Iraq Economic News and Points To Ponder Monday Afternoon 6-15-26

Crude Prices Fall To March Lows On US-Iran Accord

2026-06-15 Shafaq News    Oil prices slipped to their lowest since March on Monday after U.S. President Donald Trump ‌and Iran's deputy foreign minister said they had reached an initial deal to end the war and to resume traffic through the Strait of Hormuz.

Brent crude futures fell $4.08, or 4.7%, to $83.25 a barrel by 0415 GMT and U.S. West Texas Intermediate was at $80.53, down $4.35, or 5.1%. Both contracts ​fell to their lowest levels since March 10 on Monday after tumbling more than 3% on Friday.

The U.S. and ​Iran will sign a memorandum of understanding in Switzerland on Friday, said the prime minister of ⁠Pakistan, whose country has served as a mediator. Trump said on Sunday that the Strait of Hormuz would be open "toll ​free" and that a U.S. naval blockade of Iranian ports would also end.

Iran's semi-official Mehr news agency said the draft​deal called for reopening the Strait of Hormuz within 30 days under Iranian arrangements.

"The geopolitical risk premium that had been built into crude is now being unwound quite aggressively as traders price in the prospect of restored oil flows," said Tim Waterer, chief market analyst at KCM Trade.

The ​world has lost millions of barrels of oil and gas supply since the war closed the Strait of Hormuz, a ​chokepoint for a fifth of the world's oil and liquefied natural gas supplies, for more than three months.

Investors are also watching cautiously how ‌quickly ⁠Middle Eastern producers can resume oil production and exports following damage from the war and whether more ships will enter the region.

"While these uncertainties suggest upside risks to our forecast for Brent oil futures to reach $80/bbl by the end of the year, it's worth noting that oil flows through the Strait of Hormuz just needs to reach 60-70% of pre-war levels to return ​oil markets to pre-war oversupply​expectations," Vivek Dhar, a ⁠commodities strategist at Commonwealth Bank of Australia, said in a note.

Iran's deputy foreign minister, Kazem Gharibabadi, said a more expansive agreement would be negotiated during a 60-day ceasefire period.

E4 nations, which ​include the UK, France, Germany and Italy, said on Sunday the countries were prepared to lift ​sanctions on Iran ⁠in response to steps on its nuclear programme.

"Beyond the immediate price reaction, attention will now shift toward the pace of actual supply normalization and compliance with the agreement," said Priyanka Sachdeva, senior market analyst at Phillip Nova.

"While the conflict may have come to ⁠an end ​and oil flows through the Strait of Hormuz may gradually return to ​normal, the damage already done cannot be reversed overnight. This includes not only any physical damage to oil infrastructure but also the economic strain endured by​oil importing economies that have faced elevated energy costs for months."

(Reuters)   https://www.shafaq.com/en/Economy/Crude-prices-fall-to-March-lows-on-US-Iran-accord

https://www.shafaq.com/en/Economy/Crude-prices-fall-to-March-lows-on-US-Iran-accord

Baghdad Requests Extension Of Kirkuk-Ceyhan Oil Deal

 2026-06-15 Shafaq News- Baghdad     Iraq has formally asked Turkiye to extend the agreement covering the oil pipeline linking Kirkuk to the Turkish port of Ceyhan for at least one year, seeking additional time to negotiate a new arrangement for crude exports through the route.

Ali Nizar, Iraq's State Oil Marketing Organization (SOMO) chief, also told Reuters that the country exported around 12 million barrels of crude through its southern ports since the beginning of June.

The Kirkuk-Ceyhan accord is set to expire on July 27, ending decades of cooperation on oil shipments between Iraq and Turkiye.     https://www.shafaq.com/en/Economy/Baghdad-requests-extension-of-Kirkuk-Ceyhan-oil-deal

US Dollar Edges Lower In Baghdad And Erbil

2026-06-15 Shafaq News- Baghdad/ Erbil   The US dollar opened Monday’s trading lower in Iraq, hovering around 154,500 dinars per 100 dollars in Baghdad and Erbil.

According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya central exchanges at 154,200 dinars per 100 dollars, down from 154,600 dinars recorded on Sunday.

