Doing The Math: Interest Expense Is Going To $2 Trillion Annually

Doing The Math: Interest Expense Is Going To $2 Trillion Annually

Notes From the Field By James Hickman (Simon Black / Sovereign Man)   September 17, 2026

It was January 2000. AOL had just announced it was buying Time Warner in what was then the biggest merger in history. Fourteen dot-com companies had bought Super Bowl ads, one of them starring a sock puppet that sold dog food.   The US economy was growing at one of its fastest paces ever; GDP was up nearly 5% the year before— and that’s real growth, before adding inflation, which itself was just 1.4%.

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Unemployment was 4%, the lowest in thirty years. And there was no other country on the planet that could come close to rivaling America's dominance.

Best of all, the federal government was running a surplus… a real one. It was so strong that, even excluding the Social Security surplus, the government took in $86 billion more than it spent.

So the Treasury didn't need to borrow any money. Naturally it still held bond auctions, because when you issue the global reserve currency, you have to give investors a safe place to park their money. But Treasury was retiring more debt than it issued, and even started buying its own bonds back early.

And after wondering what “the meaning of the word is is”, Bill Clinton bragged that the country was "on track to pay down nearly $300 billion in debt” by the end of the year.

And in the middle of all that, the 10-year Treasury yield hit 6.79%.

In other words, investors wanted a 6.79% annual return to hold extremely safe US government bonds… at a moment when America was on top of the world and the government's finances were in their best shape in decades.

That interest rate was not a crisis. After all, the government didn’t have to borrow to keep the lights on or the military funded or Social Security solvent. So they didn’t really care.

The Treasury's interest bill was shrinking as a share of tax revenue every single year.

Imagine that.

Fast forward to earlier this week, and after a hot inflation report and with oil back above $100, the same 10-year yield briefly crossed 5%.

The reaction was instant panic.

Imagine being able to go back in time for a moment... back to January 2000. Imagine talking to an economist back then. You explain that you’re from the future, and that in 2026, the national debt is $40 trillion and growing faster than the economy. The foreign central banks that used to buy America's debt are dumping Treasuries and buying gold instead.

You explain that there are wars in Ukraine and Iran, socialism is creeping back into American politics, and Congress can barely function.

You then ask the economist from January 2000 to guess where they think the 10-year yield would be, given all of that bad news.

They'd probably guess 10%, maybe 12%, and they'd be amazed to hear it only just crossed 5%.

So why did it take so long?

Because after the 2008 financial crisis, the Fed cut rates to zero... and left them there for seven years. There were a few ceremonial hikes, but when COVID arrived, the Fed slashed rates right back to zero.

It was able to do this because the Fed conjured trillions of dollars out of thin air... and used that money to buy bonds and suppress yields.

The 10-year was so low, in fact, that the federal government could issue those notes at less than 0.5%.

For thirteen years money was essentially free, and an entire generation came to believe that was normal. It wasn't, and that era is clearly over.

Think about what an opportunity that was: when you can borrow at 0.5%, $2 trillion in debt costs just $10 billion a year. Investing that money at even a measly 1% means the government would be making money on its debt.

A 1% hurdle rate is not particularly high. But Congress couldn’t manage even that much.

Despite racking up tens of trillions in debt, there's realistically nothing to show for all of that money: the national debt has quadrupled since the financial crisis, while the economy has only doubled.

Now, each year, much of the national debt matures, and the Treasury doesn't have the money to pay it back. So they have to issue new debt to repay the old debt.

Problem is, the new debt is issued at much higher rates. They were paying 0.5% on the old debt. The new yield of 5% is TEN times the interest on the same amount of debt.

And with an average maturity of about six years, most of the $40 trillion rolls over within just a few years... which means before long the annual interest bill will reach $2 trillion per year.

Add nearly $3 trillion for Social Security and Medicare, and that’s the vast majority of tax revenue.

Literally everything else, including the military, roads, and light bill at the White House, is funded with more debt.

In 2000, the government could shrug at a 6.79% yield because it was paying debt down. Today everyone's panicking at 5% because Congress borrows $2 trillion a year and can't stop.

So, is Congress going to suddenly find its inner fiscal discipline?

I'm not holding my breath.

That leaves exactly one way to get the 10-year back down, and it's the same way the Fed did it back in 2020: conjure more money out of thin air and make capital infinite.

And as the world discovered shortly after in 2021 and 2022, the consequence of that policy is inflation.

To your freedom,  James Hickman    Co-Founder, Schiff Sovereign LLC

P.S. In 2000, a 6.79% Treasury with 1.4% inflation was a fantastic deal. Today's 5% Treasury with the inflation that's coming is a losing one.

Real assets are where you come out ahead: gold, energy, and industrial metals rise when the dollar falls. The profitable, debt-free companies that produce them are what we research in Schiff Sovereign's Strategic Assets.

https://www.schiffsovereign.com/investing/doing-the-math-interest-expense-is-going-to-2-trillion-annually-155880/?inf_contact_key=ebfa7036e55f6d14d29ddd85b69cc3f045f52772a67910d275469a1ff0808c0a

Iraq Economic News and Points To Ponder Late Saturday Evening 9-19-26

CBI Counters Fears Over Dollar Supply

2026-09-19 Shafaq News- Baghdad   Iraq has enough foreign reserves to meet demand for dollars for imports, card payments and travelers at the official exchange rate, the country’s Central Bank (CBI) said on Saturday, as the Iraqi dinar weakened sharply against the US currency, hovering around 160,000 Iraqi dinars per $100.

In a statement, the CBI attributed the rise to market speculation and expectations, as well as attempts by some beneficiaries to exploit geopolitical tensions in the region and unsettle economic and financial conditions.

The bank did not identify those it accused of benefiting from the situation.

Urging the public to rely on its official data and statements and avoid information circulated through unreliable sources, the CBI pledged to continue financing foreign trade through approved channels and for authorized purposes.

Earlier today, the CBI said that foreign reserves fell by nearly 17% in the first seven months of 2026 to $80.633 billion, with reserves declining by more than $5.5 billion in July alone

https://www.shafaq.com/en/Economy/CBI-counters-fears-over-dollar-supply

Iraqi Finance Minister Calls For Faster US Energy Projects

2026-09-19 Shafaq News- Baghdad  Iraqi Finance Minister Faleh Sari on Saturday urged US companies operating in Iraq’s oil and energy sectors to accelerate project implementation, saying faster progress would “support foreign investment” and the development of key sectors.

During talks with US Chargé d’Affaires Steven Fagin, Sari said Iraq’s relations with other countries are guided by national interests and called for ties with Washington to remain balanced.

Fagin described the Iraqi government delegation’s July visit to Washington as “very successful” and urged both sides to build on its results to strengthen economic and financial cooperation.

Prime Minister Ali Al-Zaidi arrived in Washington on July 13 at the head of a government and business delegation. Shafaq News obtained an official list of 48 agreements and memoranda of understanding covering energy, infrastructure, technology, healthcare, finance, and other sectors.

Separately, the US Chamber of Commerce said more than 50 agreements, partnerships, and memoranda of understanding were signed or announced during the visit, with a combined value exceeding $60 billion.

https://www.shafaq.com/en/Economy/Iraqi-FM-calls-for-faster-US-energy-projects

CBI Foreign Reserves Drop Below $81B

2026-09-19 06:42   Shafaq News- Baghdad (Updated at 23:30)  Iraq’s foreign reserves fell by about 17.2% during the first seven months of 2026, reaching $80.633 billion at the end of July, according to data from the Central Bank of Iraq (CBI).

The reserves stood at $86.175 billion at the end of June, compared with $97.432 billion at the end of 2025.

Measured in Iraqi dinars, foreign reserves fell to 104.823 trillion dinars ($80.633 billion) at the end of July, from 112.027 trillion dinars ($86.175 billion) at the end of June and 126.661 trillion dinars ($97.432 billion) at the end of 2025.

Gold holdings moved in the opposite direction in July, rising slightly to 29.665 trillion dinars ($22.819 billion) from 29.415 trillion dinars ($22.627 billion) in June. They remained below the 31.488 trillion dinars ($24.222 billion) recorded at the end of 2025.

CBI investments declined to 75.034 trillion dinars ($57.718 billion) at the end of July, compared with 81.998 trillion dinars ($63.075 billion) at the end of June and 93.266 trillion dinars ($71.743 billion) at the end of 2025.

