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Saturday, January 25, 2014

BLC DISCUSSION CHAT, 26 JAN

01/24/2014 17:43 Central Bank decides "SEC gold bullion" to sell investors and segments of society

[tlm724] sweet !!! revealing their monetary policy instruments, I kinda like that   

[tlm724] this diversification is part of the requirements of the IMF also, they have had liquidity in the past years with their high reserves but the IMF wants them to have other sources , this is a very positive sign of the CBI following international recommendations

[tlm724] Re :the above article

Basel III: The Liquidity Coverage Ratio and liquidity risk monitoring tools January 2013 The Basel Committee has issued the full text of the revised Liquidity Coverage Ratio (LCR) following endorsement on 6 January 2013 by its governing body - the Group of Central Bank Governors and Heads of Supervision (GHOS).
  The LCR is an essential component of the Basel III reforms, which are global regulatory standards on bank capital adequacy and liquidity endorsed by the G20 Leaders.

[tlm724] The LCR is one of the Basel Committee's key reforms to strengthen global capital and liquidity regulations with the goal of promoting a more resilient banking sector.

The LCR promotes the short-term resilience of a bank's liquidity risk profile. It does this by ensuring that a bank has an adequate stock of unencumbered high-quality liquid assets (HQLA) that can be converted into cash easily and immediately in private markets to meet its liquidity needs for a 30 calendar day liquidity stress scenario.

It will improve the banking sector's ability to absorb shocks arising from financial and economic stress, whatever the source, thus reducing the risk of spillover from the financial sector to the real economy.

[tlm724] unencumbered high-quality liquid assets, thats the gold ^^^^   

[tlm724]
http://www.bis.org/publ/bcbs238.htm

[tlm724] the CBI is working on their Basel III compliance  *hallelujah*   

[tlm724] you go boy !

~~~

Participants: banking reform axis starting economic development processes  1/25/2014

[tlm724] examine economists and bankers mechanisms advancement sector money and the possibility of expanding the product offering to the public the beneficiaries of different needs of banking

[tlm724] now this could just be the translation but I like the sound of this part : mechanisms advancement sector money

[tlm724] where we meet the goal of reaching formula to contribute to the activation of the private sector and dealing with legislation that hinder the advancement of all his joints

[tlm724] they are trying to get the laws right to enhance the private sector ie: private banks

[tlm724] as the meeting will be organized during the next month, deals with attempts to enter Iraq to the World Trade Organization

[tlm724] *hallelujah*

[dealerdean] *hallelujah*

[tlm724] the push in on, they are in the final turn !

[therealbubbie] Vietnam's economic growth rate has been among the highest in the world,[9] and in 2011 it had the highest Global Growth Generators Index among 11 major economies.

[therealbubbie] successful economic reforms resulted in its joining the World Trade Organization in 2007.

[therealbubbie] successful economic reforms

[therealbubbie] 7 years it took VN to get in the wto . if my math is correct !

[tlm724] sounds about right to me bubbies

[therealbubbie] Vietnam's economic growth rate has been among the highest in the world,[9]

[therealbubbie] tlm724 do you know where Iraq stands on there economic growth .. just wondering !

[tlm724] therealbubbie 9 % bubbies

[tlm724] which is ** good

[therealbubbie] tlm724 just wanted to see if there in a better position than Vietnam was when they got in the wto !

[tlm724] therealbubbie I get where your going buts it apples to oranges as far as Vietnam is concerned, they don't have the exports like Iraq, each country has a set of parameters

[therealbubbie] tlm724 so Iraq has a good chance of getting in !! imo

[tlm724] therealbubbie yes Iraq has a great chance of getting in, I actually have no doubts about it, they said last month the were doing the final negations   

[tlm724] the question remains , have they done ALL that was required of them, I wish I knew but NO ONE knows the parameters I spoke of above

[tlm724] each country has a set of requirements and those are based on the individual country so comparing them to others is difficult when it comes to specifics

[tlm724] but IMO only I agree with you therealbubbie they have a great chance of getting in !

~~~

Alhegel: The objective of Najafi's visit to Washington is the activation of the strategic agreement with Baghdad

[tlm724] "the proposal will be discussed in the House of Representatives and if it is in the interest of the Iraqi citizen will be voted upon by majority.

[tlm724] this has to be done via referendum so the people have a say, that's what this art is saying publicity campaign

~~~

Invitation to achieve high rates of development  1/25/2014

[tlm724] after the increase in production and oil revenues, which enriched the general budget of the country and has achieved remarkable economic growth

[tlm724] they can't help but have have economic growth, they have it all and its just a matter of time before they figure out how to take advantage of it all !

