Why The Fed Faces An 'Almost Impossible Challenge'
Why The Fed Faces An 'Almost Impossible Challenge'
Yahoo Finance Mon, June 16, 2025 Yahoo Finance Video
On Wednesday, the Federal Reserve will make its decision on interest rates. Advisors Capital Management partner portfolio manager JoAnne Feeney thinks the central bank faces a "really major and almost impossible challenge." Find out what it is in the video above at link below.
Why The Fed Faces An 'Almost Impossible Challenge'
Yahoo Finance Mon, June 16, 2025 Yahoo Finance Video
On Wednesday, the Federal Reserve will make its decision on interest rates. Advisors Capital Management partner portfolio manager JoAnne Feeney thinks the central bank faces a "really major and almost impossible challenge." Find out what it is in the video above at link below.
Video Transcript:
Yeah, so there's there's a really major and almost impossible challenge for the Fed, right?
On the one hand, tariffs to the extent that they are initiated, and we've already had some, and particularly that increase on steel and aluminum which will percolate through lots of products that use steel and aluminum, are clearly going to increase prices.
And that could be a one-time quick increase, but more likely it's a sort of price increase that is taken up by different firms across the economy only gradually, and those percolate through, they propagate into the future.
So you do get an inflation uptick because of tariffs.
How big that is depends on how big the tariffs are and how long they last.
That increase in inflation should prompt the Fed to keep rates higher for longer.
On the other hand, tariffs also reduce economic activity.
They make things more expensive, not just for consumers, but for firms trying to build stuff, trying to expand even restaurants, buy lots of electronics.
They're going to be subject to potentially higher tariffs.
So that economic slowdown is something that would normally confront by reducing interest rates.
So the Fed needs to do two opposite things at the same time, which means they will do nothing, right?
Unless they figure out that one of those forces is considerably larger than the other
They definitely need to keep inflation expectations anchored.
Right now, we think that's the bigger of their two goals, so we think it's very unlikely that the Fed cuts rates anytime soon.
So even if they stay on hold, we will be receiving the summary of economic projections, those are quarterly projections that includes the dot plot where interest rates could be heading.
What are you expecting to see and how could that change from what we saw previously?
TO READ MORE: https://finance.yahoo.com/video/why-fed-faces-almost-impossible-100008067.html
Economist’s “News and Views” 6-16-2025
Asia Moves Forward to Ditch Dollar: 50% Crash by 2030 Expected?
Daniela Cambone: 6-16-2025
“The U.S. dollar is likely to go down 25 to 50% over the next five years,” says Marko Papic, Chief Strategist at BCA Research.
He tells Daniela Cambone that the driving force behind this decline is less about the loss of reserve currency status and more about fading U.S. economic outperformance. Papic also points out that Trump’s tax cuts bill “does not add to growth in any way, shape, or form” and warns, “Expectations of U.S. growth are overstated, and that means the dollar is way too expensive.”
Asia Moves Forward to Ditch Dollar: 50% Crash by 2030 Expected?
Daniela Cambone: 6-16-2025
“The U.S. dollar is likely to go down 25 to 50% over the next five years,” says Marko Papic, Chief Strategist at BCA Research.
He tells Daniela Cambone that the driving force behind this decline is less about the loss of reserve currency status and more about fading U.S. economic outperformance. Papic also points out that Trump’s tax cuts bill “does not add to growth in any way, shape, or form” and warns, “Expectations of U.S. growth are overstated, and that means the dollar is way too expensive.”
He further argues that rate cuts are becoming ineffective, as the long end of the yield curve remains unresponsive. “Everyone borrows at the long end of the curve — not the short end. So if the long end doesn’t fall, rate cuts don’t matter.”
What matters now, he stresses, is fiscal and trade policy — not monetary policy. Papic’s advice to investors: “Diversify out of the dollar — diversify out of the U.S.”
Chapters:
00:00 – Asia moves away from the U.S. dollar
03:31 – Is the dollar’s reserve status at risk?
05:57 – U.S. fiscal expansion explained
08:37 – Will we see interest rate cuts?
10:15 – The future of the U.S. dollar
12:15 – Where does gold fit in?
13:26 – A new world order: U.S. foreign policy shift
The REAL Reason Trump & Elon's Fort Knox Visit Was CANCELLED! - Jim Rickards
Financial Wisdom: 6-16-2025
0:00 - Elon Musk and Trump’s aborted Fort Knox gold audit
1:12 - Why the Fort Knox visit was canceled and the myth of missing gold
2:00 - Geopolitical gold accumulation by nations like China and Russia
3:07 - Importance of cash in portfolios and Warren Buffett’s cash strategy
4:48 - Tax-deferred compounding and Buffett’s Gen Re acquisition
6:00 - Cash as strategic optionality in market downturns
7:01 - Robert Shiller’s “Narrative Economics” and the power of market stories
8:43 - Historical example: Narratives during the Great Depression
9:55 - Recent economic narratives: The pivot myth and market behavior
11:20 - Trading lessons: Cognitive bias, stop-loss discipline, and trader psychology
Silent Debt COLLAPSE: $50 Billion in Bond Downgrades Signal a Massive Wave of Defaults Is Incoming
Lena Petrova: 6-15-2025
Iraq Economic News And Points To Ponder Monday Morning 6-16-25
Economist Warns: The Dollar Will Explode If Iraq Enters The War With Israel And Iran - Urgent
Economy Yesterday, | 1157 economic hell Baghdad Today – Baghdad As regional tensions between Israel and Iran escalate, Iraq stands at a dangerous juncture,
the repercussions of which could extend beyond politics and security to the heart of the fragile economy, burdening ordinary citizens who still yearn for a lost stability.
Economist Warns: The Dollar Will Explode If Iraq Enters The War With Israel And Iran - Urgent
Economy Yesterday, | 1157 economic hell Baghdad Today – Baghdad As regional tensions between Israel and Iran escalate, Iraq stands at a dangerous juncture,
the repercussions of which could extend beyond politics and security to the heart of the fragile economy, burdening ordinary citizens who still yearn for a lost stability.
Whenever the drums of war beat in the region, Iraqi markets are the first to tremble, as fear turns into a frenzied race for the dollar, and the dinar becomes a burden rather than a security.
In a scene that is repeated with every crisis, anxiety levels rise among traders and citizens, and the dollar begins to rise, as if reflecting the pulse of fear in the streets.
As news of the potential for the conflict to expand continues, economists warn of an impending catastrophe,
warning that any Iraqi involvement in the conflict will
mercilessly ignite the foreign exchange market and
push the prices of basic commodities to levels beyond the reach of ordinary citizens.
From this standpoint, the warning issued by economic expert Othman Karim,
on Sunday (June 15, 2025),
reflects a worrying reality,
speaking clearly about the scenarios that could destabilize the dinar and threaten food security,
if Iraq becomes embroiled in a war that is not its own, but one that will cost it dearly. Karim told Baghdad Today,
"The rise in the dollar exchange rate immediately after the Israeli strikes is a normal occurrence in the market,
due to the fears of traders and those who own dinars and who resorted to quickly converting their currency into dollars." He added,
"The exchange rate will remain below 150,000 dinars for the time being,
but if Iraq enters a state of war, prices ill reach more than 160,000 dinars, and may rise further, significantly impacting food prices, especially if the seaports on which Iraq relies are completely closed."
