Are These New Global Digital Initiatives Set To Create Personal Prosperity or Digital Prisons?
Are These New Global Digital Initiatives Set To Create Personal Prosperity or Digital Prisons?
On November 18, 2023 By Awake-In-3D
Data is the new currency. As new global digital initiatives such as “European Digital Identity Wallets” and the UN’s ambitious “50in5” program, are in full swing, many questions and concerns are being raised.
Is this the dawn of an ultra-efficient digital world or the creation of a digital prison?
As we continue to witness these digital transformations taking shape, the global reorganization phase of what some term the Great Reset quietly unfolds.
Are These New Global Digital Initiatives Set To Create Personal Prosperity or Digital Prisons?
On November 18, 2023 By Awake-In-3D
Data is the new currency. As new global digital initiatives such as “European Digital Identity Wallets” and the UN’s ambitious “50in5” program, are in full swing, many questions and concerns are being raised.
Is this the dawn of an ultra-efficient digital world or the creation of a digital prison?
As we continue to witness these digital transformations taking shape, the global reorganization phase of what some term the Great Reset quietly unfolds.
Governments and organizations worldwide are racing to redefine our currencies, identity and reshape the fabric of our online existence. As initiatives for digital IDs and data-sharing systems seek to dominate the future, our financial, medical, and personal privacy is seemingly more at stake than ever before.
Digital Data-Sharing Systems, Digital IDs, and Digital Monetary Frameworks Happening Now
In a significant stride towards the future of digital governance, the European Parliament and the Council of the European Union recently finalized an agreement to introduce “European Digital Identity Wallets,” marking the first centralized and fully digital identification system for all Europeans.
This development aligns with broader global initiatives, reflecting a profound shift towards digital data-sharing systems, digital IDs, and digital assets.
Over 500 privacy and cybersecurity experts from 39 countries have signed a joint letter expressing reservations about the legislation, citing its potential to infringe on citizens’ privacy rights and compromise online communication security.
European Digital Identity Wallets: The Next Era of Digital IDs
Under the new legislation, European citizens will have the option to possess “digital wallets” containing digital replicas of their ID cards, driving licenses, diplomas, medical records, and bank account information.
The goal is to create a voluntary, yet comprehensive, digital identity system that allows citizens to seamlessly access online services throughout Europe.
Proponents argue that this move is a pivotal step towards achieving the Digital Decade 2030 targets, fostering the revolutionary digitalization of public services.
However, conservative EU lawmakers and cybersecurity experts have raised concerns about potential abuses within an all-encompassing digital identity system. Many are voicing apprehension, indicating a perceived link between the Digital Identity Wallet and the development of a central bank digital currency (CBDC).
Over 500 privacy and cybersecurity experts from 39 countries have signed a joint letter expressing reservations about the legislation, citing its potential to infringe on citizens’ privacy rights and compromise online communication security.
The European Digital Identity framework is currently awaiting formal approval by the European Parliament and the Council, with its enforcement scheduled for the 20th day following publication in the Official Journal.
Bill Gates, The United Nations and the “50in5” Program
Beyond the European Union, global initiatives are reshaping the landscape of digital governance.
The United Nations Development Program, in collaboration with UNICEF and the Inter-American Development Bank, launched the “50in5” program, aiming to introduce Digital Public Infrastructure (DPI) in fifty countries within the next five years.
DPI encompasses secure and interoperable networks involving digital payments, ID, and data exchange systems.
This expansive initiative is supported by various globalist NGOs and non-profits, including the Bill & Melinda Gates Foundation and the Rockefeller Foundation.
The participating countries, ranging from Bangladesh to Brazil and Estonia to Togo, represent a diverse mix of nations from different continents, including NATO, EU, and BRICS members.
Simultaneously, in the digital arena, India, a prominent BRICS nation, has been at the forefront of DPI development for years. Forbes articles emphasize India’s robust digital infrastructure, prompting discussions about the need for a similar system in the United States.
Many Are Pushing Back Against these Initiatives.
Amid these developments, controversies and warnings abound. Conservative EU lawmakers, cybersecurity experts, and privacy advocates express concerns about potential abuse and the infringement on privacy rights within these digital systems.
Concerns over a fully digital system that can be centrally controlled to limit individuals based on geographical areas or compliance with mandates are certainly warranted.
Supporters of decentralized digital finance development echo these sentiments, cautioning that any CBDC system could evolve into a tool of totalitarian control, akin to a Chinese-style “social credit score.”
These apprehensions extend beyond Europe, resonating with discussions surrounding the development of digital assets globally.
Meanwhile, it is worth noting that while the U.S. Federal Reserve has not made a decision on issuing a US Dollar-based CBDC, it asserts that any such move would only proceed with an authorizing law.
As we continue to witness these digital transformations taking shape, the global reorganization phase of what some term the Great Reset quietly unfolds.
The push for digital infrastructure, digital IDs, and digital assets continues to raise fundamental questions about privacy, security, and the potential implications of a fully digitized global society.
Supporting sources:
© GCR Real-Time News
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How a Geopolitical and Economic Power Shift is Now Unfolding in the Middle East: Awake-In-3D
How a Geopolitical and Economic Power Shift is Now Unfolding in the Middle East
On November 14, 2023 By Awake-In-3D
The United States, China, and the BRICS Alliance are currently locked into an intense struggle for supremacy.
In a world where alliances are shifting, conflicts are escalating, and the balance of power is on a razor’s edge, the latest events in the Middle East expose a major geopolitical and economic power shift between nations fighting for dominance.
This article addresses the following questions:
How a Geopolitical and Economic Power Shift is Now Unfolding in the Middle East
On November 14, 2023 By Awake-In-3D
The United States, China, and the BRICS Alliance are currently locked into an intense struggle for supremacy.
In a world where alliances are shifting, conflicts are escalating, and the balance of power is on a razor’s edge, the latest events in the Middle East expose a major geopolitical and economic power shift between nations fighting for dominance.
This article addresses the following questions:
1. How do current events in the Middle East indicate that a major geopolitical and economic power shift is in play between the United States, China and BRICS Alliance?
2. What are the key political positions and strategic economic resources involved in the power struggle?
3. What are the consequences for the United States and its Western Alliance if China and BRICS achieve victory?
An Economic and Geopolitical Power Shift is Unfolding in the Middle East
The Current Scenario
The recent diplomatic developments in the Middle East, particularly the unity between Saudi Arabia and Iran in calling for a Gaza ceasefire, signify a pivotal moment in the geopolitical landscape.
