Millionday News 8/4/13

    [millionday] this is an article that we have to read because of the huge amount of info in it there is alot i have to share with you – now let me talk about a few things that i find interesting as well first

    [millionday] the UN has changed the official iraqi representative to someone that has spent much time working for the world bank — kobler is out and cbi has announced that the security situation will not and does not negatively effect the monetary reform timeline or the economic/banking reform either and the UN is there with multiple other representatives from the UN and also the IMF

    [millionday] we have alot of reports so let me bring the reports so they make sense and i will try to answer your questions after each and summarize in the middle  – ok here we go

    [millionday] the first one is about the entry to the globe and of course the wto ect it is worded strange

    millionday] This article includes adequate answer a question for as long as PayPal served researchers, planners and economists, to the effect that Iraq is eligible to join the World Trade Organization (WTO) wto??

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  Then she shed light on the most prominent advantages of accession, and warns that failure to join would affect the work force Iraqi expatriate estimated at one million and a half million employees in all parts of the world and the potential lack of protection heads of Iraqi funds expatriate and exposure to potential narrow your chances of legal defense of their rights, due to its importance the need arises published appearance of Dr. Mohammed Saleh *

    [millionday] Adopted Iraq since 2003 policies open and wide around the world and sought to establish the rules of economic and legislative task of working according to the mechanisms of the market system, as it helped mostly on improving trade Iraq for Foreign Affairs,

after the economic blockade lasted for more than a decade and odd time led to the marginalization of Iraq on a map of the economic system and the denial of global investment opportunities, progress and development and technological knowledge that should have been appointed to cope with the rapid developments and changes that occurred to the international market and change their competitiveness sharply over the past two decades.

    [millionday] Thus, under the Iraq suffers from the legacy of isolation from its surroundings international in the midst of a world invaded streams merger of his companies and liberalization of its markets and integration,

especially financial and sovereignty doctrine neo-liberal which required economic transformations and wide in the field of IT and financial services is consistent with the UN productive activity through the role that took play MNCs and increased competitive advantage for products that generated world markets began.

    [millionday] now this is the doctrine that has been signed >>>>>>>>>>>  Thus, under the Iraq suffers from the legacy of isolation from its surroundings international in the midst of a world invaded streams merger of his companies and liberalization of its markets and integration,

especially financial and sovereignty doctrine neo-liberal which required economic transformations and wide in the field of IT and financial services is consistent with the UN productive activity through the role that took play MNCs and increased competitive advantage for products that generated world markets began.

    [millionday] and also they go on to discuss the applications by the constitution — brb with more of it

    [millionday] In spite of this, we find in the integration of financial markets, which touched the value of its assets over 850 trillion dollars, is the title of financial globalization and the focus of domination key in the global economy, the neo-liberal is at the same time represented didn Jump hubs of international trade and the introduction shift from the scope of GATT GATT signatories

In 1948, an agreement the World Trade Organization (WTO), where the latter focused on the organization of a broad spectrum of trade in services, particularly financial services, which was named GATS Annexes to the Convention in 1994 on the basis of the Uruguay Rounds.

    millionday] While not exceed the global GDP 70 trillion dollars annually at the present time, and also did not increase the value of world trade in goods and services annually is the other, but less than a third of global output mentioned above, we find that trade in currency converter and speculation in which more than about 4 and a half trillion dollars a day in the markets,

the International Monetary and Financial a financial trade speculation over the annual total to more than fifty times the total world trade in goods and services activity

    [millionday] note — we know the huge amount of countries that are part of the wto from the massive reading we have done on the subject so no need to go on about that but — the benefits listed here makes perfect sense with that knowledge we have —   brb with more of this smile

    [millionday] . In the midst of these changes in the commercial space and the international financial, go Iraq to organizational levels are important in the transition to a market economy to break the effects of isolation of international cross-engage in the area of ​​strong economic liberalism centered in the liberation of the areas of trade Iraq’s foreign goods and services and ways of financing,

 although volatility or uncertainty organization, as well as areas of progress in financial services and improving the environment for foreign investment through legislation legal banking, investment and the central bank law and amend the Companies Act,

 allowing foreign banks to operate in Iraq and allows the transfer of capital and currency and in a manner that serves the openness of Iraq on the world conditions of central Rei economy ungainly in a liberal understanding of the market,

which led however to provide positive opportunities and the foundations of legal, regulatory and promising business environment in Iraq.

    [millionday] But all that is not enough to put Iraq on the path of economic competition international.

