GLOBAL CURRENCY RESET & REVALUATION OF CURRENCIES part 2

sensistar (42)in #money • 7 years ago (edited)

FIRST BASKET CURRENCIES
Vietnam Dong Iraq Dinar
(VND) (IQD)
Zimbabwe Dollar Indonesian Rupiah
(ZWR) (IDR)

FROM BANKRUPTCY TO BREAKTHROUGH
The task of resetting all sovereign currencies back to a par gold value, countries agreed
to be audited to determined who might be closest or furthest from a common gold
standard. Those who were furthest away, were placed in a what’s been called the “first
basket” of revaluations. Meaning, the above four currencies were grossly undervalued,
and selected to redeem first at some pre-agreed international rate.
Other countries like our own United States, Japan, Switzerland, Great Britain, Germany
and Australia were deemed overvalued, and placed in an opposite but similar first
basket to revalue. This is why you are seeing such wild swings in value per those
countries central banks and treasury currency rates.
Now some countries (Zimbabwe, Iraq, Vietnam, Indonesia) have had such unstable
political and monetary histories over the past fifty years that their currencies were
deemed insolvent at some point by the IMF and World Bank. Each was stripped of their
international trading status, and fiscal sanctions were taken against their sovereign
currencies, which equates to bankruptcy on a diplomatic level.
All four countries had to then earn the right to trade again within the international
marketplace, going through years of compliance steps in order to “re-instate” their
national currencies as good standing members of the global economic community. The
good news all four countries ultimately accomplished this Herculean task, and as a
result, their currencies are being allowed back into the global marketplace—and this
time gold backed per appropriate Basel lll standards.
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But if one more deeply investigates how physical currencies actually revalue and redeem,
be they in the first, second or third baskets… it’s important to consider the differences
between three very different public rates all within these currency—as each of these
rates will be initially offered to the public, with all three eventually merging into a single
sustainable and trade-able global value benchmarked by gold.
Below are projected redemption rates for each of the first basket currencies. All rates
can and will change based on traditional market forces, called “floating”:
IN COUNRY RATE: This rate exists so local currency holders can easily redeem to new
gold backed currencies within the boarders of their own country. This rate is
intentionally lower than other rates, as it is meant to ease citizens and existing population
back into trusting their national currency as legal tender. Remember, some of these
countries have been in bankruptcy for many years, which means at onetime they
experienced very public bank failures. So metal coins are often used to help the
emotional healing process, all be it at lower rates to counter over spending.
VND (in Vietnam) : $ 0.08 USD
IQD (in Iraq) : $ 3.58 USD
ZWR (in Zimbabwe) : $ 0.00014 USD
IDR (in Indonesia) : TBD
INTERNATIONAL RATE: The international rate is determined by new global monetary
authorities governed by BRICS Alliance members. Many would call this the “FOREX”
rate, but in essence, it’s the currency’s pre-agreed upon price, consistent anywhere in
the world with a monetary value pegged against the global gold standard. In the old
banking system, the international rate was backed by the USD (petrol dollar); whereas
in the new banking system; this rate is backed in gold per Basel 3 compliance standards.
Signed Non Disclosure Agreements (NDA) are not expected to be required in order to
receive an international exchange rate.
VND (outside of Vietnam) : $ 0.46 - $ 2.71 USD
IQD (outside of Iraq) : $ 3.90 - $ 8.49 USD
ZWR (outside of Zimbabwe): $ 0.04 - $ 0.14 USD
IDR (outside of Indonesia) : $ 1.05 USD +
CONTRACT RATE: This rate requires a new account contract be signed between the
bank and its client. Generally, the redemption rates are higher due to length of
principal holding terms and additional restrictions placed upon movement of principal.
Contract rates vary greatly depending on the bank, your liquidity position and how long
you’ve been a client with the bank your exchanging with. Not everyone will be offered a
contract rate, but in theory everyone could receive it if prepared. NDA’s will need to
signed in order to receive the higher contracted rates guaranteed.
