Question: What does the term “CONFIDENTIAL INFORMATION” mean on your literature? Does this prevent a client from checking out the legalities, authenticity, risk factors or trade practices of the company from a non-biased financial consultant or attorney?

Answer: We do not give any information concerning you or your organization and we would want you to do the same for us. We simply do not want you to reveal to anyone the terms and conditions of your potential private placement contract because these contracts are not available to the general public. We choose who we want to do business with. Even if the private placement loan was available to someone else the same terms and/or conditions may not apply to them. I also believe you would be hard pressed to find a financial consultant or lawyer who could be unbiased and not have their own agenda.

Question: What does the statement mean that says "You fully understand and accept the fact that all the information you receive is of a private nature and not available to the general public and is, therefore, exempt from the US Securities Act of 1933 and all amendments or any equivalent laws of any jurisdictions."
Would you provide an explanation and copy of this US Securities Act of 1933 and clarify what we should expect?

Answer: Securities Act Of 1933 - A federal piece of legislation enacted as a result of the market crash of 1929. The legislation had two main goals: (1) to ensure more transparency in financial statements so investors can make informed decisions about investments, and (2) to establish laws against misrepresentation and fraudulent activities in the securities markets.

Investopedia Says: The Securities Act of 1933 was the first major piece of federal legislation regarding the sale of securities. Prior to this legislation, the sale of securities was primarily governed by state laws; however, the market crash of 1929 raised some serious questions about the effectiveness of how the markets were being governed. Because of the turmoil surrounding the investing community at this time, the federal government had to bring back stability and investor confidence in the overall system.

In general, the legislation was enacted as the need for more information within and about the securities markets was acknowledged. The legislation addressed the need for better disclosure by requiring companies to register with the Securities and Exchange Commission. Registration ensures companies provide the SEC and potential investors with all relevant information by means of the prospectus and registration statement.

The right to contract between two private parties is guaranteed by the Constitution of the United States of America. We are responding to a request for information on our available private placement loan. Therefore we have the right as two private parties to enter into a contract which is private.

Question: Is there any information, data or history available that you could share with us on the performance of Queen Shoals Consultants from the time they began doing business? Are they listed with the Better Business Bureau or some type of unbiased accountability firm?

Answer: We are a private company and our records are private however we will provide you with a Certificate of Good Standing issued from the Secretary of State’s office. We control where the funds are placed but not the actual hands on trading. Our traders which we have contracts with have proprietary trading practices which are extremely successful and needless to say they will not disclose to anyone.

Question: Can a prospect get access to qualified references, ones who wouldn't mind us asking their satisfaction level with Queen Shoals Consultants without going into detail?

Answer: We have clients that may speak with you that we can provide from a private list. However I do have reservations due to the fact that as I stated before the terms and rates can vary for each client based on there specific placement. For the private placement note holders to find out about other rates that might be higher we could run the risk of causing resentment. I hope you can see the necessity to keep our rates and conditions private. Live client testimonials are available to watch at our website www.queenshoalsconsultants.com

Question: Is there any information, data or history available regarding the Currency and Forex trading practices or historical data for the Forex market?