Cash held in the central bank’s vaults also fell sharply, reaching 124 billion dinars ($95.385 million) at the end of July, compared with 614 billion dinars ($472.308 million) a month earlier and 1.907 trillion dinars ($1.467 billion) at the end of 2025.

https://www.shafaq.com/en/Economy/CBI-foreign-reserves-drop-below-81B

"Fighting Corruption Or Selective Enforcement?" Haider Al-Abadi: Why Are Some People Arrested While Others Are Left Alone? Not Applying The Law Equally To Everyone Is Itself Corruption

Baghdad - One News - 9/18/2026 Former Iraqi Prime Minister Haider al-Abadi criticized what he described as the failure to include everyone in anti-corruption measures, questioning the reasons for arresting certain individuals while not others, and warning that selectivity in applying the law could turn the fight against corruption itself into "corruption".  

Al-Abadi said: “Why were certain people arrested and not others?” He considered that not applying anti-corruption measures to everyone means that it has become “corruption.”  

He added that applying anti-corruption measures to everyone could, in his words, lead to “the collapse of the political process in Iraq,” referring to the extent to which corruption cases are intertwined with the political system. (Maliki & others)  

In the government formation file, Al-Abadi described the positions of deputy prime ministers as “superfluous,” considering that creating them in light of the financial crisis would constitute an additional burden and could harm Prime Minister Ali Al-Zidi and his government.  

Regarding the issue of weapons, the former Prime Minister criticized the shift from the principle of "monopolizing weapons" to "regulating weapons," describing this change as "a failure and detrimental to Iraq," and stressing the need to adhere to the principle of the state's monopoly on weapons.   https://1news-iq.net/مكافحة-الفساد-أم-انتقائية؟-حيدر-الع/

"Corruption Has Gone Beyond Theft To The Plundering Of Public Funds," Al-Hakim Says, Calling For Automation And E-Government To Protect State Funds

Baghdad - One News - 9/19/2026   Ammar al-Hakim, head of the National State Forces Alliance and leader of the National Wisdom Movement, warned that the recently discovered cases of corruption have gone beyond the stage of “theft” and reached the stage of “plundering public funds,” calling for expanding reliance on automation and e-government to protect state funds.  

During his meeting with a group of organizational leaders of the National Wisdom Movement in Karbala, Al-Hakim said that preserving public funds requires adopting automation systems, e-government, and dealing with greater transparency, which reduces human intervention in government procedures.  

He considered that adopting this approach represents one of the best means to combat corruption, by enhancing transparency, protecting public funds, and reducing the spaces that can be exploited in illegal practices.  

On the issue of weapons, Al-Hakim renewed his call to address the problem of weapons outside the framework of the state through dialogue and understanding, stressing the need to prioritize the public interest over private interests and to strengthen internal solidarity.  

He called for containment, enduring the pain, and making the most of the current phase, along with communicating with political forces and establishing the best relations with them, while emphasizing the importance of institutional work and serving citizens with the available means.  

On the organizational level, Al-Hakim stressed the importance of moving from the stage of dissemination to the stage of influence, noting that leadership means the ability to influence, and that being informed about political positions on internal and external issues contributes to enhancing awareness of developments and their outcomes.  

He also called for pride in the historical identity and national heritage of the Wisdom Movement and recalling the stances of its leaders and symbols, stressing the importance of strengthening presence, influence, and institutional work.  

  https://1news-iq.net/الفساد-تجاوز-السرقة-إلى-نهب-المال-الع/

Central Banks No Longer Trust Each Other: The Global Rush To Gold | Mark Thornton

Central Banks No Longer Trust Each Other: The Global Rush To Gold | Mark Thornton

Kitco News:  9-18-2026

Mark Thornton called the housing bubble in 2004. For four years, he was told he was wrong. He now says every paper-dollar asset you own is facing a very difficult future, and the AI buildout is the clearest warning sign he has seen since.

In this interview with Jeremy Szafron, the Mises Institute senior fellow and author of The Skyscraper Curse explains why AI data centers are this cycle's record-breaking tower, why the bonds financing them run decades longer than the hardware, who gets stuck with the cost when a tenant stops paying, and why central banks no longer trusting each other is the best sign he has seen for gold.

Thornton also reacts to the Federal Reserve's report on Silicon Valley Bank published this week, Chairman Kevin Warsh's first rate hike in three years, and the drone attack on Saudi Arabia's East-West pipeline that cut Aramco supply to European buyers.

CHAPTERS

0:00 What the Fed's own report says about Silicon Valley Bank

3:29 The Fed isn't really tightening, he says

6:11 His case for abolishing the Fed entirely

8:24 The skyscraper curse, and why Jeddah just went quiet

13:38 How to tell if you're early or just wrong

15:41 AI data centers are the new bubble signal

17:37 The bonds that outlive the machines they fund

21:14 Factories are shrinking, power demand is soaring

23:30 Who pays when the tenant stops paying

25:59 Why the pipeline was defenceless, and can be hit again

29:55 The Challenger problem

33:44 Gold survives what paper money can't

37:13 Why no government gives up the printing press

39:32 What Poland and China see that the G7 doesn't

43:15 What survives honest money

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

Iraq Economic News and Points To Ponder Saturday Afternoon 9-19-26

Observatory: Potential Sanctions And Speculation Shake The Dollar Market In Iraq

2026-09-19 04:45    Shafaq News - Baghdad   The “Eco Iraq” economic observatory observed on Saturday a rapid rise in the exchange rate of the dollar in the parallel market against the Iraqi dinar, noting that the current rise is due to several factors, including fears of possible American sanctions against Iraq.

The observatory stated in a statement received by Shafaq News Agency that "the current rise is not related to one factor, but rather comes as a result of the overlap of several economic, financial and psychological factors," indicating that "among the most prominent of these are the speculations in the parallel market, which are active from time to time, taking advantage of the high demand for the dollar and the decline in its supply."

He added that "concerns and speculations related to the post-September 30th deadlines, and what is being discussed regarding the issue of restricting weapons to the state, along with talk of American sanctions or possible measures," explaining that "this increases the state of uncertainty in the market and pushes some traders to increase the demand for the dollar."

The Economic Observatory explained that "another reason is the decline in confidence in the banking sector from time to time, which represents an additional factor in increasing the demand for the dollar," pointing to the crisis of Al-Taif Bank and the imposition of guardianship over it by the Central Bank of Iraq on September 3.

In conclusion, the Eco Iraq Observatory called on the Central Bank of Iraq to "closely monitor developments in the exchange market and take appropriate   measures to curb speculation and maintain market stability, thereby contributing to strengthening confidence in the Iraqi dinar and the banking sector

https://www.shafaq.com/ar/اقتصـاد/مرصد-العقوبات-المحتملة-والمضاربات-تهز-سوق-الدولار-في-العراق

The 2027 budget is facing comprehensive parliamentary review... Al-Shammari: No crises will hinder its approval

Information/Baghdad...   Member of Parliament's Finance Committee, Mohammed Al-Shammari, confirmed on Saturday that the draft general budget law for 2027 will be subject to intensive technical study and detailed auditing as soon as it is officially sent by the Ministry of Finance and the government to the House of Representatives, noting that the existence of prior political understandings will contribute to its smooth passage without complex disputes.

Al-Shammari told Al-Maalouma News Agency that “the arrival of the budget to Parliament will begin with the Finance Committee’s work of reviewing all schedules, allocations, and expenditure items accurately to ensure their suitability to the economic reality and the needs of service projects,” indicating that “the auditing and study process represents an indispensable oversight and legislative duty before it is put to a vote.”

He added that "subjecting the draft to an in-depth study does not mean obstructing it, as the political climate is conducive and the parliamentary blocs are determined to finalize the necessary technical amendments through a swift consensus."

He predicted that "the reading and discussion procedures will proceed to approval without any crises or conflicts that might hinder its completion within the parliament." End/25h

https://almaalomah-me.translate.goog/news/144571/economy/موازنة-2027-أمام-تدقيق-نيابي-شامل-الشمري:-لا-أزمات-تعرقل-إقر?_x_tr_sl=ar&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc

Parliamentary Committee Clarifies Reasons For "Rise" In US Dollar Exchange Rate

Translated from Arabic

Pay attention to this statement carefully..... especially the last few seconds of the news......

Rate this translation:  

https://x.com/AMrym93884/status/2101233753301430366   

Abu Maryam  @AMrym93884

1 News - One News @onenewsiq

·Translated from Arabic  Parliamentary Committee Clarifies Reasons for "Rise" in US Dollar Exchange Rate | #wan_news

https://x.com/onenewsiq/status/2101218609716470171/video/1

  Transcription of the video in the link:

  This is a member of the Finance Committee in the Iraqi Parliament, Jamal Kujer.

  The decline in the value of the dinar against the dollar to the fears stemming from the continuous American threats regarding the file of armed factions in Iraq and the fate of their weapons after September 30.

