Good Afternoon, Family!
This has been one rollercoaster of a ride for a lot of folks, but we’re coasting to a stop – FINALLY!!
Now, as you know the four major banks in the US (Bank of America, J.P. Morgan Chase, Citibank and Wells Fargo) all hold trillions of dinar in their reserves. Both BofA and Chase stopped selling or trading in Dinars about two years ago. Citibank and Wells Fargo followed not long thereafter. In February of 2010, our illustrious Treasury Secretary issued a memorandum to the four majors (which ultimately trickled down to other institutions) instructing them to tell their clients to “avoid the purchase of the IQD” and suggested that they tell their customers that it was “all a scam.” That’s pretty funny when you consider that the US Treasury holds some 20 Trillion Dinars of their own – compliments of George W. Bush. We believe that the memo was intended to discourage the further investment so as to keep the investment among a much smaller number of investors. When I was in international banking (back in the mid-1980’s) I saw this tactic on numerous occasions and was a victim several times of the effort to squeeze me out of some very large transactions.
Frank’s team has been dealing with Wells Fargo and Chase and their international currency departments in an effort to gain favorable exchange rates and encourage direct deposit of IQD in US banks. There is some important logic in this effort. You may or may not know that following 9-11 and the establishment of a Homeland Security Department, efforts were enacted by the UST to track large financial transactions. Along with that, a restriction on the size of wire transfers was implemented. If a person attempts to wire-transfer in excess of $500,000 in any single transaction, Homeland Security will flag and freeze it pending an investigation of the individual, the source of the funds and its intended purpose. I’m told that funds could be frozen indefinitely under this scenario if the investigator(s) got a bee in their bonnet, and for that reason, we strongly recommend that you break up your cash-in so that no single wire transfer exceeds $490,000. If you are cashing in a million Dinars ($117,000,000 – based on the oft-quoted $1.17 rate), break it up into three parts and have three separate wire transfers to three separate bank accounts of, for example, $400,000, $400,000, and $397,000. If you are cashing in 500,000 Dinars ($585,000 – again based on the $1.17 rate), split it roughly in half – say, $300,000 and $285,000. Obviously, if you intend to cash in a lot more you’ll need to plan your cash-in strategically so as to avoid flagging your wire-transfers. I spoke with an executive officer of Yakima Federal Savings & Loan this afternoon, who confirmed that Homeland Security is watching all large financial transactions. A personal banker at J.P. Morgan Chase also confirmed this.
Now, let’s get to the mechanics of cashing in.
Up to now, our only viable option for cashing our Dinars quickly was to go to Ali Khan’s office in Santa Monica. Because of his direct relationship with the CBI, and the fact that much of our currency came from him in the first place, he has offered us a minimal fee of $150/million Dinars. That compares to a typical rate of 2% with the banks for currency exchanges. Obviously a 2% rate on a million Dinars would come out to $23,400. I’m not about to pay the bank that kind of fee, so a charge of $150 is a tremendous benefit at cash-in.
It is my understanding that a member of Frank's team has confirmed that Wells Fargo will match (or come close to matching) Ali’s fees so long as we use Wells Fargo for our banking, and the monies are deposited (not taken out in currency) into checking or savings accounts at any WF branch. Here’s the catch. In order to take advantage of these favorable cash-in rates, it will be necessary to call a specific number within Wells Fargo’s International Currency department and identify ourselves as a member of this group. WF’s Int’l Currency manager will call ahead to whatever branch of WF we are dealing with and advise them to accept our Dinars for deposit. Certain security measures will be enacted as a part of this routine, and details of those measures are currently being worked out. I will pass them along as soon as they are available, along with the telephone number at WFIC and the name of the banker.
Obviously, if this plan is successful, it gets us past the $500,000 limit on wire transfers since there are no wire transfers involved in doing it this way. The IRS has placed a requirement that they be notified by the bank of ANY transaction exceeding $10,000 – and that’s something we won’t get past anyway. Canadians will be exempt from these rules.
There’s one other issue that we need to cover – federal deposit insurance coverage on bank accounts that exceed $250,000. On our forum during the past couple of days there has been an ongoing discussion concerning the Dodd-Frank legislation that went into effect last year. There are many aspects of that legislation that I won’t even try to get into in this discussion, but there is one important aspect that affects all those of us who are U.S. citizens. Most of you know that the FDIC covers up to $250,000 in checking accounts, savings accounts, CD’s, and other forms of bank accounts. That limitation is on each account – not cumulative. One of the things I learned today – or rather had confirmed since I’d already heard about this a couple years ago – was that many Congressmen and Senators (as well as people working in various branches of government) have purchased a fair amount (very considerable amounts in some cases) of Dinar. One of the portions of the Dodd-Frank legislation was specifically written with this in mind, and it deals with TAG accounts.
TAG accounts are so-called because they are labeled ” Transaction Account Guarantee” accounts. Under Dodd-Frank legislation (passed in 2010 and implemented in 2011) ANYnon-interest bearing checking account (read that “regular” checking account) can have unlimited amounts of cash in it through December 31, 2012. This legislation was passed with the soon-coming RV of the Iraqi Dinar in mind and permits Dinar holders to cash in their currency and convert it to US Dollars – and here’s the catch! – FULLY BACKED by gold on deposit at the CBI. Thus, if your particular banking institution were to fail for some reason and go under, you could have $5,000,000 or literally any amount of money on hand and the FDIC would reimburse you for every cent. Ordinary bank accounts – checking & savings accounts, money market accounts, CD’s, etc. – are normally insured up to a maximum of $250,000, and that’s because of the so-called “fractional reserve banking system” (funny money!!) implemented by the Federal Reserve many years ago. When I was in international banking back in the mid-1980’s, if I had $100,000 on deposit, I could loan ten times that amount (or up to $1 Million) in loans. I had to have a 1/10th reserve on hand of whatever I loaned. Today that number is half of that. Banks only need 5% of the funds on hand in order to lend (e.g., $50,000 in order to lend $1 Million).
There’s one other reason behind this piece of legislation. The International Monetary Fund (IMF) is preparing to revalue 190 currencies around the world this summer. Five out of the basket of seven currencies against which the U.S. Dollar is measured are among those 190 currencies. At the close of today’s business, the U.S. Dollar was worth .8030 – roughly 80 1/4 cents – against that basket of currencies. With the revaluation of five of those currencies, the U.S. Dollar is expected to lose not less than another 20 cents – and quite likely even more. That’s because the USD has no gold to back it up like it once did. The intel coming out of the UST is that in the weeks or months following the IMF’s revalue, a different currency will begin to make its way into circulation – Treasury Notes, as opposed to Federal Reserve Notes (the currency we presently use). Treasury Notes will initially be backed by a small amount of gold, and the intention is to slowly build up our reserves so that the USD is once again worth its face value.
Here’s the catch. If you have $100,000 in a conventional interest-bearing account in any U.S. bank, once this move takes place, your hundred grand could suddenly be worth $80,000 or even $60,000 or less – depending on the USD’s value world-wide. You would have an instant loss. Hence the value of the TAG accounts for you to deposit your cash-in from the Dinar. The final objective of this legislation is to provide holders of the currency time to decide where and how they will disburse or invest their funds so that they are not stuck with a lot of “worth less Federal Reserve monies.” Once again, this is not legislation that was created or dreamed up by the Obama administration. This is a plan put in motion (as I understand it) originally by Papa Bush (Bush 41) when he was in office.
WOW!! Didn’t mean to get so wordy. Hope this all makes sense to you. If you have any questions, holler!
Blessings on you. See you all at the bank next week (or the one after that! Grin!)
Eagle1
