Iraqi Dinar Hard Truths | The Economic Ninja
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Transcript
Hey everybody, The Economic Ninja here. I hope you’re doing well. I want to talk today about some very hard truths when it comes to the Iraq Dinar. And I’m going to base this discussion off of a news story that just came out the other day because the Dinar is falling to the US dollar. And I do know that there are a lot of people that have invested a lot of money in the Dinar. Now, first and foremost, I want to say I own some Dinar. I bought it a long time ago. About a decade ago.
And it equals approximately one half of one percent of my net worth. The reason why I say that is because I did a video the other day asking people what percentage of their net worth they owned was the Iraq Dinar. And a lot of them were like two and three percent. I said, you know what, that’s really healthy. Now, as much as I’m not a financial advisor, you know, I can’t legally give you financial advice. But I can tell you that I have definitely made failures and a lot of success. So let’s put it this way, a lot of failures and a lot of success.
Pretty equal when it comes to investing. One thing I learned is I take the perceived gains of something, how much I think something’s going to go up in X amount of time. And I know it sounds crazy, but I tend to put less in those big bets, the ones that you think are going to pay off huge. The reason why is the old adage, if it’s too good to be true, it usually is. Well, most people don’t realize, and I’ll call these people simpletons because I’ve been one of those people that tend to be way ahead of the curve or way ahead of something.
I go and invest in something and let’s say silver or gold hasn’t really done anything. Well, lately it is. But my point is a simpleton walks up to me and goes, see, nothing’s happened. Look at you’ve been talking about this for a year. And I don’t even have to argue with an idiot because then I just become the idiot. But if you think about it, everybody marvels at Elon Musk and Bill Gates, but how long did it take them to get to where they are today? You know, they were starting out of garages.
They were starting very simple, very plain, very humbly, and a simpleton runs around thinking that something’s going to happen immediately. And it just doesn’t, and they fall flat on their face. So this new story that I wanted to go over is this. It’s entitled, Despite Government Measures, Iraqi Dinar Continues to Fall Against the US Dollar. So I’ll read a little bit of it and then we’re going to dive in. The Iraqi Dinar continued to fall against the US dollar despite government measures or sorry, the government’s vigorous measures. This decline negatively affected commercial transactions in most of the wholesale markets in Baghdad and different other provinces.
On Monday, the exchange rate reached IQD of $1,540 to the dollar in the parallel market compared to IQD $1,320 to the dollar in the official currency auction approved by the central bank. So it’s obviously fallen pretty considerably, right? It says a wholesaler in the Shogora commercial silk of Baghdad told Al Sheer, Al Swat, come on, I can’t barely, you know, the ninja in reading that the market was witnessing a great stagnation adding that the movement of buying and selling has declined recently due to the fluctuating exchange rates. Well, okay, so let me throw out some reality of how these markets work.
Forex markets, actually any markets, like this person just said, buying is dried up because of the rapid fluctuating rates between what the government of Iraq says. This is what we are saying ours and ours worth compared to the dollar and what the markets are saying. So what happened is buyers have left the market. Well, when buyers leave the market, sellers are the ones left going, well, we want to sell. So if there’s no buyers, it’s not a liquid market. We have to, if we really need to sell and we’re in a position where we’re in trouble and we need to sell, we’re going to sell at whatever cost.
And that’s why you get prices lowering. When there are more buyers than sellers, prices rise. When there’s more sellers than buyers, prices drop. But you know, really, what I want to talk about is when they talk about the vigorous methods that the government, the Iraqi government has taken on the denar lately, it actually is pretty spectacular. Sorry, the sun’s in your face. Because for a government a while back to a handful of years ago to say, we’re not going to transact in the dollar anymore, they’d be bombed into the last century.
Well, that’s not the case anymore. And so not only for the Iraqi government to say that, but then they’re saying, we’re going to stop dollar transactions in specific arenas in our economy. That’s another massive, massive stance that if you think about it, a small government is taking against the largest government in the world. So then you start thinking, you’re like, all right, wait a minute. So they’re taking two massive stands. This is why the buyers are backing off of the market because they’re going, what is going on? Should we be dying right now? Is there something big about to happen? What does Iraq know that the US doesn’t know? Because they’re taking quite an awful lot of risk.
And they must, and this is just my opinion. And again, none of this is financial advice. I’m not telling you to go out and buy a denar, right? Again, like I said, compared to my net worth, it’s worth based off the exchange rate about it’s a very small percentage of my portfolio, less than 1%. But it’s one of those things where I’m like, if this happens, which I actually believe it’s going to, it’s going to keep appreciating versus the dollar. It’s going to happen way far out because big geopolitical moves that have to happen.