  Kojer said that these threats raised fears among Iraqi citizens and pushed a greater number of them to buy dollars. He added that a segment of citizens fears the possibility of the United States, after September 30, reducing the sending of dollars to Iraq and their unavailability in the country, which prompted people who own dinars to daily buying dollars and gold, and pointed out that the increase in demand

  On the dollar contributed to the continued rise in its price against the Iraqi dinar.

  According to Kujer, another reason is related to the Iraqi government's attempt to amend the dinar exchange rate against the dollar in the draft budget law. https://x.com/AMrym93884/status/2101233753301430366‍ ‍Abu Maryam  @AMrym93884

  The Dollar Is Caught Between Speculation And Rumors... A Financial Expert, Speaking To Iraq Observer, Predicts A Decline In The Exchange Rate After September 30th.

Baghdad/Iraq Observer    Recently, local markets have witnessed a rise in the dollar exchange rate, amidst anticipation and speculation regarding expected developments at the end of the month. This has impacted market activity and raised concerns among citizens and traders about potential disruptions in the availability of foreign currency.

Financial and banking expert Dr. Mustafa Hantoush stated that part of the current increase may be linked to speculation and expectations circulating about September 30, 2026, explaining that talk of a possible dollar shortage or market instability has contributed to increased anxiety and speculation.

Hantoush told Iraq Observer that “delays in cash dollar shipments allocated for travelers are not new and have occurred on previous occasions,” noting that the Central Bank of Iraq possesses sufficient cash reserves to address such situations and meet domestic needs.

He added that “transfers for financing foreign trade differ from cash dollars allocated for travelers, as they are linked to trade, imports, and securing market needs,” emphasizing that their continuation is essential for Iraq’s food and economic security.

He pointed out that “fears of chaos or unrest are not, so far, based on clear indicators, especially given Iraq’s attainment of relative stability after years of challenges,” considering rumors and speculation to be among the factors influencing the exchange rate in the parallel market.

Hantoush indicated that “the decline in Central Bank sales over the past few months may be linked to the drop in oil revenues,” anticipating that the bank’s ability to meet market needs will improve with the current recovery in oil revenues.

He explained that “the stability of the situation after September 30th, and the absence of exceptional developments, may be reflected in the exchange rate and push it towards a decrease, as long as the official dollar rate remains fixed and no official decision is issued to change it.”

He emphasized that changing the official rate, should it be proposed in the future, would be a different matter requiring an official and publicly announced decision.

In the same context, the Central Bank of Iraq affirmed the adequacy of its foreign reserves to meet all demands for foreign currency, including financing foreign trade, settling bank cards, and fulfilling travelers' requests for cash dollars, at the approved official exchange rate.

The bank attributed the rise in the exchange rate in local markets to speculation
, speculation, and the exploitation of geopolitical circumstances.

Despite the Central Bank's confirmation of adequate reserves and the anticipation of improved oil revenues, the movement of the dollar in the local market remains largely dependent on the level of speculation and speculation, while any change in the official rate remains contingent upon an announced governmental and banking decision.

https://observeriraq.net/الدولار-بين-المضاربات-والشائعات-خبير/

Seeds of Wisdom RV and Economics Updates Saturday Afternoon 9-19-26

Good Afternoon Dinar Recaps,

BANKING RESET: FED PREPARES MAJOR OVERHAUL OF STRESS TESTS AND CAPITAL REQUIREMENTS

THE FEDERAL RESERVE IS PREPARING MAJOR CHANGES TO HOW LARGE U.S. BANKS ARE STRESS-TESTED AND HOW CAPITAL REQUIREMENTS ARE CALCULATED, POTENTIALLY CHANGING THE WAY BANKS PLAN FOR RISK, LENDING AND FINANCIAL STABILITY.

 OVERVIEW

• The Federal Reserve plans to finalize a revamped bank stress-test framework in the coming weeks, with greater transparency around the models, equations, assumptions and economic scenarios used to evaluate large banks.

• The new framework would reduce volatility in banks' stress capital buffers by averaging the results of two consecutive annual stress tests. The Fed says this could reduce volatility by half without materially changing the overall level of required capital.

• Broader capital-rule changes are also moving forward. Fed Vice Chair for Supervision Michelle Bowman said the Federal Reserve expects to finalize reforms to risk-based capital requirements and the surcharge applied to globally systemically important banks before the end of 2026.

KEY DEVELOPMENTS

1. The Fed Is Preparing to Finalize a New Stress-Test Framework

The Federal Reserve is preparing to vote on final revisions to its stress-testing framework for the nation's largest banks in the coming weeks.

Stress tests were introduced after the 2008 financial crisis to determine whether major banks have enough capital to absorb significant losses while continuing to operate and lend during severe economic conditions.

The Fed says the revised framework is designed to make the process more transparent, predictable and accountable.

The central bank plans to publish substantially more information about the models used in the tests, including equations, variables, coefficients, assumptions, limitations and the reasoning behind model decisions.

That would give banks, investors, regulators and the public a clearer view of how stress-test results are produced.

2. Capital Requirements Could Become Less Volatile

One of the most significant changes involves the way stress capital buffers are calculated.

Currently, changes in annual stress-test results can produce substantial year-to-year swings in the amount of additional capital banks are required to maintain.

Under the proposed approach, the Fed would average the results of a bank's two most recent annual stress tests.

According to Bowman, this approach could reduce stress-capital-buffer volatility by approximately half while not materially changing the aggregate amount of required capital.

The change is intended to give banks greater predictability when making capital and business decisions.

. Broader Bank Capital Rules Are Also Being Reworked

The stress-test changes are part of a much larger restructuring of U.S. bank capital regulation.

Bowman said the Federal Reserve expects to finalize reforms to risk-based capital requirements for large and small banks, along with changes to the surcharge applied to globally systemically important banks.

These rules determine how much capital banks must maintain relative to the risks on their balance sheets.

The broader objective described by the Fed is to create capital requirements that are more closely aligned with actual risk while maintaining the ability of banks to absorb losses and continue lending during periods of financial stress.

4. Transparency Is Becoming a Bigger Part of Bank Regulation

The Fed's proposed changes represent a significant shift in how the stress-testing process is disclosed.

Under the revised framework, the public would receive more information about the models and scenarios used by the Federal Reserve.

The Fed also plans to seek public comment on changes to the framework governing hypothetical stress scenarios and, beginning with the 2026 stress test, on the scenarios themselves.

Greater disclosure could make it easier for investors, banks and other market participants to understand how regulatory capital requirements are established.

It also creates a more visible connection between bank regulation, risk assessment and market confidence.

5. The Banking System Is Being Rebuilt Around a New Risk Environment

The Federal Reserve's changes come as banks operate in an environment shaped by higher interest rates, changing credit conditions, geopolitical risks, technology-related risks and evolving financial markets.

Stress testing is designed to examine whether banks can withstand severe hypothetical conditions before those conditions actually occur.

The broader capital overhaul therefore matters beyond the individual banks being tested.

Large banks sit at the center of the financial system, providing credit, processing payments, financing businesses and participating in government and corporate debt markets.

Changes to their capital requirements can influence how much risk they can take, how much credit they can provide and how they allocate capital throughout the economy.

WHY IT MATTERS

Bank capital is one of the foundations of the global financial system.

When regulators change the way banks measure risk and determine required capital, the effects can extend into lending, investment, credit markets, liquidity and financial stability.

The Fed's reforms are therefore more than a technical change to a regulatory formula.

They represent an effort to modernize part of the financial infrastructure created after the 2008 financial crisis.

The financial system can change through its banking infrastructure long before those changes appear in currency headlines.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

Readers hold foreign currency with the hope that it may increase in value if major changes occur in the global monetary system.

Bank capital, liquidity, credit creation and financial stability are important parts of the infrastructure supporting any modern currency.

Changes in U.S. banking regulation do not automatically mean a currency revaluation or Global Reset event is coming.

But they are relevant to the broader financial picture because the banking system is one of the mechanisms through which money and credit move throughout the economy.

Hope, not hype. Watch the financial infrastructure and follow the evidence.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Banking

Large banks are central components of the global financial system. Changes to capital requirements and stress testing can alter how banks manage risk and deploy capital.

• Pillar 2: Regulation

The Fed is moving toward greater transparency and more predictable methods for calculating stress capital requirements.

• Pillar 3: Liquidity

Capital requirements influence how much financial capacity banks maintain to absorb losses and continue operating during periods of stress.

• Pillar 4: Credit

Banks are major providers of credit to households and businesses. Changes in capital requirements can affect how banks balance lending, investment and risk.