In the Iraqi capital, exchange shops sold the dollar at 154,750 dinars per 100 dollars and bought it at 153,750 dinars.

In Erbil, the dollar was selling at 153,850 dinars per 100 dollars and buying at 153,800 dinars.

https://www.shafaq.com/en/Economy/US-Dollar-edges-lower-in-Baghdad-and-Erbil

Iraq-Jordan Power Link Expected To Finish In Three Months

2026-06-15 Shafaq News- Al-Anbar   The Iraq-Jordan electricity interconnection project has entered its final stages, with the transmission line linking Al-Rutba and Al-Qaim districts in western Al-Anbar province expected to be completed within the next three months, a senior local official told Shafaq News on Monday.

Al-Rutba District Commissioner (Qaimaqam) Imad Al-Dulaimi said the district has received uninterrupted electricity from Jordan for nearly three years through a 132-kilovolt line. The expansion will increase transmission to 400 kilovolts and extend coverage to Al-Qaim.

The first stage is expected to add around 200 megawatts to Iraq's grid through the National Control Center of the Electricity Ministry, Al-Dulaimi noted, while stressing that broader reforms remain necessary. Those efforts include linking Iraq to the Gulf power network and expanding domestic production, including the planned Al-Anbar thermal power station.

Official figures show Al-Anbar currently receives between 600 and 650 megawatts, compared with demand estimated at 2,700 to 3,000 megawatts, limiting service to six to eight hours a day.

Former Electricity Minister Ziad Ali Fadhil inaugurated the initial phase in Al-Rutba in March 2024.

Iraq remains heavily reliant on electricity and gas imports from Iran, particularly during the summer. The challenge has intensified since Washington revoked a sanctions waiver that allowed Baghdad to continue purchasing Iranian energy. Electricity Minister Ali Saad Waheeb this month ordered the creation of a central emergency operations room after ministry officials warned that lower domestic gas output and a 50% drop in imports from Iran could strain the system during the summer of 2026.

Read more: Iraq power 2026: war on Iran collapses the grid's last defenses

https://www.shafaq.com/en/Economy/Iraq-Jordan-power-link-expected-to-finish-in-three-months

Gold Prices Rise In Baghdad And Erbil

2026-06-15 Shafaq News- Baghdad/ Erbil   Gold edged higher in Baghdad and Erbil on Monday, hovering around 930,000 IQD per mithqal, according to Shafaq News market survey.

Wholesale prices on Baghdad's Al-Nahr Street recorded a selling price of 935,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 931,000 IQD, up from Sunday’s 917,000 IQD.

The selling price for 21-carat Iraqi gold stood at 905,000 IQD, with a buying price of 901,000 IQD.

In jewelry stores, the selling price per mithqal of 21-carat Gulf gold ranged between 935,000 and 945,000 IQD, while Iraqi gold sold for between 905,000 and 915,000 IQD.

In Erbil, 22-carat gold was sold at 988,000 IQD per mithqal, 21-carat gold at 943,000 IQD, and 18-carat gold at 808,000 IQD.   https://www.shafaq.com/en/Economy/Gold-prices-rise-in-Baghdad-and-Erbil-5-7

Weekly Trading Value On Iraq Bourse Plunges 94%

2026-06-15    Shafaq News- Baghdad   The Iraq Stock Exchange (ISX) recorded more than four billion Iraqi dinars (roughly $3M) in trading value last week, marking a 94% decrease compared with the previous week.

According to market data, 2.699 billion shares were traded worth 4.390 billion dinars, down 96% in volume from last week, through 6,278 transactions.

The ISX60 index closed at 954.14 points, reflecting a 0.37% decrease from the previous session.

Investors traded shares of 57 companies, while 35 others saw no activity due to unmatched buy and sell orders. Eleven companies remained suspended for failing to submit required disclosures.

Non-Iraqi investors purchased 456 thousand shares worth one million dinars through five transactions, while selling 15 million shares valued at 60 million dinars through 44 transactions.

