Mutual Funds Information

Locked in Funds?

Ok let me kick the opening of this series off with this all-consuming question: “Why is our money locked in the system, anyway?”

I want to do that to make sure everyone starts off on the same page please bear with me if you find this first topic to be so basic; at least I can suggest to feel good about knowing that there are numerous DXUsers who are now reading this topic, who did not really understand this issue (and will find it helps them grasp what is happening)!

Being able to get past this bit of confusion is a HUGE first step towards getting back on track

To deal with that issue, let’s first realize that there are about 4 groups into which everyone falls.

The four groups

a) You have put money into the system via InXchanging, but have not yet ever removed any amount of money at all. You also have never had an OutXchange processed. In short, you have put money in and never seen any at all back. For those of you who have gotten DXG via P4 (DXDirect) exchanges, this applies to you as well.

b) You have put money into the system, and have had OutXchanges processed. You have returned virtually all of the money you have received, via InXchanges. For those of you who have gotten DXG via P4 (DXDirect) exchanges, this applies to you as well - you have gotten OutXchanges and since InXchanged virtually all of that money into the system to get your Portfolios started.

c) You have put money into the system, and received OutXchanges, and put some of that money back into the system, which you have since not been able to OutXchange again. You have kept the rest for your own personal use.

d) You have put money into the system, and received OutXchanges which you have kept: totaling your entire principal (initial investment amounts), and perhaps some gains which you have kept. You are currently working on profits alone, and not able to receive that money via OutXchanges.

Perhaps about 5% of DXUsers system-wide fall into group (a). Perhaps about 15% of DXUsers fall into group (b). Most of the rest fall into group (d) perhaps 60% of DXUsers fall into that group.

One thing to keep in mind at this time: most of the DXCommunity has been able to OutXchange far and above their original investment over the course of time.

Much of that money was returned to the system AT LEAST ONCE, over the course of time. Outside of that, much of the money has simply been cashed out by various DXUsers, and spent.

And now things are drastically slow. So why is that?

Defining the DXSystem

Let’s start by putting a definition to the section of the DXInOne System that everyone has been working. By defining it, we can better understand the cash-flow concept that led to the slowdown we’re facing at this time.

DXInOne (this mainstream section of the system) is what?

It is an ‘accruals-based exchange reserves platform.’

So, ok what is THAT supposed to mean?

Taking it apart by each term:

‘accruals-based’ = in any exchange system, the idea is to grow to handle more volume over time. For instance, you are constantly earning DXG. So, DXG ‘accrues.’ Therefore, if we wish to exchange that growing DXG into various forms of currency/e-currency, then the amount of currency/e-currency we have available MUST ALSO GROW, over time.

In other words, the more the DXG put into circulation, the more the [E-Gold, E-Bullion, hard cash in various forms of hard currency through banking mechanisms world-wide] also needs to be added.

‘reserves’ = the total amount of each e-currency and hard currency (USD, YEN, EURO, etc) that is available to the system to exchange that growing DXG.

‘exchange’ = the act of being able to convert from/to DXG, physically. That is, by actually having e-currency and/or hard currency to make exchanges with. And furthermore, it’s not just a matter of what is available, but rather, what you are also willing to accept.

For instance, there are a great number of Chinese in the system. If they are making bank transactions into/out of DXGold, then they might actually be seeing overnight exchanges most of the time by now. But if you are not accepting the Chinese Yuan (Renminbi), for instance, you would not be able to take part in those exchanges, and therefore would probably have no idea just HOW FAST those exchanges are moving at any given time.

OK now, let’s put these ideas above together.

Whenever the system is slow, it must mean that there is more DXG in circulation than there is currency/e-currency reserves. In other words:

WHILE DXG grows the majority of users have cashed out most of the reserves added by now (again, do we have any idea how well the Chinese or others are doing by comparison, via bank-to-bank? Hard to say. Could be fast or slow, depending on their own local currency reserves).

So, getting back to the main question: ‘Why are our funds locked in the system?’

Let’s explore that when someone says, ‘my funds are locked in’, are they speaking of the money that they have InXchanged? Most tend to think so they feel that they put [E-Bullion] into the system, and that that money is simply ’stuck’ somewhere.

Many have no idea where

Well, let’s put it this way: where do you think that money is? Is it really ’stuck’ somewhere? What happened to that money? Where did it go?

(Now again, I have to apologize to those of you who know this information well; you have to be bored out of your mind!! But let me assure you: I have actually asked this question of some individuals who asked me the same thing (why are my funds locked/stuck in the system) and they actually DID NOT HAVE AN ANSWER TO THAT. Therefore, we do see the need to break this information down for many.)

All right; let’s work on the answer: where do you THINK it went? And sure - it’s not like I know exactly where each dollar of YOUR money is right now; I’m just illustrating something that isn’t clear enough to many.

The Answer!

Let’s say you InXchanged $5000. I probably received it through my DXConsole. That is, the 5000 DXG you received was originally MY 5000 DXG, and when you made the payment in E-Bullion, I received that $5000 in my E-Bullion account.

Well, perhaps I had a couple of web-hosting bills due, and therefore had to withdraw $4000 of that to cover those bills. And I might have only moved $1000 of that E-Bullion further through the system at that time.

The person who received the $1000 (say, an OutXchange that I processed for $1000 E-Bullion on my DXConsole) - what do you think he/she did with that $1000?

He/she might have had a mortgage payment due, and took that money for that mortgage payment.

Yes it’s like you think: ‘money in, money out.’ That is the essence of the business of exchanges in the first place. Obviously there is a lot more to this than that, and we will go through it piecemeal.

In any case

We suddenly realize that the original question does not make sense: that is, the ‘locked in’ part. In other words, money is NOT ‘locked in’ at all. There just are not enough reserves to cash out what you have in DXG currently. The easiest way to understand it is that what you put in has already been withdrawn and spent. And/or absorbed in fees to DXInOne. And we will get into that in further topics.

Two things to take away from this issue!

1) There are no funds ‘locked in’ the system, by and large. The closest you can get to ‘funds locked in’ would be the total amounts of currencies/e-currencies currently being received by various DXMerchants who are either still fast asleep at their time of the world, or are on vacation and not paying attention to their balances at this time, or for other reasons have not gotten to their accounts to either get the money back into play - partially or fully - or withdraw it (partially or fully) for bills, vacation, fun, etc.

2) The next is a question: ‘What about marketing to raise new funds, to replace reserves that have been depleted?’ We will get into that in the next issue of this series.

Following that, we will lead into how we can control system fluidity ourselves, with or without marketing, at any time, and why THAT is beneficial to us on the whole.

Summary

You might go through a STRING OF EMOTIONS as you read everything through. You will be afraid of some of what you read, and struggling to figure out where this is all going. You might think that you want to leave the system at times, and then be suddenly aware of why you want to stay with the very next issue in this series.

When all is said and done: You will probably not just want to stay, but you will be happy to see others go! And beyond that you will be ready to kill to get you hands on a DXMerchant Console.

The reality-check in the meantime is that you will be unnerved, then you’ll understand everything and see the point, then unnerved again, and then reassured again.

It is because of this emotional roller-coaster ride to understanding where the system is headed (and what you need to realize about it) that SO MANY TRAINING PROGRAMS FAILED, and so few are left. The die-hard programs are NOT a matter of sheer faith; in our case, we were actually THERE as early as January 2004, when we HAD TO FIX THIS VERY PROBLEM IN THE FIRST PLACE.

For us, this is just a repeat of history.

This DXInOne Article and others can be viewed by visiting Dynamic-Xchange.com, The DXInOne Training Website.

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