• Pillar 5: Financial Stability

Stress testing is designed to identify vulnerabilities before they become systemic problems. A more transparent and risk-sensitive framework could become an important part of the evolving architecture of financial supervision.

RUMOR SAFETY REMINDER

The Federal Reserve's banking reforms are not an announcement of a currency revaluation, a new global currency or a specific Global Reset date.

The documented changes concern bank stress testing, capital requirements, regulatory transparency and financial stability.

As always, distinguish real changes to financial infrastructure from speculation about future currency events.

THE BOTTOM LINE

The Federal Reserve is preparing to change an important part of the U.S. banking framework.

The combination of more transparent stress tests, less volatile capital buffers and broader revisions to bank capital rules could influence how major banks measure risk, plan capital and support lending.

The larger connection is:

Banking → Capital → Credit → Liquidity → Financial Stability → Global Finance

These are the kinds of structural changes worth watching when following the evolution of the global financial system.

Seeds of Wisdom Team
Newshounds News™ Exclusive

SOURCES

• Federal Reserve — "The Final Chapter on Modernizing Bank Regulatory Stress Testing"

• Reuters — "Fed's Bowman says overhaul of bank stress test will make process more transparent"

~~~~~~~~~~

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Thank you Dinar Recaps

Is the Five-Cent Coin Next to Go?

Is the Five-Cent Coin Next to Go?

Discover why the U.S. nickel costs 13 cents to make and whether the five-cent coin is headed for the same fate as the recently retired penny.

September 08, 2026

The penny may be history at the U.S. Mint, but the debate over small change is far from over. In November 2025, the United States stopped producing pennies for general circulation after more than 230 years. As we discussed in The End of the U.S. Penny and What It Means for You, one of the biggest reasons was simple economics: A penny cost significantly more than one cent to manufacture. Now the same question is being asked about the nickel.

When Five Cents Costs More than Five Cents

The nickel has been part of U.S. currency since 1866. The coin is made of 75 percent copper and 25 percent nickel, materials that have become increasingly expensive.

Rising metal prices, along with labor and other production expenses, have made the coin costly for the U.S. Mint to manufacture. In fiscal year 2025, producing and distributing one nickel cost 13.31 cents. In other words, the government spent more than two-and-a-half times the coin’s face value to put a nickel into circulation.

Ordinarily, a government can earn revenue when the face value of money exceeds the cost of producing it. However, when the government loses money because a coin costs more to produce than its face value, economists call it negative seigniorage.

Negative seigniorage is not new. Historically, the United States has responded to this type of problem in two ways. It can stop producing a denomination, as it did with the half-cent in 1857 and the penny in 2025, or it can change the materials used to manufacture a coin. The government removed silver from many coins in 1965, for example, and changed the penny to a mostly zinc composition in 1982. 

Could the Nickel Get a Makeover?

For now, lawmakers appear more interested in reducing the nickel’s production cost than eliminating the coin. The Common Cents Act has gained bipartisan support in Congress. In addition to establishing consistent rules for rounding cash transactions after the penny’s demise, versions of the legislation would give the Treasury greater flexibility to change the nickel’s composition.

One possibility would be a nickel with an inner zinc layer and an outer nickel layer. Any redesigned coin would need to cost less to produce while continuing to work in vending machines, coin-counting equipment, and other systems that depend on a coin’s size, weight, and other characteristics.

That makes changing a coin more complicated than simply choosing a cheaper metal. Businesses have equipment and processes built around existing currency. A redesigned nickel that created problems for vending machines or payment equipment could move costs from the government to private businesses.

Another proposal called for suspending production of pennies and nickels for 10 years while studying how rounding cash purchases to the nearest dime would affect consumers. That proposal has not advanced as far as the Common Cents Act.

Why Losing the Nickel Would Be Different

Eliminating the penny means cash purchases can be rounded to the nearest five cents. Eliminating the nickel would mean the dime becomes the smallest regularly available coin, potentially requiring cash totals to be rounded to the nearest 10 cents.

An analysis cited by Newsweek estimated that if cash purchases were rounded to the nearest dime, consumers could face nearly $56 million in annual net rounding costs.

The effect would also not be distributed equally. Digital purchases would continue to be calculated to the exact cent, while a cash-paying customer might have to pay a rounded amount.

That distinction matters because consumers do not use payment methods equally. Federal Reserve data show that cash accounts for 14 percent of consumer payments. Older adults, rural consumers, and households with lower incomes tend to make more cash payments than other groups.

TO READ MORE:  https://www.mheducation.com/highered/blog/2026/09/is-the-five-cent-coin-next-to-go

MilitiaMan & Crew: The 2026 Economic Outlook: What’s Really Happening with the Dinar

MilitiaMan & Crew: The 2026 Economic Outlook: What’s Really Happening with the Dinar

9-18-2026

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

No drama. No intrigue. No songs and dances. Just straight, factual news that I read and interpret to the best of my ability after being an avid Dinar investor and insanely obsessed Dinarian for over 15 years.

Follow MM on X == https://x.com/Slashn

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

https://www.youtube.com/watch?v=vqI9mwUGaw0

Saturday Iraq News Posted by Tishwash at TNT 9-19-2026

TNT:

Tishwash:  Urgent | In response to the rising dollar exchange rate, the Central Bank of Iraq reassures the local market: Starting Sunday, several measures will be implemented to meet foreign currency needs.

An informed source stated on Thursday that the Central Bank of Iraq will begin, starting next Sunday, to expand the scope of import financing and increase the support provided to banks, in line with actual commercial needs.

The source said the move aims to facilitate financing for necessary imports and accommodate a wider range of commercial goods, noting that the central bank continues to monitor market developments and take the necessary measures to ensure the smooth flow of foreign trade financing and meet the legitimate demand for foreign currency  link

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Tishwash:  Al-Zaidi returns to America next week... a speech in New York and a meeting with Trump

Government spokesman Haider al-Aboudi said on Thursday (September 17, 2026) that Prime Minister Ali al-Zaidi will go to the United States next week, explaining that al-Zaidi will deliver a speech before the United Nations General Assembly in New York, and will meet with US President Donald Trump and a number of heads of state.

Government spokesman Haider al-Aboudi stated in an interview with journalist Sadiq al-Shammari, which was followed by 964 Network : “Prime Minister Ali al-Zaidi is preparing to head to America in the middle of the week to participate in the United Nations General Assembly as a representative of the Republic of Iraq.

He will deliver the speech of the Iraqi people before the world, which carries the message of a state that has dealt with complex issues and opened up with confidence to the world, and conveyed a message that the Iraqi state will not be part of the axes of conflict and will not align itself unilaterally with anyone.”

Al-Aboudi added that “the government has maintained the balance stipulated in its program, which does not allow aggression against neighboring countries, and the Prime Minister will review the measures taken by the government in this matter, as well as matters related to the economic relations that link Iraq with the world.”

Al-Aboudi continued, “The visit schedule that has been prepared includes many meetings with the heads of Arab and foreign states, and there will also be a meeting with His Excellency President Donald Trump to review the features and prospects of the relationship between Baghdad and Washington, which began in mid-July when it was translated into 48 memoranda of understanding and agreements between the two countries in the fields of energy and investment.”

Al-Aboudi concluded, “The Prime Minister will also meet with the American Chamber of Commerce to review the files and sustain the economic relationship between the two sides.”  link

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Tishwash:  Warnings to al-Zaydi before heading to Washington: Avoid the "siege scenario" and handle issues with America rationally.

The imam and preacher of the Abu Hanifa al-Nu’man Mosque, Abdul Wahab al-Samarrai, warned on Friday of the repercussions of the withdrawal of the US-led international coalition forces from Iraq at the end of September, hinting at the possibility of reimposing economic sanctions on Baghdad similar to those that were tightened in the 1990s.

Al-Samarrai said in his Friday sermon: “We have sent a message to our government and its president stating that this people and country are a trust placed in their hands, and part of that trust is to prioritize the interests of the country and its people over the interests of groups and individuals.”

He added, "Some are talking about economic sanctions and recalling the days of the embargo. We remind officials that the Imam is likened in Islam to a shepherd, and he should lead the flock to safety, not to destruction, and not gamble with the fate of the country or prioritize the desires of the part over the whole." He stressed that "the Iraqi people are tired and have not tasted prosperity, and are suffering from a lack of services and a lack of medicine."

For his part, the Imam and Friday preacher of Najaf, Sadr al-Din al-Qubanchi, addressed the upcoming visit of Prime Minister Ali Faleh al-Zaidi to the United States next Sunday to participate in the work of the United Nations General Assembly, stressing that “any political or security disturbance in Iraq will trigger a crisis in the entire region and destabilize the global economy, so the issues must be dealt with rationally.”  link

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Tishwash:  A US official: The military withdrawal from Iraq will be completed on September 30.

A US military official confirmed on Friday that the military withdrawal from Iraq will be completed by September 30th, noting that the withdrawing forces will be redeployed to Jordan and other countries in the region.

ABC News quoted a US military official in a report translated by the Iraqi News Agency (WAA), stating that "the US military withdrawal from Iraq is ongoing and will be completed by September 30th, with the remaining hundreds of troops in the north of the country being redeployed to Jordan and other countries in the region."

 The official added that "US forces will leave the remaining positions in the Kurdistan Region, and military equipment, including air defense systems, will be withdrawn," pointing out that "the counter-terrorism base in Erbil has lost its importance with the decline of the ISIS threat."

The official added that "Washington and Baghdad may negotiate a new bilateral security cooperation agreement after the withdrawal is complete."

The network noted that "the United States and Iraq had agreed in 2024 to gradually end the international coalition's mission, following the decline of the ISIS threat," explaining that "US forces withdrew from most of their bases in Iraq last year, maintaining only a limited presence in the Kurdistan Region."

