FED Pivot Is DEAD: NO Interest Rate Cuts in 2025 as Economy Adds 256,000, Exceeding Expectations

FED Pivot Is DEAD: NO Interest Rate Cuts in 2025 as Economy Adds 256,000, Exceeding Expectations

Lena Petrova:  1-11-2025

The much-anticipated “pivot” by the Federal Reserve – the shift from aggressive interest rate hikes to potential cuts – appears to be firmly off the table, at least for 2025.

This conclusion comes hot on the heels of a robust jobs report that far exceeded expectations, adding 256,000 jobs to the U.S. economy. The data paints a picture of a labor market that remains surprisingly resilient, potentially dashing hopes for a change in monetary policy aimed at easing the pain of high borrowing costs.

For months, investors and economists have been parsing every piece of economic data, searching for signs that the Fed would soon begin to lower interest rates. The logic was straightforward: inflation had begun to cool, and the cumulative effect of prior rate hikes would eventually lead to a slowdown in economic activity, prompting the central bank to ease its grip. However, the latest employment figures throw a significant wrench into these expectations.

The unexpectedly strong job growth isn’t just a number; it’s a signal that the economy is still running hot. With more people employed, the potential for increased consumer spending and continued inflationary pressures remains very real. This puts the Federal Reserve in a precarious position.

 Their primary mandate is to ensure price stability and promote maximum employment. While employment is clearly strong, inflation, while lower than its peak, is still above the Fed’s target of 2%.

The Federal Reserve’s next move will largely depend on upcoming inflation data. If inflation remains stubbornly high despite the strong jobs market, the Fed will likely maintain its current stance. However, a noticeable cooling in inflation could still open the door for rate cuts, albeit later than previously anticipated.

The focus now shifts to subsequent economic reports.

As the Fed continues to monitor the economic landscape, investors and analysts will be closely scrutinizing inflation data, consumer spending figures, and any further shifts in the labor market. The narrative of a quick pivot, it appears, has been replaced by a more cautious and data-dependent approach.

While the strong employment numbers are a positive sign for the labor force, they present a new challenge for the Federal Reserve in their fight to curb inflation. The economic path forward remains uncertain, but one thing is now clear: the prospect of interest rate cuts in 2025 is far from guaranteed.

https://www.youtube.com/watch?v=iwBGFL8tRSg

Seeds of Wisdom RV and Economic Updates Saturday Morning 1-11-25

Good Morning Dinar Recaps,

NEW HOUSE FINANCIAL SERVICES LEADERSHIP TARGETS DIGITAL ASSET REGULATION

The House Financial Services Committee has chosen leadership with an eye toward digital asset regulation.

Rep. French Hill (R-Ark.) announced the new appointments Thursday (Jan. 9), promising to “right-size the regulatory system for particularly community banks,” and “create a regulatory framework for digital assets that will protect investors and consumers.”

In addition, Hill said the committee would “ensure agencies are focused on their core statutory directed missions” and not political agendas.

The committee’s vice chairman — a position held by Hill in the last term — will be Rep. Bill Huizenga (R-Mich.). In addition, Hill said, Rep. Mike Lawler (R-N.Y.) will serve as vice chair for communications, and Rep. Mike Haridopolos (R-Fla.) will be committee whip, the latter to “ensure our Republicans are working together toward our common goal.”

In addition, the committee has announced chairs for its various subcommittees, including: Rep. Ann Wagner (R-Maine), Capital Markets; Rep. Andy Barr (R-Ky.), Financial Institutions; Rep. Bryan Steil (R-Wis.), Digital Assets, Financial Technology and Artificial Intelligence.

Rep. Warren Davidson (R-Ohio) was named chair of the Subcommittee on National Security, Illicit Finance, and International Financial Institutions, with Rep. Dan Meuser (R-PA) overseeing the Subcommittee on Oversight and Investigations. Lastly, the Subcommittee on Housing and Insurance will be chaired by Nebraska Republican Rep. Mike Flood.

As PYMNTS wrote earlier this week in a look at the upcoming legislative session, there have been a number of attempts at laws to create frameworks around digital asset markets.

For example, the Financial Innovation and Technology for the 21st Century Act was passed by the House but not the Senate. The act would, among other things, establish standards for digital assets and consumer protections, and segregation of funds.

And then there’s the question of cryptocurrency. Speaking with PYMNTS, Mike Katz, a partner in Manatt, Phelps and Phillips Financial Services Group, said that “despite the razor-thin Republican majorities, there is a growing bipartisan consensus in Congress around the need for thoughtful, innovation-focused crypto and AI legislation.

“It will be interesting to see if any digital asset bills are part of the tax-and-border-focused reconciliation package already being discussed in Congress. I’d expect a strong stablecoin bill to move quickly given existing bipartisan support,” he added.