The joint stance of these nations, along with the broader Arab world, reflects a growing dissatisfaction with the ongoing conflicts.
This discontent has become a catalyst for a potential economic and geopolitical power shift, with implications for the United States, China, and the BRICS Alliance.
United Arab Front and Regional Stability
The unity displayed by the Arab world, despite historical rivalries, suggests a collective desire for regional stability.
The strain on U.S. influence is evident, providing an opening for China to capitalize on the opportunity and strengthen its ties in the region.
China’s Strategic Moves
The core of the economic power shift is China’s strategic maneuvering to secure its energy supply.
The Middle East’s significance as a supplier of oil to China, along with the potential for an oil-for-yuan trade, indicates a deliberate effort by China to shift the economic balance in its favor.
The Key Political Positions and Economic Resources Involved in the Power Struggle
Saudi Arabia and Iran’s Ceasefire Call
The diplomatic collaboration between Saudi Arabia and Iran, despite being regional rivals, underscores the current situation.
Saudi Arabia’s strategic partnership with the U.S., coupled with Iran’s historical opposition to America, showcases the complexity of the geopolitical power struggle and an ongoing economic power shift.
An Erosion U.S. Influence
The ongoing conflict in the Middle East is draining away U.S. influence, providing an opening for China and the BRICS nations to gain strategic ground.
China’s focus on securing energy resources and the potential for the oil-for-yuan trade exemplify key economic resources in this power struggle.
European-Russian Relations
The economic war between the West, particularly the European Union, and Russia is an additional layer in the power struggle.
Plans to confiscate Russian assets and the cautious stance of EU states highlight the multifaceted nature of the geopolitical and economic challenges.
Potential Consequences for the United States and the Western Alliance
A Strategic Diplomatic Defeat
The analysis suggests that continued support for Israel’s military campaign and the erosion of U.S. influence in the Middle East could lead to a strategic diplomatic defeat for the United States. The potential for a shift in global economic dynamics, with China and BRICS gaining influence, poses significant consequences.
The Impact on U.S. Credit Ratings
Moody’s negative outlook on America’s credit rating, driven by rising fiscal deficits, adds to the economic challenges.
The U.S. faces a dilemma between continuing war funding and potentially jeopardizing its creditworthiness, which could have far-reaching implications for the Western Alliance.
Bottom Line: De-dollarization Risk Increasing
Ongoing geopolitical and economic events, particularly in the Middle East, are contributing to a potential shift away from the U.S. dollar as the global reserve currency.
The escalating conflicts and strained relations between the United States and key nations, coupled with rising fiscal deficits and downgrades in credit ratings, are also factors undermining the stability and attractiveness of the U.S. dollar.
China, along with the BRICS Alliance, is strategically positioning itself to benefit from these circumstances, potentially leading to a significant decline in U.S. influence and a shift towards alternative currencies, such as the Chinese yuan, in global trade.
© GCR Real-Time News
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https://ai3d.blog/how-a-geopolitical-and-economic-power-shift-is-now-unfolding-in-the-middle-east/
How Private Trading Platforms Will Generate Substantial Funds for Asset Sellers in a Realistic GCR Scenario: Awake-In-3D
How Private Trading Platforms Will Generate Substantial Funds for Asset Sellers in a Realistic GCR Scenario
On November 13, 2023 By Awake-In-3D
In RV/GCR
This article explains the utilization of rehypothecation in Private Trading Platforms to generate substantial returns for multiple parties involved in a Global Currency Reset (GCR) asset transaction.
Author’s Note: The scenario outlined in this explanation is based on realistic financial vehicles, practices and processes that exist today.
However, the examples used in this article are hypothetical by design. The assets, monetary values and timeframes are fictitious and intended for educational purposes only.
How Private Trading Platforms Will Generate Substantial Funds for Asset Sellers in a Realistic GCR Scenario:
On November 13, 2023 By Awake-In-3D
In RV/GCR
This article explains the utilization of rehypothecation in Private Trading Platforms to generate substantial returns for multiple parties involved in a Global Currency Reset (GCR) asset transaction.
Author’s Note: The scenario outlined in this explanation is based on realistic financial vehicles, practices and processes that exist today.
However, the examples used in this article are hypothetical by design. The assets, monetary values and timeframes are fictitious and intended for educational purposes only.
Over my long history of research and participation within the GCR financial landscape, I have interacted with many people professionally involved in asset rehypothecation in Private Trading Platforms.
Many assets can be collateralized and placed into these Platforms for substantial returns (in many cases).
Assets such as fine art, precious metals, rare earth elements and other commodities are regularly utilized by Private Trading Platforms today.
Thus, I have endeavored to be as accurate as possible in the hypothetical scenario below with the singular goal of providing education through examples to my readers.
I am not a professional financial advisor. This is not financial advice. Always do your own due diligence and seek professional advice before making any financial decisions.
If you find this article helpful and educational, please join me to learn more, ask questions, or offer your own commentary on my GCR Real-Time News Telegram channel and explore the GCR RTN website with hundreds of detailed articles at www.ai3d.blog.
Defining the Terms for an Asset Transaction Example
The best place to start is to understand the roles and interactions of:
Asset Owner/Seller (Seller)
The Asset Buyer (Buyer)
And Private Trading Platforms (Platforms)
The scenario presented here entails the Seller’s ownership of a historical bond with a face value of $100 million fiat USD (for example).
This presents two options for the Buyer: an outright purchase of the asset or offering structured payment terms.
Additionally, the Seller has the opportunity to access a line of credit for economic and/or humanitarian Projects.
The Private Trading Platforms serve as intermediaries for rehypothecating the bond assets, while the occurrence of a Global Currency Reset impacts the value of gold relative to newly established gold-backed currencies.
Now that the parties and terms of the scenario have been established, let’s move on to the details and importance of understanding rehypothecation in Private Trading Platforms.
Private Trading Platforms and Rehypothecation
Private Trading Platforms play a crucial role in financial markets, facilitating various transactions and investment strategies. Rehypothecation, the practice of pledging collateral for loans or other transactions, is often employed to enhance leverage and generate returns.
Private Trading Platforms are highly confidential and exclusive venues where individuals, institutions, or entities can conduct buying and selling of financial instruments like securities or other assets.
Unlike public stock exchanges, Private Trading Platforms are not open to the general public. Instead, they cater to a specific group of investors who have been granted access.
These platforms often provide a more controlled and private environment for trading, allowing participants to execute transactions with a level of confidentiality and exclusivity.