The report further indicated that "Washington continues to monitor security developments in the region, particularly those related to attacks that might target its interests in other countries," emphasizing that "the anticipated withdrawal represents the end of the current US military mission in Iraq."  link

Iraq Economic News and Points To Ponder Saturday Morning 9-19-26

The Dollar Is Besieging The Dinar... Washington Continues To Use Its Tools To Weaken The Iraqi Currency

Information / Report    The Iraqi economy has recently been experiencing financial and monetary instability, clearly manifested in the successful surges in the exchange rate of the US dollar against the Iraqi dinar in local markets. This sudden rise was not a coincidence, but rather the result of a complex interplay between external pressures and emergency domestic monetary policies that disrupted the balance of supply and demand. 

This crisis is caught between tightened international controls on money transfers and local government decisions aimed at regulating foreign currency holdings, which have indirectly revived the parallel (black) market.

Against this complex backdrop, four key factors explain the roots of the current surge: the impact of US sanctions on neighboring countries and their impact on intra-regional trade; the reduction of travelers' cash allowances and the curtailment of some international money transfer channels; and suspicions of deliberate speculation by certain profit-driven banking institutions.

In this context, economist Dirgham Muhammad Ali identified on Saturday the real reasons behind the new rise in the exchange rate of the dollar against the Iraqi dinar, while calling on the Central Bank to take urgent measures to control the parallel market and inject hard currency.

Mohammed Ali told Al-Maalomah News Agency that "the current rise is due to a number of direct and indirect reasons, most notably the tightening of US sanctions on Iran, which has caused an increase in demand for the dollar to finance direct trade."

He added that "among the other reasons is the decision to reduce the exchange quota for travelers from (3000) dollars to (2000) dollars, which led to a shortage of cash supply in the parallel market as a result of patients and tourists turning to it to complete their needs for foreign currency."

Mohammed Ali continued, “The third and important factor is the withdrawal of Al-Taif Bank, which was a vital gateway for the entry of dollars through the Western Union network,” noting at the same time that “the fourth reason may be a deliberate and planned process of raising the exchange rate to achieve huge profits for unpunished banks.”

He called on the Central Bank to conduct a genuine review of the mechanisms for injecting dollars into the market, otherwise the issue of the rising exchange rate will continue sharply, harming the citizen.

For its part, the “Eco Iraq Observatory” has observed a rapid rise in the exchange rate of the dollar in the parallel market against the Iraqi dinar, noting that the current rise is due to several factors, including fears of possible American sanctions against Iraq.

The observatory said in a statement seen by Al-Maalomah that “the current rise is not related to one factor, but rather comes as a result of the intersection of several economic, financial and psychological factors,” indicating that “among the most prominent of these are the speculations in the parallel market, which are active from time to time, taking advantage of the high demand for the dollar and the decline in its supply.”

He added that "concerns and speculations related to the post-September 30th deadlines, and what is being discussed regarding the issue of restricting weapons to the state, along with talk of American sanctions or possible measures," explaining that "this increases the state of uncertainty in the market and pushes some traders to increase the demand for the dollar."

“Another reason is the decline in confidence in the banking sector from time to time, which represents an additional factor in increasing the demand for the dollar,” Eko Iraq explained, referring to the crisis of Al-Taif Bank and the imposition of guardianship over it by the Central Bank of Iraq on September 3rd.

The Eco-Iraq Observatory called on the Central Bank of Iraq to “closely monitor developments in the exchange market and take appropriate measures to curb speculation and maintain market stability, thereby contributing to strengthening confidence in the Iraqi dinar and the banking sector.” End/25

https://almaalomah-me.translate.goog/news/144595/report/الدولار-يحاصر-الدينار-واشنطن-تواصل-استخدام-أدواتها-لإضعاف-ال?_x_tr_sl=ar&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=sc

The Dollar Fuels Post-September 30th Fears... Speculation And Potential Sanctions Put Pressure On The Iraqi Dinar

Last updated: September 19, 2026 The Independent/- The Iraqi exchange market has entered a new phase of tension as the end of September approaches, after the selling price of the dollar in some Baghdad markets exceeded the 160,000 dinar mark for every 100 dollars on Saturday, September 19, 2026, in a movement that reflects the widening gap between the official price and the parallel market, and the rising demand for the US currency amid a state of economic and political uncertainty.

The rise comes in conjunction with the monitoring by the “Eco Iraq” Observatory of an acceleration in the prices of the dollar, attributing this to a set of overlapping factors that cannot be reduced to one reason, foremost among them speculation and the high demand for the dollar, in addition to fears related to what may happen after September 30 and the increasing talk about the possibility of imposing American sanctions or taking new financial measures.

The price movements of recent days indicate that psychological factors have become a clear influence on the market. On September 14, the Al-Kifah and Al-Harithiya exchanges recorded a rate of approximately 156,500 dinars per 100 dollars, before prices gradually increased, reaching levels approaching or exceeding 160,000 dinars in Baghdad exchange bureaus this past Saturday.

This rapid move does not necessarily mean a change in the official exchange rate of the dinar, as the central bank's official policy remains separate from the parallel market exchange rate. The central bank also denied, last June, rumors circulating about a change in the dinar's exchange rate and warned against relying on documents or news not issued through its official channels.

The Market Is Buying Dollars In Anticipation Of The Unknown.

The main problem at the current stage is that the market does not necessarily wait for the decision to occur in order to react to it, but rather begins to price in its probabilities in advance.

With increasing talk in recent days about the issue of restricting weapons to the state, the future of the relationship between Baghdad and Washington after the end of September, and the possibility of expanding sanctions related to financial networks dealing with Iran, some traders, speculators, and liquidity holders have begun to hedge by increasing demand for the dollar.

This type of demand is not entirely related to an actual commercial need for foreign currency, but also includes what can be described as "fear demand"; that is, buying dollars in anticipation of its future rise.

The more expectations spread that the dollar might rise further, the more people want to buy it, and the expectations themselves become an additional factor pushing the price upwards.

September 30th... A Political Date That Becomes A Factor In The Currency Market

Concerns are particularly focused on September 30, due to its connection with sensitive political and security issues being discussed in Iraq, especially the issue of weapons control and the future of the security relationship with the United States.

The newspaper Al-Akhbar, in a report published on September 18, quoted a recent Iraqi government official regarding American messages and the possibility of using economic tools if no progress is made on the weapons control file. However, the same report indicated that the Prime Minister's financial advisor denied the existence of any currently declared American plan to halt dollar shipments due to the file not being completed by September 30.

Here  A Distinction Must Be Made Between A Political Possibility That Is Being Discussed And An Official, Declared American Decision

As of September 19, 2026, no official announcement appears in the public data reviewed by the U.S. Treasury Department specifying September 30 as the date for cutting off dollar shipments to Iraq or imposing comprehensive economic sanctions on the Iraqi state.

But Washington is already tightening its measures against networks it considers linked to Iran or assisting sanctioned entities. On September 10, the US Treasury Department announced new measures against networks it said support Kataib Hezbollah and Hezbollah and help Iran circumvent sanctions.

This means that market concerns are not entirely unfounded, but at the same time they do not constitute evidence of a comprehensive or automatic US decision that will be issued on September 30.

Al-Taif Bank Brings The Trust File Back To The Forefront

Another factor that puts pressure on customer behavior is trust in the banking sector.

On September 3, the Central Bank of Iraq announced the imposition of guardianship over Al-Taif Islamic Bank for Investment and Finance.

Following growing concern among depositors, the central bank confirmed that imposing receivership does not mean the bank is bankrupt, but rather represents a precautionary supervisory measure to protect the rights of depositors and ensure the stability of banking operations.

On September 8, the Central Bank reiterated that the rights of depositors at Al-Taif Bank are protected, and that it is working with the appointed trustee to regulate withdrawals and fulfillment of financial obligations in a gradual and organized manner.

Despite these assurances, any crisis involving a bank or customer deposits could have a psychological impact on the market, especially in an economy where a large portion of transactions and liquidity are kept outside the banking system.

When confidence declines, some money holders tend to hold onto cash dollars as a hedge, which increases demand for them in the parallel market.

Speculators Get Involved

The role of speculation is no less important than the political factor.

The rapid rise in prices creates an opportunity for speculators to buy and resell the dollar, anticipating continued appreciation. With increased demand, price movements may begin to deviate from fundamental economic factors and become driven, for a time, by expectations, rumors, and the behavior of traders.

Therefore, the mere spread of unconfirmed news about “cutting off dollars to Iraq” or “sanctions after September 30” may prompt some traders to buy, even before verifying the news.

In this case, the market is faced with a recurring cycle:

Spreading fears drives up dollar purchases, increased demand raises the price, and the rising price reinforces the belief that there is a dangerous development, so new buyers enter the market.

Can The Dollar Continue To Rise?

The course of events in the coming days will largely depend on the news and official decisions that will be issued from Baghdad and Washington, in addition to the ability of the Central Bank of Iraq to manage the demand for foreign currency and contain speculation.

If no broad new US measures emerge, and concerns related to the period after September 30th subside, it is possible that some of the precautionary demand for the dollar will decrease.

However, if new sanctions are imposed on Iraqi financial institutions, companies, or networks, or if restrictions on dollar transactions are expanded, pressure on the parallel market may increase, especially if this is accompanied by widespread speculative activity.

But it is also important to distinguish between sanctions that target specific individuals, companies, or banks and any action that affects Iraq’s access to the dollar as a country; these are entirely different levels of action and should not be treated as one thing.

The Central Bank Faces A Confidence Test.