@ Newshounds News™

Source:  Pymnts

~~~~~~~~~

BRICS NEWS:  BRICS: US DOLLAR REMAINS IN HIGH DEMAND, DE-DOLLARIZATION FAILING

The BRICS alliance which kick-started the de-dollarization agenda is now under the mercy of the US dollar in 2025. The US dollar remained in the green for nine consecutive days in the DXY index and tramping other local currencies. 

The Indian rupee has fallen to a lifetime low of 85.93 and is on the brink of dipping to the 86 level. The Chinese yuan and the Japanese yen are facing similar lows and are unable to take on the rising US dollar.

The US dollar singlehandedly outperformed all local currencies in 2025 taking the top spot in the currency markets. The USD has now reached a high of 109.30 in the DXY index and could breach its all-time high of 109.53. The currencies of BRICS members are the hardest hit despite the alliance pushing the de-dollarization agenda to bring the US dollar down.

BRICS: Here’s Why the US Dollar is Rising and De-Dollarization is Failing

The first boost to the dollar came in early January after US weekly Initial Jobless Claims declined to 201,000 from the previous 211,000. The US Department of Labor (DOL) published the report indicating that the jobs market could ease out leading to employability. 

In addition, Fed Governor Christopher Waller made an announcement saying that inflation could continue to fall in 2025. These two events early this month boosted the US dollar’s prospects and dented the BRICS’ de-dollarization initiative.

The BRICS bloc now remains under pressure as local currencies are facing an uphill task to sustain themselves. The raging US dollar is showing no signs of stopping and is taking the de-dollarization agenda by the horns. 

If the momentum persists, BRICS can only dream of de-dollarization and never make it a reality. The US dollar has sustained many whiplashes over the last seven decades and has faced all challenges head-on.

@ Newshounds News™

Source:  Watcher Guru

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Seeds of Wisdom Team™ Newsletter

Thank you Dinar Recaps

“Tidbits From TNT” Saturday Morning 1-11-2025

TNT:

Tishwash:  It can become a major source of income in the economy.. Al-Sudani directs the maturation of tourism projects

Prime Minister Mohammed Shia Al-Sudani stressed, today, Saturday (January 11, 2025), the necessity of investing in Baghdad as the capital of Arab tourism to launch tourism development projects, considering that it can be transformed into a primary source in the non-oil economy.      

The Prime Minister's media office stated in a statement received by "Baghdad Today" that "Al-Sudani chaired a meeting today, Saturday, devoted to presenting a package of tourism projects planned to be established in the capital, Baghdad, and the rest of the governorates."

According to the statement, Al-Sudani directed to work on maturing tourism projects and offering them as a single package, especially since developing this sector will contribute to strengthening and diversifying the national economy by activating vital sectors, including the tourism sector, which the government is keen to activate for the next stage, based on its government program.

He pointed out that tourism and its components are available in Iraq, and it is possible to transform into a basic source in the non-oil economy, with the availability of opportunities, local need, and the desire of citizens to benefit from and enjoy modern, advanced, and environmentally friendly tourism facilities. It also represents a gateway to expanding the elements of attraction for incoming tourism from abroad.

The Prime Minister explained the importance of investing in the opportunity of choosing Baghdad as the Arab Tourism Capital for the year 2025, building attractive tourist and entertainment facilities and installations, overcoming bureaucratic obstacles, and creating more suitable conditions to attract foreign investment in this sector. 

According to the statement, the meeting approved extending an invitation to a Spanish company specialized in tourism development in order to put projects related to this sector into action, as well as to develop the capabilities of specialized tourism cadres and keep pace with the latest developments witnessed by this sector globally.

21 tourism projects were also reviewed, including hotels, resorts, sustainable forests, cities and entertainment complexes in Baghdad and various governorates, which provide attractions, infrastructure and economic feasibility. link

************

Tishwash:  Iraq awaits "financial challenges".. Dollar scarcity, liquidity declines, and salary reserves are sufficient for 6 months

International economics expert Nawar Al-Saadi confirmed today, Friday (January 10, 2025), that Iraq is facing major and dangerous financial challenges, and these challenges must be avoided through real reforms.

Al-Saadi said in an interview with Baghdad Today that “the financial challenges in Iraq are ongoing, but recently they have begun to threaten its monetary stability and raise concerns about their impact on the government’s ability to pay salaries in the coming months.

 I do not believe that they will lead to an inability to pay salaries, as the Ministry of Finance has a reserve that may reach at least 6 months, but this concern stems from several data and indicators that have emerged recently, including that the Iraqi economy depends almost entirely on oil revenues, which represent the main source of government revenues, and any decline in global oil prices leads to a reduction in these revenues, which puts additional pressure on the general budget and increases the possibility of a financial deficit.”

He pointed out that "there are problems related to foreign currency management, as dollar smuggling operations have worsened through some unofficial outlets and weak supervision of banks, which has led to a shortage of dollars in the local market and a decrease in general liquidity. This affects monetary stability and puts the government in difficulty in financing salaries, especially with the increasing reliance on cash reserves to cover this deficit."

He added, "The banking sector suffers from a lack of confidence among citizens, as many prefer to keep their money outside the banking system, and this behavior contributes to reducing the cash flow available in the market, which adds further complexity to the financial situation."

The international economics expert concluded by saying, "In short, Iraq's financial situation requires urgent reform steps that include diversifying sources of income, improving revenue management, and enhancing citizens' confidence in the banking system, to avoid a liquidity crisis that could have broad repercussions on the economy and society." link

************

Tishwash:  Reveals details of the restructuring plan for Rafidain and Rashid Banks

An economic expert revealed the government’s plan to restructure its two banks, Rafidain and Rashid.

Salah Nouri told Al Furat News Agency, "The reasons for restructuring Rafidain and Rashid banks are the presence of bad financial assets, most of which are loans granted that were impossible to obtain before 2003, which led to a decline in the credit rating by international financial institutions and the refusal to deal with them."

He explained that "in order to restore international confidence in the two banks, it is necessary to restructure the two banks by excluding bad financial assets from the financial center of the two banks and using modern technology and establishing two parallel banks, one for Rafidain and the other for Rashid, to which the bad financial assets will be transferred."

He explained, "After separating Rafidain Bank into a bank that owns sound financial assets and another parallel Rafidain Bank that owns bad financial assets, as well as Rashid Bank into Rashid Bank that owns sound financial assets and Rashid Bank that owns bad financial assets, Rafidain and Rashid banks, which own sound financial assets, will be merged into one bank, as well as merging Rafidain Bank with bad financial assets with Rashid Bank with bad financial assets into one bank."

Nouri said that "the new bank after the merger with sound financial assets will practice cash and contractual credit activities and dealings with international financial institutions, but the new bank after the merger with sound financial assets needs capital support with not small amounts, and this must be determined by the party that supports the capital, according to the government decision."

He noted that "among the financial activities of the new bank is the use of artificial intelligence in addition to bank employees with high technical skills."

He continued that "the process of restructuring the two banks financially and organizationally since 2011 with the membership of the Federal Board of Financial Supervision, the Central Bank of Iraq, the international auditing firm EY, the Ministry of Finance and the two banks concerned, has stopped, and currently the process of restructuring the financial and organizational structure has been resumed by assigning the international auditing firm according to the methodology referred to above."

Prime Minister Mohammed Shia al-Sudani chaired a special meeting yesterday, Thursday, to discuss the development of the work of government banks, in the presence of representatives of Ernst & Young for Auditing and Financial Consulting.

The Prime Minister explained that "the completion rate of the project to restructure Rafidain Bank has reached its final stages, stressing that it will enter into force in the coming few days, within the framework of a plan that has been studied and implemented according to the established standards and specifications."

Meanwhile, the Prime Minister's financial advisor, Mazhar Mohammed Salih, revealed to {Al Furat News} that a new banking entity is about to be born in Iraq.

Salih said that "the study aims to establish a new banking entity specializing in government banking operations, to meet the needs of the government exclusively. This entity will contribute to achieving the goals of the unified treasury account, which is a crucial tool for regulating cash flows for public finances."

He pointed out that "the study focuses on evaluating the legal status of the two banks, including property rights, evaluating assets and liabilities, and studying the requirements of a strategic partner if necessary, with a focus on developing the two entities to operate according to advanced financial technology that meets the requirements of the national banking market."

He stressed that "the structural reform also aims to enhance the integration of the two banks into the national banking market and enable them to expand into global financial markets, especially in the areas of trade and investment financing for the private sector," indicating that "the two potential entities will rely on modern systems in compliance, governance and risk management, with a focus on digital payments."  link

************

Mot: . ARE YOU READY!!!??? --- I Am!!!

Mot: Over the Hill……

MilitiaMan & Crew Iraq Dinar News-Central Bank Governor Speaks Out- Closes electronic platform-A Year of Industry

MilitiaMan & Crew Iraq Dinar News-Central Bank Governor Speaks Out- Closes electronic platform-A Year of Industry

1-10-2025

The Crew:  Samson, PompeyPeter, Petra, Daytrader, Sunkissed, GIGI and Militia Man

Be sure to listen to full video for all the news……..

https://www.youtube.com/watch?v=-RkNjE10v70

Iraq Economic News and Points to Ponder Friday Afternoon 1-10-25

Iraq Stands In Solidarity With America Over California Fires

2025/01/10 Reading: 858 times  Iraq stands in solidarity with America over California fires  LINK

Prime Minister: Restructuring Government Banks To Ensure Availability Of Capabilities And Openness With International Specifications

Banks   Economy News – Baghdad   Prime Minister Mohammed Shia Al-Sudani confirmed, on Thursday, that government banks with their current structures are unable to open up and address problems, indicating that this is why they have been restructured in a way that ensures the availability of all capabilities and openness with modern international technical specifications.

The Prime Minister's Media Office said in a statement, seen by "Al-Eqtisad News", that "Prime Minister Mohammed Shia Al-Sudani chaired a special meeting to discuss the development of the work of government banks, in the presence of representatives of Ernst & Young for auditing and financial consulting."

The statement added, "The Prime Minister was briefed on the plan for the restructuring project of Rafidain and Rashid Banks, and the technical and administrative procedures related to the project, which includes a comprehensive review and structural administrative reforms with the aim of providing integrated banking services to citizens and companies."

