Medium Term Notes

Medium Term Notes

Medium term notes were created to fulfill a need. There were long term and short term bonds. The industry within the United States change based on the Auto industry with respect to medium term notes. However, medium term notes were crucial to corporations and banks to issue with their flexibility of the note.

General Motors, the auto company, created the MTN market in the early 1970s as an extension of the commercial paper market, in lieu of the bank European MTN’s or European Medium Term Notes or EMTN’s. To improve their asset-liability management, the auto finance companies needed to issue debt with a maturity that matched that of their auto loans, 5 years, to dealers and consumers. However, underwriting costs made bond offerings with short maturities not worth the time, and maturities on commercial paper cannot exceed 270 days, for MTN’s in the US Market. Therefore, the auto finance companies began to sell MTNs directly to investors, and what began as the investing boom of MTN’s.

In the early seventies, the growth of the market was hindered by illiquidity in the secondary market and by securities regulations requiring approval by SEC of any changes to a registered public offering. With the increased costs of issuance, which hindered borrowers because they HAD to obtain approval by the SEC each and every time they posted their offerings on the screen. To avoid this regulatory hurdle, some corporations sold MTNs in the private placement, secondary, market. This is the market that brokers are trying to “get paid” or do a deal. However, over 99 percent of the deals are bogus!

What is a Medium Term Note?

A medium term note, (MTN) is a debt instrument or note that usually matures in 5–10 years, but the term may be less than one year or as long as 30 years. Medium term notes can be issued with a fixed or floating coupon, with the fixed coupon being in more demand. A floating rate medium term notes can be as simple as paying the holder a coupon linked to Eurobir, Euroclear, with certain basis points. Some of the medium term notes can be “structured” notes linked to treasuries or other indices. When in demand in Europe, they are called “EMTN” or Euro Medium Term Notes and commonly called MTN’s, Medium Term Notes, in the United States. Many of the banks in Europe will refer to them as “Bank Debentures.”

Also, MTNs can be issued with a fixed maturity date, which makes them “non-callable”, or can be issued with triggers where the notes can be redeemed early based on certain parameters. MTNs are most commonly issued as senior, unsecured debt of investment grade credit rated entities which have fixed rates.

For more information please visit: The Joker Brokers

The Performance Bond Trap

An intermediary Seller should never give a performance bond on small deals.  For example, lets say the shipment of goods is for 50, 000 dollars and there is a PB, or performance bond of 2 percent.  We are going to show you why this is a trap.

 

A performance bond is appropriate for the supplier, in some cases, because a bond physically attaches to the supply of goods, but you as an intermediary sells the title.  A performance bond is a surety against the fail of performance in a transaction.

 

Performance Bonds are not common today.  The Performance Guarantee is more common in today's world of bulk commodities, but what is interesting they are not used for small deals of say, 50 thousand or even 100 thousand dollars.

 

Where a performance bond is called for, the more appropriate instrument for you, as the intermediary, is the Performance Guarantee.

 

How does the PB, performance guarantee stand up to the Stand by Letter of Credit.  The Standby was invented for the purpose of the Performance Guarantee and the PB should only be used where the size of the deal dictates the necessity to use it.  For example, a 2 percent performance bond on a 100,000 dollar transaction is just plain stupid.  On a 2, 3, or 5 million dollar deal this may make more sense.  However, you still have to protect yourself.

 

In the world of commodities and the endless deals which go on never even require a PB or PG.  There are large bulk commodity deals which may require them often, but in most cases they will end up being the optional "non-deal breakers" where a buyer may want, but does not need.

 

You as the intermediary, trader, can negotiate around the PB or  PG, and if necessary give a performance guarantee only under the MOST STRICT circumstances.  You and the intermediary/trader has to realize the correct protocol of dealing with performance guarantees. 

 

If you have a buyer requesting such specific terms, there is an excellent chance they might be "trapping" you, and not only in a case where they have the advantage, but where fraud comes into play.  Please be advised that the terms are not proof of fraud, there are the signs of a skeptical buyer which can easily take your money.  We will explain more below.