The current battle is not only related to the volume of dollars in circulation, but also to confidence.

The market needs clear and quick messages that reduce the space for rumors and clarify the truth about what is happening regarding foreign transfers, dollar shipments, and any changes that may occur in the banking system.

Conversely, continued conflicting news and a lack of quick clarifications may give speculators more room to move the market.

Between the potential sanctions, the post-September 30 obligations, and the crisis of confidence that appears from time to time in some banks, it seems that the dollar in Iraq is not only pricing in the current realities, but also in the fear of the next scenario.

Therefore, the question the market is watching now is not just: What is the price of the dollar today?

But What Will Happen After September 30th?

The answer, so far, has not come in the form of a decisive official decision from Washington or Baghdad, while the market has already preempted everyone and begun pricing in the fears.    https://mustaqila.com/الدولار-يسعّر-مخاوف-ما-بعد-30-أيلول-المض/

Seeds of Wisdom RV and Economics Updates Saturday Morning 9-19-26

Good Morning Dinar Recaps,

AI FINANCIAL RESET: IMF WARNS EUROPE'S AI BOOM COULD STRAIN ENERGY, CAPITAL AND ECONOMIC BALANCE

THE IMF SAYS ARTIFICIAL INTELLIGENCE COULD BOOST EUROPEAN PRODUCTIVITY, BUT RAPID AI EXPANSION COULD ALSO INCREASE PRESSURE ON ENERGY GRIDS, CAPITAL MARKETS, LABOR MARKETS AND EUROPE'S STRATEGIC TECHNOLOGY POSITION.

OVERVIEW

• AI is becoming an economic infrastructure issue. The IMF estimates that artificial intelligence could raise European productivity by about 1% over the next five years, but the benefits and costs are unlikely to be distributed evenly across countries, regions and workers.

• Energy is becoming part of the AI equation. European data centers already consume roughly 3% of the continent's electricity, and the IMF expects demand to rise substantially as AI expands. It is calling for greater investment in cross-border electricity grids and deeper integration of Europe's energy markets.

• The financial system will have to support the transition. The IMF is urging Europe to deepen integration of its capital, labor and energy markets while investing in its own AI industry, highlighting how technology, infrastructure, investment and financial markets are becoming increasingly interconnected.

KEY DEVELOPMENTS

1. AI Could Increase European Productivity — But the Gains May Be Uneven

The IMF presented a background paper to European Union finance ministers meeting in Dublin on September 18–19. The paper estimates that AI could lift European productivity by approximately 1% over five years.

That potential productivity increase is significant because higher productivity can influence economic growth, business investment and the ability of economies to generate output with existing resources.

However, the IMF also warned that the benefits will not necessarily be shared equally.

Around 60% of workers in advanced European economies are employed in occupations highly exposed to AI. Some workers could become more productive through AI tools, while others could face displacement as routine tasks become automated.

The result could be a more uneven economic landscape unless investment, education and labor-market policies keep pace with technological change.

2. Electricity Is Becoming a Financial Issue

One of the most important connections in the IMF analysis is the relationship between AI and energy.

• AI systems require enormous computing capacity, and that computing capacity requires data centers. The IMF estimates that European data centers already account for roughly 3% of the continent's electricity consumption, with demand expected to rise as AI adoption expands.

• Major technology hubs including Frankfurt, London, Amsterdam, Paris and Dublin are already facing pressure on local power networks from data-center growth.

• The IMF therefore recommends investment in cross-border grid infrastructure and deeper integration of Europe's energy market.

• This creates an important financial connection: AI investment requires electricity; electricity requires infrastructure; infrastructure requires capital; and capital allocation increasingly depends on functioning financial markets.

3. Europe Is Being Pressured to Deepen Its Capital Markets

The IMF's concerns extend beyond technology itself.

• Europe's capital, labor and energy markets remain more fragmented than a fully integrated single market would be. The IMF says completing the EU single market could help spread the benefits of AI more evenly and improve the ability of European economies to invest and innovate.

• That means the AI transition is also becoming a capital-market challenge.

• Companies need access to investment capital to develop AI systems. Governments need financing for energy and digital infrastructure. Workers need training and adjustment programs. And financial markets need sufficient depth and efficiency to direct savings toward those investments.

In this sense, AI is creating another reason for Europe to examine how its financial system moves capital across borders.

4. Strategic Technology Dependence Has Become a Financial Consideration

The IMF also warned that Europe could develop another form of strategic dependence because the United States and China currently dominate the development of major AI models.

The issue is broader than technology.

• If a region depends heavily on outside technology for an increasingly important part of its economy, it can also become dependent on foreign investment, foreign suppliers, foreign computing infrastructure and external intellectual property.

• The IMF therefore argues that Europe needs significant investment in its own AI industry.

• This does not mean Europe must isolate itself from global technology markets. Rather, the issue identified by the IMF is whether Europe has sufficient domestic capacity to participate competitively in an increasingly technology-driven global economy.

5. AI Is Connecting Technology, Energy, Capital and Currency Infrastructure

The broader significance of this development is the way several financial-system components are beginning to converge.

• AI requires computing infrastructure.

• Computing infrastructure requires electricity.

• Electricity requires grids and long-term investment.

• Investment requires functioning capital markets.

• And productive, competitive economies ultimately contribute to the economic foundations supporting their currencies and financial systems.

The Irish Presidency's official description of the September 18–19 ECOFIN meeting reflects this broader connection. The meeting brought together EU finance ministers and central-bank governors to discuss financial stability, competitiveness, investment, financial innovation and AI, with the IMF participating in discussions about AI's potential effects on productivity and economic growth.

WHY IT MATTERS

The AI transformation is increasingly moving beyond the technology sector and into the underlying infrastructure of the economy.

Europe's challenge is not simply whether companies adopt AI. It is whether the region can build enough electricity generation and grid capacity, investment capital, skilled workers, digital infrastructure and domestic technology capacity to support that adoption.

That makes AI part of a much larger economic transition involving technology, energy, capital markets, productivity and financial infrastructure.

The financial reset is not only about currencies — it is also about the infrastructure that determines how economies create, move and allocate value.

WHY IT MATTERS TO FOREIGN CURRENCY HOLDERS

Readers hold foreign currency with the hope that it may increase in value if major changes occur in the global monetary system.

Developments such as AI investment, energy infrastructure, capital-market integration and changes in economic productivity can influence the long-term strength and usefulness of currencies.

That does not mean AI signals a currency revaluation or guarantees a Global Reset event.

Instead, it provides another example of why the foundation of the financial system deserves attention.

Hope, not hype. Follow the infrastructure, investment and evidence.

IMPLICATIONS FOR THE GLOBAL RESET

• Pillar 1: Technology

AI is becoming a major component of economic infrastructure. Countries and regions that develop computing capacity, digital systems, skilled workforces and domestic technology industries may have greater ability to participate in the next phase of global economic development.

• Pillar 2: Energy

The AI expansion creates another reason for reliable and affordable electricity. Data centers, grids and energy markets are becoming increasingly important to financial and technological competitiveness.

• Pillar 3: Capital

AI requires enormous investment. Deeper capital markets can help channel savings into technology, infrastructure and business expansion.

• Pillar 4: Economic Integration

The IMF's message to Europe is that fragmented markets can make it harder to spread investment and productivity gains. Greater integration of energy, labor and capital markets could change how efficiently capital moves throughout the region.

• Pillar 5: Currencies

Currency strength ultimately rests on economic foundations that include productivity, investment, trade, financial markets and confidence in institutions.

AI does not independently determine currency values, but the infrastructure built around AI can become part of the broader economic foundation supporting future financial systems.

RUMOR SAFETY REMINDER

This development is not an announcement of a currency revaluation, a new global currency or a specific Global Reset date.

The IMF's discussion concerns productivity, investment, energy infrastructure, labor markets, capital markets and technological competitiveness.

For currency holders, the important lesson is to distinguish documented financial-system development from speculation about future currency events.

THE BOTTOM LINE

The IMF's warning highlights something that is easy to overlook: the AI transformation is also an infrastructure transformation.

Europe may gain productivity from artificial intelligence, but realizing those gains requires electricity, grids, investment capital, skilled workers, digital infrastructure and competitive domestic technology capacity.

That creates a broader chain:

AI → Energy → Infrastructure → Capital → Productivity → Financial Systems → Currencies

The Global Reset story continues to develop through these underlying systems. The foundation can change long before the headlines do.

Seeds of Wisdom Team
Newshounds News™ Exclusive

SOURCES

1. Reuters — "IMF tells EU ministers AI could boost growth but increase economic strains"

2. Irish Presidency of the Council of the EU — "Tánaiste to host key meeting of Finance Ministers and Central Bank Governors as part of Ireland’s EU Presidency"

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 🌱 A Message to Our Currency Holders🌱

If you’ve been holding foreign currency for many years, you were not foolish.
You were not wrong to believe the global financial system would change.

What failed was not your patience — it was the information you were given.

For years, dates, rumors, and personalities replaced facts, structure, and proof. “This week” predictions created cycles of hope and disappointment that were never based on how currencies actually change.

That is not your failure.

Our mission here is different:   • No dates • No rates • No hype • No gurus

Instead, we focus on:
• Verifiable developments • Institutional evidence
• Global financial structure • Where countries actually sit in the process

Currency value changes only come after sovereignty, trade, banking, settlement systems, and fiscal coordination are in place. History and institutions confirm this sequence.

You will see silence. You will see denials. That is not delay — that is discipline.

Protect your identity. Organize your documents.    Verify everything.
Never hand your discernment to anyone who cannot show proof.

You deserve truth — not timelines.

Seeds of Wisdom Team
Newshounds News