~~~

Legal Parliament: the development of the provinces of Tal Afar, Tuz and will not affect in Article 140

[tlm724] will not affect the application of the provisions of Article 140 of the constitution 

[tlm724] that right there tells us they are applying article 140 imo

~~~

Finance Minister: Government plans to borrow to pay the allocations of petrodollars

[tlm724] Likely to pass the general budget of the country during the next few days

the intention of the government to borrow 9 trillion dinars to repay the funds petro dollars allocated to the provinces, if approved by the House of Representatives, stressing that the allocation of petro dollars acquired right and the government is obliged to reimburse

[tlm724] so they are getting the funds together to pay the petro-dollars 

[tlm724] *hallelujah*

~~~~~~~~~~~~~~~~~~~~~~

[tlm724] the news gets better everyday, oh sure we see set backs but that is the way of the world , so put your big pants on and lets keep keepin on and my thoughts are to our Lady today also, she works so hard for us everyday and there she is up there ^^^ sick but still here for us, she puts her time and heart in this for us and opens her purse for us too so with that thank you BondLady ! You are much appreciated !!  

[RCS1947] AMEN!

[dealerdean] hear hear

[mathews99] I appreciate all of you guys 4 keeping me straight or I would of been nuts by now so ty all   

[rsp1] Bondlady, sending you Get Well wishes and thoughts. Lay low for a couple days...and thank you for persistance with posting articles for us all to read.

LOECHIN POST, 25 JAN

1-25-2014   Intel Guru Loechin   I love this saying, "Things that are, are not always as they appear." Usually I do NOT like weekends as they are deadly with little to no movement, but this one MAY be different. 

WHITE HAT AUXILIARY POST, 25 JAN

FACT CHECK #93

Posted on January 25, 2014

Found at weforum.org: (World Economic Forum)

http://www.weforum.org/sessions/summary/global-economic-outlook-2014

We found this video on the World Economic Forum website this morning. It is a session conducted at the WEF. The topic of the session was :

Global Economic Outlook 2014What should be at the top of the agenda for the global economy in the year ahead?

Speakers: Wolfgang Schäuble, Montek Singh Ahluwalia, Mario Draghi, Haruhiko Kuroda, Martin Wolf, Christine Lagarde, Mark J. Carney, Laurence Fink

Much of this is beyond my personal comprehension since I am not an economist or central banker.

However, at around the 9 minute mark, Christine Lagarde mentions that “R word”.Reset.
 Here are some of her words on that topic. I leave it to you to determine if you feel she is priming the pump for what we all anticipate as the Global Currency Reset.

Please understand that we cannot claim that she is referring to it since we do not have the luxury of picking up the phone to speak directly to her and asking, and further, it would be doubtful that she could even talk about it if she would take my call in the first place.

Here is a partial transcript of her remarks on a “reset”.

“My last “R” is “reset”.  We are seeing, as necessary going forward, a reset in the area of monetary policies. We believe that quantitative easing and the accommodating  monetary policies that have been adopted so far should be continued up until such point where growth is well anchored in those economies, and this is not yet the case everywhere.

Reset, in the sense that once it is well anchored, then those accommodating monetary policies have to be reformulated; have to move either back into their old territories or be more traditional, or be, maybe of a different kind and I am sure central bankers around here will be able to comment on that. But, that’s first reset.”

How interesting that the word “reset” is being used. And to clearly say at one point that policies have to MOVE BACK to their old territories or be more traditional? Traditional, as in the tradition of backing money with assets? I have no clue if that is what she was referring to.

Further, the use of the words “different kind” to describe the kind of reform was, to me, stunning. To me, that means a total change.

We thought we would share this with you as a possible sign of things to come. At this time we patiently await events to transpire along with all of you.

Thank you for your continued support, kind remarks and good will. The White Hats appreciate your patience and support as well.

More to follow when appropriate.

WHA  

SOCIETY POST FROM KTFA FORUM, 25 JAN

Post From KTFA By Society

Society wrote on January 24th, 2014, 11:52 pm:


Dear Family.....What an interesting time we are currently experiencing.....in the middle of 2012. we were told the "delete the zeros" would be implemented in the beginning of 2013.....the "mukla".....Wow, who can believe we are now in 2014....

The questions lately have been a revisit of many that have been previously addressed but are certainly relevant to anyone involved in this currency purchase and subsequent exchange....

The biggest recurrent question is can they become "International" at 1166....Even a very close friend who was one of the first I ever told years ago about the IQD potential asked me this today....
  We have seen many articles referring to lifting the program rate and instituting the reality rate....what does that mean.... WOwww, even Frank 26 has now today become Frank1......

First, IMO, remaining at 1166 and becoming "International" is certainly feasible.....however, as I explained to my friend today, this is totally illogical based on what they have done or not done....