The Middle East is witnessing an unprecedented escalation in tensions between Israel and Iran,
amid an exchange of threats and military strikes that threaten to expand the conflict to neighboring countries.
Iraq, due to its geographical location and its intertwined relationships with the parties to the conflict, faces the possibility of slipping into a war, either directly or indirectly, raising widespread popular and economic concerns.
Iraq is a country that relies heavily on imports, particularly food, which arrive via seaports.
This makes it vulnerable to fluctuations in regional and international markets.
The Iraqi economy also suffers from structural fragility,
making it highly susceptible to political or security unrest.
This was evident in previous crises that led to sharp fluctuations in the dinar's exchange rate against the dollar, directly impacting the prices of goods and services.
With recurring geopolitical tensions, Iraqi markets are in a state of constant suspense,
with the dollar exchange rate being more influenced by sentiment and anxiety than economic data.
This makes any military escalation in the region a direct cause of significant fluctuations that could impact citizens' daily lives. https://baghdadtoday.news/276440-.html
A "Time Bomb"... The Iraqi Economy Is At Risk Due To Jordanian Banks.
Economy 2025-06-10 | 4,697 views Alsumaria News – Economic Financial and banking expert Mustafa Hantoush described Jordanian banks' control over remittances as a "time bomb" on Tuesday.
Hantoush told Sumaria News , "The issue of Jordanian and Gulf banks controlling the current currency auction is like a time bomb," noting that
"the dollar's valuation has been directed to 50 private Iraqi banks in order to resolve it." He added,
"These foreign banks have joint accounts, controlling more than $50 billion annually, which is a significant amount,"
warning of the danger of "these banks monopolizing remittances, even though they are affiliated with foreign investment."
He stressed the "need to take action, either dismantling the banks, which is unacceptable, or implementing real instructions that are consistent with international models, not a model tailored to Iraq and never implemented at all."
https://www.alsumaria.tv/news/economy/529225/قنبلة-موقوتة-الاقتصاد-العراقي-في-خطر-بسبب-مصارف-اردنية
Prime Minister's Advisor: Iraq Is Qualified To Become A Regional Financial Center With Four Strategic Powers.
Yesterday, 13:18 Baghdad - INA - Nassar Al-Hajj The Prime Minister's financial advisor, Mazhar Mohammed Salih, identified four factors that make Iraq a regional financial center on Sunday, stressing that Iraq possesses foreign reserves exceeding $100 billion.
“There are four elements of strength that make Iraq a regional financial center, the
first of which is that it is the second largest producer of crude oil in the Middle East, and
it has the fourth largest oil reserves in the world, through which it competes to take precedence in the global energy market, through more production and achieving financial flows
that make it a financial and economic pillar in the economic geography of the Middle East, by achieving large financial surpluses that can be directed to investment in financial infrastructure,” Saleh told the Iraqi News Agency (INA).
He stated that "Iraq has foreign reserves exceeding $100 billion, which provides it with a
significant financial safety margin, confidence in monetary stability, and high financial investment attractiveness."
He added, "The second factor is Iraq's unique geoeconomic location, which is a vital corridor linking the world's north to its south.
This represents an open economic space between global markets and their financial and commercial attractions, with links that provide important climates for the concentration of regional financial markets,
which will revolve around the strategy of the 'development project' linking Europe and the Gulf." He continued:
"The third factor is the demographic or human factor, and its foundation is the population boom, as the percentage of the population under the age of thirty is close, which makes Iraq one of the young nations.
The high percentage of youth (more than 60% under the age of thirty)
will provide a flexible human base that can be trained in
financial technology,
banking innovation,
digital technology, and
artificial intelligence."
He noted that "the government is undertaking the establishment of an important college for artificial intelligence sciences as inputs to the financial labor market and its foundations." He added,
"The fourth factor is modernizing and restructuring governance in government-owned banks,
given that they currently control 80% or more of banking activity."
He emphasized that "the reform campaign being led by the government today for the aforementioned banks aims to transform Iraq into a global financial center after ridding it of the risks of bureaucracy and inefficiency inherited over many decades."
He pointed out "the importance of electronic payments and the gradual expansion of the use of bank cards, point-of-sale (POS), collection systems, and smart wallets, which have helped achieve significant leaps in digital financial inclusion.
This is coupled with the presence of the Iraq Stock Exchange and the Securities Commission,
which operate in a robust, integrated, and promising manner as an infrastructure to establish Iraq as a regional hub for consolidating the country's institutional financial stability."
He explained that "the legal, executive, and regulatory infrastructure requirements are the key lever for enabling this transformation. These include, for example,
linking banks to effective electronic payment platforms and
supporting the development of the current National Data Center to serve as the sovereign digital financial infrastructure that supports Iraq's efforts to transform into a regional financial center."
He pointed out that "Iraq's transformation into a regional financial center will be achieved through the
collection and integration of financial, banking, and economic data,
supporting smart monetary and financial policies,
enabling financial technology and smart data analysis,
enhancing transparency and governance of financial institutions,
stimulating the non-banking finance sector, such as microfinance companies,
reforming the insurance sector, and
licensing financial technology (Fintech) companies." He pointed out that
"the current political, legal, and institutional stability that our country enjoys today,
in a prosperous and solid manner,
is the true basis for financial strength.
There is no financial center without a stable and secure political and legal environment."
Saleh emphasized the importance of building regional and international partnerships, such as
studying the importance of joining regional payment systems and financial structures of international groups such as the G20 or BRICS, or partnerships with strong financial centers in Singapore, Dubai, Hong Kong, and others. https://ina.iq/ar/economie/236406-.html
For current and reliable Iraqi news please visit: https://www.bondladyscorner.com/
Seeds of Wisdom RV and Economic Updates Monday Morning 6-16-25
Good Morning Dinar Recaps,
Coinbase & Gemini Secure EU MiCA Licenses Amid Malta–Lux Clash
Two of the crypto industry's biggest names—Coinbase and Gemini—are finalizing regulatory approvals under Europe's new MiCA framework, but their divergent paths have sparked debate across the continent. With Malta’s fast-tracking and Luxembourg’s slower, high-standard approach, the European crypto regulatory landscape is entering a pivotal phase.
Good Morning Dinar Recaps,
Coinbase & Gemini Secure EU MiCA Licenses Amid Malta–Lux Clash
Two of the crypto industry's biggest names—Coinbase and Gemini—are finalizing regulatory approvals under Europe's new MiCA framework, but their divergent paths have sparked debate across the continent. With Malta’s fast-tracking and Luxembourg’s slower, high-standard approach, the European crypto regulatory landscape is entering a pivotal phase.
Coinbase and Gemini: Two Roads to MiCA Approval
▪️ Coinbase is seeking its EU MiCA license via Luxembourg, a globally respected financial center.
