DJ: DID YOU KNOW?
Oct 2nd Post 2022 (Fund distribution explained)
How are the funds generated for a GCR/RV? Private Placement Programs or PPP is one way. First off trade platform can only trade cash. An investor puts up the cash for the trade. The cash is blocked and a mirrored account is set up reflecting the blocked funds. ( Block funds means the cash can’t be used for a defined period of time). The bulk of the proceeds from a trade must go to an approved project. Once the project is saturated (paid for) the trade stops. This is why platforms are constantly looking for projects. There are more details on how it works but that’s the gist of it.
Another source is generational accounts. In some cases these accounts date back centuries. These accounts have piled up over the years and have reached enormous amounts. Only a portion of these funds are in the monetary system.
They will be released into the system in a methodical manner so as not to cause drastic economic impact. Think of it as the same as printing money. Money supply has to be controlled. Overprinting is the recipe for inflation. Or too much money and not enough goods, prices get driven up. These old money’s also have a project requirement attached to them.
Historical Assets are another way. These historical assets are a financial instrument. And like all financial instruments they are backed either by hard assets (Gold, or other precious metals) or guarantees. Guarantees from sovereigns or legacy financial institutions. In order to reallocate the values attached to these instruments or release the guarantees, the instruments original obligations must be satisfied.
The old moneys’ will have project requirements attached to them. The new moneys’ I.E. Zim, Dong , Dinar, Rupiah etc., won’t have project requirements (unless they are backed by the old assets). While no project requirement may be attached to the funding, how the funds are distributed into the economy will have restrictions. These funds must be spent on goods and services.
The asset values ( say gold) are allocated to these funds but the values are not applied. As the funds leave the account for the purchase of the goods or services, the allocated values are applied. You won’t be able to pull $500 million out in cash or sponsor an election. Gotta buy something. This controls release of funds relative to GDP.
The Iraqi Dinar (RV) stands on its own. When a country enters into a war its currency is pretty much devalued down to nothing. For a country to print its own currency it must be accepted by the global community. So the government of the country must be stable and functional to establish the good faith of their country.
Basically the rest of the world has to have faith they pay their bills and obligations. Iraq has a large deposit of gold that is being held in Switzerland and will only be released once they have their affairs in order and can show stability. They also have their natural resources that can be used to back their currency Then their currency will either be “re-instituted” meaning re-institute its original value or revalued (RV) based on its current economic status and GDP.
This is an elevator explanation of things and is way more complex with a multitude variables but that’s the gist of it.