If the plan was to remain at 1166 or even float from 1166, why have they not taken action to move in this direction?.....why not print a 50,000, a 100,000 or even a 200,000 IQD note to help the 1166 rate be functional.....THEY HAVEN'T!!!!!!.....nor do they intend to....

How do I know this???....they have clearly stated they are enacting denominations of 250 Fils. 500 Fils. 1. 5. 10. 25. 50. 100 dinar....think about it,,,,these denominations are ridiculous at 1166....

after all, the 1,000. 5,000, 10,000, 25,000 are ridiculous at 1166.....and, what's more, the CBI is currently not even supplying the banks with the 000's to fulfill liquidity demands....WHY NOT!!!!!

Now, let's look at Frank26 becoming Frank1 today......I have always thought that Iraq would rv at a rate of .86 unless we see a move of the 1166 rate to perhaps 1,000/USD which would make the removal of 3 zeros a 1-1 rate to the USD....

they then could move the rate to the reality rate within 3-5 months and in the meantime "capture" many 000's at the lower rate.....

However, IMO this was the plan for last year, not this......While I certainly could be wrong, let's look at what has occurred......Note, there has been many times that I would have argued with Frank26 and would have been subsequently wrong so take this for what it is worth....

Ernst and Young stated a couple years ago that upon auditing the assets of Iraq and adjusting for the liabilities, Iraq could subsantiate an IQD value of $1.30......

Now, this is my recollectioon and perhaps WS, Hal Super-computer, will bring that article forward....

Since that time, Iraq has not only eliminated billions of debt but has revealed many assets......increased oil reserves, natural gas, minerals, water, phosphate, mountains of GOLD, not to mention the CBI reserves are the highest in history....REALLY, a reality rate equal to the USD????.....

Ernst and Young stated 30% above the USD before this round of debt reduction and the revealing of an incredulous amount of increased assets......

Ok Frank1, while you are usually right, I don't buy it.....they have simply gone too far into the monetary reform......while it made sense a couple years ago, it no longer makes cents....

Additionally, PRIDE.....THere is no logical reason that I am aware of that the IQD should be much of any below the KWD.....Not only do I know this but I believe the Iraqi people know this....

While we think these people are not intelligent. many are.......One of the top students in my college Physics classes years ago was an Iraqi.......There are many very intelligent people there I assure you....

That all being said, there is no doubt in my mind that the rate of the IQD will not remain at 1166 much longer......a week?. amonth?, 3months?, 6months?....we don't know.....

However, the bank liquidity issue is Huuuugggeeee......they have had a hard enough time trying to gain the confidence of the people in the banks and I cannot imagine they will throw this away very long....

Either the banks will have to be supplied the needed 000's or will need LD's and a new rate.....

If they were not planning on a major change, why not just supply the necessary 000's????.....IMO, it's obvious....

If it wouldn't be for the bank liquidity problems, the CBI stating they planned bond sales before the end of the year and now stating they are READY for gold sales, in addition to the budget saga, I would think we are to see a rate change in June.....

HOWEVER, in light of the facts we currently see, I am extremely interested in the next 10 days and believe Frank26 should have not changed to Frank1 but Frank26 plus 10///////IMO FWIW

DINAR GURUS UPDATE, 25 JAN

1-25-2014   Newshound Guru  Tlar   Article:   "Indicated the presence of approximately 35 trillion dinars in circulation in the financial markets attribute the reason for the postponement of parliamentary delete zeros to the difficulty of controlling the currencyThe CBI deputy, Saleh, had stated that they had 35 trillion dinars out at the beginning of 2012 of which 4 trillion were in circulation in Iraq.  The rest were in Syria and Iran and held in investors hands and Government Central Banks, both in the middle east and around the world.  We know that the CBI has made an intense effort to repatriate dinars from Syria and Iran and else where assisted by UN sanctions.  They have repatriated trillions and trillions of dinar through the auctions. This is a number that no one outside of the CBI has true knowledge of and most articles repeat the stock number (35 trillion dinars out) because the CBI has not let the true numbers out since the beginning of 2012.
1-25-2014   Newshound/Intel Guru BGG
   [do you think a note is a note and they all represent the value of the dinar,  just times the face number of the note?]  a note is a note - it represents how many dinar.  The value of each Dinar is set by the CBI.
1-25-2014   Newshound Guru Kaperoni
  Article:   "Indicated the presence of approximately 35 trillion dinars in circulation in the financial markets attribute the reason for the postponement of parliamentary delete zeros to the difficulty of controlling the currency"     ["My question is how can a war torn country with 35 trillion dinar in circulation possibly see a value of 1-1...When all other countries have less than 4 trillion in circulation?"]  The answer to your question is they cannot...unless they have a plan to collect or reduce it.  And the CBI has said on several occasions..."they will gradually raise the value down to the day they begin to replace the currency."   An argument could be made that at the same time or before, they will remove these larger notes.  If so, then a gradual appreciation of the value is possible.  That is why only a float make sense at this point.  No overnight RV could or will occur.  You can find several articles or documents...to support this.  Including the IMF themselves.