▪️ Gemini, meanwhile, is nearing imminent approval from Malta, which has already licensed OKX and Crypto.com within weeks.
▪️ This divergence is testing European Union regulatory consistency, as MiCA allows member states to issue single-market licenses to crypto firms.
Malta’s Fast-Track Raises Eyebrows
Malta’s rapid approval process is under scrutiny by regulators from other EU countries. Critics argue that a “license shopping” effect could emerge, where firms seek out the most lenient jurisdictions.
▪️ France’s AMF warned of a “regulatory race to the bottom,” pointing to Malta's small regulatory staff.
▪️ Malta’s MFSA defended its speed, saying: “Expedited processing was due to our in-depth understanding acquired over these years.”
Luxembourg's Deliberate Approach
Coinbase has taken a more measured route via Luxembourg, with its MiCA application underway for months.
▪️ A Coinbase representative emphasized Luxembourg’s global financial credibility, calling it “a high-bar, well respected financial centre.”
▪️ The firm plans to hire over 20 new staff in Luxembourg by year-end, expanding its existing 200-person European team.
MiCA Faces Its First Real Test
As the first major MiCA licenses are issued, the EU's ability to maintain regulatory uniformity is being put to the test.
▪️ Central Bank Governor Gabriel Makhlouf previously compared crypto to a Ponzi scheme, warning: “Most of the time when you gamble, you’re actually losing.”
▪️ ESMA is now examining Malta’s process closely, with a report to be shared among member states in the coming weeks.
What's at Stake
With the Gemini MiCA approval and Coinbase EU MiCA license serving as precedent, these cases could define:
Whether MiCA's promise of harmonization will hold
How jurisdictional competition might impact investor protections
The degree of regulatory trust within the EU's internal crypto market
As regulatory friction builds, Europe’s new crypto era is taking shape—and the outcomes of these licenses may define the rules of engagement for years to come.
@ Newshounds News™
Source: Watcher Guru
~~~~~~~~~
Vietnam Passes Landmark Law Defining Digital Assets, Boosting AI and Chip Sectors
Vietnam has taken a major step forward in regulating crypto and accelerating digital innovation. A new law passed by the National Assembly legalizes digital assets and lays the foundation for massive state-backed investment in semiconductors, AI, and digital infrastructure. The move positions Vietnam as one of the first nations with a comprehensive legal framework for digital assets.
Clear Rules for Crypto—And Major Incentives for Tech
▪️ The Law on Digital Technology Industry, passed with 441 out of 445 votes, takes effect January 1, 2026.
▪️ It formally classifies digital assets into three categories: virtual assets, crypto assets, and other digital assets—each with defined property rights under civil law.
▪️ The law ends the regulatory gray zone that pushed Vietnamese crypto startups to relocate abroad.
What the Law Covers
▪️ Virtual assets: Used for exchange or investment, not recognized as currency.
▪️ Crypto assets: Authenticated and transferred via encryption and blockchain.
▪️ Other digital assets: Encompassing non-financial digital goods.
▪️ Securities, fiat tokens, and other financial instruments are excluded from these definitions.
A Homecoming for Crypto Innovation
Vietnam’s crypto ecosystem had seen explosive growth despite unclear laws.
▪️ The country ranked 5th globally in crypto adoption in 2024, per Chainalysis.
▪️ Over $105 billion in blockchain investments entered Vietnam during 2023–24—mostly routed through offshore entities.
▪️ Prime Minister Pham Minh Chinh had previously ordered crypto regulation development to support his 8% GDP growth target.
The new law is designed to bring crypto firms back home by offering both legal certainty and economic incentives.
Vietnam Bets Big on AI, Chips, and Data Centers
Beyond crypto, the legislation signals a bold national tech agenda:
▪️ Aims to grow to 150,000 digital technology enterprises by 2035.
▪️ Offers corporate tax rates as low as 10% for 15 years for qualifying tech firms.
▪️ Waives import duties and land rental fees for digital infrastructure, AI, and semiconductor ventures.
▪️ Projects investing $80M+ in data centers or $160M+ in chip fabs qualify for "special" status—triggering perks like five-year personal tax exemptions for foreign experts.
Vietnam explicitly states its goal to become “an essential link in the global semiconductor supply chain.”
This landmark legislation is more than crypto regulation—it's a full-scale blueprint for transforming Vietnam into a leading digital economy in Asia.
@ Newshounds News™
Source: Decrypt
~~~~~~~~~
BRICS Just Launched a New Energy Alliance Backed by Petro-Yuan Deals
The BRICS energy alliance has officially launched a coordinated system of petro-yuan oil contracts, directly challenging the U.S. dollar’s dominance in global energy markets. With an expanded bloc now controlling 46 million barrels per day of oil production, BRICS is rapidly implementing currency shift mechanisms—including yuan-denominated contracts, rupee-ruble swaps, and local currency financing—marking the most significant threat to U.S. financial hegemony since Bretton Woods.
How BRICS Plus Is Reshaping Global Energy Markets and Challenging Dollar Hegemony
Energy Production Powerhouse Emerges
▪️ The expanded BRICS energy alliance includes Saudi Arabia, Russia, Iran, UAE, and Brazil, jointly producing nearly a quarter of global oil—totaling 46 million barrels per day.
▪️ Gas reserves are even more concentrated, with Russia, Iran, Qatar, Algeria, and UAE now holding two-thirds of global reserves.
▪️ Petro-yuan transactions are rising sharply. In one year, 60% of yuan-denominated crude oil trades took place on the Shanghai Stock Exchange, bypassing the U.S. dollar entirely.
▪️ Strategic energy infrastructure projects like the Power of Siberia 2 pipeline—linking China, Kazakhstan, and Russia—are set to be operational by late 2025, further boosting BRICS' influence.
Payment Revolution Underway
▪️ Energy payments are shifting away from SWIFT and dollar dominance:
Russia and India now settle in rupee-ruble swaps.
China and Saudi Arabia process billions through yuan-riyal channels.
The Riyadh Royal Court has reportedly reviewed the dollar-denominated oil contract system.
▪️ By early 2025, yuan-based oil trades represented 24% of daily Brent crude volume—a significant erosion of dollar exclusivity.
▪️ These developments form a parallel financial infrastructure, operating independently of Western-controlled systems.
Development Bank Financing Shift
▪️ The New Development Bank (NDB), a BRICS financial arm, is aiming for 30% of all lending in local currencies by 2026, up from 22% today.
▪️ The bank maintains a $5 billion annual lending target while reducing its dependence on the U.S. dollar.
▪️ Major projects now financed in local currencies include:
Nairobi-SGR railway renovation (Kenya)
Johor Baru port expansion (Malaysia)
▪️ Petro-yuan oil contracts are thus not confined to commodities—they underpin broad development financing as well.
Challenges and Future Implications
▪️ The BRICS bloc still grapples with internal tensions, such as the India-China border dispute and Iran-Saudi regional rivalry.
▪️ A unified BRICS currency remains elusive, requiring full consensus, and members have divergent views on implementation.
▪️ The U.S. dollar still dominates, accounting for 59% of global reserves compared to just 2.48% for the yuan. But that gap is being challenged in practical terms.