VND (signed NDA) : $ 2.72 - $ 20.00 USD
IQD (signed NDA) : $ 8.50 - $ 38.00 USD
ZWR (signed NDA) : $ 0.15 - $ 0.22 USD
IDR (signed NDA) : TBD
(*All in country, international and contract rates, are subject to change without notice;
contract rates also limited to qualifying clients & specific disbursement pool amounts).
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CURRENCY EXCHANGE

IN-BANK REDEMPTIONS
Currency redemptions are typically a very simple process. Normally, a customer brings
their currency to a teller window, the rate is checked, and the teller simply converts the
initial currency to another currency in the denominations of the customer’s choosing.
But during this very unique and historic banking event, there will be additional
precautions taken to protect the public from an overwhelming in-bank redemption
appointment flow.
So much so, off-site redemption centers have been created, with security staffs, to
ensure the safety of all involved given the high volume of GCR/RV traffic. Because as far
as the banks are concerned, they’ve had time to prepare for this event for several years,
but know the general public will be very excitable. They know all of your questions
before they arise, and have pre-written responses based on well-rehearsed
psychological negotiating tactics to maximize their bank’s redemption profits.
Right now, literally, thousands of bank staff members are waiting for you to enter into
their facilities and begin the GCR/RV exchange process. So while there may only be four
initial redeeming currencies, they will all generate abnormal exchange profits, thus the
banks are keen on keeping everyone calm, cool and collected.
From their phone operators, tellers, managers and wealth managers, all have been
trained to address your concerns quickly and effectively; this so the exchange process
can flow smoothly and quickly. But the exchange process actually begins with your
appointment setting phone call.
Each operator will ask for your zip code, which currencies you own, and in what
amount and denominations. From this information, they will schedule you in a specific
branch or redemption center in terms of potential deposit qualifications.
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Once you enter their branch or redemption facility, they will again qualify you based on
your identification, physical currencies held, denominations, volume and home address.
If you demonstrate consistency with all your answers, they will then assign you to new
accounts / wealth manager team that will assist you in your exchange.
However, if you appear negative or indecisive, or worse confused, they may ask you to
reschedule your appointment so others who are better prepared can go ahead of you.
Why? Because banks are in the business of making money, not friends… so the less
drama the better. So be prepared to redeem on time and quickly, in a controlled
manner, or be prepared to wait as others go ahead of you because time is money.
We recommend being early, respectful and understated in all your dress, words and
actions. These are well trained GCR/RV bankers do not want to hear stories about your
life’s calling, nor what you will do later that day with your sudden windfall. So by no
means get excited pre or post-exchange, as many of these bank employees may have
been lied to about the GCR/RV being real. Most were told to tell customers who asked
that it was a scam.
So get in and get out … do the best you can to maximize this first basket of currencies
opportunity, and celebrate in the privacy of your own home, keeping all joy to yourself
out of respect for the process and courtesy to others who are not as fortunate.
Arrive with all your documentation in hand, in a well organized binder, along with all
your physical currencies, purchase receipts, gift letters, legal entity documentation, IRS
tax information, existing bank account documentation, as well as a pre-made list of
cashier checks you want made out to specific people, with specific amounts. Having this
done prior to your exchange appoint, will separate you from 95% of those redeeming,
and potentially give you an edge on getting offered the higher contract rates and/or
higher interest bearing programs.
Remember, any bank can deny service to anyone they do not wish to work with.
Also, if you feel the need to bring along an associate or family member, it will be
allowed, but if said associate or family member shows concern or undue negativity over
the redemption rate or process, it could dramatically hurt your bottom line. So control
their attitudes and limit their questions, especially if you feel the appointment is headed
the wrong direction.
Let the general rule of thumb be: Less Drama = More Money. And most of all, do as
much banking negotiating homework as possible prior to your appointment. The quality
of your questions will demonstrate higher investment IQ, and thus potentially affect the
rate and term you ultimately get offered. Why? Because the contract pool is limited to
a set amount, and the bankers will be seeking high volume and high investment IQ
clients to offer the contract rates too.