Asset rehypothecation is a financial practice where a borrower pledges an asset as collateral for a loan, and the lender, in turn, uses that same asset as collateral for their own borrowing.
Essentially, it involves the reuse of the same asset as collateral by multiple parties in the financial system. This practice is common in various financial transactions.
In the following scenario example, I will focus on the utilization of rehypothecation in Private Trading Platforms for historical bonds, which serve as valuable assets for financing global economic and humanitarian Projects.
The Scenario for Asset Sellers, Buyers and Private Trading Platforms
The scenario involves three key parties: the asset Seller, the Asset Buyer, and the Private Trading Platform.
The Seller is the owner of a historical bond with a face value of $100 million, while the Buyer is interested in acquiring the bond.
The Private Trading Platforms act as an intermediaries, facilitating the transaction and subsequent rehypothecation for investment growth (funds) purposes.
Methods
Scenario Overview
In this scenario, the Seller has two options:
The Buyer offers to purchase the bond outright for $5 million (5% of the bond’s value), or
The Seller can receive $1 million (1%) cash upfront, an additional $9 million (9%) in 30 days, and a $70 million line of credit for economic and/or humanitarian Projects.
Structured Payment Terms
If the Seller agrees to option (2) above, they will receive the upfront hard currency payment of $1 million (1%) and an additional payment of $9 million (9%) after 30 days.
Furthermore, the Seller can access a $70 million line of credit specifically designated for economic and/or humanitarian Projects. Expenses incurred for these Projects will be charged against the line of credit.
In total, the Seller receives a total of 80% of the value of the bond – 10% in personal funds and 70% for Project commitments.
The Overall Results of the Bond Redemption
Utilization of the Line of Credit
The Seller can utilize the $70 million line of credit to fund economic and/or humanitarian Projects.
This allows the Seller to execute their initiatives without the burden of immediate financial constraints, as the expenses are charged against the line of credit.
Funding for Projects is facilitated as a line of credit, instead of hard currency, so as to not create an oversupply of M2 currency into an economy since too much currency dilutes purchasing power (debasement) of a currency. Lines of Credit do not add to the M2 currency supply.
Rehypothecation in Private Trading Platforms
Once the Buyer acquires the historical bond from the Seller, they place it in one of several specialty Private Trading Platforms created for GCR-only rehypothecation.
These platforms serve as mechanisms for leveraging the bond and utilizing the associated collateral to finance global Projects.
3. How the Global Currency Reset (GCR) Leverages Asset Funds in Private Trading Platforms
In this educational scenario, a Global Currency Reset occurs 30 days after the completion of set window for private transactions between the Sellers and Buyers.
This reset replaces the existing fiat currency system with gold-backed currencies.
Consequently, the value of gold relative to the new currencies substantially increases, with gold assumed to be worth $25,000 new US, gold-backed dollars (for example).
How Substantial Funds for Projects
Returns Generated by Private Trading Platforms
Under the assumptions of this scenario, the Private Trading Platforms will generate substantial returns on the rehypothecated bond assets.
These returns exceed the financial requirements for supporting the economic and/or humanitarian Projects initiated by the original bond Sellers.
The Role of Off-Ledger Gold for Leveraging Private Trading Platform Returns
While the specific mechanisms through which the Private Trading Platforms generate returns are not explored in detail in this scenario, it is assumed that the leveraging of historical bonds and collateral, using substantial amounts of off-ledger gold, contributes to the generation of these returns.
Consequently, the lines of credit can be maintained indefinitely (they don’t require repayment by the original asset Seller).
Additional information explaining how Private Trading Platforms were used to generate profits from Off-Ledger gold, you may find the following articles highly interesting.
GCR Origins (Part 1): Secret Off-Ledger Gold Trading Platforms
The GCR requires a lot of gold – or Gold Certificates – to reset and replace the collapsing global fiat currency system. Historical off-ledger gold is the key.
GCR Origins (Part 2): Project Hammer’s Secret Trading Platforms for WW2 Off-Ledger Gold
Off-Ledger Gold Private Trading Platforms Offer a Template for a Global Currency Reset (GCR). Project Hammer was the first, but for the wrong reasons.
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INSIDE THE USA-CHINA CRISIS: U.S. Treasury in Serious Trouble: Awake-In-3D
INSIDE THE USA-CHINA CRISIS: U.S. Treasury in Serious Trouble
On November 12, 2023 By Awake-In-3D
The key events around escalating U.S.-China financial strife in context of the ticking time bomb in the bond market! The global and financial economic landscape is shifting right before our eyes.
The U.S. Treasury is facing an unprecedented challenge in selling bonds, sending shockwaves through financial markets.
As the recent 30-year bond auction turns disastrous and foreign demand plummets, the implications for the U.S. economy are staggering.
INSIDE THE USA-CHINA CRISIS: U.S. Treasury in Serious Trouble
On November 12, 2023 By Awake-In-3D
The key events around escalating U.S.-China financial strife in context of the ticking time bomb in the bond market! The global and financial economic landscape is shifting right before our eyes.
The U.S. Treasury is facing an unprecedented challenge in selling bonds, sending shockwaves through financial markets.
As the recent 30-year bond auction turns disastrous and foreign demand plummets, the implications for the U.S. economy are staggering.
What You Need to Know:
Reduced Foreign Involvement: China’s changing stance leaves a void in foreign buyers, impacting the U.S. Treasury’s ability to fund increasing national debt.
Yield Spikes and Rate Hikes: Declining demand leads to rising yields, complicating efforts to manage inflation and potential rate hikes.
Strategic Implications: As the U.S. grapples with economic challenges, the bond market turmoil has broader implications for financial stability.
The U.S. Treasury’s ability to find new buyers for bonds is crucial for stabilizing the financial landscape, and the reduced foreign involvement, particularly from China, poses strategic implications for the nation’s economic stability.
U.S. Treasury Bond Market Turmoil
The U.S. Treasury’s recent attempt to auction 30-year bonds turned into a debacle, with yields spiking and foreign demand plummeting. This downturn in the bond market has raised concerns about the U.S. government’s ability to fund its operations and address the escalating costs associated with fighting two wars.
Reduced Foreign Involvement
Historically, foreign buyers, particularly China, have played a crucial role in supporting the U.S. Treasury market by purchasing bonds. However, China’s changing stance and reduced involvement in buying U.S. bonds have created a void that the U.S. Treasury is struggling to fill.
Impact on Yields and Rates
The declining demand for U.S. bonds has led to rising yields across the board. This not only complicates the U.S. government’s efforts to manage inflation but also raises the specter of potential rate hikes, as signaled by both Yellen and the Federal Reserve.