▪️ Analysts describe this moment as the “first defeat of the invincible army”—not a full collapse of dollar dominance, but a fundamental shift to multi-currency energy systems.
A New Global Financial Map in the Making
BRICS' energy initiatives effectively transform the dollar from a compulsory tool to an optional one. While the U.S. retains unmatched military spending—$750 billion annually—its monetary control in global trade is no longer absolute.
Through the petro-yuan contracts, local-currency development loans, and alternative payment systems, the BRICS energy alliance offers a functional route for Global South nations to escape Western financial dependency.
This marks the most substantial de-dollarization movement in decades, with real-world energy trade flows and infrastructure spending steadily redesigning the global economic landscape—outside traditional, Western-led frameworks.
@ Newshounds News™
Source: Watcher.Guru
~~~~~~~~~
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“Tidbits From TNT” Monday Morning 6-16-2025
TNT:
Tishwash: Parliamentary Finance: The government is determined to prepare the financial budget schedules.
The Parliamentary Finance Committee confirmed on Thursday that the government is working on preparing budget schedules that are in line with the country's financial reality.
Committee member Atwan Al-Atwani said in a statement followed by Lakma News that "the committee discussed with the Prime Minister the preparation of the budget, and stressed the need for it to arrive before the end of the year to give legal status to government spending, both operational and investment."
TNT:
Tishwash: Parliamentary Finance: The government is determined to prepare the financial budget schedules.
The Parliamentary Finance Committee confirmed on Thursday that the government is working on preparing budget schedules that are in line with the country's financial reality.
Committee member Atwan Al-Atwani said in a statement followed by Lakma News that "the committee discussed with the Prime Minister the preparation of the budget, and stressed the need for it to arrive before the end of the year to give legal status to government spending, both operational and investment."
He added, "The government is determined to prepare budget schedules in line with the current financial reality, given the increase in operating spending and the need for investment spending to finance projects. We look forward to the budget being presented to the House of Representatives in the coming days."
Al-Atwani pointed out that "the government is keen to secure salaries despite the annual financial deficit," noting that "the government is taking serious steps to provide alternatives to financing the budget other than oil to ensure additional resources." link
Tishwash: 660 people arrested for manipulating food prices and dollar exchange rates.
The Ministry of Interior announced on Sunday the arrest of 660 individuals for manipulating food prices and dollar exchange rates.
The head of the Ministry of Interior's Public Relations and Media Department, Brigadier General Muqdad Miri, said in a statement received by Al-Mada: "The Ministry of Interior has launched a major campaign to track down those manipulating food prices and those promoting a rise in the dollar exchange rate against the Iraqi dinar in an attempt to exploit the circumstances the region is experiencing."
He pointed out that "the Anti-Organized Crime Squads were able to arrest 660 people accused of price manipulation." link
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Tishwash: International Chamber of Commerce: Investment companies' activity expands amidst the security situation in Iraq.
The International Chamber of Commerce confirmed on Sunday that investment companies' activity is expanding amidst the security situation in Iraq, while stating that large foreign companies' investments require Iraqi operating companies and staff.
"Iraq is a fertile country for investment, especially with the recent remarkable and successful steps taken by the government to overcome many administrative and legal issues to advance the private sector," Mohsen Al-Hamidawi, head of the International Chamber of Commerce in Iraq, told the Iraqi News Agency (INA).
He added, "The arbitration process between companies will help many companies invest in Iraq because their rights are now guaranteed from a legal and administrative standpoint, and the International Chamber of Commerce will continuously monitor all contracts concluded with companies."
He pointed out that "Iraq lost a lot years ago due to the lack of arbitration. Any problem that arose between companies and the Iraqi government would be referred to Abu Dhabi or France. Now, arbitration is available through the International Chamber of Commerce in Iraq. We have important conditions to protect these companies from procrastination and to secure their rights. Companies are now safer at work and more active in light of the security that Iraq enjoys."
He explained, "During the past two years of the government's tenure, more than 150 companies have signed contracts for oil, gas, and other projects, particularly the Development Road Project. More than a year ago, we officially announced to all companies worldwide, through the International Chamber of Commerce in Paris, the launch of the International Chamber of Commerce in Iraq. This has encouraged companies to enter and invest."
He explained that "large foreign companies that undertake major projects will inevitably need Iraqi companies and to employ Iraqi workers. This will encourage more small and large Iraqi companies to invest with foreign companies and take on what are called 'subcontractors' or major contracts. Iraqi companies, whether large or small, are not deficient and will deal with this event well link
Mot: .. Thank Goodness for Sam and Woody
Mot: Bear Warning
Iraq Economic News And Points To Ponder Sunday Afternoon 6-15-25
Currency Market: Dollar Exchange Rates Drop In Local Markets Today
Buratha News Agency1942025-06-15 The dollar exchange rate fell on the Al-Kifah and Al-Harithiya stock exchanges, recording 14.4400 Iraqi dinars for every $100. On Saturday morning, it reached 145,000 dinars for every $100. Selling prices in the local exchange markets in Baghdad declined, with the selling price reaching 145,500 Iraqi dinars for every $100, and the buying price reaching 143,500 dinars for every $100.
Currency Market: Dollar Exchange Rates Drop In Local Markets Today
Buratha News Agency1942025-06-15 The dollar exchange rate fell on the Al-Kifah and Al-Harithiya stock exchanges, recording 14.4400 Iraqi dinars for every $100. On Saturday morning, it reached 145,000 dinars for every $100. Selling prices in the local exchange markets in Baghdad declined, with the selling price reaching 145,500 Iraqi dinars for every $100, and the buying price reaching 143,500 dinars for every $100. https://burathanews.com/arabic/economic/461443
The US reduced its oil imports from Iraq last week.
Sunday, June 15, 2025 | Economic Number of reads: 326 Baghdad / NINA / The US Energy Information Administration announced on Sunday that the United States reduced its oil imports from Iraq during the past week, while it did not import any quantities from Saudi Arabia and Libya.
The administration stated in a table that "the average US imports of crude oil during the past week from 8 major countries amounted to 5.456 million barrels per day, a decrease of 35 thousand barrels per day compared to the previous week, which amounted to 5.491 million barrels per day."
It added that "the average of Iraq's oil exports to America amounted to 84 thousand barrels per day, a decrease of 130 thousand barrels per day compared to the previous week, which amounted to 214 thousand barrels per day."
The administration indicated that "the largest oil revenues to America during the past week came from Canada, followed by Mexico, Brazil, Ecuador, and then Nigeria."
According to the table, "the amount of US imports of crude oil continued from Venezuela and Colombia, while it did not import any quantities from Saudi Arabia or Libya." / End https://ninanews.com/Website/News/Details?key=1234518
Iraq Is Among The Top 10 Countries In The World In Terms Of Natural Resources.
Money and Business Economy News – Baghdad Iraq ranked ninth globally among the best natural resources, according to Visual Capitalist, a company that focuses on topics including markets, technology, and energy.