The Prime Minister explained - according to the statement - that "the completion rate of the project to restructure Rafidain Bank has reached the final stages," stressing "its entry into force in the coming period, within the framework of a plan that has been studied and implemented according to the established standards and specifications."

Al-Sudani added that "government banks with their current structures are unable to open up and address problems, and for this reason they have been restructured in a way that ensures the availability of all capabilities and openness with modern international technical specifications." 111 views   Added 01/09/2025 - https://economy-news.net/content.php?id=51784

Oil Prices Rise Amid Expectations Of New Sanctions On Russia, Falling Inventories
10/01/2025   Mawazine News – Economy  Oil prices jumped on Friday, posting gains for a third straight week, as concerns mounted about supply disruptions from potential sanctions on Russia.

Brent crude futures rose $3.50, or 4.6%, to $80.42 a barrel, breaking above $80 for the first time since October. U.S. West Texas Intermediate (WTI) crude futures rose $3.57, or 4.8%, to $77.49 a barrel.

Tensions mount over Russia sanctions
The United States is planning to impose its toughest sanctions on Russia’s oil sector, targeting 180 oil tankers, dozens of traders, two major companies and senior industry executives, according to a document seen by Reuters.

Expectations of the sanctions have grown ahead of President-elect Donald Trump’s inauguration on Jan. 20, while the Biden administration is expected to announce additional sanctions on Russia before it leaves office.

Other factors supporting higher prices
Cold weather in the US and Europe has helped boost demand for heating oil, with the US National Weather Service forecasting cooler temperatures in the central and eastern parts of the country. Europe is also facing a severe cold snap that is increasing energy consumption.

Analysts at JPMorgan expect global oil demand to grow by 1.6 million barrels per day in the first quarter of 2025, driven by increased consumption of heating oil, kerosene and liquefied petroleum gas.

Investors are concerned about inflation
Ole Hansen, head of commodity strategy at Saxo Bank, said that concerns about rising inflation due to Trump’s planned tariffs are boosting crude prices.

Despite a sixth straight week of gains in the dollar, which makes oil more expensive for buyers outside the US, oil prices continued to recover, reflecting the strength of factors supporting demand. https://www.mawazin.net/Details.aspx?jimare=258397

Oil continues gains, Brent crude hits $77

Time: 2025/01/10 08:22:31 Read: 1,430 times  {Economic: Al Furat News} Oil prices rose for the second day in a row, after a decline in US inventories overshadowed more signs of economic weakness in China, the largest importer of crude.

West Texas Intermediate crude traded above $74 a barrel, after ending the session up 0.8% on Thursday, while Brent crude closed near $77.

Crude inventories at the Cushing, Oklahoma, hub fell to their lowest since 2014, while consumer inflation in China is heading further toward zero.

Third Weekly Gain

Oil prices are set for a third weekly gain, supported by cold weather that is boosting demand for heating fuel and could disrupt U.S. refineries.

The imminent return of President-elect Donald Trump to the White House is also increasing the risk to Iranian supplies and creating tensions over a potential trade war that could weigh on energy demand. LINK

Iraq Declares 2025 The Year Of Industry.. Will Its Decisions Succeed?

Posted on 2025-01-10 by sotaliraq  The Prime Minister's Advisor, Hamoudi Al-Lami, confirmed that the Iraqi government has placed the industrial sector at the top of its priorities within its government program, announcing that 2025 will be the year of industry in Iraq.

Al-Lami explained that the Prime Minister's visit to Iraqi factories came to reflect the serious trend towards promoting national industry, pointing out that the Council of Ministers issued an unprecedented package of decisions to support this sector, including providing sovereign guarantees to the private sector that were previously limited to the government sector only, with the aim of establishing new production lines and modern factories.

He added that the government seeks to reduce dependence on oil revenues by exploiting the assets that Iraq possesses, such as raw materials, industrial expertise and the local market, stressing that the Council of Ministers reduced customs duties to levels close to zero, and provided soft loans with low interest to support the expansion of existing factories and the establishment of new ones.

Al-Lami pointed out that the government is working on establishing integrated industrial cities that will be offered to developers to provide the necessary services, noting the Prime Minister’s directive on the necessity of submitting applications to protect local products when achieving 50% market coverage, in line with the National Product Protection Law by imposing additional fees or preventing the import of competing goods.

Al-Lami also stressed that the government is keen on coordination between factories and farmers, especially in the food sectors, stressing the importance of supporting local agricultural production to provide factory supplies, such as dairy products and their derivatives.

At the end of his speech, Al-Lami announced the government's plans to restore the production of fertilizers, petrochemicals and other products that have been absent from the Iraqi market for years, stressing that periodic meetings will be held with industrialists to address challenges and achieve comprehensive industrial development.

With these steps, the government seeks to transform Iraq into an integrated industrial country, capable of achieving self-sufficiency and reducing dependence on imports, which will enhance the country's economy and achieve prosperity for citizens.   LINK

***********************************

With The End Of The Legislative Holiday... Parliamentary Movement To Resolve The “Controversial Laws” In The Coming Days

Posted on 2025-01-10 by sotaliraq   Once again, the scenario of controversial laws returns to the forefront, with the end of the parliament’s legislative recess, despite the heated disputes over some of its provisions and warnings against adopting the one-basket approach in resolving them.

The halls of Parliament are witnessing a new movement to return controversial laws to the Parliament’s table for discussion and passing, which raises fears of a new crisis erupting within Parliament regarding them.

The House of Representatives entered a legislative recess after extending it for 30 days based on Article 58 of the Iraqi Constitution. Consequently, that period ended and it became obligatory to enter a recess from December 9th to January 9th.

Member of Parliament Jassim Al-Moussawi says, “Through reading and managing sessions on controversial laws, there is public pressure trying to resolve controversial laws.”

He added, "The majority want to move forward to resolve the controversial laws, especially the Personal Status Law, the Amnesty Law, and the Kurdistan Lands Law," indicating that "there are broad popular demands."

Al-Moussawi pointed out that “there are efforts to resolve the problems and disputes regarding these laws,” stressing that they “need some time.”

For his part, Mukhtar al-Moussawi, a member of the Foreign Relations Committee in the House of Representatives, said, “The controversial laws will witness new movement, as the orientations of the major blocs dominating the parliamentary scene will become clear.”

He explained that “the legislative process in Iraq suffers from the dominance of the principle of political consensus between the blocs, which leads to the passing of laws based on political deals and trade-offs instead of relying on objective discussions that serve the public interest.”

He pointed out that “this style of legislative work makes controversial laws stuck within what is called the ‘one basket’, where the passage of one law is linked to the approval of another law, which hinders the approval of the necessary legislation that citizens are waiting for.”

The Shiite representatives in parliament insist on passing the Personal Status Law, which is considered a radical amendment to Law No. 188, which was enacted in 1959 during the era of Abdul Karim Qasim, while the Sunnis demand passing a general amnesty law, while the Kurds seek to pass a law to return properties to their owners that were taken from them during the era of the former regime. Since there are fundamental differences regarding each of these laws, they have been called “controversial laws,” such that passing any one of them requires passing the other laws.

The delay in approving many important laws is likely to weaken the legislative and oversight role of the House of Representatives, according to political observers, who criticize the parliament’s resort to the principle of political consensus, which has led to the postponement of important laws that the Iraqi street is anticipating.

It is noteworthy that the issue of passing controversial and controversial laws through the so-called “one-basket” system is not new to the Iraqi parliament. It is a procedure that is resorted to in the event that disagreements over a particular law reach a dead end, in a way that enhances the interests of the political blocs and their sectarian, factional and regional polarizations.

The amendment to the Personal Status Law faces major objections, as legal experts and civil activists warned, in a previous report by “Al-Alam Al-Jadeed,” of the amendments that the parliament intends to make to the law. While they confirmed that they could undermine one of the most important Iraqi legislations, they pointed out that the amendments place the authority of sects and religious men in a higher position than the authority of the judiciary and the law.

The amendment to the general amnesty law also faces objections and concerns that it will include those convicted of terrorism and belonging to ISIS. This amendment is one of the main demands of most Sunni forces, and was among the most prominent conditions they set in the negotiations to form the government of Prime Minister Mohammed Shia al-Sudani before voting on it in parliament in October 2022.

As for returning the properties to their owners, the five Kurdish blocs in the House of Representatives announced last September that they would unify their position to support a draft law aimed at cancelling the Baath Party’s decisions regarding agricultural lands in the areas covered by Article 140 of the Iraqi Constitution.  LINK

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Friday Afternoon 1-10-25

Good Afternoon Dinar Recaps,

XRP LAWSUIT: RIPPLE CTO REVEALS LEGAL STRUGGLES AND THE SILENCE HE WAS FORCED INTO

The ongoing legal battle between Ripple Labs and the US Securities and Exchange Commission (SEC) has gained widespread attention, carrying profound implications for the entire cryptocurrency industry. The lawsuit, which began in December 2020, accuses Ripple, along with its CEO Brad Garlinghouse and co-founder Chris Larsen, of raising over $1.3 billion through an unregistered securities offering by selling XRP.

In the midst of this high-stakes legal fight, Ripple’s Chief Technology Officer (CTO), David Schwartz, recently shared his thoughts on the situation. He opened up about the challenges posed by the lawsuit and the broader regulatory scrutiny faced by the crypto industry. 

He explained how the legal constraints surrounding the case prevented Ripple from addressing certain truths about the situation. “One of the things that most annoyed me about the lawsuit and the war on crypto was that there were things that were indisputably true that I could not say,” Schwartz said.

While Schwartz acknowledged the frustration of not being able to speak freely, he found some solace in seeing others express these truths on Ripple’s behalf. He added, “It definitely lifted my spirits to see someone else say them when I could not.”

Schwartz said that, despite his willingness to be more open about the matter, he believes discussing the past in detail would not be productive. He explained that, due to legal and strategic constraints, Ripple has been unable to directly combat misinformation, relying on the support of the XRP community, often referred to as the “XRP Army,” to help fill that gap.

Ripple Vs SEC Latest Update:

Judge Phyllis J. Hamilton has allowed Ripple CEO Brad Garlinghouse to keep some court documents sealed. This includes documents about judgments and expert testimony. Both Ripple and the SEC can keep these details private as the case moves to the next stage, following a rule to protect sensitive information.

@ Newshounds News™

Source:  Coinpedia