Financial Strain and Strategic Implications
As the U.S. faces economic challenges and endeavors to tighten sanctions on Russia, the bond market turmoil adds another layer of complexity. The U.S. Treasury’s ability to find new buyers for bonds is crucial for stabilizing the financial landscape, and the reduced foreign involvement, particularly from China, poses strategic implications for the nation’s economic stability. The bond market’s fragility underscores the intricate web of financial conflicts between the U.S. and China.
Economic Showdown Intensifies as U.S. and China Escalate Financial War From bond market turmoil to accusations of aiding Russia, the escalating economic showdown between the U.S. and China will reshape the global financial order.
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https://ai3d.blog/inside-the-usa-china-crisis-u-s-treasury-in-serious-trouble/
Economic Showdown Intensifies as U.S. and China Escalate Financial War: Awake-In-3D
Economic Showdown Intensifies as U.S. and China Escalate Financial War
On November 12, 2023 By Awake-In-3D
From bond market turmoil to accusations of aiding Russia, this is an economic showdown between the U.S. and China that will reshape the global currency and economic order.
The recent high-stakes meeting between U.S. Treasury Secretary Yellen and Chinese officials has pulled back the curtain on a financial drama that is sending shockwaves through global markets.
China records its first-ever quarterly deficit in foreign direct investment (FDI), totaling minus $11.8 billion as U.S. labels China as “uninvestable”. Meanwhile, the U.S. Treasury market recently experienced a disastrous 30-year bond auction as China continues reducing U.S. bond holdings.
Economic Showdown Intensifies as U.S. and China Escalate Financial War
On November 12, 2023 By Awake-In-3D
From bond market turmoil to accusations of aiding Russia, this is an economic showdown between the U.S. and China that will reshape the global currency and economic order.
The recent high-stakes meeting between U.S. Treasury Secretary Yellen and Chinese officials has pulled back the curtain on a financial drama that is sending shockwaves through global markets.
China records its first-ever quarterly deficit in foreign direct investment (FDI), totaling minus $11.8 billion as U.S. labels China as “uninvestable”. Meanwhile, the U.S. Treasury market recently experienced a disastrous 30-year bond auction as China continues reducing U.S. bond holdings.
During this past week’s encounter between U.S. Treasury Secretary Yellen and Chinese officials, the already strained economic relations between the two nations came into sharper focus.
The meeting, which aimed to address economic concerns and repair relations, instead highlighted deepening tensions and the complex web of financial conflicts.
U.S. and China Tensions in Diplomacy
During the meeting, Yellen accused Chinese firms of aiding Russia in the Ukraine conflict, demanding China’s intervention. This accusation adds a new layer to the ongoing economic conflicts between the U.S. and China.
US Economic Struggles
The U.S. finds itself in an economic quagmire, fighting two wars and facing escalating costs. Yellen’s attempt to tighten sanctions on Russia as a financial strategy is met with challenges, with the U.S. Treasury market experiencing a disastrous 30-year bond auction and rising yields.
China’s Changing Role
Historically a significant buyer of U.S. bonds, China has shifted its stance, no longer supporting the U.S. Treasury market. Yellen’s attempts to find new buyers for U.S. bonds face hurdles due to China’s reduced involvement.
U.S. Sanctions Backfire
Efforts to impose sanctions on China, particularly in the tech sector, have led to resentment and counterproductive outcomes. Yellen’s strategy of forcing weaker technology on China exacerbates tensions and harms diplomatic relations.
Chinese Energy Deals
China strategically secures discounted oil deals with Iran and Russia, despite U.S. sanctions. These energy deals prove economically advantageous for China, contributing to its resilience against U.S. economic pressures.
Investment Deficit in China
China records its first-ever quarterly deficit in foreign direct investment (FDI), totaling minus $11.8 billion. U.S. rhetoric labeling China as “uninvestable” contributes to a decline in inbound investment, impacting Chinese economic progress.
U.S. and China Decoupling Concerns
China’s concerns over U.S. decoupling efforts are validated as investment inflows diminish since 2022. The uncertainty surrounding U.S. supply chain shifts affects Chinese companies and increases the cost of borrowing.
Biden’s Stalling Tactics
The upcoming meeting between Biden and President Xi is perceived as a stalling tactic amid rising tensions. Biden’s desperation to curb China’s influence in the Middle East is evident, especially in light of China’s potential military presence in Oman.
Bleak Outlook for U.S. and China Relations
In essence, the economic and currency conflicts between the U.S. and China are intensifying, with both nations unlikely to find common ground in the near future. Yellen’s attempts to navigate the complexities of sanctions, financial strain, and global influence may result in a protracted and challenging diplomatic standoff.
As the economic and currency conflicts unfold, the world watches closely, recognizing the implications for global trade and diplomatic relations. The meeting between Yellen and China serves as a stark reminder of the complexities and challenges that define the current state of affairs between these two economic powerhouses.
INA CRISIS: U.S. Treasury in Serious Trouble The U.S. Treasury is facing an unprecedented challenge in selling bonds, sending shockwaves through financial markets – blames China.
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https://ai3d.blog/economic-showdown-intensifies-as-u-s-and-china-escalate-financial-war/
U.S. Debt Interest Payments Surpass $1 Trillion: Awake-In-3D
U.S. Debt Interest Payments Surpass $1 Trillion
On November 9, 2023 By Awake-In-3D
Analyzing the implications for the U.S. economy
Today there’s been a significant development in the U.S. economy – the U.S. debt interest payments have exceeded $1 trillion for the first time in history. This development warrants a detailed examination.
In this update:
An overview of the unprecedented increase in U.S. debt interest
An exploration of the factors contributing to this situation
An assessment of potential impacts on individual finances
U.S. Debt Interest Payments Surpass $1 Trillion
On November 9, 2023 By Awake-In-3D
Analyzing the implications for the U.S. economy
Today there’s been a significant development in the U.S. economy – the U.S. debt interest payments have exceeded $1 trillion for the first time in history. This development warrants a detailed examination.
In this update:
An overview of the unprecedented increase in U.S. debt interest
An exploration of the factors contributing to this situation
An assessment of potential impacts on individual finances
The Escalation of U.S. Debt Interest
“The CBO projects that U.S. government debt will increase by $20 trillion in the next 10 years, equating to $5.2 billion daily or $218 million hourly.”
BofA’s Michael Hartnett
The U.S. budget deficit has been a matter of concern for some time. However, the recent surge in U.S. debt interest payments has intensified the issue. According to Treasury Department calculations, the total interest has now exceeded $1 trillion.