 

If a seller makes up the terms described above in the first place the he/she shouldn't be trading without more information where they are deliberately making a trap?  What we stated above is a trap.  He is why.

 

A buyer who is trustworthy, but may not be, and the buyer's creditworthiness and credit rating is meaningless in this industry.  You must get through you head, that you have no idea of the buyer's disposition in the deal of great past performance.  This is not indicative of future results.  What that means are buyers with great reputation have done some incredulous things.

 

A performance bond is absolutely nothing to trigger a buyer where a buyer needs no proof of the claims requiring the bond payment to trigger the transaction.  Most PB's are written to be payable upon first written demand.  This is crazy, but the buyer can take a piece of paper and hand it to his banker, and get paid on the PB even though you are compliant through out the transaction.  What the buyer did is write the fact you were not compliant to his/her banker.

 

This is where you get really screwed.  If you put up to the buyer a 50 thousand dollar performance bond, 45 days before your buyer even gets around to putting up the letter of credit, (where the buyer promises to Telex a portion of the funds equal to the transaction), but ONLY after you put up the performance bond you are now in a trap.  Why?  The buyer decides not to Telex the funds?  Here is the trap.  You as the intermediary/trader believes they cannot draw on the bond?  This is not true.  The buyer will take on the bond and you are in the trap.

 

You will not be able to do anything about it.  You can opt to not believe anything we are saying, but believe us, many newby traders have be defrauded this way.  Every Broker or person trading believe Performance Bonds are secure.  They are not!

 

All your buyer has to do is demand the performance bond under the pretense of "breach of contract."  Once that happens the buyer can walk with the performance bond of 50,000 dollars and you will never hear from him again.  You may asking yourself, how can this happen?  So easily, especially in today's world of commodities?  The answer, you do not have to "actually" be in breach of contract for a bank to allow the buyer to collect on the performance bond.

 

This person in this deal is a real example, just got scammed for 50,000 dollars.  That is a real expensive way to learn about this business and the world of bulk commodities.

For more information please visit http://www.thejokerbrokers.com

High Verses Low Risk Trading

All trading is not created equal.  There is trading where the client is at more inherent risk than other types of trading.  As we, at The Joker Brokers have insisted to learn everything you can about this, and any type of business, your chance of success increases dramatically. 

When I was first in this business I didn't even know what a medium term note was let alone knowing if I had a real program or not.  Then comes other instruments to learn about, like Bank Guarantees, Standby Letters of Credit, Currency trading, all the Swift Messages (MT-760, MT-799), and the list can go on and on.  With the advent of the internet anyone can learn about any parts of the business for free.  There is one HUGE problem?  And the problem is most of the information on the internet or postings on message boards is just plain WRONG!  Some of you may be reading this with astute knowledge of what I have mentioned above, but did you know there is High Risk and Low Risk trading in the arena of private programs?  I know this because I was involved in High Risk Trading myself being ignorant of other types of trading.

What is the difference?  The difference is very simple.  All of the processes of trading are very simple.  High risk trading works with debt creation and the low risk trading does not.  Debt creation is creating a credit line for the client and therefore putting the client into debt.  If I have 500 million dollars in my bank and the trader creates a 500 million dollar credit line for me I have 500 million dollars of cash assets and 500 million dollars of debt.  If 500 million dollars is my whole net worth the trader just made my net worth ZERO!  As many of the message boards will say the debt is the responsibility of the trader; it is not.  The debt now is the responsibility of the Client and ONCE the debt is created the client is stuck in the program until the debt has diminished to Zero.  If you have professional traders that know what they are doing the client will eventually overcome the debt, however, this is high risk, stressful for the client, and sometimes the trading does not go as planned.  Everything has to be orchestrated from beginning to end with the buying and selling of Medium Term Notes.