Because there are still more than five thousand text of legislative texts, hindering economic freedom and market activity, holds the legal community today considered that would spend as modified so that Iraq’s integration in trade and international investment and prepare to join to the World Trade Organization under the terms of its membership in order to get our country on the most-favored-nation clause and the principle of national treatment.

    [millionday] one sec let me address this – so this is stating what would keep them from entering or the issues they need to be a part of the wto at this point

    [millionday] note —- >>>>>>>>>>>>>>>>> as well as areas of progress in financial services and improving the environment for foreign investment through legislation legal banking, investment and the central bank law and amend the Companies Act,

allowing foreign banks to operate in Iraq and allows the transfer of capital and currency and in a manner that serves the openness of Iraq on the world  the countries that are part of the wto that they would be doing business with — have to be able to get the iraqi dinar and the rate has to be a part of reality

    [millionday] along with the other things that have to be activated mentioned — this is very important to us obviously

    [millionday] now the banks that have to be able to do business there in the largest portion — want their banks to not only benefit but also to gain in that area as well — through the market that we are also going to talk about in a minute

    [millionday] At the time, which dominates the oil production on the proportion of about 60 Palmihmn components of GDP, but he only 2 percent of the labor force in Iraq.

It is interesting that the labor force in the country to only 22 percent of the total population who are able and willing to work, which means that there is an imbalance vast in the installation of wealth producing human and ability to invest, particularly women’s labor force ones that complain of negligence, ignorance and illiteracy on a large scale

    [millionday] While a country’s exports of crude oil and returns absolute majority semi percentage of the total export revenue of the general budget and the outcome of the country’s foreign exchange. In the face of all that, the WTO ruled out of crude oil being a commodity within the range of goods that are traded internationally, which still forms the core of the contradiction in Iraq’s accession to that organization, which excludes crude oil.

    millionday] If the WTO allowed the introduction into account the oil to leave the price is determined by supply and demand world away from the cartel or consumer groups and the representative of the International Organization for power lines and programs to rationalize the demand for oil.

 Or away from the cartel or gatherings producers represented by the Organization of Petroleum Exporting Countries (OPEC) and its role in the regulation of production and the impact on prices, which put restrictions price and quantity of a commodity business, but strategic and political at the same time, which is the driving force behind the trade of Iraq’s foreign.

    millionday] note — meaning the oil — now remember that the wto does not want that to be the only market at all and wants iraq`s reliance to expand

    millionday] . And on the other side of the Iraqi economy, we find the agricultural sector, which includes one-third of Iraq’s population and about 22 percent of the labor force actual Aashm in GDP, but by not exceeding 5.7 percent at best, making the country almost a net importer of food Aowalsla agriculture.

As this important sector, which was the militarization and neglect over the past thirty years, to possess the ingredients sufficient in providing food security of grain or production requirements agricultural after shrinking acreage produced by desertification and salinization, and

    [millionday] poor infrastructure in it that overcome the disabling more than 80 percent of the arable land. Wan Security grain from domestic production is still available at rates exceeding 40 percent of the wheat crop in the best cases, almost to for other varieties covered by imports almost absolute such as rice and other field crops.

 Here, contrary to the agricultural sector with structurally oil sector in the trends of openness to the world market and different wings in terms of the impact of trade benefits and costs.

    [millionday] so obviously we know that they are talking about the entry of the iraqi market to the globe and its benefits as moving forward for the wto accession  —  however — brb

    [millionday] >>>>>>>>>>>>>>>>>>>>>>>Notwithstanding the foregoing, the entering Iraq and regularity in the space of global economic via the WTO and its dealings with international groups terms apply to everyone technically at a time still when the world is divided between the northern and southern countries or countries industrial center of Advanced and Pacific developing,

what on Iraq the option to leave the isolation of international inherited since the siege, which began in 1990 and that the situation in Iraq under Chapter VII of the UN Charter even completed on June 30, 2013, a chapter that did not provide for Iraq, but economic environment is negative anti-development and possibly disruptive to integrate natural market World

    [ROBINREDHED] so are they or arent they?

    [millionday] they are as they have been training for but look at this part of this report  it is long but full of info of where we are right now

    [millionday] Where the prohibition of that chapter and Madarthelath Twenty-year-old levels of investment in advanced technology Awaltaati facilitator where with the world because of the imposed restrictions on our country until very recently being the countries high-risk and threatening world peace and legalization use of force against him despite the demise of the substantive reasons imposed economic sanctions, which on Iraq at the time.

noting that Iraq’s accession to the areas of regional economic, as a greater Arab free trade and other economic agreements within the scope of the Arab League or other forms of integration and regional integration,

it is necessary to take into account the implementation of the provisions contained in the Convention of the Organization and before the World Trade GATT, which became both two limitations are obliged to implement trade agreements.