“Expected U.S. debt will reach $41 trillion within a year.” – Zerohedge
The Factors Contributing to This Situation
The increase in interest rates and expenditure over the past two years has resulted in the doubling of U.S. interest since April 2022.
Furthermore, as existing debt is rolled over into higher rates in the coming years, rates are projected to continue their upward trend.
“The CBO projects that U.S. government debt will increase by $20 trillion in the next 10 years, equating to $5.2 billion daily or $218 million hourly.” – BofA’s Michael Hartnett
Potential Impact on Individual Finances
This significant shift in the U.S. economy naturally raises questions about its implications for personal finances. The increased debt could potentially lead to increased inflation, default, and currency debasement.
However, it is also plausible that central banks may intervene to stabilize the situation through measures such as Quantitative Easing (QE) and the introduction of Yield Curve Control (YCC) which brings its own set of unintended consequences.
Given these possibilities, it is crucial to prepare for a range of financial scenarios.
Supporting Articles:
© GCR Real-Time News
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Let’s Talk About a US Dollar Collapse and Separate Fact from Fear: Awake-In-3D
Let’s Talk About a US Dollar Collapse and Separate Fact from Fear
On November 10, 2023 By Awake-In-3D
Lately, I’ve noticed a lot of noise online, with some so-called financial gurus shouting from the virtual rooftops that a US Dollar collapse is here.
It’s non-stop fear tactics.
I get it, humans are psychologically drawn to subjects that project concern and worry. A remnant of the primal fight-or-flight days.
I remember my boss telling me, “sell fear because fear sells” in my early business career. And, I have to admit, I have used fear-based headlines in my articles as well.
Let’s Talk About a US Dollar Collapse and Separate Fact from Fear
On November 10, 2023 By Awake-In-3D
Lately, I’ve noticed a lot of noise online, with some so-called financial gurus shouting from the virtual rooftops that a US Dollar collapse is here.
It’s non-stop fear tactics.
I get it, humans are psychologically drawn to subjects that project concern and worry. A remnant of the primal fight-or-flight days.
I remember my boss telling me, “sell fear because fear sells” in my early business career. And, I have to admit, I have used fear-based headlines in my articles as well.
Yet knowledge and a grounded perspective are even more powerful and innately allow us to overcome our primal fear instincts – allowing us to thrive in times of uncertainty.
Here’s the secret component of the global currency infrastructure that’s often left out of the US Dollar collapse fear narrative – it’s called the Eurodollar market.
I thought it’s high time to debate these claims and hopefully convey a rational point of view around the current US Dollar collapse scenario.
I’ll go through the facts, figures, and stats to help you establish a clear picture of the US Dollar’s current situation.
Why the Perception of a US Dollar Collapse is Easy to Believe
Some factors might make it seem like the US Dollar is on very shaky ground and ready to fall:
The US government debt to GDP ratio has skyrocketed to almost 130%, way past the traditional 30% safety zone of macro economics.
Massive deficits and this thing called Modern Monetary Theory (MMT) are causing some eyebrow raises about the long-term health of the US economy.
Interest payments on the US national debt? Yes, they’ve ballooned to over $1 trillion, doubling in just 19 months thanks to those pesky rising interest rates.
Yet, in spite of all this doom and gloom news, the US Dollar has maintained its strength for years and keeps getting stronger relative to all other major currencies (see chart below).
Why?
THE US DOLLAR JUST KEEPS ON RISING VS. MAJOR GLOBAL CURRENCIES. WHY? Source: Yahoo Finance
Gurus Never Mention the Eurodollar Market while Spreading US Dollar Collapse Predictions
Here’s the secret component of the global currency infrastructure that’s often left out of the US Dollar collapse fear narrative – the Eurodollar market.
This is the driving force, and critical to understanding the US Dollar’s current strength.
Imagine massive US Dollar deposits in off-shore banks operating completely outside of Federal Reserve and US banking regulator jurisdiction.
The Eurodollar market shapes global liquidity and interest rates. And guess what? It’s currently flexing its muscles, creating a demand for short-term US Treasury bills that keeps the US Dollar strong.
Not surprisingly, the internet gurus rarely talk about this singular, dollar-denominated global powerhouse.
The Comparative Weakness of Other Fiat Currencies are also Never Discussed
Our understanding of persistent, US Dollar dominance doesn’t stop there so let’s talk about what’s going on with the other major currencies.
While the internet gurus shout about the US Dollar collapse, they’re strangely silent about the troubles brewing in other fiat currencies:
The Chinese yuan is like a house of cards, held up by unsustainable intervention from Chinese banks.
The Japanese yen? Well, it’s basically doing a dance with the yuan, and if one falls, the other is likely to follow.
The Euro and British Pound? They’re facing their fair share of challenges, from bond market collapses, deindustrialization, and the reality of a growing energy crisis. All this is putting their currencies on a far shakier ground than the US Dollar.
So, Here’s My Takeaway on a US Dollar Collapse Today
When you hear the ominous predictions about a US Dollar’s collapse, take a moment. The internet gurus might not be giving you the full story.
By understanding the Eurodollar market’s behind-the-scenes dance and recognizing the troubles in other major currencies, we can see that a US Dollar collapse is not happening and that it is much more resilient than the fearmongering suggests.
Yes, challenges exist, but let’s face them armed with the real facts. It’s all about a well-informed perspective on the global economic stage.
For Those that Want the Facts
1. US Dollar Strength:
The US dollar has been exceptionally strong over the past two years.
Despite well-known problems, such as a record-high government debt to GDP ratio approaching 130%, and multitrillion-dollar deficits, the dollar remains robust.
2. US Economic Challenges:
The US government debt to GDP ratio is at a record high of nearly 130%, well above the considered prudent level of 30%.
The US is running multitrillion-dollar deficits annually.
“Keynesian Economics”, or Modern Monetary Theory (MMT) is influencing economic policy, suggesting that the US can accumulate unlimited debt without harm by printing money.
3. Interest Payments on US National Debt:
Projected annualized interest payments on the US national debt exceeded $1 trillion at the end of October.
The cost of debt service has doubled in the past 19 months due to rising interest rates.
4. Global Economic Challenges:
Other major currencies, including the Chinese yuan, Japanese yen, euro, and British pound, face significant problems.
China’s yuan is on the brink of collapse, and Japan is closely linked to the yuan’s fate.
Europe and the UK are dealing with deindustrialization under Green New Deal policies, potentially leading to economic troubles.