~~~~~~~~~

U.S. SENATE TO LAUNCH CRYPTOCURRENCY SUBCOMMITTEE, LUMMIS TAPPED AS CHAIR

In a significant move for the crypto industry, the U.S. Senate Banking Committee is set to create its first-ever subcommittee focused exclusively on cryptocurrency.

The U.S. Senate Banking Committee, under the leadership of Senator Tim Scott (R-S.C.), is poised to establish a dedicated cryptocurrency subcommittee to advance discussions on digital asset regulation and industry oversight, according to a report by Fox News.

The formation of this subcommittee, modeled after a similar House panel created in 2023, marks a pivotal step toward a more structured approach to crypto legislation at the federal level.

A Senate aide told Fox News that Wyoming Senator Cynthia Lummis, a staunch advocate for cryptocurrency, is the tentative choice to chair this groundbreaking panel. 

‘The selection of Lummis, pending a committee vote next Thursday, signals a shift in the Senate's approach to digital assets. Alongside her nomination, the subcommittee members, representing both Republican and Democratic sides, will also be finalized through the same voting process.

Lummis, known for her vocal support of Bitcoin, has described the asset as "freedom money" and has advocated for its potential to hedge against inflation and enhance financial independence.

She previously proposed a plan for the US to acquire a significant stake in the total Bitcoin supply through a 1-million-unit purchase program over a set period. "Establishing a strategic Bitcoin reserve to bolster the U.S. dollar with a digital hard asset will secure our nation's standing as the global financial leader for decades to come," Lummis said at the time.

Her leadership could steer the subcommittee toward developing a more balanced regulatory framework, fostering innovation while ensuring market integrity.

Senator Tim Scott first hinted at the possibility of forming a crypto-focused subcommittee during the Wyoming Blockchain Symposium last August. 

“Wouldn't it be kind of cool if we had a subcommittee on the Banking Committee... so that we bring more light to the conversation, more hearings on the industry, so that we get things done faster?” Scott remarked, highlighting his vision for streamlined legislative action.

This move comes as Scott replaces outgoing Chair Senator Sherrod Brown (D-Ohio), who maintained a more critical stance on cryptocurrency. Brown frequently called for stricter oversight, citing concerns about crypto's role in enabling illicit activities and circumventing sanctions. The change in leadership, coupled with the creation of a dedicated subcommittee, could lead to a friendlier regulatory environment for digital assets under the new administration.

Notably, the subcommittee will include other crypto-friendly lawmakers such as Senator Bill Hagerty (R-Tenn.) and newly elected Senator Bernie Moreno (R-Ohio), both vocal supporters of blockchain technology and cryptocurrency. Moreno, who defeated Brown in the November elections, has vowed to champion crypto-friendly policies in the Senate.

@ Newshounds News™
Source:  BlockHead

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Seeds of Wisdom Team™ Newsletter

Thank you Dinar Recaps

The Fed will End Quantitative Tightening this Year

The Fed will End Quantitative Tightening this Year

Heresy Financial:  1-10-2025

The Federal Reserve’s monetary policy has been a dominant force in the economic landscape in recent years, and its actions in 2025 will be closely watched. One key development anticipated is the cessation of quantitative tightening (QT), a process aimed at reducing the massive balance sheet the Fed accumulated during the pandemic.

Understanding the path to this point, along with the factors at play, is crucial for gauging the economic outlook.

To appreciate the current situation, we must look back to 2020. In response to the devastating economic impact of the CoviD-19 pandemic, the Fed engaged in unprecedented monetary easing. This included slashing interest rates to near zero and unleashing an enormous program of quantitative easing (QE), effectively “printing money” by purchasing trillions of dollars in Treasury bonds and mortgage-backed securities.

 This infusion of liquidity was meant to stabilize markets, support employment, and prevent a deeper economic collapse. While it achieved those goals to a large degree, it also laid the foundation for future challenges, including inflation.

As inflation surged in 2022 and 2023, the Fed pivoted sharply, embarking on a path of aggressive interest rate hikes and quantitative tightening (QT). QT involves allowing maturing assets on the Fed’s balance sheet to roll off and, in some instances, selling assets directly into the market. This process reduces the money supply and aims to cool down the economy and bring inflation under control.

However, QT hasn’t been without its complications. As the Fed reduces its holdings of Treasury bonds, it indirectly puts pressure on the government to borrow more from the open market, potentially raising the cost of borrowing for the US Treasury. This adds a layer of complexity to the financial system.

The Fed also maintains a Reverse Repo (RRP) Facility, a tool that allows financial institutions to temporarily park excess cash with the Fed in exchange for securities. Historically, it served as a safety valve, absorbing excess liquidity in the system.

However, in recent years, the RRP facility has seen a significant surge in utilization due to the vast amount of liquidity floating around as a result of the prior QE programs. As QT continues, the question remains whether the RRP will continue to play the same role or if the liquidity it absorbs will eventually dry up.

The central question surrounding the end of QT is: where is the liquidity coming from? The massive QE operations of 2020 created an unprecedented amount of money in the financial system. While QT is intended to drain that liquidity, the process unfolds slowly.

The persistence of the RRP utilization suggests that there’s still ample cash available. However, as the Fed continues to unwind its balance sheet, the system will become progressively leaner. This process will influence the cost of borrowing, and possibly the level of risk assets people are willing to take.

The move by the Fed to conclude quantitative tightening in 2025 marks a significant shift in monetary policy. While the immediate impact might be a reduction in upward pressure on interest rates, the lingering effects of 2020’s “money printing” and the complexities of unwinding such a large balance sheet mean that the economic path ahead remains uncertain.

 Investors and economists will be closely scrutinizing the Fed’s actions and the resulting market responses as 2025 unfolds. The lessons learned from this period will undoubtedly shape the future of monetary policy for years to come.

https://youtu.be/bqukrHuNHvE

Seeds of Wisdom RV and Economic Updates Friday Morning 1-10-25

Good Morning Dinar Recaps,

SEC’S GENSLER SAYS MOST CRYPTO PROJECTS ARE DOOMED AS RIPPLE APPEAL DEADLINE NEARS

▪️Gary Gensler warns crypto market still rife with fraud, says many projects won’t survive in his final interview as SEC Chair.

▪️Outgoing SEC Chair Gary Gensler highlights scams in crypto, calls for stronger regulation as he prepares to step down.

***************************************

Gary Gensler, the outgoing chair of the Securities and Exchange Commission, shared his thoughts on regulating the fast-growing crypto market. While he acknowledged that crypto is still a small part of the overall financial markets, he said that it’s full of bad actors and scams.

Under his leadership, the SEC has filed about 100 enforcement actions in the past four years, compared to his predecessor Jay Clayton’s 80. Gensler believes that the crypto market is still struggling with fraud, with many projects acting like risky investments that may not survive.

In an interview with Bloomberg, Gensler said,

In this field, it’s rife with bad actors.” He then broke down the crypto market into two parts, saying, “The public knows a lot about Bitcoin, which, depending on its market value, is two-thirds to 80% of the market value of crypto.

Gensler pointed out that there are “10,000 to 15,000 projects raising money from the public.” Many of these projects, he believes, are simply speculative investments, “hoping for a better future.” 

He explained, “I’ve been around finance for over four decades, and everything in the markets trades on a mixture of fundamentals and sentiment.” However, he added, “At any given time, I’ve never seen a field that’s so much wrapped up in sentiment and not so much about fundamentals.”

Gensler Says Crypto Projects ‘Won’t Survive’

He also warned, “Many of these 10,000 to 15,000 projects will not survive. They’re like venture capital investments. They’re not going to survive.” Gensler pointed to the existence of “small pump and dump schemes” that have caused problems in the industry. Reflecting on past events, he said, “We’ve lived through a few years where they became notorious, but they’re in jail now.”

Despite the growing number of enforcement actions, Gensler thinks that the crypto market is still not complying with the rules. He sees his role as ensuring that the market works without fraud, manipulation, and misinformation. Gensler is set to resign on January 20 and Paul Atkins will serve as the SEC Chair next.