    [millionday] now what this means is that there was a problem in the way but as we read in this part of the report — it does not exist anymore >>>>>>>>>>>>>>>

    noting that Iraq’s accession to the areas of regional economic, as a greater Arab free trade and other economic agreements within the scope of the Arab League or other forms of integration and regional integration,

 it is necessary to take into account the implementation of the provisions contained in the Convention of the Organization and before the World Trade GATT, which became both two limitations are obliged to implement trade

    [Papatom] millionday obliged to implement trade I LIKE It

    [millionday] so in other words the many agreements at this time must move forward with other countries — yes very very good

    [millionday] they must move forward at this time in other words due to the way the agreements are written and the conventions that we have seen them working on in the last few weeks

    [ROBINREDHED] ok  ill take “obliged”

    [millionday] >>>>>>>>>>>>>>>>>> Iraq remains isolated from the surroundings international without the availability of a climate of interaction with the market illiteracy and regulations of international, and in particular the World Trade Organization, cost him a lot because of the loss of the benefits and opportunities for regulatory and benefits of technological, legal and other areas of investment, arbitration and ensure that intellectual property rights and to address the plunging commodity, etc.

 It opportunities that Ayufarha his isolation from the world orderly and can not be of a gradual transition to a stable countries and few risks and aspiring to shift towards openness approach to the world

    [Papatom] millionday it goes well with the article last night or night before that said that Iraq had to be treated differently cus that they would come out fully developed….. ? remember?/?

    wmawhite] Papatom ………good point Tom………………millionday

    [peppermint] millionday but don’t they have until the end of this year to work on getting into WTO

    [millionday] note — this is saying that nothing can be done gradually — it has to be done all at once and entirely

    [Papatom] wmawhite not a normal emerging country….

    [faith1] NOW is good !! Iraq the option to leave the isolation of international inherited since the siege, which began in 1990 and that the situation in Iraq under Chapter VII of the UN Charter even completed on June 30, 2013, completed on June 30, 2013, Completed ! All at once is Very Good !!

    [ROBINREDHED] shooot, then jus do it gawwwww

    [millionday] this is due to the major loss they have already had from the lack of accession and also from the way the organizations are  set up and able to accept iraq

    [wmawhite] millionday millionday ………..do you agreed.

    [millionday] they have to be all the way or no way in these trade organizations entirely — i am almost done with this report and then i will be able to answer it better

    [wmawhite] millionday ………..all the way with their currency..tooooo.

    [millionday] im sorry what hun?

    [wmawhite] 8:25 PM [Papatom] millionday i goes well with the article last night or night before that said that Iraq had to be treated differently cus that they would come out fully developed….. ? remember?/?

    [millionday] yes i remember and it does go well with it — i agree

    [wmawhite] super!!!

    [millionday] smile

    [cookie2] Does this mean they will RV and join WTO at the same time? millionday

    [millionday] there are just two more parts of this and i will bring them if you want — i find that they make the whole thing make sense

    [monique13] bring it on!!

    [cookie2] Please

    millionday] cookie2 no they are just saying they are trying to do all their work with wto compliance so they dont have to do it over in that part

    [cookie2] millionday TYVM

    [millionday] that was all to explain how exciting this last part is and how it means where we are

    [millionday] yw all the time hun

    [millionday] a shift that promotes international cooperation in the investment environment and international trade and regional safe.

taking into account the importance of Masyuverh Iraq’s accession to the Organization of providing protection for the work force Iraqi expatriate working outside the country and not less than estimates of a million to a million half Operated spreads mostly in parts of the world first,

paralleled at the same time the capital of Iraqi expatriate is adrift to some extent, exposed to the potential for exposure and narrow your chances of legal defense their rights, as well as weak bargaining power in the protection of their money

    [millionday] so the lack of availability of national capacity official to defend its interests, or even take advantage of the return in the reconstruction of Iraq., and such a pattern of alienation extreme production factors Iraq, despite the problems suffered its interests in the areas of set up outside Iraq,

 in many cases, to abuse and the loss of rights, it still with incubator country’s economic and voluntary return to the country as a function of producing effective, but the availability of the ability to integrate official of Iraq in the global trading system and its institutions represented by the World Trade Organization and in accordance with the basis of a negotiated fair

    [millionday] so as we see — they are saying that everything will be done at the same time — entry in the world will not be slow due to the massive contracts and the massive need of complete compliance with trade laws and the entry to supply and demand or market economy in such a way that the transition to all international organizations as they come up will be done with smooth entry and also will be in a hurry due to the fact they have calculated their losses due to their snail pace they have remained in    [millionday] smile

    [cookie2] millionday — Could we have your Reader’s Digest version of the article, please?