The Iraq Stock Exchange holds five trading sessions per week, from Sunday to Thursday, and includes 104 listed Iraqi joint-stock companies representing the banking, telecommunications, industry, agriculture, insurance, financial investment, tourism, hotel, and service sectors. https://www.shafaq.com/en/Economy/Weekly-trading-value-on-Iraq-bourse-plunges-94

Seeds of Wisdom RV and Economics Updates Monday Afternoon 6-15-26

Good Afternoon Dinar Recaps,

Trump, Trade and Iran: G7 Summit Tests Western Unity Amid Global Economic Shifts

Leaders gather in France facing trade disputes, Middle East diplomacy, Ukraine, and China's growing influence over critical supply chains.

Overview

• The 2026 G7 Summit opens amid overlapping geopolitical and economic challenges, including trade disputes, the aftermath of the U.S.-Iran conflict, the war in Ukraine, and strategic competition with China.

• President Donald Trump's renewed tariff threats against France have heightened tensions among Western allies, raising questions about the unity of the G7.

• The recent U.S.-Iran framework agreement has shifted global attention toward energy security, sanctions, and the next phase of nuclear negotiations.

Key Developments

1.Trump renewed trade pressure by threatening tariffs on French exports unless France drops its digital tax on major U.S. technology companies.

2.The U.S.-Iran framework agreement changed the summit's agenda, with leaders expected to focus on implementation, the reopening of the Strait of Hormuz, sanctions relief, and future nuclear negotiations.

3.Critical minerals, supply-chain security, and reducing dependence on China remain central topics as G7 nations seek stronger economic resilience and strategic coordination.

Why It Matters

The G7 represents many of the world's largest advanced economies, making its decisions highly influential for global trade, financial markets, energy security, inflation, and investment flows. Although the U.S.-Iran agreement has eased immediate concerns over oil supplies, growing disagreements over tariffs, industrial policy, and China's expanding influence continue to challenge Western unity.

The summit's outcomes could shape future cooperation on trade, sanctions, monetary policy, critical minerals, and global economic stability.

Why It Matters to Foreign Currency Holders

Foreign currency holders continue watching developments that may reshape the international monetary system. Trade realignment, sanctions policy, energy security, and diversification away from traditional supply chains all contribute to ongoing discussions surrounding reserve currencies, cross-border payment systems, and future monetary reforms.

Any agreements reached on trade, energy, or strategic cooperation could influence currency values, capital flows, and the evolution of the global financial system.

Implications for the Global Reset

• Pillar 1: Trade

The G7's focus on critical minerals, supply-chain resilience, and reducing dependence on China reflects the accelerating shift toward a more diversified and multipolar global trading system.

• Pillar 2: Energy

The U.S.-Iran diplomatic breakthrough and the potential reopening of the Strait of Hormuz could stabilize global energy markets, reduce inflationary pressures, and improve confidence across financial markets.

Looking Ahead

Markets will closely watch the summit's final communique for signs of unity on trade policy, Ukraine, Iran, China, and critical minerals. Investors will also monitor progress on implementing the U.S.-Iran agreement and whether trade tensions between Washington and Europe intensify.

The decisions made at this summit could influence global growth, inflation, energy prices, supply chains, and financial cooperation throughout the remainder of 2026.

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

Seeds of Wisdom Team

Newshounds News™ Exclusive

Sources

Reuters — Coverage of the 2026 G7 Summit, U.S.-Iran diplomacy, and global trade discussions

Modern Diplomacy — "Trump, Trade and Iran: Key Challenges Facing G7 Leaders in France"

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Congress Passed 133 Broadband Programs. Its Big Idea Is A 134th

Congress Passed 133 Broadband Programs. Its Big Idea Is A 134th

Notes from the Field By James Hickman (Simon Black / Sovereign Man) June 15, 2026

There are things that a free market will never do, and it’s usually for very good reasons.  Running fiber-optic cable down a twelve-mile dirt road costs a fortune, and the handful of households scattered along that road will never pay enough in monthly bills to justify the cost of laying the cable.

That’s why private companies don't bother laying fiber in rural areas: the math doesn't work.

But living out in the country is a choice— one that plenty of people gladly make. Some people value the space, the quiet, and the empty horizon far more than same-day Amazon delivery or 1 gigabit Internet.