MEMPHIS POST FROM KTFA FORUM, 25 JAN

Post From KTFA By Memphis » January 25th, 2014, 4:09 am   •  [Post 100]

U.S. Treasury to offer 15 bln USD in first floating rate

English.news.cn 2014-01-24 05:23:25

WASHINGTON, Jan. 23 (Xinhua)-- U.S. Treasury Department said on Thursday that it will offer 15 billion U.S. dollars in its first auction of floating rate notes next week, marking introduction of first new Treasury security in 17 years.

Floating rate note (FRN) is a new type of marketable security with a floating interest rate that resets each day, based on the discount rate of the most recent 13-week Treasury bills. It pays varying amounts of interest quarterly until maturity.

FRN is the first new security the Treasury has offered since 1997. And the initial auction of two-year FRN will take place on Jan. 29.
  "Floating rate notes bring additional diversity to Treasury's current portfolio and help support our goal of saving taxpayer dollars by financing the government's borrowing needs at the lowest cost over time," Mary Miller, the Treasury's under secretary for domestic finance, said in a statement.

Over the past three years, the Treasury has worked with market participants to design the floating rate note program. It is aimed at helping to finance the federal government at a lower cost and at the same time expand investor base.

http://news.xinhuanet.com/english/business/2014-01/24/c_133069440.html

tmellraney wrote on January 24th, 2014, 9:14 am:

EAGLE1,  HELP US WITH THIS!!!     COULD THIS BE PART OF THE GCR?

I heard on BBC NEWS this morning .........that the ALL-TIME-RECORD PLUNGE of certain FOREIGN CURRENCIES (i.e. Argentina, Turkey, China etc., etc.) and their selling their GOLD for USD is to support their economies temporarily for the next few months until the decline of the US dollar.

NOW, we see this FRN (Floating Rate Note).   Could this be it?

Memphis:  Good evening. This article speaks of a new borrowing strategy [FRN's] that the Treasury announced in early November right on the heels of the debt ceiling shutdown.

It's emergence is thanks to a strange mixture of politics and economics and signals the START of the coming rise in interest rates. Beginning during the Clinton era the Treasury began rolling their debts into short term instruments.

This new practice largely allowed the White House to magically come out with a balanced budget by showing savings in yearly interest expenditures on our debt.

Fast forward to today and this short term exposure now is working AGAINST our current administration by giving the tea party the ability to leverage the debt ceiling as a tool for negotiating.

 By moving back towards longer term borrowing (2yrs) the debt ceiling can be approached without the constraints of time working against them.

The yield on the new notes will float according to market conditions and we will begin to see longer term rates start to rise.

Trust me, the Tresury knows that long term this is a big nail in the coffin and thus it becomes evidence that our nation is servant to the lender. The Wall Street bankers had a nice closed door session in the Oval Office over this one....

As always the natural cycles of money cannot be manipulated forever. This move by the Treasury is the mechanism that will allow the market to again take over and (over time) force interests rates back up from their artificially low levels.


As I stated a month ago in our 2hr cc, watching this develop will be the greatest single marker to follow because our nations debt level will not tolerate a rising interest rate. Many ugly things will manifest on the back side as our nation's insolvency actually shows itself and confidence begins to erode.

Speaking of confidence! This brings me to the last of your question...

What we read in the news Friday about emerging market currencies was a movement of capital due to a lack of confidence. One of the tenants of capital flows (that is admittedly hard to wrap your mind around) is that capital normally flows not in RESPONSE TO an event but rather in ANTICIPATION OF an event. And further? Often that event never even happens!

The catalyst here?
The ANTICIPATION that the FED will again reduce it's printing of $.

The prevailing theory at present is that the emerging market economies are most at risk of loss in the short term and so these nations are witnessing a flight to safety from their economies into what is PERCEIVED as a safe haven.

I see nothing of interest regarding these nations possibly repricing their currency in the near term. Argentina is actually in need of this as their inflation rate (if left unchecked) would constitute hyper-inflation but given that their central bank has relaxed rules on purchase of USD internally who's to say what they will do.

In short, IMO...."nothing to see here" regarding the dinar. It's just normal capital flows and I hope that in a small way this post can help folks take a deep breath and go enjoy their weekend !

Blessings,   Memphis