At this point, Eagle1 and Nova came on the call
• Frank asked what happened this morning with the Federal Reserve?
• Eagle1 replied that the Fed Res raised their interest rate and said
they are going to stop printing money
• Frank asked Nova, who is buying a bank right now why we are seeing this move
from the Fed Res?
• Nova replied that we are seeing a global currency reset and it will
affect every central bank globally; what the Fed Res has done in the past they
cannot do anymore as there will be a global monetary policy; they aren’t coming
out and saying it in so many words, but they are making it less attractive to
continue old policies
• Eagle1’s opinion is that this shows that Basel III is kicking in
• Bank fees are close to doubling, and fixed rate instruments are not
making money; banks cannot make money on current interest rate loans, so they
only do business with each other not with populus nor investors at .5 to 1 %.
• Nova’s opinion that 2 things are happening: banks are using regulators as an
excuse not to make loans but the reality is that banks aren’t making $ on loans
right now; Nova believes that after this currency reset takes place,
money will flow again because banks will be able to make money again on loans;
in his opinion this will make our economy grow; the IQD is just the beginning
of this process
• Eagle1’s opinion is that the Fed Res has to stop printing fiat money;
as Basel III takes effect, it will have both good and bad consequences; in the
short term, some will be hurt, but in the long term it’s good for everyone
• Frank reported that Jack Lew was in Hong Kong (he’s back now), and reports
coming out of HK are of the opinion that the discussions were on the large
amounts of currency that are moving to Iraq and also on gold; may also have
something to do with China, but no firm confirmation of discussions
• Frank’s observation that when the banks around the world do not trust their
governments, they create their own banking system and do business among
themselves; right now doing business with the USA is not favorable
• Nova pointed to the example that over the recent past in the USA, the sector
that has grown is private equity investment – not going thru banks, keeping the
money privatized
• Nova observed that we see so many things going on right now, it begins to get
blurred – think of having a 250 note: inside Iraq, you exchange a 250 note for
5 X 50; it’s all 1:1, this has nothing to do with the market exchange rate
outside of the country
• Eagle1 agreed and said this is why going to 1:1 to the US$ in Iraq is so
important – the citizens will not change to IQD if they can buy more with the
same amount of US$, the incentive to use US$ must be taken away – moving to 1:1
accomplishes this; again, it has no bearing on the market exchange rate outside
of Iraq, the citizen’s don’t care if the market rate is 1:3.86 outside, it only
means that the cost of their imported goods will become drastically reduced
• Nova agreed and said this will be like pouring lighter fluid on their
economy!
• Eagle1 reminded that laws have already been passed restricting how much
foreign currency can go in and out of country
• Nova’s opinion that with the exception of the big banks, the banking
industry does not have a clue what’s going on, and when this this global reset
takes place, the will be reactionary rather than proactive,
and it’s a concern
• Eagle1 said the announcement from the Fed is HUGE (not printing more
money and increasing the interest rates) and it signals the process has started
here – so it looks like we’re back to seeing the hit on the US$ value happening
June 1 according to the original plan, does not look like it will be delayed
*************
Bluestar came on the call at this time
• Agrees that June 1 for the US$ devaluation is what he is hearing from
his sources
• Bluestar read an article that appears that AsiaCell is calculating the IQD RV
into their dividend projections
• The violence in Iraq is still high, and there is escalation in Syria, it’s
really ramped up, add in that O and Holder are trying to get away from scandals
and the US media is not playing along all of a sudden, Bluestar asked if the RV
will be used to cloud the scandals
• Nova suggested we think of it in the opposite view, are the scandals
being revealed now to cover up the RV? Why when the IRS has been targeting
people for 4 years and Benghazzi is 4 months old, why are these things just now
peaking in the media?
• Final comment from Nova is to remember that other ME countries have/are experiencing
serious violence, yet their currencies have remained stable
*************
The call ended with Frank playing a voice message from Delta
• Delta could not join as he’s on assignment, everything is still on
track, still on very high alert, and in his opinion as he posted, he would be
very surprised if the RV goes past the first week of June
• Delta confirmed the message on Iraqiya TV to implement the increase in the
exchange rate of the IQD
• Delta said the people don’t have confidence in the GOI and so will keep using
the US$ until they see something happen
http://www.dinarrecaps.com/1/post/2013/05/frank26-cc-call-notes-with-eagle1nova-and-more-from-ktfa-forum.html
