore. Why not? Because they are done and it will be made public at the right time. DC – Nobody has the absolute authority on this thing. It has been used politically around the world for personal gain and political advantage. They were ready to go on Friday night then bad news, a delay. It’s nearly been done over 100 times and history will bear that out. It’s been a brutal ride and the people who listen to us realize this.

T – I’m going to read from an article just released: “the next few hours will show the ratification of the budget.” This is the news they are putting out today and on TV, no later than the 12th. Over there they’re looking for the 12th. They’re saying they’ll be international this week. That’s all we can do is report what they’re saying.

C – When we walk into the bank and the bankers are ready to take our money, who will offer you a higher rate? DC – The guesstimates from friends say 1-4% know about this thing. Most don’t know. They have been issuing different rates based on how long you agree to keep your money in their bank. They are trying to get higher rates for the small-note holders.

T – It may not work that way. There is another option. We talked about cashing in a 25K early at a set price then do the rest with your WM and set the rate. They may make an offer on the balance. Hopefully we’ll get the package beforehand and it will work like that.

C – Will the banks issue us certified checks at the initial exchange? DC – In the first 20-minute meeting, probably not but later on at your appointment.

C – I’m upset with all the delays. My problem is with those people who went ahead of us and got higher rates. That’s not fair.

DC – Most exchanges in the US have slowed to a trickle. Very few are going thru. In terms of fairness, there are a few people in this process that are making sure it will be fair. They have a sense of right and wrong and are powerful enough to make sure it will get done.

C – Has ISX started running yet? DC – It is running the new feed in terms of fixed prices ready to go, but they have not been connected yet. It will go after the RV  has happened and will be another piece of the puzzle. It is my belief we’ll know about the RV  before ISX has been updated.

C – Is it currently running at 1166? DC – Yes. T – There is a plan for the ISX once the RV is activated.

T – There was a plan last week to open it up with a program rate but it didn’t get done when they delayed.

C – I lost my condo in foreclosure and don’t have a permanent address. How can I open an account at the exchange since I’m temporarily living with my son? I don’t have an address on my DL to substantiate it. DC – You need some sort of ID that documents you living at his address. Change your DL or passport. They’ll work it out with you because the bank wants your money. T – Go find out right now and find out what they’ll require.

C – You don’t really think we’re getting stalled anymore? DC – I don’t see that at all. Everybody wants to get this done and resolved. I frankly don’t see anything but positive things getting done and pointing to everything getting done.

C – I have a friend in Washington, DC who is telling me this is a great blessing but also the biggest sting operation ever. Do you concur? He was referring to those who already cashed out. DC – Absolutely I agree. Those with less than honorable motives will have lots of trouble, especially double-dippers.

C – When we do our exchange we’ll pretty much know the numbers and tax liability. We won’t be able to put that money away for taxes for 5 or 6 years. With 2 million dinar at $3.86 the tax rate short term will be 42%. If I put 50% back, how is that going to work? DC – The short term tax rate, for example, of 44% will be taken off the top. The banks will be fighting over the difference of 56%. That’s what they’re bargaining for.
C – In your HOH do you think it’ll go this week? C – Yes.

C – Are you still thinking the same timeframe, 4PM to 6AM EST? DC – Yes.

C – If the exchange goes thru on Wednesday and we exchange a small amount and wait for a better rate, how long would be best to wait before the currency goes worthless? DC – There definitely would be a time-constraint on it. You can move it into Multi Currency Account. You definitely want to get rid of those notes for law enforcement reasons. I don’t like holding it for more than 90- days. I think you’ll be okay for six months, but they’re going to make sure you’re not a drug mule and will be looking at you really hard if you come up on 6 months.

C – Is it safe to assume Iraq was out of the way on Friday and the USA wanted to clear up some things? Is that a safe deduction? DC – Yes.

RECAP: DC – Bottom line is they were ready Friday night and some issues with banks caused them to wait 3-4 days. Meetings are going on now to see if it’ll be released as early as tomorrow. We’ll keep you updated. They are putting it on Iraqi TV that it’ll be done by Thursday. We’re waiting on the Finance and Interior Ministers complete their things. Laws have already been completed, read, and just need to be published. We will update you as soon as we hear. PAM – People need to watch your attitudes. T – Everything on their TV is saying this is happening this week, by the 12th. They’re trying to make it happen by Thursday. The date they’re using is the 12th. It’s all looking good. We didn’t get anything negative. All the banking laws are supposed to be voted on today. If it doesn’t happen I do need to pay for this site. If you can help we appreciate it. I think we’re on the way. I’ll tweet important updates. We’re looking forward to Thursday. END OF CALL.

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