5. Eurodollar Market Influence:
The Eurodollar market, involving dollar-denominated deposits held at foreign offices of major banks, significantly impacts the global liquidity and interest rates.
The Eurodollar market is currently in contraction, leading to increased demand for short-term US Treasury bills and contributing to the strength of the dollar.
The Dollar is Strong vs. Other Currencies but is it Fundamentally Strong?
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https://ai3d.blog/lets-talk-about-a-us-dollar-collapse-and-separate-fact-from-fear/
Banking Crisis Update: Estimated $650 Billion in Unrealized Bond Losses : Awake-In-3D
Banking Crisis Update: Estimated $650 Billion in Unrealized Bond Losses
On November 9, 2023 By Awake-In-3D
In GCR Roadmap: Level 2 Events, Fiat Debt System Collapse
According to recent estimates, the 2023 banking crisis looks to be far from resolution.
Major banks are currently facing significant unrealized losses of around $650 billion, as stated by Moody’s.
This latest development in an ongoing banking crisis has arisen due to a bond-market crash and the subsequent Treasury-market rout, which has affected the value of bond holdings held by these banks.
Banking Crisis Update: Estimated $650 Billion in Unrealized Bond Losses
On November 9, 2023 By Awake-In-3D
In GCR Roadmap: Level 2 Events, Fiat Debt System Collapse
According to recent estimates, the 2023 banking crisis looks to be far from resolution.
Major banks are currently facing significant unrealized losses of around $650 billion, as stated by Moody’s.
This latest development in an ongoing banking crisis has arisen due to a bond-market crash and the subsequent Treasury-market rout, which has affected the value of bond holdings held by these banks
Key Facts to Know
US financial institutions had accumulated $650 billion worth of unrealized, paper losses on their portfolios by September 30, according to Moody’s.
Silicon Valley Bank (SVB) collapsed due to crashing bond prices, leading to concerns that similar chaos may affect Wall Street.
The Treasury-market rout has caused bond prices to crash, affecting the share prices of major financial institutions like Bank of America.
10-year Treasury yields recently spiked above 5% for the first time in 16 years.
Bank of America disclosed a potential $130 billion hole in its balance sheet due to the crash in bond prices.
Bank of America’s stock is down 24% over the past year and 14% year-to-date.
Citigroup, JPMorgan Chase, and Wells Fargo have also incurred tens of billions of dollars in unrealized losses.
Larry McDonald, a market veteran, expressed concerns over big banks’ unrealized losses, suggesting that Bank of America could face insolvency if the Fed raises interest rates further.
What’s Happening Today
The impact is not limited to Wall Street, as it has resulted in a decline in share prices for prominent financial institutions, including Bank of America.
The root cause of the bond-market crash can be traced back to concerns over rising interest rates and the long-term sustainability of the United States’ substantial deficit.
Don’t understand bond, treasuries or yields?
I’ve posted a simple explanation in non-financial terms here:
As a result, the value of Treasury bonds, which are used by the government to finance its spending, has experienced a significant decline.
For instance, BlackRock’s iShares 20+ Year Treasury fund, a key indicator of longer-duration debt prices, has plummeted by 48% since April 2020.
Additionally, 10-year Treasury yields, which move inversely to prices, recently reached their highest level in 16 years, surpassing 5%.
Unrealized losses refer to the decline in the value of bond holdings held by banks, which they have chosen to retain rather than sell.
Moody’s data suggests that US financial institutions have accumulated $650 billion of unrealized losses by September 30, a 15% increase from June 30. It is worth noting that these losses are distinct from actual debt and do not represent immediate financial obligations that need to be repaid.
The impact of these unrealized losses is not uniform across banks. Bank of America appears to be the most affected, as it has disclosed a potential $130 billion hole in its balance sheet.
Other major players such as Citigroup, JPMorgan Chase, and Wells Fargo have also reported substantial unrealized losses in the tens of billions, as indicated in their second- and third-quarter earnings reports.
Concern of these unrealized loss figures is now surrounding the major banks, particularly Bank of America, with some market veterans expressing apprehension about the potential insolvency of the bank if the Federal Reserve raises interest rates.
Is it Time for Serious Concern about a Larger Banking Crisis?
Perhaps not … well, not yet anyway
While there is a possibility that the current situation could lead to a mass withdrawal of funds, similar to what occurred earlier this year with Silicon Valley Bank, this has not yet materialized.
In fact, Bank of America has experienced an increase in deposits, with approximately 200,000 new accounts opened in the third quarter.
Additionally, some analysts believe that the worst of the Treasury-market rout may be over, as the Federal Reserve has begun signaling the conclusion of its tightening campaign. Recent weeks have seen a softening of 10-year yields, falling from 5% to 4.6% as of Tuesday.
Do Executives have the Necessary Experience for this Kind of Banking Crisis?
The lack of experience among banking executives with precipitously rising bond yields since before the 2008 Great Financial Crisis poses a significant risk in the banking industry, considering the current banking industry crisis.
In the landscape of rising bond yields, as highlighted above, how many banking execs were around earlier than 15 years ago when the FED lowered interest rates to near zero? Many bankers have only managed their banks in an era of low interest rates.
Given the limited experience of younger banking executives in dealing with precipitously rising bond yields since the 2008 Great Financial Crisis, there is a heightened risk of potential missteps and miscalculations in managing the impact of such scenarios.
Their lack of familiarity with rapidly changing bond market dynamics increases the uncertainty and vulnerability of the banking industry, making it crucial for banks to closely monitor and manage their exposure to bond market risks.
Supporting articles:
© GCR Real-Time News
Ai3D Website: Ai3D.blog
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https://ai3d.blog/banking-crisis-update-estimated-650-billion-in-unrealized-bond-losses/.
What are Bonds, Treasuries and Yields? Awake-In-3D
What are Bonds, Treasuries and Yields?
On November 8, 2023 By Awake-In-3D
A Simple Explanation
In recent weeks, the bond market has experienced a significant crash, which is causing concern on Wall Street. This market turmoil is impacting Treasury prices, and 10-year Treasury yields have surged above 5% for the first time in 16 years. But what are bonds, treasuries and yields in simple terms?
To understand the implications of this bond market meltdown, it helps to have basic knowledge of the key concepts.
What are Bonds, Treasuries and Yields?
On November 8, 2023 By Awake-In-3D
A Simple Explanation
In recent weeks, the bond market has experienced a significant crash, which is causing concern on Wall Street. This market turmoil is impacting Treasury prices, and 10-year Treasury yields have surged above 5% for the first time in 16 years. But what are bonds, treasuries and yields in simple terms?