@ Newshounds News™

Source:  Coinpedia

~~~~~~~~~

******************************

PRO-CRYPTO CFTC BOSS, SUBCOMMITTEE RUMORED AS TRUMP INAUGURATION NEARS

New reports suggest the US Senate Banking Committee is looking to create its first crypto subcommittee, while Trump is reportedly eyeing a pro-crypto CFTC commissioner to take the agency’s helm.

The US Senate Banking Committee is reportedly set to create its first-ever crypto subcommittee, while a pro-crypto commissioner is now a top pick to replace the outgoing chair of the Commodity Futures Trading Commission, according to two reports.

The two reports — seen as positive developments for the crypto industry — come less than two weeks before President-elect Donald Trump’s inauguration, set for Jan. 20.

According to a report from FOX Business on Jan. 9, following a Punchbowl News report on Jan. 8, the US Senate Banking Committee’s new chair, Republican Senator Tim Scott, has made the creation of the subcommittee a top priority and plans to replicate the House Financial Services Committee’s model, which introduced a crypto subcommittee in 2023.

Two Senate aides told FOX that Scott has put forward Senator Cynthia Lummis to chair the subcommittee, with a vote on her approval to happen in the next few days. Lummis, a longtime crypto supporter, has recently echoed Trump’s push for a strategic Bitcoin.

Trump has made sweeping promises to rein in crypto regulation by enforcement and turn the US into a “crypto capital.” The Senate Banking Committee is the key overseer of financial agencies such as the Securities and Exchange Commission and of federal monetary policy.

A memo seen by FOX said Senators Bernie Moreno, Dave McCormick, Thom Tillis and Bill Hagerty were being considered for the new crypto subcommittee. They are all “strongly supportive” of crypto, according to the digital assets lobby group Stand With Crypto.

It is not known which Democrats might be joining the subcommittee, but Senator Elizabeth Warren, a vocal crypto skeptic, is the party’s most senior member of the Senate Banking Committee

In 2024, the House passed a key crypto bill known as FIT21 that was created by the House Financial Services crypto subcommittee. It would hand greater regulatory control to the Commodity Futures Trading Commission. The bill is currently awaiting action in the Senate.

*************************************

Mersinger tipped to lead CFTC

Meanwhile, Unchained reported on Jan. 9 that five people close to the matter said CFTC Commissioner Summer Mersinger has emerged as a leading choice to chair the agency, as current CFTC chair Rostin Behnam said he’d be stepping down when Trump takes office.

Mersinger has overtaken ex-CFTC commissioner and a16z policy head Brian Quintenz for the job, as she’s seen as someone who could pass a Senate confirmation. She was a staffer for Senate Majority Leader John Thune for 12 years.

As she’s already a commissioner, Trump could appoint her to a temporary chair role while the Senate deliberates on her confirmation.

Mersinger has made crypto-supportive comments, telling a Blockchain conference in November that she was “uncomfortable” that the CFTC was “kind of setting some sort of policy through our enforcement cases.”

Trump is set to take office on Jan. 20, officially giving Republicans full control of the government after the party picked up a majority of Senate seats and kept its House majority in November’s elections. The new Congress kicked off on Jan. 3.

@ Newshounds News™

Source:  CoinTelegraph

~~~~~~~~~

IOTA INVITES DEVELOPERS TO APPLY FOR $10M IN SEASON 2 GRANTS

▪️IOTA’s Season 2 grant program aims to empower builders aligned with IOTA’s vision of sustainability and decentralization.

▪️Prospective applicants can submit proposals via the IOTA Grants website, with projects evaluated based on scalability, usefulness, safety, alignment with funding goals, and long-term viability

The IOTA Ecosystem DLT Foundation unveiled its Season 2 grant program. The IOTA Grants Season 2 has committed to offering $10 million in funding and fostering innovation within the Web3 ecosystem. The initiative looking to empower Web3 builders and innovators focused on projects closely aligned with its vision of sustainability and thriving within a decentralized and free ecosystem.

IOTA Grants Season 2 Focus Areas & Funding Goals

It caters to three core areas, namely open-source development, education, and events, for supporting projects. These categories advance IOTA’s ecosystem by covering key aspects of Web3 growth.

For context, open-Source Development promotes the development of tools, utilities, and public goods that increase user experience.

****************************************

 Moreover, the foundation has targeted education to reduce the complexity of multi-layered technology to reach everyday users. Meanwhile, events that promote community-driven activities like hackathons and workshops are prioritized.

“We’re here to support you on this journey,” the IOTA Foundation stated. They added:

Whether you’re accelerating adoption through real-world applications, planning to utilize our EVM framework, or shaping the future of the IOTA Rebased network, our grants are designed to foster innovation and creativity across the entire spectrum.

Currently, one of the key areas of focus has been the launch of the IOTA rebased protocol. The IOTA Rebased protocol is reportedly gearing up for its mainnet re-launch in early 2025, reported CNF. On the social media platform X, Michael Atlan emphasized that this re-launch positions IOTA for broader real-world adoption

Success Of Season 1 Grants

The end of Season 1 of the IOTA Grants program has been on an upbeat note since it attracted quality talent and great projects. Altogether, there were 144 applications, from which 32 were funded amounting to $3.47 million. The process had to be momentarily halted because it was overwhelmed with applications.

The Foundation has reflected on the previous season by highlighting productive outcomes. In a blog post, the team wrote,

The first season proved highly productive, bringing exceptional talent and innovation into the IOTA ecosystem.

Hence, applying for Season 2 is relatively simple. Anyone can submit a proposal by logging onto the IOTA Grants website along with guidelines on the funding. The applicants would be interviewed by the IOTA Grant Committee, which includes members of the IOTA Foundation.

Projects are rated along six criteria including alignment with funding goals, scalability, usefulness, safety, expertise of the grantee, and long-term viability. 

The Foundation went ahead to inform that its evaluation process is quite transparent, assuring that all funding goes only to projects whose potential to alter the ecosystem can be maximally realized.

IOTA Grants Season 2 builds on the momentum of its predecessor and is seeking even more innovative ideas. “Your ideas have the power to drive positive change in the ecosystem, and the IOTA Ecosystem DLT Foundation is here to support you,” the Foundation encouraged.

The IOTA Foundation added that it’s excited to work with developers and visionaries to build the future of Web3. Thus, prospective candidates can visit the IOTA Grants website for more information or to apply.

@ Newshounds News™

Source:  Crypto News Flash

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Seeds of Wisdom Team™ Newsletter

Thank you Dinar Recaps

“Tidbits From TNT” Friday Morning 1-10-2025

TNT:

Tishwash:  Al-Sudani receives a call from the Pope

Prime Minister Mohammed Shia al-Sudani received a phone call today, Thursday, from the Pope of the Vatican, His Holiness Pope Francis, who invited al-Sudani to participate in the World Leaders Summit on Children's Rights, which the Vatican is organizing next February, on the occasion of World Children's Day.

A statement from Al-Sudani's office stated that the latter referred to the close relations between Iraq and the Vatican, the common positions on rejecting conflicts and wars, and strengthening efforts to establish security in the world.

For his part, His Holiness the Pope praised Al-Sudani's efforts to calm the situation and his ongoing dialogue with the countries of the region, in order to reduce tension and end conflicts, which contributes to establishing regional stability and security. link

************

Tishwash:  Economist: Electronic financial transactions save Iraq from cash shortage

Economic researcher Diaa Abdul Karim said on Thursday that the shift towards electronic financial transactions and generalizing this to all government and private transactions will save the country from a shortage of cash.

Abdul Karim told Al-Maalouma, “Most countries in the world, and Europe in particular, have moved towards electronic financial transactions, such that the culture of dealing with electronic cards in buying and selling in various sectors has been created in society, and even With the decline of its economy, it will not suffer financially because its financial transactions are electronic.”

He added, "These transactions make it unnecessary for governments to print currency continuously, as this process is financially costly. Iraq prints some denominations domestically and other denominations of currency are printed abroad, and printing them costs the financial value of this currency."