~~~~~~~~~~

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Thank you Dinar Recaps

Ariel: The September 30th Ignition Sequence (and more)

Ariel: The September 30th Ignition Sequence

9-18-2026

Sept-30th: The Ignition Sequence (What You Need To Look For)

Post-September 30 Sovereignty Window → 2027 Budget Submission —Ground Assessment

I. WHAT SEPTEMBER 30 ACTUALLY DELIVERS

The Ministry of Finance’s declaration of financial sovereignty is not a ceremonial gesture. It is a legal severance. Specifically, it terminates the artificial program rate the managed peg that has kept IQD suppressed since the reconstruction era. That program rate was never a market rate.

It was an administrative fiction maintained through the Treasury Reserve Account structure at the New York Fed, where Iraq’s dollar-denominated oil receipts were held and drip-fed back at the engineered exchange rate.

II. THE 2027 BUDGET —MECHANICS

The projected size is 200 trillion dinars ($174.7 billion) but that dollar figure is calculated at the current program rate. If the IQD revalues to a market-reflective rate before the budget passes, that nominal dinar figure stays roughly stable but the dollar equivalent shifts dramatically. That’s the whole point.

The budget has to be denominated in real-value IQD, not program-rate IQD, because once the program rate get a reassessment on September 30, every contract, every salary, every customs receipt denominated in the old rate becomes legally incoherent.

The 2027 budget at 200 trillion dinar is not a hope number. It’s a math equation. Oil revenue floor + non-oil customs receipts (live October 1) + gold reserve backing + gas development revenue projections + World Bank institutional support = the rate the budget can sustain.

If that equation yields a rate that’s lower than the hopium crowd wants, that’s what publishes. If it yields a rate that reflects Iraq’s actual sovereign asset position oil, gas, gold, and a functioning non-oil revenue stream for the first time in twenty years then the number is real.

October 15 is what we need to look between from the 30th. Not September 30. September 30 removes the chain. October 15 reveals what was underneath it.

Read Full Article:
https://www.patreon.com/Prolotario1/posts/sept-30th-what-169847296

https://dinarchronicles.com/2026/09/17/prolotario-the-september-30th-ignition-sequence/

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Ariel:  Further Clarification for September 30th

9-18-2026

September 30 ends the program rate legally. October 1 through October 14 is the window where the Ministry of Finance builds the 2027 budget using the new valuation methodology one backed by oil, gas, and gold reserves instead of the artificial peg. October 15, they submit that budget to Parliament.

You Have To Understand This Basic Thing

This is the real anchor. The budget must reflect a real exchange rate because Iraq’s national budget is calculated in dinars. If they submit a budget based on the old program rate while simultaneously declaring sovereignty and forex integration, the numbers are fraudulent on their face. The budget has to be built on what the currency is actually worth on international markets.

How I Think This Is Going To Go

September 30: Legal authority to end artificial rate sovereignty declaration.

October 1-14: Build 2027 budget on real reserves-backed valuation

October 15: Submit revalued budget to Parliament first official document with new rate.

October (ongoing): DTCC tokenization on Ripple goes live parallel settlement infrastructure.

Post-October 15: CBI activates forex integration with already-built infrastructure international market recognizes new rate.

The Sequence Forces Transparency: (IMO)

• End program rate (Sept 30)
• Let the currency discover market value through forex integration (Oct 1-14)
• Submit a budget based on that discovered real value (Oct 15)

The SEC’s five-year Innovation Exemption issued today matters here because it opens the door for tokenized settlement and with DTCC beginning Ripple tokenization in October, Iraqi oil contracts could settle on blockchain infrastructure that bypasses the traditional SWIFT/Fed Wire system. That’s not a side note. That’s the rails the new IQD international settlement could actually run on.

Ariel: Do You All Know What Just Happened? We Are In The Home Stretch

 This comes off the announcement by The Ministry of Finance in Iraq how declared September 30th to be financial sovereignty day. No more SEC roadblocks.

 For years, the SEC has been the gatekeeper of the old financial system, making sure only the elite could play in the big leagues. Now? They’re stepping aside and letting the new system take over.

"Financial sovereignty" specifically means termination of the IMF Article XIV consultation status and the end of the U.S. Treasury's OFAC supervised "program rate" mechanism.

Once sovereignty is declared, the CBI is no longer legally bound to the artificial peg maintained for war reparations and debt restructuring. Now with this recent development I can understand how that can occur not only for Iraq but other countries as well.

DTCC's October launch on Ripple provides the plumbing for instant settlement of IQD-denominated oil contracts. Previously, the artificial rate was maintained to prevent dollar-denominated oil revenues from being instantly converted to dinars at a true market rate (which would have exposed the undervaluation).

The "program rate" was a scam. For years, the Deep State and their bankster buddies kept the Dinar artificially low so they could buy it cheap and control Iraq’s oil. Now? That scam is over. The real value is about to be revealed. When Iraq declares financial sovereignty, they’re free to set their own exchange rate. That means the real value of the Dinar backed by oil, gold, and Iraq’s natural resources is about to be unleashed.

CryptoEmpress:  Yeah this is actually a big one. SEC just gave tokenized U.S. stocks a real on-chain lane. Not some whitepaper. Actual exemption. That’s the regulator saying “fine, do it.” Then you’ve got DTCC’s tokenization service dropping in October with Ripple already in that group. That’s the settlement layer people have been screaming about for years. The Iraq Sept 30 thing is still the hopium layer. Coalition out, sovereignty talk, all that. Cool calendar date. Doesn’t automatically mean the dinar rips and oil starts settling in IQD overnight. That’s the part everyone always jumps on too fast.