Low risk trading is based on the fractional reserve unique banking element and at no time does the client take on any debt.  The client's funds are compounded with continual growth of the cash.  As mention above, they are numerous ways to created a trading program, either with manage buy/sells, trading of paper, etc, but all of them will put the client into debt.  Any exclusive bank program within the unique banking element is not creating debt for the client, is not putting the client at a high inherent risk, and will only create wealth for the client.

Treasury Strip Program?

Through network membership at The Joker Brokers, we have been asked about the treasury strip program.  This is nothing more than people trying to present a fake program and if you look at the facts closely you will see why this is a fake program.

Treasury strips are regulated instruments by the government.  You can go to the Wall Street Journal and look at the market price of Treasury Strips or commonly called T-strips.  They are offered at a very low discount because they have been stripped of their principal, hence the name T-"strip."  This is the end of the year 2010 and the 2010 issue will mature in 2040 or, in short, they are a long term bond, a safe investment and they do have tax advantages.  If you buy a T-strip you will buy them at a super discount and they will mature as times goes by.  What you are doing is taking your money out of circulation by buying the bond and giving the government a loan until you redeem it at face value or sell it at market price.  They have auctions to buy the securities a few times each year.

Where did the "so-called" T-strip program come from?  This is another program made up by brokers to make themselves sound important.  For illustrative purposes, lets say someone bought a T-strip at 30.  How are they going to trade them up in value, or buy them low to resell them high to make a good return?  They can't.  T-strips will only go up in price with time.  It is literally impossible to buy a T-strip at 30, a real one, and turn around and resell it at 40.

Then we are posed with this!  The "so-called" traders are buying them at a discount below 20.  The only time you can buy a T-strip below 20 is when the market bears the price.  If the market says, in the Wall Street Journal, (WSJ), they are trading at 29, then you are not going to buy them at 20.  This is another market dreamed up by brokers which are in non-banking reality.

In conclusion, you will never hear of anyone making any money on these fictitious programs or discounted T-strips below market price.  What anyone is really attempting to do is steal your contacts or even worse, commit fraud and take money.  We recommend to "not" entertain any "so-called" program where they promote generating high returns with Treasury Strips.

Bloomberg for the experts

If by chance you have not closed business over Bloomberg with a sell/buy ticket  then you may be asking yourself, "What is the truth with Bloomberg?"  Most of the people you run into in this business will not understand how Bloomberg works and will have joker brokers running in all directions.  Bloomberg is the primary transacting conduit to sell and buy instruments in the United States of America.  Contrary to believe you do not have to be licensed to get paid on an instrument deal.  That is one of our secrets which we do not give out to just anyone. 

 

The procedures are simple and not complex.  There will be security traders involved in the transaction.  They must have authority to authorize a sell or buy ticket on Bloomberg.  One point we will like to point out is if there is not a licensed person that will issue a sell or buy ticket with having either (1) the instrument or (2) the funds to pay for it; nothing will happen.  We brought this point up because there are so many brokers believing in this process of transacting with a buyer which has to show proof of financial capability.  This is NOT the case.  Bloomberg transactions happen in a smaller scale of tranches then they do in Europe.  We are not saying either is better than the other.  What we are saying is there is the American way of doing business and there is the European way of doing business.  This is one of the reasons why it is imperative to inform yourself and know the difference between the procedures.  A European buyer will not be able to buy a security from Bloomberg unless they have a satellite office in Europe.  You have to take this into consideration.  If the European buyer does not have the satellite office then you will have to go with European Procedures with the hopes the instrument is lodged in an European Institution.

 

For more information please visit:  http://www.thejokerbrokers.com

MT-103 The real story‏

What is an unconditional MT-103 (no field)?  It is payment made to another bank via Swift. Nothing else.  It is similar to telling your bank to wire money to another bank for payment.  There is no rocket science to it.  And the field 23?  There is no such thing!   Not anymore!  There is an actual field 23 that would state the bank would phone the beneficiary before the release of funds.  Why would you though?  You wouldn’t.  If you are the seller and you deliver your product and/or commodity than you want a swift transfer of funds.  Nothing more and nothing less.