    [faith1] major loss they have already had from the lack of accession…. major loss they have already had from the lack of accession… ascend already !! Does Iraq have t be fully ascended into WTO to raise the value of their currency..

    [ROBINREDHED] cookie2 right?

    [millionday] faith1 no — its the other way around — they have to have tradable currency and be compliant

    [cookie2] robinredhed lol

    [faith1] I was gonna ask ,, is it the other way around,,,, Thanks !1 !!

    [millionday] smile

PART 2 CONTINUED




Appendix: establish a body dealing with banks is a positive step
05-08-2013 10:33 AM



Baghdad (news) ..

Ruled competent in economic affairs Dargham Muhammad Ali, the establishment of an independent body dealing with banks, stressing that the central bank is concerned party and the sponsors of the banks, which are wide open to the Guidelines for the work of banks.

said Mohammed Ali (of the Agency news): The work of the central bank is monitoring the performance of banks and diligence the depositors’ money where follow-through continuous workflow where, in addition to policy-making and public interest and the nature of the credit and give the value of the reserves compulsory deposit to the bank to these banks.

said: that the establishment of the concerned banks is in place where all the nations of the world, noting that it step is positive because banks must possess independence in policy.

between: that there are bodies such as the Federation of Iraqi banks and organizations of civil society organizations work assembling opinion and supplement the common policies of the banks studies to develop their work but they are not the owner’s decision banks.

noted that the Finance Committee parliamentary called for the establishment of an independent private concerned with the affairs of Iraqi banks are in isolation from the central bank to support the development of the banking sector in the country

http://www.ikhnews.com/index.php?page=article&id=96033




Warned of the increasing budget deficit (2013) Bayati ..: revenue earned during the half year amounted to 35 billion dollars
05-08-2013 12:56 PM


Baghdad (news) ..

A member of the Finance Committee MP / coalition in Iraq / Hassan Auzmn Bayati, said that oil revenues during the half year amounted to 35 billion dollars, not 79 billion dollars, warning of the increasing budget deficit this year as a result of the continuing decline in oil exports.

was the Ministry of Oil announced the achievement of revenue (79) billion dollars from oil exports during the past six months. Bayati said (of the Agency news):

The central bank provided the Finance Committee, the parliamentary private data for Iraqi oil exports during the first half of this year, reaching revenues of oil exports (35 billion), at a rate of (7.5) billion dollars a month.

said: that these revenues came as a result of the low rate of oil exports in the past months, especially from the pipeline Kirkuk Ceyhan, which is exposed to sabotage frequent addition to the occurrence of some of the problems in ports south of export, as well as omission of the Kurdistan region of delivery of export revenues (250) thousand barrels to the center.

pointed to: the continued decline in exports will lead to a large fiscal deficit in the current year budget, which was built on the rate of export of 2.9 million barrels, while exports rate current oil did not exceed 2.4 million barrels per day, and when it stopped Kirkuk pipeline will reach 2.2 million barrels per day

http://www.ikhnews.com/index.php?page=article&id=96075

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ATTORNEY GIVES IQD TAX & INVESTMENT ADVICE ***FREE***
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(Dinar Recaps Note: This post is for informational purposes only.  It is not legal, tax or investment advice.  Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
This is a Recaps repost  from our earlier days 12-22-11

Dear Dinar Enthusiasts,

I hope all these juicy Legal Treats serve to assist you and ease some questions you may have.

The comments found herein are from an Attorney who is one of my Dinar Update newsletter recipients that has practiced law in the areas we all need to investigate with our IQD investments.

This Attorney has requested that I not share his name or contact details, as he is simply providing all this to be of assistance to us all out of the goodness of his heart, and without charge – He further stated that he can not take on any clients via this channel (through me) as that would go against his code of ethics.

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  In a Dinar Update email I sent out last week I directed my readers to contact and hire a Tax Lawyer/CPA and Financial Planner to obtain advice to do with their IQD holdings, and this Attorney being a member of our group simply took it upon himself to write back to me with the following, after which I replied with my questions in another email, which you will find below with his response to everything I had asked… enjoy.

Attorney Writes:  Ken, There is really no simple way to avoid the taxes. I am going to give you the basic law on this stuff.