Answer: Brief history of Forex trading
Initially, the value of goods was expressed in terms of other goods, i.e. an economy based on barter between individual market participants. The obvious limitations of such a system encouraged establishing more generally accepted means of exchange at a fairly early stage in history, to set a common benchmark of value. In different economies, everything from teeth to feathers to pretty stones has served this purpose, but soon metals, in particular gold and silver, established themselves as an accepted means of payment as well as a reliable storage of value.
Originally, coins were simply minted from the preferred metal, but in stable political regimes the introduction of a paper form of governmental IOUs (I owe you) gained acceptance during the Middle Ages. Such IOUs, often introduced more successfully through force than persuasion were the basis of modern currencies.
Before the First World War, most central banks supported their currencies with convertibility to gold. Although paper money could always be exchanged for gold, in reality this did not occur often, fostering the sometimes disastrous notion that there was not necessarily a need for full cover in the central reserves of the government.
At times, the ballooning supply of paper money without gold cover led to devastating inflation and resulting political instability. To protect local national interests, foreign exchange controls were increasingly introduced to prevent market forces from punishing monetary irresponsibility.
In the latter stages of the Second World War, the Bretton Woods agreement was reached on the initiative of the USA in July 1944. The Bretton Woods Conference rejected John Maynard Keynes suggestion for a new world reserve currency in favor of a system built on the US dollar. Other international institutions such as the IMF, the World Bank and GATT (General Agreement on Tariffs and Trade) were created in the same period as the emerging victors of WW2 searched for a way to avoid the destabilizing monetary crises which led to the war. The Bretton Woods agreement resulted in a system of fixed exchange rates that partly reinstated the gold standard, fixing the US dollar at USD35/oz and fixing the other main currencies to the dollar - and was intended to be permanent.
The Bretton Woods system came under increasing pressure as national economies moved in different directions during the sixties. A number of realignments kept the system alive for a long time, but eventually Bretton Woods collapsed in the early seventies following President Nixon's suspension of the gold convertibility in August 1971. The dollar was no longer suitable as the sole international currency at a time when it was under severe pressure from increasing US budget and trade deficits.
The following decades have seen foreign exchange trading develop into the largest global market by far. Restrictions on capital flows have been removed in most countries, leaving the market forces free to adjust foreign exchange rates according to their perceived values.
But the idea of fixed exchange rates has by no means died. The EEC (European Economic Community) introduced a new system of fixed exchange rates in 1979, the European Monetary System. This attempt to fix exchange rates met with near extinction in 1992-93, when pent-up economic pressures forced devaluations of a number of weak European currencies. Nevertheless, the quest for currency stability has continued in Europe with the renewed attempt to not only fix currencies but actually replace many of them with the Euro in 2001.
The lack of sustainability in fixed foreign exchange rates gained new relevance with the events in South East Asia in the latter part of 1997, where currency after currency was devalued against the US dollar, leaving other fixed exchange rates, in particular in South America, looking very vulnerable.
But while commercial companies have had to face a much more volatile currency environment in recent years, investors and financial institutions have found a new playground. The size of foreign exchange markets now dwarfs any other investment market by a large factor. It is estimated that more than USD1, 200 billion is traded every day, far more than the world's stock and bond markets combined.

Introduction to Trading Forex

Foreign Exchange
This short introduction explains the basics of trading Forex online, a brief explanation of the markets and the major benefits of trading Forex online. There are also two scenarios describing the implications of trading in a bear as well as bull market to better acquaint you with some of the risks and opportunities of the largest and most liquid market in the world.
Overview
Foreign exchange, Forex or just FX are all terms used to describe the trading of the world's many currencies. The Forex market is the largest market in the world, with trades amounting to more than USD 1.5 trillion every day. This is more than one hundred times the daily trading on the NYSE (New York Stock Exchange). Most Forex trading is speculative, with only a few percent of market activity representing governments' and companies' fundamental currency conversion needs.
Unlike trading on the stock market, the Forex market is not conducted by a central exchange, but on the “interbank” market, which is thought of as an OTC (over the counter) market. Trading takes place directly between the two counterparts necessary to make a trade, whether over the telephone or on electronic networks all over the world. The main centers for trading are Sydney, Tokyo, London, Frankfurt and New York. This worldwide distribution of trading centers means that the Forex market is a 24-hour market.
Trading Forex
A currency trade is the simultaneous buying of one currency and selling of another one. The currency combination used in the trade is called a cross (for example, the Euro/US Dollar, or the GB Pound/Japanese Yen.). The most commonly traded currencies are the so-called “majors” – EURUSD , USDJPY , USDCHF and GBPUSD .
The most important Forex market is the spot market as it has the largest volume. The market is called the spot market because trades are settled immediately, or “on the spot”. In practice this means two banking days.

Question: How can I be sure I will not lose my principal?

Answer: All principal is backed by metals (gold or silver) or funds placed in non depletion accounts, not an insurance company. This along with our high liquidity ensures a very secure portfolio. This is secured for our client contracts with the Security Agreement that accompanies each contract; as is shown in part below:

Debtor hereby grants to the Secured Party stated herein, a Promissory Note valued security interest in the gold inventory and non depletion accounts of the Debtor, now held and/or hereafter acquired as additional collateral, Debtor assigns to Secured Party, a Promissory Note valued security interest in all of its right, title, and interest to the gold inventory and non depletion accounts which Debtor now has held or hereafter acquires. This Security Interest shall serve only to secure the promissory note value and the performance of the Debtor's promise to pay. The aforementioned Promissory Note, which by this reference is attached hereto and made part of this agreement, shall be collateralized by said precious metals inventory, Forex and non depletion accounts for the Consideration and Benefit value of.

Question: What is the availability of my principal and or interest in case I need to make a withdrawal?

Answer: You are in control of your funds; you can request an interest withdrawal beginning at the end of the next full calendar quarter without penalty. Your principal is available for withdrawals, but is subject to a 5% penalty if withdrawn during the contract period. The penalty will be assessed only on the actual amount withdrawn.

Question: What is the trade symbol or cusip # for Queen Shoals Consultants and how can we track the performance?