The next time that you see a document with MT-103/23 then you already know that the seller (broker actually) doesn’t have any idea what is going on.  Although those that are in a swift terminal room would use the messages it is very important for you to know the difference when working in the world of commodities.

Now you know the difference.  The MT-103/23 would never be used.  Only a MT-103 and all anyone would be saying is that the seller of the product would like to have their money wired to a bank account via Swift.  Stay away from the MT-103/23 it is a red flag that the person, entity, or group you are dealing with does NOT know what they are doing!  If you do not believe us, feel free to do your own due diligence with “bankers” that understand and you will soon realize the MT-103/23 is a thing of the past.

For more information please visit:  http://www.thejokerbrokers.com

Historical Bonds Myth or Fact

We have many requests for information for members of The Joker Brokers.   We want to set the record straight with Historical and Mexican Bonds.

Historical bonds including the Mexican Bonds are worthless as securities.  For example, none of the historical United States railroad bonds are payable by today's successor railroads such as Norfolk Southern and Union Pacific. Instead, historical and Mexican bonds only have value as collector's items. A Collectors Guide has the value anywhere from $25 to $700 each.  Some of the Mexican Gold bonds can reach as high as 70,000 dollars.

A program for them?

The Mexican bonds are similar to the Gold Rush of the mid 1800's.  However, the Mexican bonds are more myth than fact:  White doves, blue doves, red doves, pink ladies, vintage gold-backed bearer bonds issued by the Mexican government with a supposed booming trade in historical debt instruments which are fueled by rumors and representations that the (allegedly authentic) certificates can somehow still be used as securities in sophisticated "trading programs" (sic) through a global network of buyers ,sellers, brokers, jokers, and scammers, even legitimate collectors and investors are selling hope.  Although you have claims there are going into a program because they are backed by Gold, they are not!

It is important to take a look at the facts where most joker brokers in this community are not connected to a program which they say they are, no connection to authentic the bonds, saying the old historical bonds are on Euroclear, and the list goes on and on.  Some of the Mexican Bonds where posted on Ebay, an e-commerce site, for 900 dollars.

We recommend staying with the basics and using common sense.

Bank Guarantees Part Two

We at, The Joker Brokers are asked “What is a Bank Guarantee at 75 + 1?  BG’s are issued by a bank and in some instances approval by the World Bank, to ensure a loss against principal in a transaction.  How do you get a BG at 75 percent (discount) of face value?   We have a question to ask you.  Let’s be a little personal now.  How many of you have heard of anyone closing a Bank Guarantee deal at 75, 80, or any discount?  Truly be honest with yourself?  How many times do you believe a bank will wholesale money as described by joker brokers all over the internet?  We do not want to burst your bubble, but at the same time we do not want you to waste your time on a fruitless endeavor.

First of all BG’s do not come with isin numbers because they are not a public security.  They can be “parked”, not blocked (as some use) on the screen for authentication purposes and will come with an identifier in that instance.  Customer A has 100 million plus dollars in  Bank B or Top World Bank, which has a long, good, relationship.  Customer A needs a bank guarantee from Bank B for a certain transaction where the bank will need to know of “everything” about the transaction before issuing a bank guarantee on their behalf.  In ordinary folks terms, the bank will not issue a BG without knowing the customer, the proposed transaction, and not having the funds in the account.

Therefore, if customer A needs 100 million dollars to have the BG issued how do you get a discounted BG?  Let’s take a look at the numbers.  Customer A had to have 100 million dollars in his account to get the BG issued in the first place.  If Buyer B comes along and says I would like to buy your BG at 80 million dollars, why would the first customer (A) do such?  They wouldn’t.  BG’s are not traded like bonds.  This is where the confusion takes place.  BG’s come with an owner and if someone would like to borrow against it for a period of time they have to pay for borrowing the instrument.  Where is the discount?  In our previous paragraph Customer A is not going to discount the BG because he/she would lose money.  Let use the example of the bank.  The bank which issues the BG would give you the guarantee, (remember, this is a bank guarantee), that you can buy at 80 million dollars, or 80 percent of face, and to get in return one year later about 20 million dollars in revenue for doing what?