A 501 C 3 is a Charitable Public Foundation, you loose absolute control over this and the monies have to be used for charitable purposes. While you can draw a salary a “reasonable salary” it is not a piggy bank and in the end the proceeds stay in the charity when you die and do not go to your family

 Moreover it takes a good 8 months or so to set one up. I have done several never seen one done quickly. The last one for a Public Foundation for a U.S. Navy Ship that I was asked to do.

Usually a foundation is set up to raise money for the christening and to afterwards raise money for the ship for various things. Anyway that was an ordeal even though it was for a U.S. Naval Ship.

There is no kind of family trust that gets rid of income tax. There are Charitable Trusts called Charitable Remainder Unitrusts and Charitable Remainder Annuity Trusts.

 If a person puts all their currency into the trust the Trust then can make the exchange tax free and does not pay tax.

However it has beneficiaries. Again these are very complicated to set up. There are a whole lot tables used to calculate values and how much one can receive as a beneficiary and the beneficiary can only take so much as you cannot jeopardize the principal in the trust and the beneficiary has to pay income taxes on the monies received.

If the beneficiaries could possibly live too long then it makes it more complicated. Again after the beneficiaries die and they must be from the same generation which means your kids and grand kids are left out, the monies must go to a 501 C 3.

I assure you the IRS is very strict about this and the office that handles all of these things is in Baltimore. These are complicated trusts they are not a magic bullet.

The Trustee is scrutinized yearly and has to make reports keep minutes and there is a whole lot of book-keeping etc.

These are things you have to really think about because once you let go the money it can never come back to you meaning change ownership again.

A revocable living trust that is the only thing I know that goes by the name Family Trust. And a Family trust is “you” it has your tax id number your social security number the taxes pass straight to you again this is an estate planning device not a tax planning device.

If you get a separate tax number then you risk it being taxed as a trust at the highest rate. All RLTs are good for is for Estate Planning Purposes.

I think they are great tools and I highly recommend them but not for something like this.

Anyway just wanted you all to know the facts. I used to do these every month.

I am not saying they are bad things, they are good when used certain ways in a planned structure and they can help alleviate federal gift taxes, but using them to get rid of income taxes yeah you do but the monies are not yours anymore.

Your public foundation has to have a Board and that board may not vote you the monies you want all the time.

I recommend folks get a CPA to calculate the income taxes. Put those monies in a A) account in a Private Bank of a huge Public Bank have that bank invest in municipal bonds the interest earned is income tax free have those monies paid over to a B) account which is where the balance of your monies are and then live off the interest.

Have a money market account set up beside your two accounts so you can take quarterly draws from account B. Whenever you go to pay your taxes you will have the monies in Account A to pay the tax but in the meantime it is paying tax free interest over to Account B.

Account B is invested the same way in muni-bonds. You want to know the biggest player in the DFW area who pays hardly any taxes at all and has income exceeding 100,000,000 million a year in interest from muni-bonds?

Ross Perot. This is how the big boys do it.

There is nothing wrong with taking some monies out to do whatever you want with, but the biggest thing is that most people who come into lots of money that have never had money tend to blow it inside 60 months. This is a proven fact. Hence the reason for my recommendations.

Any major bank has a Private Banking Arm. Ken there in Texas, Bank of Texas has a private bank in Ft. Worth and Dallas. Chase has one, B of A, you just need to check with your bank.

Anyway those are my thoughts. I have kept silent as I am working for other clients but I hate to see people get hurt. I hope this helps you some and I hope with all my heart that this comes to fruition for everyone involved.

Ken Writes: Thank you so very much for stepping up to the plate to help with your experience and knowledge!

Attorney Writes: Ken again, I have been out here biting my tongue and swallowing blood. I have a vested interest in this happening and I was engaged by some very kind and thoughtful folks.

For years all I did as a part of my regular practice was what I called “Structural Planning” which took in (Estate & Business Planning) and I later drifted in a big way into International Planning.

So I am not short of experience did it all for over 15 years. Too many clients told me I was too nice to be an Attorney, as I do not have those bassmaster qualities of most.

I think it is an attorney’s job to educate the general public and from a Christian standpoint we all have   stewardship responsibilities, which is as far as I am concerned most paramount. I will not get preachy but at least you will understand my perspective.

Ken Writes: Our Tax Attorney/CPA originally said that the Trust was something we should consider because we talked with him about our 3 grandkids, but he seemed more concerned about protecting the monies from law suits… from anyone that would try to come at us down the road knowing we had monies they could potentially come after.