To understand the implications of this bond market meltdown, it helps to have basic knowledge of the key concepts.
What are Bonds?
Bonds are essentially loans, issued by governments or companies when they need to borrow money. When you buy a bond, you are providing a loan and receive regular interest payments, with the loan amount returned to you at a later date. Bonds can also be traded in secondary markets, making them flexible investments.
What are Treasuries?
U.S. government-issued bonds are known as Treasuries, and the 10-year Treasuries serve as a benchmark for the market, influencing the pricing of other loans and investments.
What are Yields?
Bond yields represent the interest-rate returns as a percentage of the initial investment. They move inversely to bond prices, meaning that when yields rise, bond prices (their values) fall.
What’s causing the bond-market meltdown?
Two main factors are driving the recent surge in yields:
Federal Reserve Actions: Over the past 18 months, the Federal Reserve has raised benchmark interest rates substantially, attempting to combat inflation. When interest rates increase, bond prices decrease, as fixed returns become less appealing to investors.
U.S. Government Debt: The U.S. government’s debt has grown significantly over the last two decades, reaching an alarming $33.64 trillion, which far exceeds the country’s GDP. In the past five weeks, the debt has increased by $640 billion, creating an oversupply of bonds and bills that exceeds market demand.
Why does this matter?
Impact on Stocks: The rapid rise in bond yields is detrimental to the stock market. Higher yields make bonds more attractive to investors compared to stocks, leading to a slowdown in equity markets. Some experts are even recommending favoring bonds over equities.
Economic Consequences: Higher bond yields can affect the broader economy and ordinary Americans. When Treasury yields rise, other interest rates, including those for mortgages, personal loans, and credit cards, are likely to increase. This can lead to increased borrowing costs for individuals and companies, potentially resulting in layoffs as firms seek to reduce expenses.
The Key Takeaway
The bond market’s recent turmoil, with 10-year Treasury yields exceeding 5%, is a cause for concern for the entire financial system – which runs on debt and the interest rates tied to debt.
The main drivers are the Federal Reserve’s interest rate increases and the rapidly growing U.S. government debt.
This turmoil has implications for stocks, the broader economy, and the financial well-being of ordinary people, as it can lead to significantly higher interest rates and borrowing costs for everyone.
© GCR Real-Time News
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Japan’s Financial Implosion Grows in Self-Perpetuating Cycle of Destruction: Awake-In-3D
Japan’s Financial Implosion Grows in Self-Perpetuating Cycle of Destruction
On November 4, 2023 By Awake-In-3D
I continue to monitor the financial Japan’s financial implosion because it is a leading indicator of the fiat system crisis approaching the European Union and the United States.
The precarious balance of national debt, bond yields (cost of debt), and inflation is supremely critical for stability in a fiat debt monetary system.
Japan’s central bank and government have not managed to find an effective balance of the economic factors explained in this article. In fact, they continue to appear helpless in breaking the self-perpetuating cycle leading to Japan’s financial implosion.
Japan’s Financial Implosion Grows in Self-Perpetuating Cycle of Destruction
On November 4, 2023 By Awake-In-3D
I continue to monitor the financial Japan’s financial implosion because it is a leading indicator of the fiat system crisis approaching the European Union and the United States.
The precarious balance of national debt, bond yields (cost of debt), and inflation is supremely critical for stability in a fiat debt monetary system.
Japan’s central bank and government have not managed to find an effective balance of the economic factors explained in this article. In fact, they continue to appear helpless in breaking the self-perpetuating cycle leading to Japan’s financial implosion.
That delicate balance is not going so well these days in Japan and it won’t be long before something’s got to give.
As always, I will update the facts as Japan’s financial implosion continues to unfold and break it down into simple terms as we continue to witness the global fiat currency debt system reaching its logical conclusion.
Japan’s Current Situation
Japan’s high national debt and the pressure of rising interest rates are relentlessly increasing the risk of Japan’s financial implosion.
The falling value of the Japanese yen against the dollar is influenced by ongoing money creation through quantitative easing, intended to support the bond market. However, this approach can lead to inflation and raises concerns about the sustainability of Japan’s debt burden.
THE JAPANESE YEN HAS DEPRECIATED NEARLY 15% AGAINST THE USD THIS YEAR. Source: Yahoo Finance
The Japanese central bank’s control of bond yields (or rather, lack of control) are not effective in attracting bond-buyers (lenders), especially with higher inflation rates.
The BOJ’s self-perpetuating cycle of buying Japanese government bonds to keep rates low is leading to further inflation and a weaker yen. Overall, the situation suggests an ever-growing negative impact on Japan’s economy and the value of the Japanese yen.
Current Economic Facts Facing Japan
Japan has a massive national debt, over 200% of its GDP, amounting to around $9 trillion.
Rising interest rates are putting pressure on Japan’s economy.
The Japanese yen has fallen to its lowest level against the dollar in over 20 years due to ongoing money creation through quantitative easing.
Interest payments on Japan’s debt currently make up a significant portion of government expenditures, and if yields increase to 4%, debt payments would exceed the entire government’s current expenditures.
The Japanese central bank aims to control bond yields, currently targeting 100 basis points (1.00%), but this may not be effective in attracting lenders due to higher inflation.
Inflation in Japan is viewed as a victory by the government and central bank, but it poses a problem given the high level of debt.
The central bank is faced with the dilemma of either allowing yields to rise by stopping bond purchases or continuing to print money and buy bonds to maintain low rates.
The Bank of Japan owns about 45% of the country’s outstanding debt, a significantly higher percentage compared to the Federal Reserve’s ownership of US national debt.
The US has a similar national debt issue and will face increasing interest payments in the near future.
Japan’s Financial Implosion in Simple Terms
The increasing risk of Japan’s financial implosion stem from a combination of factors: its massive national debt, bond yields (interest rates on government bonds), currency strength (the value of the Japanese yen), and inflation.
Japanese Yen Currency Notes
These elements are interconnected and pose a serious problem for Japan’s economy. If not balanced carefully, the potential for a Japanese financial collapse will continue to increase.
Japan has an enormous national debt, which is the amount of money it owes. It is more than twice the size of its entire economy (GDP). This means the country owes a lot of money, and it becomes challenging to manage and repay this debt.
Bond yields play a crucial role. The government issues bonds to borrow money from investors. The yield on these bonds is the interest rate the government pays to lenders. If bond yields rise, it becomes more expensive for the government to borrow money. This puts additional strain on Japan’s finances, as it needs to make larger interest payments on its debt.