The basics of a BG.  A bank does not issue them at a discount.  We do not care what anyone says.  A bank will issue a BG based on criteria met for a proposed transaction where the customer of the bank will have met the requirements for the bank to issue a bank guarantee.  In which, a bank will not wholesale you money for no reason.  A bank would not give you a BG at a discount because you would be operating at the bank level and this is not going to happen, which is contrary to broker believe.

With that said.  If you can get a BG at 80 percent of face from a bank we will use this as an example:  Said bank issued you a BG at 80 million dollars, but the instrument will net you 20 million dollars at the end of the term or maturity.  The bank, did you a favor by (1) issuing you a BG at a discount, and (2) reap 20 million dollars in benefits.  And we say for what?  This is not common sense and defies logic.

Bank Guarantees Part One

Bank Guarantees are issued from a bank for surety against loss in a future or proposed transaction.  In essence, what a BG does is guarantee a payment on behalf of the owner of the instrument.

How do you get a BG at a discount?  Let’s start with the basics of issuing a BG.  To receive a BG from a top world bank you have to have the financial capability or the funds in the account to receive it.  What that means is you need 100 million dollars in the bank to received the 100 million dollar BG.  Just because you have the said amount of funds in the bank does not mean you are going to receive it.  Most of the clientle using BG’s have had a long term relationship with their bank and other business transactions in which the bank will feel comfortable issuing the BG.  What the instrument is used for is a performance bond of sort in bulk commodities and real estate transactions.

With all of that said, how do you get a BG at a discount?  We have heard story after story of buyer so and so wanting a BG at 80 percent of face value?  Why would a bank  or owner discount a one year instrument for a buyer to wholesale money to them?  The answer is – they wouldn’t.  If you took the numbers you would see how ridiculous this is; so what we are going to do for you in the next article?  We are going to show you the numbers and why no one is going to issue a discounted BG.

To learn more please visit The Joker Brokers

Bullet Programs?

Most everyone on the internet has a bullet trade they would like to push and/or advertise. Bullet trades do exist. They do not exist as you would think they do. As with programs, they can give the client a good return on their money. They are using the clients money to generate the revenue.

What about the bullet? What is so great about a bullet trade? Actually, if you have the cash, then nothing. All bullet trades do is create debt for the client. So you are asking what is the point of the bullet trade. First of all there are very few in the world that have access to any real program. About 200 maybe 300 across the world. The number is actually growing fast. Do these programs have bullet programs? Yes they do, but only in rare instances for unique clients and the unique banking element.

For example, if a client has 100 million euros and would like to go into a bullet program what the trader will do is leverage against the 100 million euros to create 1 billion euros. The trader did not create the debt for him or her, but for the client to get the "great" returns. Now the client has 1 billion that can be used for the "bullet." The client also has 900 million euro debt - bottom line!

With a 1 billion euro credit line the trader is able to make good returns for the client, higher than if they used only 100 million euros. The kicker is that once the credit line is created and traded upon the client is stuck in the program because of the debt created.

There are those that claim to have access to a program to produce 100 percent per week and the client will be out of debt instantly or within a week or two. It does not work that way. It all depends on the availability of the instruments to create the program from beginning to end.

Bullet programs do exist for a specific specialized purpose that only a handful of people in the world would be able to participate. It goes back to common sense and why the client would want to create debt, such as the banks do. It is different than what the brokers are portraying on the internet.

 

Think of any specialized private program this way.  Isn't it important to make sure you have a real performing group with realistic expectations?  How many have you talked to that claim to have done programs deals only to advertise on the internet?  If you have a real performing program what do you think a client would do if you offered a bullet program that lasted three weeks only?