And most people typically know about these trade-offs before they move out to the country. Urban and suburban conveniences are just that— conveniences. They are not inalienable “rights”. No one is entitled to fast internet.

Yet Congress has decided at least 133 times that fast Internet, is, in fact, a right. And one that they have decided to provide with your money.

Its biggest program is the Broadband Equity, Access, and Deployment program, known as BEAD. It was created in 2021 as part of Joe Biden’s staggering infrastructure bill, and over $42 billion was allocated to wire up rural America.

Five years later it has connected almost nobody. The first BEAD-funded household in the entire country came online only this spring— a single home near Ogallala, Nebraska, hooked up in May 2026. About a hundred more followed in rural Louisiana. That was the triumphant achievement of five years and ridiculous money spent: a couple hundred connected homes.

BEAD is far from alone. In 2023, the Government Accountability Office— Congress's own watchdog— set out to count the federal government's broadband programs and found more than 133 of them, scattered across 15 separate agencies.

These programs are largely similar yet have no coordinated plan to prevent overlap, or wiring the same stretch of dirt twice.

The GAO told them to sort it out. When it checked back in 2025, most of the work hadn't been touched.

So what do you do about 133 overlapping programs and a flagship that spent billions to connect a couple hundred homes?

If you’re the United States Congress, you add a 134th broadband program!

On June 3, the House Rules Committee advanced next year's Agriculture spending bill with  fresh loans and grants for the US Department of Agriculture's ReConnect program— the 134th rural broadband fund, stacked on the $42 billion one that barely works and the 133 others nobody can keep track of.

A private company that spends so much money to connect a couple hundred homes would be bankrupt, and its executives likely facing criminal charges. A federal agency that does it gets a sequel.

What makes it worse is that the problem was already solved by the free market.

Anyone at the end of a dirt road can order a Starlink dish online and have high-speed internet running within about a week— no federal fiber, no years-long wait, no act of Congress.

For that $42 billion price tag, the US taxpayer could have bought a Starlink dish for every one of the top-end estimate of 12 million unserved households in America AND prepaid their internet service for the next five years.

So where did that money go?

It is egregious. The government borrows $2 trillion a year to do this sort of garbage, and acts like a single dollar cut from the budget would throw single mothers out on the streets. They literally wail that “people will die”.

And half the country thinks the answer is to collect more in taxes!

Keep in mind, this $42 billion is part of the legitimate spending — not the $600 billion a year the Treasury Secretary estimates is lost to outright fraud, the $186 billion in improper payments the government admits to, or the hundreds of billions in legal graft on top.

All that borrowing and waste gets paid for one way or another— a weaker dollar, higher taxes, more inflation.

You can’t change any of that. But just like those people without internet on a dead-end road, you do have a choice.

That choice is a Plan B.

The tools to route around Congress already exist.

Owning real assets— gold, silver, energy, productive technology, and the well-managed businesses that produce them— protects your purchasing power when the government reaches for the printing press.

Moving some savings into stronger jurisdictions, establishing a second residency, and taking every legal step to cut your tax bill all mean that no single government's incompetence has total claim over your life.

None of it requires predicting the next crisis. It benefits you, and gives you options, no matter what happens next.

‍ ‍

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

Congress passed 133 broadband programs. Its Big Idea Is a 134th. | Schiff Sovereign

Monday Iraq News Posted by Tishwash at TNT 6-15-2026

TNT:

Tishwash:  Ambassador Tom Barrack arrives in Baghdad to convey President Trump's support for the Iraqi government.

US envoy and ambassador, Tom Barrack, announced his arrival in the Iraqi capital, Baghdad, on an official visit, with the aim of strengthening joint cooperation and discussing prospects for partnership between the two countries.

Barak explained, in a post published on his official X platform account, that he began his visit by meeting with the staff of the US Embassy in Baghdad, headed by Chargé d'Affaires Joshua Harris.

The US envoy indicated that he would meet today with Prime Minister (al-Zaidi) to convey a message of support from President Donald Trump for the Iraqi government, in addition to discussing the bilateral partnership and exploring new directions for building strong and mutually beneficial relations between the United States and Iraq.  link

Tishwash:  The President of the Kurdistan Region welcomes the US-Iran agreement and affirms: Tom Barrack's visit will address important issues.