Answer: We are a private company, the only way we would have a trade symbol or cusip # would be if we were a publicly traded company which we are not. Queen Shoals Consultants is privately held and has no intention of going public. The reason a company would ever reveal there historical performance is to attempt to qualify for raising public or private capital. Queen Shoals Consultants is debt free and has no need to raise additional capital.

Question: Why is a Private Placement not considered an investment?

Answer: Because it is a demand note (loan to the company) and is not being placed in any securities or equities in the stock markets, therefore Private Placements are not considered on investment.

Question: In the second paragraph on the second page of the Queen Shoals Consultants folder it states: “The allocations and rates are subject to change as the market dictates. All rates are probable and all returns are on a best effort basis”. Please explain this?

Answer: There are two reasons for that statement, serving separate meanings:
First, it is referring to the specific account allocations described below the statement; meaning that QS adjusts what markets its dealings are focused in, depending on how “the market dictates”, assuring us the best returns. And it is also saying that the overall profits in these markets are on a best efforts basis, which is ONLY pertaining to behind the scenes profits of the company, not your specific contract with QS.
Secondly, that statement is there in case we have to lower the rates in the future for new contracts. As you can see on the attached copy of the promissory note and security agreement the rate that you sign for is the rate that you will get, and the security agreement guarantees you the fulfillment of the contract “promissory note.” The sentences you are referring to is simply to protect us for the future. Clients that may wait two or three years down the road before they make a decision might be expecting the same rates when in the future we might have to lower the rates for new clients. Then we might have to say the rates have changed since you first looked at QS. This does not apply to you once you have made the commitment. You will have a firm contract with Queen Shoals Consultants. If we were to change the rates without your consent or agreement then we would be breaking the contract. You would then have recourse against us. Let me assure you we are not going to break the contract.

Question: The literature states that “All funds that are not invested are in our back account, which is FDIC insured.” Explain the meaning of this & why would you not place all my funds in private placement investments?

Answer: All of your funds are placed immediately into our approximate 60 sub accounts. This statement is referring to the reserves of Queen Shoals Consultants that we keep on hand for liquidity; these are in FDIC insured accounts with various banks that we do business with. Queen Shoals Consultants is at least at 100% liquidity at all times and we keep a large ready cash fund available for emergencies in case a client needs to tap into their principal. This is readily accessible at the Charlotte office.

Question: On page 4 of the PRIVATE LOAN AGREEMENT the Disclaimer states “we do not offer any guarantees as businesses can go down as well as up.” What exactly does that mean?

Answer: That disclaimer is there for two reasons. First, to separate us from a securities regulated entity “broker dealer” such as is regulated by the SEC. Broker Dealers all have the same type disclaimers under the SPIC which says it protects you from theft, fraud, etc. but in their disclaimer it says you may lose your entire principal without recourse. Bank CDs and annuities also have the same disclaimer that we have. Secondly, in the event of a world wide recession or depression we could all be facing destruction way more problematic than the value of money. Our portfolio is global and it would take a global meltdown before we could not fulfill our obligations. If that ever happened, Wall Street will be the first to go bankrupt as they did in 1934 so your money is still safer and has less risk with Queen Shoals Consultants.

Question: In item # 4 of the SECURITY AGREEMENT, it says that “The Secured Party may cancel this Security Agreement and said Promissory Note in writing, at any time, for any reason. If such cancellation occurs prior to the term of said Promissory Note such cancellation shall incur a penalty of 5% of the consideration value together with any and all remaining benefit value from the time of cancellation.” What are the “consideration value” and the “benefit value”?

Answer: First of all, over the years I have had clients that had emergencies and had to get their money back and the penalty was waived every time. This is at the sole discretion of the Managing Director. You can access your earned interest at any time during the contract without penalty. But if you wanted to liquidate all your interest and your entire principal, a penalty would be applied on the principal withdrawal. For example #1 lets say you had $100,000 principal (consideration value) and you had been in the contract for 12 months and had interest earned thus far of $16,000 (benefit value), you could be penalized 5% under the new guide lines on the $100,000 thus a $5,000 penalty. You would not be penalized on the interest (benefit value) and you still cleared $11,000 profit. Now for example #2 say you has placed $100,000 (consideration value) with Queen Shoals Consultants and you had been in the contract for 12 months and had earned interest of $16,000 (benefit value) and decided because of medical emergency or death in family or whatever hardship you wanted to pull out all the interest and half the principal then you would only incur a 5% penalty on the$50,000 principal reduction which would equal $2,500. You have still cleared $13,500 profit on the interest earned the first year and still have $50,000 in the account working for you. I will assure you once again that you will not find a company to treat you more generously than Queen Shoals Consultants.