So sew for the worst, hope to reap the best, and get as much as you can in the most
gentle and loving way.
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WEALTH DIVERSIFICATION

MULTI-CURRENCY ACCOUNTS (MCA)
Every wise wealth manager will advise individuals to take their time and think through
all major investment decisions. Measure twice, cut once is the old carpentry adage, but
in the case of the GCR/RV, the opposite is true. Time is money… short and long term.
So know that bankers and wealth managers alike will simply not have the time to
answer too many questions or wait on clients to make decisions their attorneys tell
them is acceptable.
The sheer volume of new clients expected to flood their banks is overwhelming during
the first few weeks of GCR/RV redemption. Therefore, it’s wise to design your own inbank
wealth diversification strategy to prudently manage all your new, sudden and
large volumes of liquidity.
Multi-Currency Accounts (MCA) are one proven way. They are sophisticated business
oriented bank accounts typically for international account holders with multiple
currency needs to service expenses. An MCA allows them to control liquidity all over
the world from a core host bank near where they live. And though their wealth might
be held in multiple foreign currencies, all are considered liquid assets in the US banking
system, thus a bank can freely lend against them as if they were USD currency.
Clients generally diversify a certain percentage away from a core currency and diversify
into other foreign currencies; thus hedging risk while still maintaining constant
liquidity anywhere in the world. MCA’s are good at protecting principal if their bank’s
host country’s suddenly has an economic melt down, as they need to move funds
quickly without traveling out of the host country.
Also, MCA’s can be used an speculative investment tool by dividing up a core or host
currency into several smaller, different emerging foreign currencies, thus diversifying
wealth across more continents, countries and cultures.
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MCA’s are a time tested and practical financial mechanism for accomplishing the goal of
wealth diversification during your initial redemption appointment—especially for
rookie investors because it’s as easy as opening a new bank account.
Plus, most major banks offer dozens of different currencies positions inside of your
MCA, yet it is wise to go with established currencies with stable governments for the
bulk of your funds, especially countries that have long histories of supporting their
currencies with gold.
Below is a textbook wealth diversification strategy using an MCA, that in now way
replaces a certified investment advisor’s counsel, but for the time being does allow you
some diversification options in the 20 minute window you may have to redeem, and let
you walk out of the bank with some peace of mind.
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TRUSTS
ESTATE PLANNING
Traditionally, trusts have been used to minimize estate taxes while offering other benefits
as part of a well-crafted estate plan. A trust is also a fiduciary arrangement that allows a
third party, or trustee, to hold assets on behalf of a beneficiary or beneficiaries. A trust
can also buy, hold, manage and sell many hard asset classes.
Trusts are arranged in many ways and can specify exactly how and when said assets are
to pass on to beneficiaries. Since trusts usually avoid probate, your beneficiaries may
gain access to these assets more quickly than they might to assets that are transferred
using a will. Additionally, if it is an irrevocable trust, it may not be considered part of
the taxable estate, so fewer taxes may be due upon your death.
Assets in a trust may also be able to pass outside of probate, saving time, court fees, and
potentially reducing estate taxes as well. Other benefits of trusts include:
Control of your wealth: You can specify the terms of a trust precisely, controlling when
and to whom distributions may be made. You may also, for example, set up a revocable
trust so that the trust assets remain accessible to you during your lifetime while
designating to whom the remaining assets will pass thereafter, even when there are
complex situations such as children from more than one marriage.
Protection of your legacy: A properly constructed trust can help protect your estate
from your heirs’ creditors or beneficiaries who may not be adept at managing money.
Privacy and probate savings: Probate is a matter of public record; a trust may allow
assets to pass outside of probate and remain private, in addition to possibly reducing
the amount lost to court fees and taxes in the process.