He explained that "the move towards electronic transactions requires intensive education in order to withdraw the cash mass from the street and to transform transactions, especially large amounts, through electronic cards. Consequently, the citizen will not be forced to withdraw large amounts from banks in order to buy a property, a car, etc., but will use his card to transfer money to the other party, which ensures the safety of financial transactions and prevents the cash mass from being wasted and taken out of the banking framework.”  link

************

Tishwash:  Rashid and Al-Mandlawi confirm coordination to legislate and approve laws that have direct relevance to citizens’ lives

Today, Thursday, the President of the Republic, Abdul Latif Rashid, and the Deputy Speaker of Parliament, Mohsen Al-Mandalawi, confirmed coordination to legislate and approve laws that have a direct impact on the lives of citizens.

Al-Mandalawi's office stated in a statement received by Al-Youm Al-Akhbariya that the latter "met today, Thursday, in Baghdad, with the President of the Republic, Abdul Latif Jamal Rashid, and during the meeting, the latest developments in the political, security and economic situations on the domestic and international arenas were discussed.

" He added that "the meeting discussed ways to expand the frameworks of cooperation and coordination between the Council of Representatives and the Presidency of the Republic in order to legislate and approve laws that have a direct impact on the lives of citizens."

He continued: "The meeting also discussed the efforts made by the government at the service level and the importance of supporting the reconstruction process and rehabilitating and developing the infrastructure in a way that achieves the aspirations of the people for a safe and stable life." link

************

Tishwash:  Kurdistan Region President to visit Baghdad next week

Kurdistan Region President Nechirvan Barzani is scheduled to travel to Baghdad next week, an official said.

“Barzani will participate in a meeting of the State Administration Coalition (SAC),” Dilshad Shihab, spokesperson for the Kurdistan Region Presidency, told Shafaq News Agency.

No additional details were provided regarding the visit or the agenda of the coalition meeting.

SAC was established following Muqtada Al-Sadr’s withdrawal from politics, it comprises mainly the Iran-backed Shiite Coordination Framework, the Kurdistan Democratic Party (KDP) led by Masoud Barzani, and the Sovereignty (Al-Siyada) led by Khamis al-Khanjar, along with Taqadum alliance, and the Patriotic Union of Kurdistan.

The coalition outlined goals such as combating corruption, implementing reforms, rebalancing Iraq’s regional and international relations, revising the electoral commission system, and promoting consensus among Iraqi factions.

The Coalition also choose PM Mohammed Shia Al-Sudani for the premiership.  link

************

Mot: . I Finded it I Did!! -- the Road to da RV!!!!

Mot: Some Day ""Earl"" 

Seeds of Wisdom RV and Economic Updates Thursday Evening 1-9-25

Good Evening Dinar Recaps,

HOW THE BITCOIN FREEDOM ACT COULD SHIELD OKLAHOMANS FROM INFLATION?

In November 2024, the US inflation rate grew sharply from 2.6% to 2.7%. In May 2020, it was just 0.1%. In June 2022, it touched a peak of 9.1%. This inflation pattern has adversely affected the value of the US dollar. Inflation, thus, is something that determines the quality of life a working-class professional leads. Recent developments indicate that US states are keen to protect people from the threat of inflation.

The Bitcoin Freedom Act introduced in the Oklahoma law-making house by Senator Dusty Deevers is the latest example. How much can this law impact the United States society? 

What is the Bitcoin Freedom Act?

The act proposes that Oklahomans should be provided a chance to choose whether they want to receive their wages in Bitcoin or not. It also submits that businesses should be allowed to accept payments in Bitcoin.

Why is the Bitcoin Freedom Act Significant?

At the start of 2024, the US inflation rate stood at just 3.1%. In March, it touched a peak of 3.5%. Though in November it came down to 2.7%, it was far higher than the 1.2% inflation recorded in the same month in 2020.

Growing inflation is one of the most serious threats the US economy is facing right now. Rising inflation means falling purchasing power.

Bitcoin can save people from losing their purchasing power to inflation, as its total supply is fixed, and thus is unaffected by the threat of devaluation unlike traditional currencies.

Oklahoma’s Leadership in Financial Innovation

The introduction of the bill is likely to make a serious impact across the United States. The action has lifted the state to the celebrated position of innovation-friendly economies. It may encourage many to enter the world of financial innovation confidently.

The Future of the Bitcoin Freedom Act

The political stance against the cryptocurrency industry shifted when Republican candidate Donald Trump who projected himself as a pro-crypto candidate, defeated Democratic candidate Kamala Harris who represented a crypto-skeptic regime, in the US presidential election.

In the latest election, the Republican Party received a massive majority in Oklahoma, a US state that has emerged as a stronghold of Republicans, especially since 2011.

The Bitcoin Freedom Act, also known as SB325, is expected to be discussed in the 60th legislative session of the 60th legislature. Reports say that the session will begin on February 3, 2025.

In conclusion, the Bitcoin Freedom Act is more than legislation – it is a step toward financial empowerment and innovation. By embracing Bitcoin, Oklahoma is securing its place in the future of finance.