In a report seen by Shafaq News Agency, the company stated that natural resources form the backbone of modern manufacturing and are essential to the production of everything around us.
She added that 10 countries, including Iraq, dominate the global natural resources landscape, each holding vast reserves important for various industries.
The report indicated that Iraq ranked ninth among the world's countries in terms of the availability of natural resources, estimated at $16 trillion, which include oil and phosphate rocks.
Globally, according to the company, Russia leads the world in natural resources, with an estimated value of $75 trillion, including coal, natural gas, oil, gold, timber, and rare earth minerals. The United States is second, with a value of $45 trillion, including coal, timber, natural gas, gold, and copper.
She continued, "Saudi Arabia came in third with a value of $34 trillion, which includes oil and timber, followed by Canada in fourth place with a value of $33 trillion, which includes oil, uranium, timber, natural gas, and phosphates, followed by Iran in fifth place with a value of $27 trillion, which includes oil and natural gas."
The company noted in its report that China came in sixth place with a value of $23 trillion, which includes coal, rare earth minerals, and timber. Brazil came in seventh place with a value of $22 trillion, which includes gold, uranium, iron, timber, and oil.
She continued, "Australia came in eighth place with a value of $20 trillion, which includes coal, timber, copper, iron ore, gold, and uranium. Iraq came in ninth place, and Venezuela came in tenth place with a value of $14 trillion, which includes iron, natural gas, and oil."
Iraq was ranked among the top ten countries with the most valuable natural resource reserves, in terms of the total estimated value over the past four years.
According to a 2024 Statista report, natural resources are the raw inputs used to make everything we use, from intermediate goods to final products. These resources are found in the ground among reserves that have not yet been extracted.
According to Statista estimates, Russia ranked first, with its natural resource reserves estimated at $75 trillion. This amount includes coal, oil, natural gas, gold, timber, and rare earth minerals.
The United States came in second, with an estimated value of $45 trillion in natural resources, nearly 90% of which is timber and coal.
Iraq ranked ninth, boasting $15.9 trillion in natural resources. Its desert terrain contains oil, natural gas, phosphates, and sulfur, according to the website.
Iraq is OPEC's second-largest producer of crude oil and the world's fifth-largest producer of proven crude oil reserves. Iraq relies on crude oil exports for a significant portion of its revenue. https://economy-news.net/content.php?id=56300
Gold Prices Rise In Iraq
Economy | 01:58 - 06/15/2025 Mawazine News - Baghdad - Gold prices witnessed a rise in local markets on Sunday. The price of a 21-karat gold mithqal reached 695,000 dinars, while the price of an 18-karat gold mithqal reached 595,000 dinars, the price of a 22-karat gold mithqal reached 728,000 dinars, and finally the price of a 24-karat gold mithqal reached 795,000 dinars.
https://www.mawazin.net/Details.aspx?jimare=262609
For current and reliable Iraqi news please visit: https://www.bondladyscorner.com/
Iraq to Become a Massive Success- Iraqi Dinar Banking Reform- Verifiable News
Iraq to Become a Massive Success- Iraqi Dinar Banking Reform- Verifiable News
Edu Matrix: 6-15-2025
Discover how enhanced stability is generating excitement among international investors and paving the way for new opportunities across various sectors!
We’ll explore Iraq's broader economic reforms under Prime Minister al-Sudani, highlighting initiatives such as the Iraq Development Road and the Grand Faw Port, which are poised to position the nation as a regional trade hub.
Iraq is on the brink of a financial revolution with a major overhaul of its banking sector!
Iraq to Become a Massive Success- Iraqi Dinar Banking Reform- Verifiable News
Edu Matrix: 6-15-2025
Discover how enhanced stability is generating excitement among international investors and paving the way for new opportunities across various sectors!
We’ll explore Iraq's broader economic reforms under Prime Minister al-Sudani, highlighting initiatives such as the Iraq Development Road and the Grand Faw Port, which are poised to position the nation as a regional trade hub.
Iraq is on the brink of a financial revolution with a major overhaul of its banking sector!
This transformative initiative aims to modernize financial institutions, attract foreign investments, and reestablish global ties.
Iraq Economic News And Points To Ponder Sunday Morning 6-15-25
Mazhar Saleh: The Government's Hypermarket Strategy Has Enhanced Market Stability And Reduced Inflation.
Time: 2025/06/14 12:02:55 Read: 1,080 times {Economic: Al Furat News} The Prime Minister's financial advisor, Mazhar Mohammed Saleh, confirmed today, Saturday, that the government's trade policy, after adopting the semi-cooperative markets (hypermarkets) strategy, has represented an important development in the price defense policy against financing trade from the parallel exchange market currency, and has created sustainable and stable competitiveness in the pricing system.
Mazhar Saleh: The Government's Hypermarket Strategy Has Enhanced Market Stability And Reduced Inflation.
Time: 2025/06/14 12:02:55 Read: 1,080 times {Economic: Al Furat News} The Prime Minister's financial advisor, Mazhar Mohammed Saleh, confirmed today, Saturday, that the government's trade policy, after adopting the semi-cooperative markets (hypermarkets) strategy, has represented an important development in the price defense policy against financing trade from the parallel exchange market currency, and has created sustainable and stable competitiveness in the pricing system.
Saleh explained in an interview with Al Furat News Agency, "This effective trade policy has led to the regularity and stability of the national market, particularly in the stability of the consumer price index, which is one of the pillars of measuring inflation in the country."
He pointed out that "the country is experiencing a significant decline in its annual inflation rate, coinciding with the approaching completion of the first half of this prosperous year." LINK
Al-Sudani Affirms The Government's Support For Anyone Who Offers A National Industry With High Technology And Distinguished Specifications
Saturday, June 14, 2025, | Economic Number of reads: 280 Baghdad / NINA / Prime Minister Mohammed Shia Al-Sudani affirmed the government's support for anyone who offers a national industry with high technology and distinguished specifications.
The Prime Minister's media office said in a statement: "Al-Sudani inaugurated today the Al-Alamiya factory for the production of medical and industrial gases, one of the private sector projects in Baghdad.
Al-Sudani toured the factory's departments, which is the first of its kind in Iraq, in terms of integrated production lines and operational energy efficiency, praising the efforts of the workers in this important industrial project.
Al-Sudani stressed that there are many projects in the governorates that need industrial gases, especially iron factories in Karbala, Basra, Salah al-Din, and the Kurdistan Region of Iraq."
He pointed to the government's support for the industrial sector in general, and for businessmen and industrialists in the private sector, and anyone who offers an achievement similar to this factory.
The Prime Minister stressed the support and provision of facilities for anyone who offers industry with high technology and distinguished specifications, pointing out the government's keenness to provide land for large industrial projects, which would open the door to important Iraqi industries that support the economy.
The factory was built on an area of 10 dunams at a cost of $ 32 million, and includes the tallest industrial tower in Iraq with a height of 69 meters, and its daily storage capacity is (1,250) tons of various products, while the production capacity of medical and industrial gases is (727,200) thousand tons annually, as nitrogen, argon, medical and industrial oxygen, and medical, industrial and food carbon dioxide will be produced.