There are numerous trust entities one can make with your new wealth, however it is
always wise to follow the advice of legal counsel when choosing what is the best fit for
your individual goals. Below are the two types of trusts widely accepted as the core
foundation for all trust entities:
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Revocable Trust
Also known as a living trust, a revocable trust can help assets pass outside of probate, yet
allows you to retain control of the assets during your (the grantor’s) lifetime. It is flexible
and can be dissolved at any time, should your circumstances or intentions change. A
revocable trust typically becomes irrevocable upon the death of the grantor. You can
name yourself trustee (or co-trustee) and retain ownership and control over the trust, its
terms and assets during your lifetime, but make provisions for a successor trustee to
manage them in the event of your incapacity or death. Although a revocable trust may
help avoid probate, it is usually still subject to estate taxes. It also means that during your
lifetime, it is treated like any other asset you own.
Irrevocable Trust
An irrevocable trust typically transfers your assets out of your (the grantor’s) estate
and potentially out of the reach of estate taxes and probate, but cannot be altered by the
grantor after it has been executed. Therefore, once you establish the trust, you will lose
control over the assets and you cannot change any terms or decide to dissolve the trust.
An irrevocable trust is generally preferred over a revocable trust if your primary aim is
to reduce the amount subject to estate taxes by effectively removing the trust assets
from your estate. Also, since the assets have been transferred to the trust, you are
relieved of the tax liability on the income generated by the trust assets (although
distributions will typically have income tax consequences). It may also be protected in
the event of a legal judgment against you.
TAXATION
WITHOLDING TAXES
The GCR/RV is clearly the once-in-a-lifetime global debt jubilee, thus there’s little doubt
government’s worldwide have updated taxation laws to collect their portion of our
windfall. That said, it is wise to expect traditional Capital Gains taxation (short-term 1
year or less, long-term 1 year + 1 day). Although, a flat tax or “Historical Asset Tax” may
ultimately be assessed on GCR/RV redemption currencies, and range anywhere from
14% to 20% at the Federal level.
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At the State level, taxation will more than likely be assessed per existing tax laws, and
largely dependent upon personally reported income (see 50 State chart below):
Whatever your final tax rate, be sure to save a healthy portion of your profits
specifically for eventual tax exposures (which you’ll be paying on a quarterly versus
annual basis now), and always make sure you consult with your accountant or CPA as
soon as possible to determine how best to move forward in a legal and ethical manner,
so you can quickly pay your fair share but not a penny more.
Look, nobody wants to pay taxes, but everybody seems to end up doing so in the end;
just keep in mind it’s far more important that you sleep well at night versus stressing
out over ROI’s or profit maximizations, given how fortunate you were to receive these
kinds of returns in the first place.
Just keep everything in perspective and remember to enjoy the GCR/RV process…
including the taxation portion of it.
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SUMMATION
TREE OF LIFE
This money, for whatever heavenly or earthly reasons, has been placed in your care to
help yourself, your family and other families. So always look to be of service and do no
harm. For just as there will be many new choices to make post-GCR/RV in terms of
lifestyle, there are also choices to be made in terms of who you will allow to participate
in your wealth. Meaning, you might need to reconsider everyone currently in your
stable of friends and professionals given your newfound wealth.
Not only must your inner circle be familiar with all areas of the law, estate planning, tax,
investment and diversification, but they also must understand the delicate privacy
needs of high net worth and ultra high new worth clientele. As well as be in alignment
with you morally and spiritually, sharing common values as human beings.
Make sure to work slowly, always thinking about sustainability and protection all your
resources. Listen before you speak. Remain patient, prudent and selective with all your
words and actions no matter the chaos swirling around you—because as you have
probably heard many times before, with great wealth comes great responsibility—well,
great responsibility now falls squarely upon your shoulders.
Try always to remember that pure thoughts create pure results, while impure thoughts
create impure results. It’s simple but practical wisdom. And while it is your new job to
protect these assets, consider the task of blessing the huddled and tired masses with a
portion of your wealth, seeking out the less fortunate in society and providing those in
need with generous contributions, love and prayer… for God is watching.