@ Newshounds News™

Source:  CoinPedia

~~~~~~~~~

BRICS NEWS:  BRICS FAIL TO CHALLENGE US DOLLAR IN 2024: CAN THEY THIS YEAR?

In one of the biggest developments of the last two years, the BRICS bloc has sought to challenge the dominance of the US dollar. Although its de-dollarization process persisted in 2024, the economic alliance has failed to make a significant impact. Now, all eyes are on if it stands a chance in 2025.

According to data from TradingView, a majority of major currencies have fallen against the US dollar. Indeed, the metrics show that the greenback ensured its strength through a resilient American economy. Contrarily, economic activity slowing in China and the Eurozone failed to create an environment for thriving de-dollarization.

US Dollar Ends 2024 Unmoved: Can BRICS De-Dollarization Take Hold This Year?

First created in 2001, the BRICS economic alliance has grown into a legitimate global force. The bloc has continued to expand, although its geopolitical implications have become a point of contention. Amid its increased de-dollarization efforts, the group has proved no match for the strength of the West.

Recent data show that the BRICS collective failed to truly challenge the US dollar in 2024, with its eyes now on succeeding in 2025. Over the course of the last twelve months, the Chinese yuan and Indian rupee both fell 2.8% against the dollar. Additionally, the Russian ruble fell 18.6% against the greenback.

A big reason for the outcome is the United States’ ability to continue its economic recovery. The country’s inflation has fallen from its 40-year high to settle just above the Central Bank’s target. Throughout the last year, it has become one of the best-recovering countries from the 2020 pandemic.

That hasn’t proven true for the rest of the world. Now, all eyes are on the incoming Trump administration. The US President-elect has already issued a stark warning to the BRICS bloc and those seeking to ditch the US dollar. However, his policies could have massive implications. Whether or not the greenback is challenged remains to be seen, but such a challenge would certainly come with a cost.

@ Newshounds News™

Source: Watcher Guru

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Seeds of Wisdom Team™ Newsletter

Thank you Dinar Recaps

Iraq Economic News and Points to Ponder Thursday Afternoon 1-9-25

The 10 Largest Arab Countries That Possess Foreign Exchange Reserves For The Year 2024.. This Is Iraq’s Rank
 
Economy  2025-01-08 |Source:   Al Jazeera Net   5,580 views  Alsumaria News - Foreign exchange reserves are assets denominated in a foreign currency held by a central bank.
 
Countries usually keep their foreign exchange reserves in the US dollar because it is the most widely traded currency in the world.
 
Among other currencies in which foreign exchange reserves are sometimes kept, according to the “World Publication Review” platform, are the following:

Euro (EUR)
Japanese Yen (JPY)
British Pound (GBP)
Chinese Yuan (CNY)
 
These reserves are used to support obligations and influence monetary policy, and  most of them are held in US dollars, according to the Investopedia platform.
 
Foreign exchange reserves consist of cash and other assets held by central banks and other financial institutions such as the International Monetary Fund, according to the World Economic Forum, citing City Index, a financial services provider.
 
China is the largest country with foreign exchange reserves in the world, with $3.73 trillion in December 2024, according to the Statista platform.
 
The importance of foreign exchange reserves and why do countries resort to them?
 
City Index listed 7 main reasons why central banks hold foreign currency reserves:
 
1- Help maintain the value of the local currency at a fixed rate.
 
For example, China pegs the value of the yuan to the dollar.
 
By hoarding dollars, Beijing raises the value of the dollar against the yuan, thus
 
increasing sales by making Chinese exports cheaper than goods manufactured in the United States.
 
2- Keeping the value of the local currency lower than the value of the dollar.
 
Japan, which applies a floating exchange rate system, buys US Treasury bonds or government bonds, to keep the value of the yen lower than the value of the dollar. This again helps in keeping its exports relatively cheaper.
 
3- Maintaining liquidity.
 
In the event of an economic crisis, the central bank can intervene and replace its foreign currency with local currency to ensure the ability of companies to continue importing and exporting competitively.
 
4- Fulfilling the state’s international financial obligations.
 
This may include repaying debts, financing imports and absorbing sudden capital movements.
 
5- Financing internal projects.

6- Reassuring foreign investors.
 
Wars or internal unrest may scare away investors who may be looking to move their money abroad.
 
Maintaining foreign exchange reserves can create an atmosphere of confidence and allay investor fears.
 
7- Diversifying investment portfolios.
 
By holding various currencies and assets as reserves, the central bank can provide protection in the event that an investment declines.
 
The top 10 countries with foreign exchange reserves in 2024
 
The following is a list of the 10 largest countries possessing foreign exchange reserves, denominated in US dollars, during the year 2024, according to what was reported by the Statista and Trading Economics platforms, in addition to the central banks in these countries .
 
1- China   Reserves: $3.7 trillion
 
Its foreign exchange reserves amounted to $3.73 trillion as of December 2024, according to the Statista platform, up from $3.266 trillion in November 2024.
 
Last October, the yuan fell by 1.8% against the dollar, while the latter strengthened by 1.8% against a basket of other major currencies.
 
Meanwhile, China's gold reserves rose to 72.96 million troy ounces after remaining stable at 72.80 million troy ounces for the previous six months. However, its value decreased to $193.43 billion from $199.06 billion in October 2024, in line with the decline in gold prices, according to the “Trading Economics” platform, which was based on the People’s Bank of China.
 
The Trojan ounce (equal to 0.031 kilograms) is a weight system used for precious metals and gemstones, and is based on a pound of 12 ounces instead of the traditional pound of 16 ounces.
 
2- Japan   Reserves: $1.24 trillion
 
Foreign exchange reserves rose by $49 million, reaching a total of 1.24 trillion in November 2024. In a recent disclosure, Japan’s Ministry of Finance revealed that it spent 5.53 trillion yen ($35 billion) last July on “interventions in the foreign exchange market.” "(foreign exchange interventions) with the aim of supporting the yen , according to Trading Economics and based on the ministry's own data.
 
3- Spain:   Reserves: $1.07 trillion
 
Foreign exchange reserves rose to $1.07 trillion in November, from $1.045 trillion - in October 2024 - according to Trading Economics and according to the Bank of Spain.

4- Switzerland   Reserves: $801 billion
 
The Swiss National Bank's foreign exchange reserves rose to 724.5 billion francs ($801 billion) in November 2024, the highest level since June 2023.
 
5- India    Reserves: $640 billion
 
Foreign exchange reserves held by the Reserve Bank of India fell to the equivalent of $640 billion in the last week of 2024, the lowest level since last April, and the decline extends from a record high of $704.9 billion in the last week of September 2024, according to Trading. Economics based on Reserve Bank of India.
 
6- Russia   Reserves: $616.5 billion
 
Foreign exchange reserves fell to $616.5 billion in November 2024 from $631.6 billion in October 2024, according to the latest available data.
 
The average foreign exchange reserves in Russia amounted to $313.5 billion from 1992 until 2024, and reached their highest level ever at $633.7 billion last September, according to Trading Economics, according to the Russian Central Bank.
 
7- Taiwan    Reserves: $576.7 billion
 
Foreign exchange reserves fell to $576.68 billion in December 2024, down from $577.97 billion the previous month.
 
This was affected by the revenues from the management of foreign exchange reserves in Taiwan, and movements in the exchange rates of other reserve currencies against the dollar .
 
In addition, the Central Bank intervenes to mitigate volatile capital flows to maintain a regulated foreign exchange market, according to Trading Economics, according to the Central Bank.
 
8- Saudi Arabia   Reserves: $449 billion
 
Foreign exchange reserves decreased to 1.688 trillion riyals (about 449 billion dollars) in November from 1.63 trillion riyals (434 billion dollars) the previous month, according to the Central Bank of Saudi Arabia.
 
9- Hong Kong   Reserves: $425.1 billion
 
Foreign exchange reserves rose to $425.1 billion in November 2024, the highest level since last February, from a 3-month low of $421.3 billion the previous month.
 
This represents more than 5 times the currency in circulation, or about 39% of the Hong Kong dollar, according to Trading Economics and according to the Hong Kong Monetary Authority.
 
10- South Korea   Reserves: $415.6 billion
 
Foreign exchange reserves rose to $415.6 billion in December 2024 from $415.4 billion in the previous November, according to Trading Economics and according to the Central Bank of South Korea.

The 10 largest Arab countries possessing foreign exchange reserves in 2024
 
Below is a list of the 10 largest Arab countries possessing foreign exchange reserves in 2024, based on central banks , the Trading Economics platform, and others.
 
1- Saudi Arabia   Reserves: $499 billion
 
Foreign exchange reserves decreased to 1.688 trillion riyals (about 449 billion dollars) in November from 1.63 trillion riyals ($434 billion) in the previous month, according to the Central Bank of Saudi Arabia.
 
2- UAE   Reserves: $210 billion
 
Official foreign currency reserves amount to about $210 billion, according to Central Bank data.
 
The Central Bank's total foreign assets exceeded 770 billion dirhams ($209.6 billion) at the end of last June, for the first time in the history of the Emirates, according to the bank's latest statistics, as reported by the local news agency.
 
3- Iraq   Reserves: $106.7 billion.
 
Foreign exchange reserves decreased to 139.68 trillion dinars (the local currency in Iraq (about $106.7 billion)) in October from 143 trillion dinars ($109 billion) in September 2024, according to the Trading Economist.
 
4- Algeria   Reserves: $72 billion
 
Finance Minister Aziz Al-Fayed recently announced that foreign exchange reserves will rise by about 4.4% in 2024 to 72 billion dollars, from 69 billion at the end of 2023, and 61 billion at the end of 2022.
 
Al-Fayed stated - during his presentation of the draft general budget of Algeria before the representatives of the National Council - that foreign exchange reserves outside gold continued to rise during the current year, expecting to close the current year with a surplus in the trade balance estimated at 2.8 billion dollars, equivalent to 1.1% of the gross domestic product, which amounted to 267 billion last year, according to news agencies.

5- Qatar   Reserves: $69 billion
 
The Central Bank of Qatar announced an increase in international reserves and liquidity in foreign currency by 5.05% in November 2024 to reach 254.74 billion riyals (about 69 billion dollars) compared to 244.81 billion riyals (about 66 billion dollars) in November 2023, as reported. In a statement carried by the Qatar News Agency.
 
6- Egypt   Reserves: $47.1 billion
 
The Central Bank of Egypt said that net foreign reserves rose to $47.1 billion at the end of December 2024, compared to about $46.95 billion at the end of November 2024.
 
7- Kuwait   Reserves: $41 billion
 
A monthly bulletin issued by the Central Bank of Kuwait revealed an increase in the balance of foreign exchange reserves at the end of November 2024, reaching about 12.65 billion dinars (about 41 billion dollars), compared to its balance at the end of October 2024, which amounted to 12.52 billion dinars (40.6 billion dollars), an increase It is 1%, with a value of 127 million dinars, according to the local newspaper Al-Anbaa.
 
8- Morocco   Reserves: $32.8 billion
 
Foreign exchange reserves reached $32.8 billion in November 2024.
 
Reserves in Morocco reached an all-time high of $35.3 billion in July 2021 and a record low of $7.9 billion in January 2002, according to the CEIC Data platform.
 
9- Jordan    Reserves: $21 billion
 
The Kingdom's foreign exchange reserves increased by $21.1 billion during the first 11 months of 2024, a significant increase that is now sufficient to cover 8.4 months of Jordan's imports of goods and services.
 
The Central Bank confirmed that this reserve amount is the highest in the country’s history, which represents a remarkable achievement for financial stability.
 
10- Lebanon   Reserves: $10.3 billion
 
Foreign exchange reserves fell for the first time in more than a year as the Lebanese Bank pumped more dollars to support the lira following weeks of war.
 
The reserves of the Bank of Lebanon decreased by more than $400 million in October 2024, which is the first decrease since July 2023, according to official data reported by Bloomberg.
 
Foreign exchange reserves now stand at about $10.3 billion, excluding $5 billion in international bonds that the Lebanese state defaulted on. https://www.alsumaria.tv/news/economy/512234/أكبر-10-دول-عربية-تمتلك-احتياطيات-نقد-أجنبي-للعام-2024-هذه-مرتبة-العرا  

For current and reliable Iraqi news please visit:  https://www.bondladyscorner.com/

Seeds of Wisdom RV and Economic Updates Thursday Afternoon 1-9-25

Good Afternoon Dinar Recaps,

SOUTH KOREA TO ALLOW CORPORATE FIRMS TO INVEST IN CRYPTO: WHAT’S NEXT?

▪️FSC’s new policy allows businesses to participate in digital asset investments legally.

▪️FSC proposes raising stock ownership limits for companies from 5% to 15%.

▪️Over 30% of South Koreans actively trade cryptocurrencies, indicating significant market growth.

South Korea is preparing for a big shift in its approach to cryptocurrency. The Financial Services Commission (FSC) has announced plans to let corporations invest in digital assets. This decision could create new opportunities for businesses and give the country’s crypto industry a significant boost.

New Rules for Corporate Investments

Right now, companies in South Korea face strict rules on cryptocurrency investments, including challenges in opening real-name accounts. To change this, the FSC plans to start by allowing non-profit organizations to invest in digital assets under a regulated framework.

FSC Director Kwon Dae-young highlighted the importance of clear standards for listing cryptocurrencies and enforcing rules for virtual asset exchanges. This initial phase will help create a safer and more structured environment for investments.

Building a Safer Crypto Market

The FSC is also working on broader rules for issuing and trading digital assets. The goal is to make the process more transparent and secure while supporting innovation in the market.

To protect investors, the FSC plans to limit market participation to trustworthy companies. This includes introducing shareholder eligibility checks, requiring social credit ratings, and setting stricter guidelines for risky assets like meme coins.

Beyond cryptocurrency, the FSC is looking to make other financial reforms. One key proposal is raising the limit on how much stock companies can own in non-subsidiaries, increasing it from 5% to 15%. This change aims to give businesses more flexibility and control.

South Korea’s Growing Crypto Influence

South Korea’s decision to embrace corporate crypto investments shows its growing recognition of digital assets. While the global market faces challenges, the country is positioning itself as a leader in innovation.

Earlier, CoinPedia reported that the Bank of Korea, established under the Virtual Asset User Protection Act, disclosed that more than 30% of South Korea’s population is now engaged in crypto trading.

By opening its doors to corporate crypto investments, South Korea is setting a precedent that could inspire other nations to follow suit.

@ Newshounds News™

Source:  Coinpedia