Kurdistan Region President Nechirvan Barzani announced on Monday, June 15, 2026, in a special statement to Kurdistan24 correspondent Hoshmand Sadiq, the region’s full support for the agreement reached between the United States of America and the Islamic Republic of Iran.

The United States and Iran reached a comprehensive agreement early Monday morning, June 15, 2026, to end tensions. The agreement includes a ceasefire in Lebanon and the reopening of the strategic Strait of Hormuz, and is scheduled to be officially signed in Switzerland next Friday, June 19.

Nechirvan Barzani expressed his hope that this agreement would be implemented quickly so that peace and stability could return to the region, stressing that the main goal is to avoid wars and establish peace, thus paving the way for greater stability for the people.

Tom Barrack, the US President’s Special Envoy to Iraq and Syria, is scheduled to visit Baghdad and Erbil on Tuesday, June 16, 2026.

Regarding this visit, the President of the Kurdistan Region explained that this is the first time that Tom Barrack has officially visited the region in his capacity as an envoy of the US President, stressing that issues related to the Kurdistan Region and Iraq in general will be discussed in order to strengthen joint coordination between all parties.

Regarding the internal situation in the Kurdistan Region, Nechirvan Barzani indicated that President Masoud Barzani’s initiative came at the right time, stressing the continuation of communication and work with all political parties. link

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

Tishwash:  Uncertainty surrounds Washington: How will al-Zaidi's visit reshape Iraqi-American relations?

Professor of Political Science Dr. Khalifa Al-Tamimi revealed on Sunday (June 14, 2026) that any future visit by Iraqi Prime Minister Ali Al-Zaidi to the White House will focus on four main and direct issues with the American administration, foremost among them the financial file and the future of energy.

Al-Tamimi told Baghdad Today that the Prime Minister's upcoming visit to the United States will put four key issues on the table for discussion, most notably the financial situation and exploring mechanisms for developing investment, particularly in the oil and gas sectors. He added that the talks will also include the security aspect, in accordance with the terms of the Strategic Framework Agreement.

He added that "among the main issues is outlining the nature of the relationship between Baghdad and Washington for the next stage, especially since the United States has extensive vital interests in Iraq, at a time when the country is going through a sensitive and complex phase that requires the government to define its strategy in a way that preserves the supreme national interests and regulates the form of partnership with the American side."

Al-Tamimi pointed out that "the visit will consciously address how to support Baghdad in light of the financial crisis that has begun to take on critical dimensions, especially with the continuation of the Strait of Hormuz crisis, which has complicated the marketing of about 90% of Iraqi oil exports, which constitute the main nerve of the general budget."

The political expert pointed out that "the current US administration differs in its orientations from previous administrations, and the features of its policies towards Baghdad are still not entirely clear," suggesting that "this visit will provide decisive and important answers regarding how Washington will deal with the Iraqi file in all its complexities."

Al-Tamimi concluded by saying: “The Prime Minister’s visit to the United States may constitute a turning point in the course of the Iraqi financial crisis, through discussing the possibility of obtaining emergency exemptions related to energy or exports, and redrawing Iraq’s financial policies in a way that positively impacts internal economic stability.”

It is worth noting that Iraq and the United States share deep-rooted political, security, and economic ties based on the Strategic Framework Agreement signed in 2008, which governs cooperation between the two countries.

These moves come at a time when Baghdad faces mounting financial challenges due to the volatility of the global energy market and the logistical pressures associated with oil exports, amidst concerted government efforts to attract foreign investment and expand international partnerships to diversify national income sources.  link

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

Tishwash:  Parliamentary warnings about the economic exhaustion of the Iraqi street... Are lean years looming on the horizon?

MP Duha Laibi, from the Coordination Framework, sounded the alarm regarding the deteriorating living and service conditions in the country, stressing that the Iraqi street has become “completely exhausted” from the burden of the recent economic measures and reforms that have negatively affected its daily strength and future livelihood, at a time when large segments of citizens lack the most basic necessities of life and essential services.