Iraq would have to have the backing of other big countries to be able to make a stand like this. And the other countries you got to think are lining up so excited because they’re like, all right, are they actually going to pull this off? And we know that Iraq has amazing natural resources that other countries want. I mean, again, the parallel between Iraq and what Russia went through with the US sanctions and Russia and the ruble collapsed. And Russia just went, all right, stand by, hold my vodka and watch this. You want oil? We’ll give it to you cheap, but you got to buy it in rubles.
And it just skyrocketed. Why? Because all of a sudden, there were a ton of buyers for rubles because they wanted cheap oil. They wanted to go back to their country. The leaders of these different countries say, hey, we’re producing, we’re getting you cheaper oil, we’re lowering your fuel prices. Right now, our current president doesn’t give a crap about you and inflation. I hate to break it to you. There’s so much bribery going on and dirty stuff. Type 1 if you agree with that. And I mean, smack the heck out of the one if you agree with that.
Type 2 if you think, no, this guy is super cool. He just wants to lick his ice cream cone and sit around and have children rub his hairy legs. If that’s you, type 2. But if you understand how dirty this is, it’s disgusting. So when I see news stories or people, and this is the other thing, the hard truth about the Dinar, people don’t realize, and it goes for all Forex markets. There’s an insane dark pool of US dollars out there, both real and that can be transferred bank to bank and for trading purposes, for settlement purposes.
But also, there is a naked short dollars out there, a dollar trade that could easily smack down things. So I’ve shown you two fundamentals about why the Dinar would be falling right now. The Iraqi government is buying up gold hand over fist as much as they can. On a percentage basis, the size of the economy, it’s quite impressive compared to other economies, even compared to China. Because you look at the amount of money they have and the resources they have compared to Iraq, the gold buying is pretty impressive. But then on top of that, you’ve got a machine at work, an absolute machine when it comes to the dollar trying to crush others.
And so the cool thing is that we see the buyers are not in the market. So that would make sense why the price is deflating because sellers… And this is another thing people don’t understand. Forex traders, stock traders, they’ve got to eat, they’ve got to live life too, so they’ve got bills. And so they’ve got to go out and sell some of their stuff. Most people think if you’ve got a lot of money that you can hold, you can stem the tide. But a lot of these traders in the Forex market are highly leveraged on margin.
And that’s why it’s important to understand how the investment world works. You see, again, like I said in the very beginning of this video, hey, how much… Just curious, let’s sort this out there. On a percentage basis of your net worth, how much did you invest in the Dinar? And don’t be shy. I mean, if you did 10, 20, there are a lot of people that put their life savings into it. But the reason why I put very little is because I’m like, this is going to be a long-term thing. Geopolitics are going to have to play out.
Wars are going to be fought over this. I know it sounds crazy because there are a lot of people in very high levels of position in the government that bought it. And there are videos that I watch that I can’t find anywhere because it seems to be like they’ve been scrubbed all over the internet. But that of high ranking people in the government’s buying these because this was before social media came out. So it made sense. It’s just like the Kuwaiti Dinar. Hey, we’ll buy it after it collapses in value, and then we’ll restore the government with a new puppet government.
And then we’ll just go, hey, let’s just be really cool people to this country and restore the value. Not knowing, no one else knew that the government officials in America had owned that Kuwaiti Dinar. And in the future, it was the Iraq Dinar. So that’s why I want to show you these very basic fundamentals because when we’re talking about buying something and going all in, you’ve got to look at, okay, is it one of those too good to be true? If it is, just put a little bit if you’re going to do it.
Also, how long is this going to take? In the amount of time that people have been waiting for this revaluation, they could have owned gold at like much lower prices. I mean, when I bought some Dinar, the gold was super cheap. They could have bought silver. They could have bought Bitcoin. I remember buying in the Forex markets, I remember holding on to some Yuan, stupid, one of the dumbest bets I ever made. And it is a bet, okay? Make no qualms about that. Stuff is legalized gambling. Because you can’t deal with fundamentals when someone’s got a big bag or a naked short position, and they’re shorting the heck out of a position that you’re trying to hold long, and they don’t even own it.
It’s disgusting. So that’s why I’m saying it’s legalized gambling. You can have all the fundamentals in the world and still be in trouble. But I bought Yuan when Bitcoin was $1.52. But I didn’t know anything about Bitcoin, right? I didn’t take the time to educate myself or maybe just take instead of let’s say buying $1,000 Yuan by 900 by $100 in Bitcoin and say, let me just buy a little bit, 100 bucks, and just then I’ll learn about it. I’ll learn about the process of buying, the process of selling, storing, mining, all that kind of stuff.
