Seeds of Wisdom RV and Economics Updates Tuesday Afternoon 9-30-25

EconomicsNews

Sep 30

Good Afternoon Dinar Recaps,

U.S. Sees Historic Exodus: Over 154,000 Federal Workers Depart

The largest one-week exit of civil servants in modern history signals deep institutional rupture — with implications far beyond Washington.

What’s Really Happening

Around 154,000 federal workers are leaving government payroll this week — officially resigning under the Trump administration’s deferred resignation / buyout program.
Earlier reports projected 100,000+ resignations, which now appear to be part of a larger wave.
Many of those employees had already been on administrative leave for months, paid through the end of September despite not working.
The program is designed to reduce the federal workforce by ~300,000 jobs in total by the end of the year, representing roughly 12.5% of the civilian federal workforce.

Institutional Risks & Financial Pressure

This mass exodus will lead to a “brain drain”: loss of institutional memory, weakened agency capacity, and a gap in critical technical, scientific, and regulatory roles (e.g. NASA, CDC, Agriculture).
Agencies will need to contract, outsource, or rebuild functions, which raises transitional costs and inefficiencies.
The government projects $28 billion in annual savings, but critics argue the short-term cost, legal risks, and service disruption may exceed benefits.

Global & Structural Implications

🔹 Erosion of Trust in Institutions
When a major government deliberately sheds large swaths of its professional workforce, it signals a shift in how the state perceives its role. Other countries watching U.S. internal restructuring may adjust their expectations: less reliability, more volatility.

🔹 Reallocation of Capital & Talent
Those leaving may reenter private sectors or new institutions, shifting expertise, capital, and influence away from public systems. This movement supports the growth of new governance, tech, or finance platforms outside traditional state structures.

🔹 Precedent for Other Governments
If the U.S. — long considered the institutional gold standard — pursues deep cuts, it gives cover to other nations to attempt similar transformations. Coupled with pressures from debt, sanctions, or economic disruptions, nations may justify major overhauls of civil service or public institutions.

🔹 Interplay with Global Restructuring
This institutional shake-up fits with other tectonic shifts: de-dollarization, new trade blocs, alternative financial systems. A weaker, leaner U.S. administrative state means less capacity to manage global order. Other powers and blocs (BRICS, China, regional institutions) may step into the void.

Why This Matters
This isn’t a routine downsizing. It’s a structural break in how government operates, financed, and is perceived. The consequences ripple into legislative competence, global strategy, and the balance of power in diplomatic and financial arenas.

This is not just politics — it’s global finance restructuring before our eyes.

@ Newshounds News™ Exclusive

Sources:

Reuters / Washington / reporting – U.S. government faces brain drain as 154,000 federal workers exit this week Reuters
The Guardian – More than 100,000 federal workers to quit amid government shutdown pressures The Guardian+1
Washington Post / fund analyses of deferred resignation program The Washington Post
Wikipedia / documentation of the 2025 U.S. federal deferred resignation program Wikipedia
Records of workforce downsizing, OPM data, and agency cuts Wikipedia

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“Out With the Old, In With the New”: Pete Hegseth Signals Military Reset

“This is not just politics — it’s global finance restructuring before our eyes.”

In a sharp address to U.S. generals and admirals, Secretary of War Pete Hegseth declared that the “era of the Department of Defense is over.” His message: the military will be purged of “woke” policies, higher standards will be enforced, and leaders unwilling to adapt should resign.

This is more than rhetoric — it signals a structural reset of the armed forces, which could tie directly into broader institutional and financial change.

Key Highlights

Renaming the Department → Defense is “dead”; it’s now the War Department, emphasizing offense and strength.
Warrior Ethos Restored → “Peace through strength” replaces political correctness as guiding doctrine.
Fitness & Discipline → Generals failing physical tests or grooming standards must step aside.
End of DEI & Woke Policies → Leadership will no longer cater to identity-based initiatives.
Oversight Shake-Up → Inspector General reforms to reduce internal resistance.
Ultimatum → Those opposed should retire: “We will thank you for your service.”

Why This Matters

By forcing out the old guard and consolidating loyalty, Hegseth is preparing the military for a new era of centralized, disciplined authority. In times of political uncertainty or financial turbulence, this kind of restructured military becomes a stabilizing force — or a lever of change.

When military leadership resets, it often mirrors — and prepares for — a reset in governance and finance. Out with the old, in with the new applies not just to generals, but to the global system itself.

@ Newshounds News™ Exclusive

Sources

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Stablecoins, G7 Regulation & the Timeline to Reset

“This is not just politics — it’s global finance restructuring before our eyes.”

Why Stablecoin Laws Matter

Stablecoins are no longer fringe crypto projects — they’re now central to how nations think about digital money and financial sovereignty. The G7 countries are moving at different speeds, creating a staggered path toward being “reset-ready.”

G7 Progress Toward Stablecoin Regulation

Japan – First to act (2023). Banks can issue yen-backed stablecoins. Already live → High readiness.
EU (France, Germany, Italy) – MiCA law fully in effect by 2025. Strong reserves, audits, euro-backed tokens → Very high readiness.
United States – GENIUS Act (2025) passed, but full enforcement may take until 2027. Dollar-tokens will be tightly controlled → Medium-High readiness.
United Kingdom – Draft laws under review. Real enforcement likely by 2026 → Medium readiness.
Canada – Early oversight in place, but no dedicated stablecoin charter until at least 2027 → Medium-Low readiness.

Why This Matters

First movers (Japan, EU) gain leverage in shaping digital money standards.
Dollar vs. multipolarity – Regulated euro/yen tokens challenge dollar stablecoins.
Global reset fuel – Once multiple G7s are “reset-ready,” stablecoins can underpin new cross-border systems, opening the door to asset-backed or revalued currencies.

Reset Timeline (Approximate)

2025–26: Japan, EU go live; US builds rulebook.
2027: US, UK frameworks mature; Canada follows.
2028–30: Stablecoins integrated in payments, paving the way for systemic reset.

The path is clear: regulation of stablecoins is the foundation for new financial infrastructure. Each country’s pace determines its leverage in a reset.

This is not just politics — it’s global finance restructuring before our eyes.

@ Newshounds News™ Exclusive

Sources