 

With the lack of available instruments to perform on real programs how could it be so many have access to a bullet that produces just as high of returns (if not higher) and in a short period of time?  They don't!  To learn more about the difference between high and low risk trading please visit:  The Joker Brokers

Paying attention to detail is Paramount for Success

We, at The Joker Brokers, understand the importance of relationship building.  It is paramount to success.  Even if you have the direct relationship with the most impressive group in the world, what would they think if you didn't pay attention to detail?  What are we talking about?  We are talking about the little things like documents.  You, as the intermediary, broker, introducer, should know how to read a document, bank statement, or any other, with a fine tooth comb.  You, as the introducing party want to have the well established relationship with your productive and performing group.

 

Paying attention to detail is vital to our business.  If you are engaged with a person or entity, then you have to have wherewithal to "read between the lines" in any type of documentation or email.  What are they emailing you?  How is it constructed?  Just from an email alone you can get a lot of information by how it is written.  How many of you have access to a client with millions of dollars looking to get into the next "best" program?  Read their email over and over.  Read it ten times if you have to.  Learn to Pay Attention to Detail and read between the lines.  This is crucial for you because of the amount of fraud and misrepresentation that brokers and clients believe about private banking programs.

 

You are serious about this business, otherwise you would not be reading our newsletter.  What is your opinion of someone who email blasts information to the table?  Would you do it?  Even if you KNEW for a fact, you had a real source of supply, or real connection to perform?  Would you do it?

 

We are very serious about OUR business.  We are so serious about our business, in which, you, have to ask us about those we have a relationship with.  We are not going to solicit you for the business.  One reason is, we do not need it.  We are in it for the long haul and that is all that matters.  We are in business to pay attention to detail, which means we will review your email three times before we respond.  That is how important this business is.

 

We believe reputation is everything, and we also, believe newcomers should know what is real and what is not.  That is why Paying Attention to Detail is Paramount to YOUR success.  Not ours!

 

For Commodity Training and Education please visit our website:  The Joker Brokers 

 

The Place to Stop Wasting Time!

Full Bonding Power

A lot of the time, what happens is a "buyer" of instruments will ask for Full Bonding Power in their procedures.  This is how the story goes.  The supposed buyer is representing a "TRUST" or "FOUNDATION" and they cannot disclose the foundation or trust.  So the buyer that is suppose to represent the entity, (which they all say they have trillions of dollars) will say these procedures have to be followed because they do not want to disclose the entity that has billions or trillions of dollars.

 

We understand that a representative may want to protect the identity of the REAL Buyer, but the red flag to watch out for is that the bank debentures NEED to be NO POF and in the procedures they will ask for fulling bonding power.

 

Now, ask yourself this question.  Would you bond over your property to someone without them paying for it?  The answer is an obvious NO!  What is really going on here are two things.  Ignorance and fishing for the real supply.  No real seller will give full bonding power over to anyone unless they know they have the financial capability to do the deal.  

 

Look at this way with a multi-million dollar instrument.  If the selling entity gave the instrument to someone with full bonding power without paying for it what do you think they will do with it?  It is a chance that no real seller is going to take - period!  Not with all the scammers that are out in this world to take money.  In reality when a "Buyer" is asking for Full Bonding Power"  he/she is NOT the buyer.  They do not have the funds.  We all know that this is principal to principal business and a cash and carry business too. 

 

 

So the next time you see Full Bonding Power you know that you are NOT dealing with the buyer even if they say they are.  They aren't!

 

We have many things to teach at http://www.thejokerbrokers.com

Borrowed or Leased Instruments

Some of the advantages of collateral enhanced bank instruments are as follows:

1. The bank instrument provider we introduce to you will have CASHED BACK instruments or 100 percent collateral.
2. With certain circumstances the provider can cause issuance and delivery of the instrument in the name of their client as beneficiary, or assign a bank instrument in their favor.
3. The only requirement is a corporate undertaking to return the bank instrument prior to maturity.
4. The beneficiary has the option to (1) return the bank instrument fifteen days to maturity, (2) pay the face value of the instrument at maturity, or (3) renew the bank instrument for an additional term.  It is very unique in today's marketplace.
5. The issuance of the bank instruments are top European Banks to assure worldwide acceptance of the instruments.
6. Collateral based project funding has less requirements for the borrower's financial strength than TRADITIONAL project funding.