The factory will meet about 80% of the needs of the Iraqi market for industrial and medical gases, and in the second phase, coverage and export will be completed. /End https://ninanews.com/Website/News/Details?key=1234371
The Dollar Price Fell In Local Markets With The Closing Of The Stock Exchange.
Saturday, June 14, 2025, | Economic Number of reads: 291 Baghdad / NINA / The dollar exchange rates decreased in the markets of Baghdad and Erbil, with the closing of the stock exchange, on Saturday evening.
The dollar exchange rate recorded a decline with the closing of the Al-Kifah and Al-Harithiya stock exchanges in Baghdad, reaching 144,150 dinars for $100, after it had reached 145,000 dinars for $100 this morning.
The selling price also decreased in exchange shops in the local markets in Baghdad, reaching 145,250 dinars for $100, while the purchase price reached 143,250 dinars for $100.
In Erbil, prices also decreased, as the selling price reached 144,800 dinars for every $100, and the purchase price 144,500 dinars for every $100. https://ninanews.com/Website/News/Details?key=1234357
Iraqi Oil Prices Jump On Global Markets
Economy | 06/13/2025 Mawazine News - Baghdad - Iraqi oil prices rose on Friday during daily trading in the global market.
According to data reviewed by Mawazine News, Basra Medium crude oil recorded $68.44 per barrel, while Heavy crude oil recorded $65.64 per barrel, with a change of +2.08 for both.
The data also showed global oil prices, with British Brent crude recording $74.37 per barrel, while US West Texas Intermediate crude oil recorded $73.28 per barrel, with a change of +5.01 and +5.24, respectively. https://www.mawazin.net/Details.aspx?jimare=262479
Gold Prices Rise In Baghdad And Erbil
Saturday, June 14, 2025, | Economic Number of reads: 361 Baghdad / NINA / The prices of "foreign and Iraqi" gold witnessed a significant increase in the local markets in the capital, Baghdad, and Erbil, on Saturday morning.
The selling price of one mithqal of 21-karat Gulf, Turkish, and European gold in the wholesale markets on Al-Nahr Street in Baghdad, this morning, reached 700,000 dinars, while the purchase price reached 696,000 dinars.
The selling price of one mithqal of 21-karat Iraqi gold reached 670,000 dinars, while the purchase price reached 666,000 dinars.
As for gold prices in jewelry stores, the selling price of one mithqal of 21-karat Gulf gold ranged between 700,000 and 800,000 dinars, while the selling price of one mithqal of Iraqi gold ranged between 670,000 and 680,000 dinars.
In Erbil, the selling price of a mithqal of 22-karat gold reached about 736,000 dinars, and 21-karat gold reached 703,000 dinars, while 18-karat gold recorded about 602,000 dinars per mithqal. / https://ninanews.com/Website/News/Details?key=1234299
For current and reliable Iraqi news please visit: https://www.bondladyscorner.com/
Seeds of Wisdom RV and Economic Updates Sunday Morning 6-15-25
Good Morning Dinar Recaps,
Israel–Iran Conflict Could Trigger Economic Maelstrom Affecting Millions
The ongoing conflict between Israel and Iran threatens to severely disrupt global markets and may cascade into a broader geopolitical and economic crisis. At the heart of this threat lies the Strait of Hormuz, a critical chokepoint for global oil flows, which Iran is considering closing in response to Israeli military actions.
Good Morning Dinar Recaps,
Israel–Iran Conflict Could Trigger Economic Maelstrom Affecting Millions
The ongoing conflict between Israel and Iran threatens to severely disrupt global markets and may cascade into a broader geopolitical and economic crisis. At the heart of this threat lies the Strait of Hormuz, a critical chokepoint for global oil flows, which Iran is considering closing in response to Israeli military actions.
Iran–Israel Conflict Might Upend the World’s Oil Markets
Geopolitical tensions are once again shaking world markets. The confrontation between Iran and Israel, if escalated further, could drastically impact global oil supply, sending prices soaring and reviving oil’s title as “black gold.”
▪️ The Strait of Hormuz, gateway from the Persian Gulf, handles 20% of the world’s oil exports
▪️ Iran is threatening to close the strait in retaliation for Israeli military strikes
▪️ A closure would represent a global energy shock with vast ripple effects on industry and supply chains
According to reports, Sardar Esmail Kowsari, Commander of the Iranian Revolutionary Guard, has declared that Iran would make “the best decision with determination” regarding the potential closure of the Strait.
Security analyst Claude Moniquet warned that this move would be “a disaster for Europe,” impacting energy markets across the globe. A 20% reduction in global oil flow could spark:
A massive spike in oil prices
Disruptions to global supply chains
Industrial slowdowns in Europe and Asia
Oil Already Reacting as Risk Mounts
The markets are already pricing in these geopolitical risks. Since the early bombings:
▪️ Oil futures have surged past $70, reaching as high as $77
▪️ Volatility is expected to increase as conflict risk grows
▪️ Crude oil prices could skyrocket if military escalation shuts down transport routes
The possibility of regional expansion—as other nations act to counterbalance the fallout of a closure—could magnify the economic turmoil, potentially triggering a global recession.
A Global Flashpoint with Far-Reaching Consequences
The ultimate outcome hinges on:
Iran’s willingness to escalate
Its military capacity to block the Strait of Hormuz
The international community’s response to preserve oil flows
While nothing is certain, the risk of an economic chain reaction is substantial. Even short-term disruptions in Hormuz could cause multi-billion-dollar losses, especially in energy-dependent industries.
Bottom Line: The world watches closely as a regional military conflict risks morphing into a global economic crisis. A single act—like the closure of a vital oil corridor—could send shockwaves through financial markets, energy infrastructure, and geopolitical alliances.
@ Newshounds News™
Source: Bitcoin.com
~~~~~~~~~
Vietnam Legalizes Crypto Under New Digital Technology Law
Vietnam has officially legalized crypto assets with the passing of a landmark digital technology law. The legislation, passed by the National Assembly on June 14, brings crypto under regulatory oversight for the first time and positions the country as a rising digital innovation hub.
Vietnam Passes Sweeping Law to Recognize Crypto and Promote Tech
Effective January 1, 2026, the new Law on Digital Technology Industry marks a turning point for Vietnam’s treatment of digital assets and emerging technologies.
▪️ The law recognizes crypto assets, creating a regulatory framework for their use
▪️ It categorizes digital assets into virtual assets and crypto assets, excluding securities, digital fiat, or other financial products
▪️ The Vietnamese government will define business conditions, classifications, and oversight for each type
The legislation also includes provisions for cybersecurity and Anti-Money Laundering (AML) compliance, designed to align with Financial Action Task Force (FATF) standards. Vietnam has been on the FATF gray list since 2023, making this a likely strategic move toward regulatory rehabilitation.