What’s not hopium:

🔺stocks can move on-chain now •

🔺DTCC is weeks away, not “someday”

🔺the old “you can’t settle this on a blockchain” excuse just got weaker

 If the dinar story hits, this is the plumbing that would make it work. If it doesn’t, the same rails still matter. Either way the infrastructure is getting built. That’s the part that’s actually happening

Source(s):
• https://x.com/Prolotario1/status/2100641294397624618

https://dinarchronicles.com/2026/09/17/prolotario-further-clarification-for-september-30th/

Russia’s Digital Ruble Is Here — The Real Shift Isn’t the Currency, It’s the System Underneath It

Russia’s Digital Ruble Is Here — The Real Shift Isn’t the Currency, It’s the System Underneath It

Lynette Zang:  9-18-2026

Russia’s digital ruble has moved into a major new phase, with large banks and retailers now required to support the infrastructure while individual use remains voluntary.

Lynette Zang breaks down what changed on September 1, why the central bank account structure matters, and the bigger question investors should be asking: what can this new monetary rail be made to do later?

Chapters:

00:00 Russia’s Digital Ruble and the Question of Control

00:33 What Actually Changed on September 1

01:05 Cash, Bank Deposits and Digital Rubles

01:30 Your Bank App Is Only the Doorway

02:04 Is the Digital Ruble Voluntary?

02:33 Russia Is Building the Infrastructure

03:06 Why Monetary Infrastructure Matters

03:39 How the Digital Ruble Works

04:10 Russia Crosses a Major CBDC Threshold

04:51 Why Other CBDCs Struggled With Adoption

05:27 Availability Does Not Create Demand

06:02 Russia Is Building Around the Choice

06:38 A Digital Ruble Is Not a Savings Account

07:07 Does This Mean Total Control?

07:44 Smart Contracts and Future Capabilities

08:17 The Next Stage of the CBDC Experiment

08:50 The Architecture Underneath Your Money

09:19 How Voluntary Does Adoption Need to Be?

09:50 What Could This Monetary Rail Do Later?

10:24 Sovereignty Begins With What You Own

https://www.youtube.com/watch?v=gX0y7_t4BT0

Iraq Economic News and Points To Ponder Friday Afternoon 9-18-26

Cabinet Reviews Fuel Subsidy, Lawmaker Says

2026-09-17 Shafaq News- Baghdad   Iraq’s Council of Ministers is reviewing recent decisions to remove fuel subsidies for some sectors amid efforts to address fuel shortages across the country, a member of parliament’s Oil, Gas and Natural Resources Committee said on Thursday.

Mohammed Al-Nuaimi told Shafaq News that a delegation from the committee visited the Oil Products Distribution Company to discuss shortages of gasoline and kerosene. “The crisis is on its way to being resolved,” he said.

Al-Nuaimi said the Cabinet’s recent decisions to remove fuel subsidies had caused new supply problems, adding that ministers were considering revising the measures for some sectors.

The Cabinet had decided to remove subsidies on petroleum product prices for various sectors starting Sept. 1, while maintaining subsidized prices for gasoline, diesel, kerosene and liquefied petroleum gas supplied to citizens.

Iraq’s Oil Products Distribution Company said the price increases apply to government institutions and other sectors but not to fuel supplied directly to citizens, which remains available at subsidized prices.

Last week, Diyala Provincial Council member Rashad Al-Tamimi said fuel shortages in the eastern province would be fully resolved this week after weeks of supply problems and long queues at filling stations. He said the council had coordinated with oil product distribution officials to restore supplies across the province.

Iraq faced renewed shortages of gasoline and gasoil, a fuel widely used by heavy vehicles. The Oil Ministry previously attributed the shortages to delayed shipments after the Iran-US conflict disrupted tanker movements, adding pressure to a gap between domestic production and demand. The ministry said new shipments would arrive soon, with daily gasoline consumption at about 33 million liters and rising to around 38 million liters during periods of higher demand.

Read more: Fuel shortages keep Iraqi motorists in long lines

https://www.shafaq.com/en/Economy/Cabinet-reviews-fuel-subsidy-lawmaker-says

USD/IQD Nears 160,000 Amid Speculation

2026-09-17 Shafaq News- Baghdad/ Erbil   The US dollar climbed further against the Iraqi dinar on Thursday, nearing 160,000 dinars per $100 in Baghdad as an economist pointed to uncertainty, speculation and political rhetoric as factors driving demand in the parallel market.

According to a Shafaq News market survey, the dollar closed at 159,500 dinars per $100 at Baghdad’s Al-Kifah and Al-Harithiya exchanges, up from 158,800 dinars in morning trading.

In Baghdad’s exchange shops, the dollar was selling at 160,000 dinars per $100 and buying at 159,000.

In Erbil, the dollar also rose, with exchange shops selling $100 for 159,100 dinars and buying it for 159,050.

Economist Ali Daadoush told Shafaq News that “irresponsible” remarks by some politicians and non-specialists, combined with uncertainty and speculation, were increasing demand for dollars in the parallel market.

He said part of the market’s cash-dollar supply also comes from travelers, travel companies and exchange firms linked to citizens purchasing foreign currency at the official rate for travel, medical treatment, study and other purposes approved by the Central Bank of Iraq (CBI).

Daadoush said that supply had also declined because traders and importers held fewer dollars abroad amid delays in official transfers used to finance imports of goods and services.

The rising exchange rate, he said, could feed into domestic prices because Iraq relies heavily on imported goods, increasing the risk of imported inflation alongside higher customs duties and taxes.

Daadoush said he did not expect CBI to intervene directly in the parallel market, noting that official foreign transfers are conducted through the banking system.

He said the CBI could instead use forward guidance to reassure traders, importers and the wider market about the continued flow of cash dollars through regular shipments.

https://dinarrecaps.squarespace.com/config/pages/5d5227ffceb0a70001072e56

Oil Retreats As Saudi Supply Outlook Improves

2026-09-18 01:10    Shafaq News   Oil prices fell for a third day on Friday as easing concerns over Saudi supply ‌disruptions outweighed anxiety about a widening the Middle East conflict amid fresh fighting between Saudi Arabia and Yemen's Houthis.

Brent crude futures fell 79 cents, or 0.75%, to $104 a barrel by 0319 GMT, while US West Texas Intermediate futures fell 70 cents, or ​0.69%, to $101.20 a barrel. Both benchmarks closed down about 1% on Thursday.

Brent prices are on track for ​their first weekly loss in three, down 0.5%, while WTI is set to gain ⁠1.2%.

Markets largely shrugged off concerns about new threats to supplies even as Saudi Arabia and Yemen's Iran-backed ​Houthis exchanged fresh strikes across their border on Thursday, expanding the Middle East war front.

Earlier this week, prices climbed to close to ​four-month highs as sources said crude loadings at Saudi Arabia's Red Sea export hub of Yanbu had been suspended and Riyadh cancelled some deliveries to Europe after its East-West pipeline was damaged in an attack last week.

However, prices have cooled off ​on reports Saudi Arabia was seeking to return about half the capacity of its East-West oil pipeline within ​days and the nation was offering more crude cargoes to Asian refiners through ship-to-ship transfers off Oman's port of Sohar.

"Recent ‌efforts to ⁠restore Saudi export capacity have reduced some of the immediate supply anxiety," said Priyanka Sachdeva, head of market insights at Phillip Nova.

Sources that have spoken to Reuters have given varying estimates of how long it will take to reopen the pipeline and return crude flows to normal.

Oil prices, however, are still up over $100 per barrel ​as the markets are waiting ​for evidence of a ⁠clear supply improvement, analysts said.

"The key question is whether physical flows can normalise and what could be the timeline. If we see a sustained improvement in Hormuz ​traffic, some of the geopolitical premium can unwind further," Sachdeva said.

However, transporting oil ​through the region ⁠remains risky.

Iran's Revolutionary Guards Navy said a Togo-flagged oil tanker was struck while attempting to make an "illegal passage" through the Strait of Hormuz on Thursday, Iranian state media said early on Friday.

The US and Iran have held no ⁠peace talks ​since an interim agreement reached in June collapsed within weeks. The ​war will come up for discussion at the United Nations General Assembly next week, and an Iranian delegation will be able to ​attend, according to the US State Department. (REUTERS)

https://www.shafaq.com/en/Economy/Oil-retreats-as-Saudi-supply-outlook-improves