There is important information to disclose to potential clients:

1. These products are for experience professionals ONLY!  There will be no advice  relating to the use of the collateral enhanced bank instruments to achieve a client's goal.  We always recommend a client to consult with legal and financial advisers before making the decision to use a borrowed instrument.
2. The borrower is responsible for arranging and securing their own credit facility through their own banking relationships.
3. The provider does charge any fees to review a project, but that does not indicate a project will be funded with COSTS involved.  The provider will require a commitment from the client upon request for the bank instrument to be issued or assigned.  All client charges and obligations will be disclosed.
4. The provider's bank instruments are ONLY available for clients who are CAPABLE to pay for the services they require.  Payment for the bank instrument cannot be paid from ANTICIPATED PROFITS from a transaction.  The provider, nor the banks, works with those that are willing to engage a client which is unwilling or unable to demonstrate their capacity to pay the costs of the provider services.

To learn more please visit http://www.thejokerbrokers.com

Private Placement Program Advertising

Whatever the case may be, if you are an intermediary, broker, facilitator, or self-styled commitment holder or trader, with regard to private security transactions DO NOT take any money whatsoever from investors or other brokers OR make any representations whatsoever to potential investors OR other brokers without first seeking the advise of a lawyer experienced in this area of finance and the law.  Do not ask a client to transfer funds to a bank account without talking to a Lawyer first.  If you do, you have breached the law. This is for your protection and initial warning to how serious this business is.  Just speaking to others about these subjects may be a criminal conspiracy.  Do not think this is a joke.  It is true. Brokering these type of investments invariably involves breaking the law.  The chances are that you will violate the law in one or more of the following ways, making a false representation in an offer or sale of securities or the offer or sell unlawfully unregistered securities, or lastly, an offer or sell a security without being licensed to do so.  In the process you will probably violate the securities laws of the United States, and possibly the fraud and securities laws of foreign countries in regard to international law.  It is important to note that any involvement no matter how remote will bring you within the realm of prosecutors, and these activities are all felonies carrying substantial prison terms.

To learn more please visit http://www.thejokerbrokers.com

Commodity News

As you know there are millions of misguided intermediaries attempting to get huge commissions through international trade which is very lucrative.  Over ninety-nine percent will never, ever achieve success.  So what is the solution? We, through our own experience, had to get hoodwinked by those to learn the hard way.  Where are we going to start?

 

We decided to start with a basic trade rule and regulation that you, as the intermediary, are allowed to do.  Do you know that according to international trade law, if you are next to the supply you can represent yourself as the "Seller?"  Yes, it is true.  If you have a supply of sugar, which you know for a fact, you can represent yourself as the seller of sugar.  On the flip side, if you do not know that you have a legitimate supply of sugar, and if the buyer issues anything in your name, you may have issues with trade regulations and law.  Therefore, Bill the computer guy can offer a supply of sugar just as much as your security dealer on the New York Stock Exchange.

 

UCP: Uniform Custom Practice for Documentary Credits Publication 600.  Financial instruments are letters of credit that are imperative for the intermediary.  To secure any type of fee from the end buyer the UPC 600 letter of credit is necessary.  The rules are international practices that govern the way letters of credit are secured and transacted upon.  What this means is that once you as the intermediary secures the financial instrument marked with the term UCP 600 APPLIED with the end buyer then such rules take over in trading transactions in matters of securing your payment for goods being purchased and/or sold.

 

With this fact at hand, how do you know if you have a genuine supply?  You don't, if you are pushing offers over the internet.  You have to establish a communication of trust and meet in person.  Here is an example: Let's say you meet Mr. Y who is a supplier of sugar.  You get to know Mr. Y through a few phone calls.  You go and meet Mr. Y and you find out that he has a genuine supply of sugar.  You tell Mr. Y, 'I am going to help sell your sugar for you, but I am going to do it in such a fashion where I am the seller.' (Remember, you can do this with trade regulations).  Mr. Y would like to have more business and prefers not to do a lot of work.  He says okay.