The strength of the Japanese currency, the yen, is also important. When the yen is stronger, it means it has a higher value compared to other currencies like the U.S. dollar. A stronger yen can make Japanese exports more expensive, which can hurt the country’s economy. It can also make it harder for Japan to pay off its debt because the revenue from exports may decrease.
Inflation is a factor. Inflation means that prices of goods and services are increasing over time. Japan has had low inflation for a long time, but recently it has been rising. While some inflation is considered healthy, too much can be problematic. If inflation rises significantly, it erodes the value of money, including the money Japan owes as debt. This can make it even harder for Japan to manage its debt burden.
The Self-Perpetuating Cycle
Thus far, Japan’s central bank and government have not managed to find an effective balance of the economic factors explained above. In fact, they continue to appear helpless in breaking the self-perpetuating cycle leading to Japan’s financial implosion.
Rising bond yields increase the cost of borrowing, which strains the government’s finances.
A weaker currency increases the rate of inflation and hampers economic growth making it even more challenging to repay debt.
And if inflation gets out of control, it further weakens the country’s financial stability, requiring even more debt to maintain the appearance of financial stability.
Wash, rinse, repeat…
To avoid a financial collapse, Japan needs to keep bond yields under control, maintain a stable currency, and hold inflation around 1-2%.
None of these are under control today.
Yet then again, this is the way things collapse as the great, global fiat currency debt system runs headlong into its logical conclusion.
© GCR Real-Time News
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https://ai3d.blog/japans-financial-implosion-grows-in-self-perpetuating-cycle-of-destruction/
Iraq’s 100 Trillion IQD Problem: “Hoarded” Notes Need to be in Banking System: Awake-In-3D
Iraq’s 100 Trillion IQD Problem: “Hoarded” Notes Need to be in Banking System
On November 3, 2023 By Awake-In-3D
In RV/GCR
I found this article interesting. I do not know the position of the author, but it appeared in the Arabic-language news website Al-Sabah. What made it noteworthy for me was that it’s the first time I have seen a statement quantifying Iraq’s 100 Trillion IQD outside of Iraqi banks.
This means there is A LOT of IQD notes stuffed away, or “hoarded”, in Mr. Al-Mutwalli’s own words.
I have got to believe that many within Iraq’s economic and political echelons are fully aware that we all hold substantial amounts of IQD.
Or, do they actually believe that most of Iraq’s 100 Trillion IQD is under the mattresses of everyday Iraqi citizens?
Iraq’s 100 Trillion IQD Problem: “Hoarded” Notes Need to be in Banking System
On November 3, 2023 By Awake-In-3D
In RV/GCR
I found this article interesting. I do not know the position of the author, but it appeared in the Arabic-language news website Al-Sabah. What made it noteworthy for me was that it’s the first time I have seen a statement quantifying Iraq’s 100 Trillion IQD outside of Iraqi banks.
This means there is A LOT of IQD notes stuffed away, or “hoarded”, in Mr. Al-Mutwalli’s own words.
I have got to believe that many within Iraq’s economic and political echelons are fully aware that we all hold substantial amounts of IQD.
Or, do they actually believe that most of Iraq’s 100 Trillion IQD is under the mattresses of everyday Iraqi citizens?
Anyway, I seriously doubt that any of our notes will not end up in Iraqi banks until they revalue their currency. Food for thought.
“Official estimates indicate that 85% of the issued cash mass, which amounts to more than 100 trillion dinars, is outside the banking system…”
Yasser Al-Mutawalli
Now onto the article…
The article discusses the issue of hoarded money, which is cash that is kept outside the banking system in Iraq.
This large amount of money is not being used for development because people do not trust the banks.
The central bank is trying to encourage people to deposit their money in banks by offering incentives. However, the lack of trust in banks is a major challenge. To restore trust, the article suggests the need for a deposit insurance company to guarantee deposits and provide clear and transparent information about its activities.
The fluctuation of the exchange rate also affects trust. Overall, the article highlights the importance of restoring trust in banks to encourage people to deposit their money and stimulate economic development.
Here is the original article…
Hoarded Money and Depositor Incentives
by Yasser Al-Mutawalli
November 1st, 2023
[Translated from original Arabic]
Official estimates indicate that 85% of the issued cash mass, which amounts to more than 100 trillion dinars, is outside the banking system, referred to as hoarded money outside banks. This means that this enormous amount of cash is disabled from performing its role in development. Since banks, through their credit policies, are the driving force behind economic development, their inability to perform this role is hindering our economy from progressing due to the decline in the performance of development banks.
Meanwhile, monetary policy is heading towards stimulating depositors to engage with banks. The recent circular from the central bank urged banks to facilitate procedures and create incentivizing interest rates to attract depositors.
What challenge does this approach face?
The trust factor is the most difficult and fundamental indicator for the success of attracting and mobilizing hoarded funds from the public to deposit them in banks.
Banks worldwide, in all advanced countries, are the primary engine of the economy through their lending policies that contribute to generating benefits for depositors and bank owners by investing funds and achieving profits. They also contribute to implementing projects, thus facilitating the circulation of funds.
However, the Iraqi banks have, honestly and transparently, lost the trust of the public. This is a deep-rooted problem inherited from the actions of some banks due to weak management and the alienation of depositors.
How can we restore trust in light of the new approach?
The public seeks guarantees (insurance policy) to be encouraged to deposit their savings, which requires facilitating deposit and withdrawal operations in an uncomplicated manner. However, the weak banking behavior of some employees and the complexity of instructions in a bureaucratic manner contribute to the public’s reluctance.
The term “insurance policy” refers to the officially designated entity responsible for deposit insurance in the event of the collapse of a specific bank. This is where the role of the deposit insurance company, recently established for this purpose, comes into play.
Here, I have a critical evaluation of the deposit insurance company, with transparency and clarity, stating that its performance is weak, sluggish, and poorly known. It requires the establishment of a regular and influential media unit to continuously market its activities. The company should provide guarantees to depositors by guaranteeing their funds with an official, signed document distributed among all depositors in any bank, holding legal responsibility for deposit insurance. Otherwise, why was it established?
Thus, it can provide partial security that encourages the public to deposit in banks and gradually restore trust.
We cannot ignore the impact of the fluctuation of the exchange rate of the dollar in creating chaos and undermining trust.
However, we are talking about the national currency, which is still strong and there is no problem in depositing and withdrawing it, with the guarantee of the company.
Source: https://alsabaah.iq/86507-.html
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