I look back on those days and all I do is I want to learn from my mistakes, my regrets. Type three if you’ve got regrets when it comes to finances. And then type four if you are one of those people that go, I’m turning my regrets into I’m never doing those again. Fool me once, that’s it. Fool me twice, I’m an idiot. It’s my fault. And take that when you’re typing four and you’re like, dude, I’m going to continue to learn. And we’re always learning. But what we want to do is make mistakes, not at the level that we just made a mistake at.
We want to make a mistake at a higher level. I don’t know if you ever thought about that concept. But we never stop making mistakes. And a lot of people, that’s all they say. And what that does to a lot of listeners is that goes, well, I guess I might as well not even try because I’m always going to screw up. No, you go screw up at a higher level. Go screw up when you’re making more money, when you’re more successful. Yeah, the screw up may be bigger, but you know what? You couldn’t have made that big ass screw up if you weren’t at that higher level in life.
But the thing is, is you don’t get to those higher levels by going all in on one thing. And that’s why I know what it’s like. I did that. I put everything into one stock. And it was a massive, massive stock scheme. So massive that they were advertising this publicly traded company on every backstop at every home plate of every Major League Baseball game this specific year. It’s one of the largest schemes, stock printing schemes in Wall Street history. I lost all of my investment money. I didn’t lose my house or I put almost what is about $180,000.
It went up to $360,000. I thought I was crushing it. And it was this massive printing scheme and it went to nothing. I did that when I was, oh gosh, I was like 26, 27 years old. And I know you’re going, well, how did he come up with that kind of money? It’s because I used to flip homes. And so I was building up homes and I went from one asset class into another. Actually, it was later. It was like 2007, 2008. And I lost it. And I actually, the big screw up was I did it twice.
I saved up another 60 or 70,000 bucks, hustling, side hustles, investing in a stock. And emotionally, I learned those things that I’ve never changed. Cryptocurrency trading changed my life. Not only did I crush it, but I learned to control my emotions because the volatility was so much greater than the stock market. But the thing is, I want to share these lessons with you because I don’t want to see you in the same position as me. When I run into you anywhere in the world, and it happens all the time, and I’m so blessed and so grateful to know you, men and amazing men and women of this world.
I want you to go, I decided to learn from your hard problem, your mistake, and never make that mistake ever. That’s the greatest thing that I could ever teach you. That’s the greatest thing I could ever impart because I want to leave this world changing the world financially because that’s the only way we’re going to take this world back. Evil people have a majority of the money. Type five, if you agree with that, the majority of this money is held by people with ill intent because after time, they become corrupted in their mind and they want to do bad things to people.
They look at us as simpletons, but I’ve got to be honest, in the beginning of this video, I’m talking about simpletons that run up to me and go, yeah, how’s that silver treat? I’m like, I mean, I don’t know. I’m crushing it. I don’t know what to tell you. I’m absolutely crushing it. In my life, crushing it doesn’t necessarily mean a percentage of gain immediately. To me, crushing is, well, I own something that less than 1% of the world owns and I’ve accumulated a good clip compared to what I would have imagined when I started.
It’s mine. I have no counterparty risk and at any point, and I’ve done this before, oh, I got a smoking deal on a tractor. I’ll sell $5,000 worth of silver. I bought a tractor for five. I sold it for 15. Guess what? I bought $10,000 worth of silver. It was awesome. It was at a lower price and I still had the five grand in cash to go flip another tractor. If people are like, hey, how’s that silver working out for you? I’m like, how’s your car payment working out for you? You’re an idiot.
I don’t ever say that to them. I go, well, I guess, I’m just an idiot. I say that I’m the idiot. It makes them feel so good. It makes an idiot feel so good when they know they’re not the idiot. That’s just a little pro tip. I’m going to be honest with you. This is why I love getting in the heads of some people on CNBC, Fox News, and some of those famous authors you all know because when we get into a quiet moment, they always say the same thing. How do you know all that? Well, it’s not that I know a lot.
It’s that you prejudge me based off of how I act, how I talk, and I’m going to win. I say that not to be cocky. I say that to encourage you because how many of you really know that you know what you’re doing? You’re intelligent, but you’re not treated like that. People judge you. Type 10, if that’s you. If that’s you, type in 10. I’m going to tell you right now, I believe in you. I know that you have what it takes to crush it. Just you looking at different alternative investments like the Iraq Dinar, like silver, like gold, like Bitcoin, that shows me that you are the type of person that things big.
Yes, there is going to be a day where this goes down. The Dinar will have a new value versus the dollar because the dollar will be falling versus the Dinar because it’s the straw man. It’s going to be exciting, but the sad part is you won’t have people in your life to go and share that with. Your family and friends, when you start crushing it, trust me, it’s not fun, but hey, even Jesus had that problem. I hope you guys have a great day. The Economic Ninja is out. [tr:trw].
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