~~~~~~~~~

DOJ CLEARED TO SELL $6.5B SILK ROAD BITCOIN – NO MORE U.S. BTC RESERVE?

Wallets holding the seized BTC from Silk Road were intact at the time of writing.

▪️DOJ has reportedly approved the sale of seized 69K BTC, which Trump planned to repurpose for strategic reserve.

▪️No seized BTC had been moved from key wallets as of this writing.

Crypto Twitter has been abuzz with speculation that the U.S. Department of Justice (DOJ) greenlighted the sale of 69K Bitcoins [BTC], worth $6.5B, seized from Silk Road.

The update was first shared by media publisher DB News, citing a U.S. official.

In an X (formerly Twitter) post dated the 9th of January, the publisher stated,

“The U.S. Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today. Interesting situation less than 2 weeks away from the new admin who vowed to not sell.”

What’s next for U.S. BTC strategic reserve?

Market sentiment has always been impacted whenever updates on the U.S. government’s movement of BTC surface.

Given that President-elect Donald Trump pledged to form a U.S. BTC strategic reserve (SBR) using the above seized BTC, potential actions are even more scrutinized by the market.

Some community members speculated that the seized BTC had already been sold through a ‘credit line.’ One user claimed,

“The “seized BTC” that was meant to be used for a ‘strategic reserve’ [under the Trump administration] was sold off already, with a credit line sanctioned by Coinbase.”

Some flagged the update as FUD. In fact, Arkham data showed no balance decline in wallets linked to seized BTC at press time.

However, if true, the sale could happen before Trump’s presidential inauguration. According to some market experts, even such a scenario wouldn’t massively detour BTC.

Glassnode founders clarified that such a sale wouldn’t happen through exchanges but through OTC (over-the-counter) markets. So, it won’t suppress the king coin.

On his part, CryptoQuant founder Ki Young Ju downplayed the panic, reinforcing that the potential $6.5B sell-off could be smoothly absorbed by the market. He said,

“Last year, $379B entered the market based on realized cap—roughly $1B per day. The U.S. govt selling $6.5B could be absorbed in just a week. Do not panic.”

All said, prediction sites like Polymarket and Kalshi priced a +40% chance of a U.S. BTC strategic reserve in 2025.

However, at press time, the odds of that happening in the first 100 days of the new administration declined from 34% to 27%.

@ Newshounds News™

Source:  AMB Crypto

~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's Podcast Link

Newshound's News Telegram Room Link

Q & A Classroom Link  

Follow the Roadmap

Follow the Timeline 

Seeds of Wisdom Team™ Website

Subscribe to Seeds of Wisdom Team™ Newsletter

Thank you Dinar Recaps

We are Heading into Another Round of Inflation

We are Heading into Another Round of Inflation

Palisades Gold Radio:  1-8-2025

In a recent episode of Palisades Gold Radio, host Tom Bodrovics welcomed back financial expert Tom Luongo, the prolific voice behind the “Gold, Goats, and Guns” newsletter and blog, along with his roles at Newsmax Ultimate Wealth Report and Financial Intelligence Report.

The discussion was a deep dive into the complex interplay of political shifts, economic instability, and the potential paths forward, offering a bracing perspective on the global landscape.

Bodrovics and Luongo wasted no time in dissecting the legacy of Donald Trump’s first term, particularly focusing on the long-lasting impact of his judicial appointments. Luongo emphasized the significance of these conservative placements, highlighting the ongoing struggle by Democrats to maintain control in certain jurisdictions. This sets the stage for future legal battles and demonstrates the enduring legacy of presidential administrations.

The conversation then pivoted to Europe, where Luongo painted a concerning picture of economic instability. He pointed to the Euro’s alarming freefall, the volatility in the UK, the widening US-German bond spreads, and the ongoing tensions between the US and Russia as indicators of a continent teetering on the brink. This instability, Luongo argued, has profound implications for the global financial system.

Looking ahead, the conversation turned to potential strategies for navigating these complex economic waters. Luongo explored the possibilities for Trump, should he return to the Oval Office, to weaken the dollar. He suggested options including protectionist tariffs, deregulation, and lowering the cost of capital, all designed to spur domestic growth. He also delved into the volatile nature of markets due to consistent central bank interventions, touching on the potential ramifications of inflation, heightened political tensions, and even anticipated political shifts in Canada.

The discussion didn’t shy away from the crucial issue of oil, with Luongo expressing his belief that oil prices are significantly undervalued, causing ripples across various economic sectors. He further explored the potential of Judy Shelton’s unconventional idea of using gold as collateral on the yield curve, posing it as a potential remedy for the nation’s fiscal challenges. This innovative idea offers a glimpse into the kind of outside-the-box thinking that may be required to address the current financial landscape.

Throughout the conversation, Luongo maintained a solution-oriented approach, urging listeners to shift their focus from the problems themselves towards finding pathways for resolution. He then drew a distinction between the economic policies implemented under the Powell-led Federal Reserve during both the Trump and Harris administrations, highlighting the shifts in approach brought on by different administrations.

The final takeaway from Luongo was a stark one, a prediction that 2025 will bring a “new type of crazy,” suggesting that the economic and political turbulence witnessed in recent years is likely to intensify.

This conversation between Tom Bodrovics and Tom Luongo was not just a report on current events; it was a call to action. It urged listeners to understand the underlying forces shaping the global economy and to prepare for the potential for further instability, highlighting the importance of informed decision-making in the face of an uncertain future.

 Luongo’s analysis, delivered with his characteristic boldness and insight, provided a valuable framework for understanding the complex economic landscape and the challenges that lie ahead. The episode serves as a crucial reminder that awareness, critical thinking, and a focus on solutions are essential tools for navigating the turbulent waters of the modern financial world.

https://youtu.be/btg8Pk6m16g