 

What is the point?  Once you know for a fact that you have a legitimate source,  you can represent yourself as the seller, and the buyer can issue a documentary letter of credit in 'your' company name.  Once you have the documentary letter of credit (in your company name) you are protected from circumvention, you can open the doors to the supply of sugar, and you have a very well established relationship with the seller and the buyer. You solidified the deal in a business like fashion.  In this scenario, both the buyer and seller will commend you for your business ethics.

 

We are going to use a DCL or documentary letter of credit as a simplified example according to UCP which we mentioned above. A DCL is a document used by financial institutions for an irrevocable payment undertaking.  Most Documentary Letters of Credit are irrevocable which means the DCL's cannot be amended or canceled without prior arrangements with the beneficiary.  When you have a DCL issued by a buyer then you are guaranteed payment.  It is imperative to have the DCL worded correctly for the transaction, and if you have any doubts please consult your attorney.  We know there are various forms of the DCL, but we are using the basics for illustrative purposes.

 

You can do this with all bulk commodities.  You are not breaking any international trade law or regulations.  In fact, you are performing as international trade would like you to.  There is a way for you to protect yourself in bulk commodities, and the way we have explained it is the way it is done.  If anyone is asking for a BCL, ICPO, or the like, do not entertain it whatsoever.  Make sure to get yourself next to the supply side of the deal.  Then you are the supply.  Do it right, and if not, you are wasting your time.

The art of avoiding the Joker Broker (Aurum) Gold

We are in business to educate, consult, and train those that are new to the growing world of commodities.  As our title, and our website name is The Joker Brokers, it is imperative that you learn the techniques to identify and smoke down a joker.  The definition of a joker broker is a time waster.  This is the person that will not even consider learning the business.  We realize everyone makes mistakes from time to time, but a true joker will continue to make the same mistake over and over.

Therefore, you have signed up for our newsletter and you are tired of those that are wasting your time.  Where do you start?  This is what we are going to do is start with the basic fundamentals of business and international trade.  We do not want to go into one subject as there are many.  You have bulk commodities such as sugar, iron ore, and fuel.  There are other commodities such as diamonds, gold, MTN's, BG's, and SBLC's.  So we had to start at a basic fundamental point.

Before you begin to look at all the offers or deals, begin to understand the business you are in.  It is imperative to learn anything and everything you can about any business.  You do not want to go into it blind.  The difficult part is find out what is right and what is wrong.  With the absolute plethora of information on the internet nobody knows what is right and what is wrong.

This is found on our introductory site, but we have to relay the absurdity of our world today with this point.  There are volumes of gold offers over the internet day after day.  The grand majority of them are fake.  One of the sure signs of smoking the joker broker is seeing if the offer says Aurum Utalium.  Do you know that you can Google Aurum Utalium and there are thousands of brokers, so called mandates, buyers, sellers, trying to sell something that DOES not EXIST.  The absurdity goes beyond common sense.

Aurum is the Latin word for gold.

Argentum is the Latin word for Silver

Aurum "Utalium" does not exist.  It does not exist.  It doesn't exist as a word in any dictionary, periodical, journal, or Latin phrase.  Then again, you have hundreds of brokers, buyers, sellers, supposedly selling or buying something that does not exist.

The point we are trying to make with our first introductory email to you is the absurdity of those that are not even taking common sense into consideration.  There is no such thing as Utalium.

Most all of the gold traders will call it - GOLD!  As the professionals know that GOLD is Aurum, not Aurum Utalium.

So if you think about it for a second if the joker brokers can screw something as simple as this up; how much do you think is really messed up?

The Place to Find out What is Real and What is Not!  http://www.thejokerbrokers.com

Commodity Trading