Attorney Writes:  Again Charitable Trusts are wonderful planning vehicles and I did not go too deep into it when I last wrote you. They can shield an income source from lawsuits but the flip side is you loose ownership of the assets and the assets must produce income.

Ken they are nice tools and I had fun doing the work. I also had a staff to help me. We had software to generate the logithrums that looked at the life expectancy of single and dual owners and sometimes I had wealthy clients who had kids they could not trust and I would set up a 3 or 4 life Unitrust.

If the kids were young it would cause all sorts of issues because the Trust themselves base everything on a set of tables distributed by the IRS and longevity tables in the calculations.

 I hardly ever set up a Charitable Annuity Trust because they only work in certain situations. There are times when putting both a CRUT and a CRAT in an effective Revocable Living Trust that can almost kill all Federal Estate Tax.

One of them will kill almost 47% and then you bring the other one to the table and it wipes the slate clean. Again those these are basically used as Estate Planning devices.

I have used a CRUT before in helping a family transfer a family owned business with a low basis to a younger generation very complicated and very expensive. One caveat here.

CPA’s do not give you privilege between yourself and the IRS. They will say otherwise but they do not have privilege. A tax attorney though the privilege is solid. They cannot make an attorney divulge information about you or conversations you have had with them. I would go through a tax attorney that is my advice.

Ken Writes:  When we explained that there were no such reasons for any suits being filed against us, at least not anything legitimate that we would loose to, he backed off the Trust end of things and went in the direction to simply help us with the accounting and our tax filings and investment strategies after that.

I am finding it a struggle to ask you for anything further about all of this as you have already provided so much, but being who I am… nothing ventured nothing gained… could you share a little about any value to putting IQD into an LLC or Corp?

Attorney Writes:  This is what I told my clients. The reality Ken is that it does not make that big a difference. The U.S. Government knows who owns IQD. The taxes are not going to change.

The taxes are based upon the domicile of the Members of the LLC. Remember an LLC “Limited Liability Company” is simply a pass through vehicle as far as the IRS is concerned.

The main purpose of an LLC is to provide Liability protection for its members in case the enterprise that it is conducting should bring forth a lawsuit.

Then each Member is protected if they have maintained faithfully the mechanisms within the structure and followed all protocol. Then courts are reluctant to pierce the corporate veil and go after the Members individually.

It is somewhat analogous to a S-Corporation where the owners are called Shareholders. Same principles apply, accept that S-Corporations have certain limits on who a shareholder can be, they can only make a certain amount of money a year before they can be switched back to a regular

C-Corp. Let me just say this there are a lot of rules with S-Corporations whereas with Limited Liability Companies if you can create it you can do just about anything.

 However they cannot kill any taxes. Even if a person had a Nevada LLC or a Wyoming LLC, two very good jurisdictions. The LLC is a pass-thru and the Members are taxed where they are domiciled.

 If you are fortunate to live in a state where there are no income taxes then you are blessed. You cannot kill the state income tax by simply forming an LLC and running the exchange through the LLC. It is where you live that is what determines the state tax status.

Let me give you an example of how I would use an LLC.

 Let me say one of my clients wanted to invest monies in one of your investments you are encouraging. I would then suggest they place their investment dollars through an LLC to the investment.

That would give them limited liability as to the venture. I would even suggest they confect a note from themselves to that LLC, as it would give them more options later down the road in regards to that LLC.

 If a person who gains wealth from the exchange wants to start a business, a coffee shop, open a UPS Store anything then loaning money to an LLC that then does the business is a good thing.

 It protects you from lawsuits. Taxes though all profits flow through, however the LLC has the power to take deductions and other things an individual cannot take so operating a business through an LLC is highly advisable. Look at how most law firms and physician offices are structured. They are in LLCs.

The answer to your question, is that no one really gains an advantage at this point by putting their IQD through an LLC

Ken Writes:  This would only delay the taxes due is how I understand it… and a Corporation would not be advisable at all, although I do not know why…

Attorney Writes:  The reason why is that Corporations are double taxed. There are only two ways monies flow out of a regular corporation. One is through dividends and the other is through salaries. The corporation is taxed on both.

Ken Writes:  So we should just do what we have planned on… exchange the IQD in our personal noninterest-bearing checking account, and deal with the taxes from that point forward?

Attorney Writes:  Ken I am not sure on the non-interest bearing checking account. Not sure why that has been advised. I would go back to the source on that information and ask them.