A Strategic Play for Tech Leadership in Asia
Vietnam is not stopping at crypto. The law introduces comprehensive incentives to attract global tech players in sectors like:
Artificial Intelligence (AI)
Semiconductor development
Digital infrastructure (e.g., chip design and AI data centers)
The government will provide:
▪️ Tax incentives and land-use benefits
▪️ Research and development (R&D) support
▪️ Workforce training subsidies
▪️ Integration of digital skills in national education policies
“With this move, Viet Nam has become the first country in the world to enact a standalone law specifically dedicated to the digital technology industry,” the government said.
Crypto Scams Continue Despite Regulatory Progress
Even as Vietnam steps into legal crypto territory, enforcement challenges remain.
▪️ In February 2025, police shut down BitMiner, a fake mining scheme posing as a Dubai-based platform. It defrauded over 200 victims of $157,300 through bogus mining packages.
▪️ In December 2024, Hanoi police stopped 300 potential victims from investing in Million Smiles, a scam promoting a fake token (QFS) linked to spiritual myths. The fraud had already stolen $1.17 million from over 100 businesses and 400 individuals.
Bottom Line: Vietnam’s bold move to legalize crypto and incentivize high-tech industries places it at the forefront of digital transformation in Southeast Asia. While challenges like fraud remain, the new law signals a major step toward modernization, international integration, and long-term tech leadership.
@ Newshounds News™
Source: Cointelegraph
~~~~~~~~~
Vietnam Joins BRICS as 10th Partner in Push for Stronger Global South Ties
Vietnam’s entry into the BRICS framework marks a major milestone in the bloc’s rise as a global power center. The move expands BRICS’ partner network to 10 nations, reinforcing its drive to reshape the global economic and governance architecture in favor of the Global South.
BRICS Welcomes Vietnam as 10th Partner
Brazil, which currently chairs BRICS, announced on June 13 that Vietnam has joined as the 10th official BRICS partner country. This decision follows the structure laid out at the 16th BRICS Summit in Kazan (October 2024), where the “partner-country” framework was introduced to allow strategic cooperation with aligned nations outside of full membership.
▪️ “The government of Brazil welcomes the decision of the Vietnamese government.”
▪️ Vietnam joins other partner nations: Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, and Uzbekistan
The current full BRICS membership includes:
Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, UAE, Ethiopia, Indonesia, and Iran
Vietnam’s involvement illustrates deepening ties with the Global South, emphasizing cooperation in:
Economic development
Multilateral governance reform
Political and diplomatic coordination
Strategic Weight: Vietnam’s Role in BRICS Vision
Vietnam’s entry into BRICS reflects its increasing geopolitical and economic influence. Brazil highlighted this explicitly:
“With a population of almost 100 million and a dynamic economy deeply integrated into global value chains, Vietnam stands out as a relevant actor in Asia.”
Supporters of BRICS expansion say Vietnam contributes:
▪️ Economic scale and growth momentum
▪️ Innovation capacity across digital and industrial sectors
▪️ Strategic geographical positioning in Southeast Asia
While some critics argue that enlarging the bloc could strain policy coordination, advocates maintain that diverse perspectives like Vietnam’s can strengthen BRICS’ global relevance and diplomatic agility.
Bottom Line: Vietnam’s inclusion as a BRICS partner signals a consolidating shift in global power dynamics, boosting South-South cooperation and reinforcing a move toward a multipolar world order. As BRICS expands, the bloc’s ability to influence economic and governance norms continues to rise.
@ Newshounds News™
Source: Bitcoin.com
~~~~~~~~~
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“Tidbits From TNT” Sunday Morning 6-15-2025
TNT:
Tishwash: Iraq's trade with Iran is again confusing the dollar. Hantoush warns of a tight spot!
Economic expert Mustafa Hantoush confirmed that Iraq still has significant trade with Iran that is not covered by the official price, leading to continued pressure on the parallel market.
In a statement to Jarida Platform , Hantoush stated that “millions of travelers to Iran are also contributing to increased pressure on the parallel market. With the improvement of the Iranian currency thanks to negotiations with the United States and the reduction of remittances, this pressure has eased somewhat.”
TNT:
Tishwash: Iraq's trade with Iran is again confusing the dollar. Hantoush warns of a tight spot!
Economic expert Mustafa Hantoush confirmed that Iraq still has significant trade with Iran that is not covered by the official price, leading to continued pressure on the parallel market.
In a statement to Jarida Platform , Hantoush stated that “millions of travelers to Iran are also contributing to increased pressure on the parallel market. With the improvement of the Iranian currency thanks to negotiations with the United States and the reduction of remittances, this pressure has eased somewhat.”
He explained that “the Central Bank’s step to increase the limits on some cards has partially contributed to the solution, but the worsening situation and the return of remittances may push the parallel exchange rate up again.”
He added, "Iraq is now required to adopt new monetary policies to manage trade with Iran and passenger traffic. The solution may be through a tripartite account or a gold barter, as some countries in the region are doing, to extricate Iraq from this tight spot." link
Tishwash: An economic expert told Al-Jarida Platform: The exchange rate is hostage to the political mood and regional shifts.
Economist Ahmed Hadhal spoke about the sensitivity of the dollar issue in Iraq and its direct impact on geopolitical and geoeconomic changes, emphasizing that the issue has become extremely complex internally and externally.
In an interview with Jarida Platform, Hathal stated that “since the end of 2022, and with the launch of the platform, the Central Bank has exhausted all monetary policy tools to address the gap between the parallel rate and the official rate. However, the problem is complex and does not only relate to the bank but also to the domestic market.” He explained that “60% of traders are still outside the platform, in addition to the lack of borders, which further complicates the crisis.”
He added that "the decline in the dollar's value coincided with the failure to approve the general budget and the instability of some foreign negotiations. The exchange rate is linked to economic, political, and media factors, and is a highly sensitive indicator of any crisis, statement, or event." He noted that "exchange rate fluctuations directly impact the purchasing power of citizens, merchants, companies, industrialists, importers, and even foreign investors."
Hedhal explained that "the loss of trust between society and the government is one of the most significant factors driving demand for the dollar as a more stable and valuable currency, especially given the lack of real production within Iraq.
Oil production constitutes more than 70% of the GDP, and the general budget constitutes 190% of this GDP. These indicators raise concerns among citizens and investors about the possibility of a decline in the value of the dinar."
He concluded by saying, "The exchange rate issue is linked to the psychological factors of citizens and investors, and there is a close relationship between behavioral economics and traditional economics, which makes currency stability necessitating addressing confidence in monetary and fiscal policies, ensuring their stability, and preventing sudden changes." link
*****************
Tishwash: Oil rises, the dinar falls, and Baghdad faces the ramifications of Israeli-Iranian missiles.
Although it is outside the immediate circle of conflict, Iraq appears to be in the eye of the storm. Its geographical location, its near-total dependence on oil, and the peg of its economy to the dollar exchange rate make it vulnerable to every geopolitical shock in the region. While Israel and Iran exchange airstrikes and inflammatory statements, the Iraqi market translates these fires into tangible crises: rising food prices, a volatile dollar, and fears of a slowdown in the flow of goods through ports and borders.
