Breitling - Iraq Can't Function! 1/5/19

Iraq can not function…they need $54 per barrel to survive…they’re telling us…in two years it’s going to be $25 per barrel.  That means they’re in the negative.  They need $54 to stay even.  That’s just to make it. 

To survive…They are going to be below that by half…it makes me happy cause you and I are sitting on their currency.  What are they going to do devalue it more?  No.  They are going to add value and you and I are sitting on it. 

You should be happy.  It’s real…that’s the way it works.  No body can get around this math…You have a hundred years of how countries devalued and valued their currencies and Iraq is no different. 

They are going to be forced to do it.  Nothing can stop them from doing it.  That’s what’s so neat about what’s coming up.

Breitling always talks about how the math works for the dinar crowd, but he doesn't tell you what the numbers actually are so I will.  The IQD is pegged to the US dollar.  That means that there is ratio of dinars to dollars that is maintained by the Central Bank of Iraq who manage the money supply to maintain that ratio based on the amount in their foreign currency reserves that back the dinar.  

Over the past ten years their M1 money supply has been as low as 37 trillion and as high as 71 trillion, about what it is now.  https://www.cbi.iq/documents/key%20financial.xls

During that same time their foreign currency reserves have been as low as $45 billion and as high as $75 billion.  https://www.theglobaleconomy.com/Iraq/Reserves/   

Currently they are backing about 70 trillion dinar with about $60 billion in their reserves.  If you divide $60 billion by 70 trillion it comes to about $.00085, which oddly enough is about the current value of the IQD.  In other words the dinar is valued about where it should be.  It could go up or down a few % here and there, but in all likelihood nothing more than that.  Those are the numbers, folks.  Breitling won't provide them for you but I just did.

Sounds right to me.