Ken Writes:  Noninterest-bearing accounts are FDIC insured on the entire balance in the account, up until December 31, 2012 that is. All other accounts that do bear interest on balances are only FDIC insured up to $250,000.00 –

That’s the reason for utilizing a noninterest-bearing checking account… many will have a balance well past $250K if the IQD revalues at the levels we’re all expecting to see.

And of course this ‘muni-bonds’ you are speaking of sounds like what everyone should look into doing – I’ve never heard of this… is this something we would setup through someone the likes of yourself, a CPA, or through a financial planner? Are these muni-bonds something you would need to be hired to setup for Folks?

Attorney Writes:  Ken, I do not sell Municipal Bonds. The concept behind Municipal bonds is important to know. Municipal Bonds are a creature of the state/government.

The U.S. government despite the idiots in Washington which is known as the Common Sense Free Zone wants to encourage the private financing of government projects. It is a good thing.

Often you will see what are called Bond Issues by local school boards, counties, cities and states to do a project. These Bonds are Municipal Bonds or Munis. To encourage investors to invest the Federal and State governments exempt the interest on these bonds from income taxes.

Amazing they understand this concept here but cannot apply to other things. Suffice to say the important thing is to select a good Financial Planner that has access or a good brokerage firm (Merrill Lynch, AG Edwards) or a good solid bank like Bank of Texas, or other large bank or you can go to a national bank like a Chase, Citi or Wells Fargo or US Bank

All these types of banks have Private Banking offices somewhere in large metropolitan areas. These are usually found on another floor or in separate buildings all together. You have to have money to get in so don’t rush out and make an appointment yet.

However you need an appointment it is not the same as walking up to a teller. The Private Banking Divisions have brokers, accounts and investment advisors and they want solid banking customers because they want to develop a relationship with the customer.

They want to know your name and do your bidding. However you have to be here, “As wise as a serpent and as harmless as a dove”

I like Private Banking because I am the boss when I walk in the door. Secondly, you have to be wise.

You do not want to get in a brokerage situation where they are churning your account to simply generate fees so you have to pay attention to what they are doing.

Thirdly, today unfortunately there are some high-risk bonds you do not want your advisor, banker purchasing in my opinion. I would request them to avoid those governmental bodies that are not the highest.

For instance the state of California, New York, Illinois, the Cities of Detroit, Cleveland, Chicago these in my humble opinion are all bad risks because it is a foregone conclusion they are going to end up going bankrupt.

And if they have issued any bonds there is a high risk they may default on those bonds. So it is my opinion you need to go in with a good understanding and tell whomever I only want high grade municipal bonds. No risky bonds.

The interest rate is not high on municipal bonds. However you are going for safety and every dime you make in interest is non-taxable.

Again you are there in Texas. Look at Ross Perot and many others. They pay NO income tax because all their income is from municipal bonds. When you first make money before you invest sure you have to pay the tax, but after that then balance your approach and make sure you put enough away in municipals so that you have a growing nest egg.

There is nothing wrong with using some of it to put in everyday ventures, just know though that the profits from those ventures is taxable. It is all up to the individual.

When I told you in my previous email that most people who come into money who have never had money usually blow it in 60 months. That is true – usually these people have won a lawsuit, won a lottery or gained an inheritance.

 Because they have never developed the discipline most wealthy older people have they end up blowing it all. I guess Ken at my ripe old age, I sort of look at it like this. Sure I am a risk taker, but the closer I get to eternity and more my love increases for my children and loved ones, the more I want to be a better steward of what God has given me.

So I think it is important for folks to study successful people, learn things they know, emulate their success, copy them. Change your way of thinking, become critical thinkers.

Ask hard questions and if you are in the driver’s seat with the money you have a right to know so be hard, be tough, press your advantage. Be as wise as a serpent and as harmless as a dove.

When it is in your power to help someone help them but do not allow that person to take advantage of you. And when you give and I mean outright give then give with no strings attached. Anyway those are my ideas.

Ken Writes:  Angel and I will be investigating this avenue today; I can at least assure you of that! I would also like to offer again if you would like or need some more clients – I can supply that for you with one (1) little email as I’m sure you are well aware.

Attorney Writes:  Ken you are so thoughtful, and again I am impressed with your integrity and character. You are growing on me. However I must decline as I am working for already two clients who introduced you to me and out of courtesy to them it would be wrong to do otherwise.

However as I have above I do not mind being a sounding board. I will give you the straight facts and if I do not know the answer I will tell you straight up.

Ken Writes:  If we see the r/v before 2012, do you recommend waiting to exchange notes until 2012? If I read into what you’ve said here correctly, it would make sense to wait until 2012 so we could have 12 to 15 months to work with all the set aside tax monies in muni-bonds…

Attorney Writes:  We are so close now I do not see why not. However again the individual still can file an extension and have through August to pay his taxes if they cash in before the first. The way this going it may be the first regardless.