As Israeli airstrikes on Iran escalated, the Iraqi dinar began to slide. This decline is not merely a technical result of changes in the currency markets; it is an expression of general panic and deep concern about political and security repercussions that Iraq may not be able to contain. Dealing with the US dollar is no longer just an economic issue; it has also become highly politically sensitive, especially with the US Treasury Department's strict oversight of transfer and financing mechanisms within Iraq.
On Friday, following the unprecedented Israeli airstrikes on Iranian facilities, oil prices jumped nearly 5%, while the Iraqi dinar fell dramatically against the dollar, exceeding 146,000 dinars to $100 in some local markets, its lowest level in months.
Meanwhile, global oil markets are experiencing significant turmoil, with JP Morgan warning that oil prices could rise to $120 per barrel if geopolitical tensions in the Middle East escalate further.
Global oil prices rose, with Brent crude closing at $74.23, up 4.87%, while US crude also closed at $72.98, up 4.94%.
The dinar is the first to be affected
"What's happening in Tehran is directly felt in the markets of Rusafa and Karkh," says Ahmed Eid, an economic researcher, referring to the close relationship between regional stability and the status of the local currency.
"The sudden rise in the dollar price reflects a real state of panic, not only about the developments in the conflict, but also about its potential financial repercussions, especially if the United States resorts to tightening controls on transfers from the US Federal Reserve or imposing new banking restrictions," he added in an interview with Shafaq News.
Eid warns that the continued smuggling of dollars from Iraq to Iran is fueling monetary instability, saying, "The Iraqi economy is dependent on external balance. We don't produce; we buy everything from abroad, and with every tremor in the region, we are the first to suffer."
Black gold: a temporary gain or an impending disaster?
At first glance, high oil prices appear to be an opportunity to boost Iraq's treasury, especially given that more than 90% of its budget relies on crude oil revenues. However, recurring threats to energy corridors, most notably the Strait of Hormuz, reveal the fragility of this "profit." Every additional barrel sold today may not find a safe route tomorrow. Worse still, proposed alternatives, such as the Turkish Ceyhan pipeline, provide only partial coverage, amid ongoing logistical and political challenges.
"This short-term profit does not hide the real danger," says economic expert Safwan Qusay.
"Any threat to the Strait of Hormuz would mean that more than 3 million barrels of Iraqi oil per day would be at risk," Qusay says. "Even if the Turkish Ceyhan pipeline were activated as an alternative route, it would cover only a third of exports, with burdensome logistical costs requiring thousands of trucks."
Approximately one-fifth of the world's oil trade—between 18 and 19 million barrels per day—passes through the Strait of Hormuz. Any military escalation affecting this vital artery would mean not only an Iraqi oil crisis, but also enormous pressure on prices and cash flows.
The indirect repercussions, however, appear more vague. The suspension of flights, the complexity of supply chains, and the potential displacement of Iranians or the return of Iraqi students and workers from Iran all add a new burden to the Iraqi state.
Financial expert Mahmoud Dagher told Shafaq News Agency that Iraq is still in the "economic resilience" phase, benefiting from high oil prices, but the door is open to more severe possibilities.
"The worst scenario is the closure of the straits, whether in the Arabian Gulf or the Red Sea, a card that Tehran or its allies in Yemen could play," Dagher says, adding that "this would be an uncontainable blow, not only to the Baghdad government, but to the entire Middle Eastern economy."
Iraq does not appear to have sufficient room for maneuver in this crisis. Between its near-total dependence on oil, weak domestic production, and the import of most basic commodities, any regional unrest becomes a daily matter for Iraqi citizens. As the crisis between Israel and Iran continues, attention is turning not only to the military fronts but also to the markets of Baghdad, where currencies, commodities, and fear determine the fate of millions.
In the absence of a real local production structure, the Iraqi economy is becoming something of a vehicle, completely linked to the regional locomotive. link
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We’re Staring into a Debt Deflation Abyss
We’re Staring into a Debt Deflation Abyss
Liberty and Finance: 6-13-2025
For four decades, the bond market reigned supreme, a testament to falling interest rates and a seemingly invincible U.S. dollar. But according to veteran market analyst Greg Weldon, that era is decisively over.
In a recent interview with Liberty and Finance, Weldon presented a compelling case for major structural shifts in the financial system, driven by soaring debt, a weakening dollar, and escalating geopolitical risks.
We’re Staring into a Debt Deflation Abyss
Liberty and Finance: 6-13-2025
For four decades, the bond market reigned supreme, a testament to falling interest rates and a seemingly invincible U.S. dollar. But according to veteran market analyst Greg Weldon, that era is decisively over.
In a recent interview with Liberty and Finance, Weldon presented a compelling case for major structural shifts in the financial system, driven by soaring debt, a weakening dollar, and escalating geopolitical risks.
Weldon argues that we’ve reached a critical juncture, drawing parallels to pivotal moments in economic history like the Volcker era and the Plaza Accord. He contends that the sheer magnitude of accumulated debt has pushed us past a “debt event horizon,” a point from which recovery through traditional means may be impossible.
This unprecedented level of indebtedness, combined with the Federal Reserve’s aggressive money printing, is fundamentally undermining the U.S. dollar’s global dominance.
Against this backdrop of economic uncertainty, Weldon sees a compelling case for commodities, particularly precious and strategic metals. He points to central bank gold buying, persistent inflation, and heightened geopolitical instability as powerful tailwinds that will drive significant price appreciation in the years ahead.
Gold, often seen as a hedge against inflation and a store of value during times of crisis, is poised to benefit from these trends.
However, Weldon emphasizes the potential for even more dramatic gains in silver and platinum, which are breaking out alongside the falling dollar, despite not being favored by central banks.
Weldon’s bullish outlook on silver and platinum challenges conventional wisdom, as these metals are often overlooked in favor of gold. However, he argues that their unique combination of industrial utility and scarcity makes them particularly attractive in the current environment.
While central banks typically focus on gold reserves, the growing industrial demand for silver and platinum is creating a powerful undercurrent of demand. This, coupled with constrained supply due to mine closures and reduced investment, could lead to significant price appreciation, potentially outpacing gold in the long run.
In this environment of profound change, Weldon stresses the need for active, globally aware investing. He argues that traditional investment strategies, heavily reliant on bonds and a strong dollar, are unlikely to keep pace with inflation, let alone generate meaningful returns.
Instead, he advocates for a diversified portfolio that includes exposure to commodities, especially those positioned to benefit from the energy transition and geopolitical shifts. He also emphasizes the importance of understanding global macroeconomic trends and being prepared for increased market volatility.
Beyond the financial realm, Weldon warns of deeper societal fractures and rising geopolitical tensions that could further destabilize markets. He believes that the current economic imbalances are exacerbating existing social divisions, leading to increased unrest and uncertainty.
In conclusion, Greg Weldon’s analysis paints a stark picture of the financial system at a critical inflection point. He believes the 40-year bond bull market is over, and a new era of rising commodity prices and increased volatility is upon us.
By understanding these forces and adopting a proactive investment approach, investors can protect their wealth and potentially capitalize on the opportunities that lie ahead. However, it is a landscape that demands vigilance, global awareness, and a willingness to challenge conventional wisdom. The future will reward those who are prepared for the coming changes.