Ken Writes:  I well understand that all this surrounds your occupation and that you normally charge for your services and advice, and certainly hold a huge respect for you sharing what you have here already, but like I said, I can in fact send you clients with the click of a mouse… Where do we go from here?

Ken Writes:  Again you are growing on me. I guess I like a straight shooter and besides I am a big-hearted guy. I hate seeing people taken advantage of and for me it is about educating folks.

 I have obtained the education the hard way. Sure I have the legal education and experience in practicing to know the rules, but I have made mistakes in my own life and so I have learned that sure I like turning over rocks but I also like being able to go the grocery store.

I think if everyone will realize for a moment – nothing we have really belongs to us. This past summer I learned that lesson coming close to death. I learned the most important things in life are your faith and what you believe and secondly the love of family and friends.

Everything else is worthless. So if you love your family realize God loans us assets and gives us an opportunity in life to show our good stewardship. If we are faithful he will reward us with more. Not necessarily monetary things but with more responsibility.

Ken Writes:  Lastly, I ask of you your permission to post what you’ve written here to our group of Dinar Enthusiasts… it is apparent and obvious that you want to help others, otherwise you would not have taken the time to write all this up for me… I sure would like to be able to share this with our people – They are all wondering what to do…

Attorney Writes:  I do not mind you posting it anonymously that would be best.

Ken Writes:  WOW Attorney! My goodness…

You have helped a lot more than my words can express with all of this, and I am so very humbled to be the conduit to share your words to help others further past just myself.   – Thank you so very much once again!

Attorney Writes:  I hope this helps you some and I hope with all my heart that this (IQD) comes to fruition for everyone involved.  I am and remain,  With kindest regards,  [The Odd Attorney]

—–

Well there you have it… a wealth of legal advice and information that would normally cost you several hundred dollars to obtain.  His signature is compiled with my words…

I called him [The Odd Attorney] because I’ve never met an Attorney that would provide so much time and advice at no cost.

I’ve posted this to the OKIE Forum so that the OOM Members can express their gratitude to this professional… as it’s obvious to me that with the heart this man holds and his desire to help others…

I well know your notes of thanks posted to this thread will be more payment than he could have ever received in monetary form.

Folks, although the income that can be generated is rather low in my opinion compared to the other avenues of wealth generation available through smart investment planning, you can begin to learn more about these Muni-Bonds (Municipal Bonds) via Wikipedia at

http://en.wikipedia.org/wiki/Municipal_bond     if you’re so inclined.

In the end, diversity of investing and asset protection is what I have always looked to do and have advised on…   – Never stick all your eggs in one basket ;-)  Prosperous regards.

(Dinar Recaps Note: This post is for informational purposes only.  It is not legal, tax or investment advice.  Dinar Recaps advises that everyone do their own due diligence and seek local trustworthy, certified or licensed Professional tax, legal and/or investment advisers.)

– The Australian dollar slid against its U. S. rival during Monday’s Asian session following the release of disappointing retail sales data.
In Asian trading Monday, AUD/USD slipped 0. 46% to 0. 8863. The pair is likely to find support at 0. 8859, the low from August 31, 2010 and resistance at 0. 8969, Friday’s high.
After the U. S. jobs report was revealed last Friday, AUD/USD fell to its lowest levels in three years. Earlier Monday, the Australian Bureau of Statistics said that Australian retail sales remained unchanged last month following a 0. 2% increase in June. Analysts had expected Australian retail sales to rise 0. 4% last month.
The news comes a day before the Reserve Bank of Australia meets and as traders are upping bets RBA will again lower interest rates.
Last week, the Aussie came under pressure after RBA Governor Stevens said earlier in the week that second-quarter inflation data suggests that there is still room to lower interest rates if necessary and that he wouldn’t be surprised if the currency dropped further.
Australia’s benchmark interest rate is currently 2. 75% and some traders believe that even if RBA does not cut rates this month, it is all but assured the central bank will do so again before the end of the year.
Elsewhere, AUD/NZD soared 0. 81% to 1. 1454 as shares of dairy giant Fonterra also plunged after the company confirmed it had sold contaminated whey protein to eight different buyers in China, Malaysia, Vietnam, Thailand and Saudi Arabia
AUD/JPY fell 0. 45% to 87. 71 while EUR/AUD rose 0. 38% to – offers an extensive set of professional tools for the financial markets.
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