Laibi told Al-Maalomah that “the ongoing waves of demonstrations and protests in various governorates are nothing but a natural reflection of the deep-rooted unemployment crisis,” explaining that “thousands of graduates continue to flock to the streets to demand their legitimate rights to appointment and job opportunities, coinciding with a state of overwhelming public discontent fueled by the continuation of corruption files and the waste of public money without decisive solutions.”

She added that “the successive wars and conflicts in the region have cast a heavy shadow on the joints of the national economy and levels of national income, leading to a direct erosion of the purchasing power of citizens and exacerbating the harshness of living conditions.”

Laibi revealed “an anticipated parliamentary movement that includes proposals and legislative actions aimed at curbing inflation and ensuring the stability of the Iraqi dinar exchange rate to protect the purchasing power of the citizen,” while stressing the need for the government to adopt flexible economic policies that take into account the human and livelihood dimension, and avoid burdening vulnerable classes with additional burdens that they cannot bear.”

The MP explained that “despite the House of Representatives being in its current legislative recess, this temporary stagnation will not disrupt oversight mechanisms,” emphasizing that “the relevant parliamentary committees and MPs concerned with oversight are closely and continuously monitoring all new government decisions and measures, especially those related to the pressing economic situation and exchange rate policies, to ensure that the situation does not deteriorate further.”  link

Tishwash: The Investment Authority details the procedures for "Mall of Iraq" and responds to the statements of its owner.

On Sunday, the National Investment Commission issued a statement clarifying the legal procedures related to the "Iraq Mall" project, in response to what was circulated in the media and statements by the project's owner, Hassan Nasser, regarding exemption requests and power outages.

Hassan Nasser, the owner of "Iraq Mall," announced during a press conference that the mall is threatened with closure within 48 hours due to power outages, and financial losses estimated at about one and a half billion per month.

Nasser also said that the mall is facing major operational difficulties as a result of fluctuating electricity supply, which may lead to its complete closure during the aforementioned period.

The statement issued by the commission, and received by Shafaq News Agency, said that the first official communication from “Jewel of Baghdad for Investment and Real Estate Development” company, the owner and implementer of the project, was dated 5/24/2026, and was received from the Baghdad Investment Commission to the National Investment Commission, in which it requested that the mobile power station for the project with a capacity of 132.33 MVA be included in the customs exemptions.

She added that the Authority contacted the Ministry of Electricity on 2/6/2026 after the request was studied by the technical department to obtain the necessary approvals from the relevant sectoral authorities. The Ministry of Industry and Minerals was also contacted on 1/6/2026 via the electronic platform to determine the possibility of manufacturing the station locally or not, in accordance with the law protecting local products.

The authority explained that the investor submitted a pledge on 6/8/2026 to pay the customs duties if the station could be manufactured locally by the Ministry of Industry, noting that the General Authority of Customs was contacted to include the station in the exemptions in order to speed up the procedures.

She explained that the General Authority of Customs responded on 6/10/2026 with a rejection due to the lack of a legal basis, while emphasizing the need for the approval of the Ministry of Industry and Minerals as an effective legal basis. The approval of the Ministry of Industry was received on 6/14/2026 stating that it is not possible to manufacture these stations locally, which gives the Authority the legal powers to follow up on the procedures for bringing in the electrical station.

The statement added that the Authority, while welcoming criticism and media follow-up, expresses its regret for the issuance of statements that included personal characterization and targeting of some of its employees, stressing that its staff perform their duties in accordance with applicable laws and instructions.

The commission affirmed that its doors are open to receive complaints and objections through official channels, calling on investors to adhere to the approved legal procedures, and stressing its continued support for investment projects that contribute to the development of the Iraqi economy.  lin

MilitiaMan & CREW IRAQ DINAR UPDATE-"The Final Phase Is Accelerating: Iraq’s Convergences Are Tightening Fast"

MilitiaMan & CREW IRAQ DINAR UPDATE-"The Final Phase Is Accelerating: Iraq’s Convergences Are Tightening Fast"

6-14-2026

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

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

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

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

https://www.youtube.com/watch?v=Zm7Dej1obiQ

Iraq Economic News and Points To Ponder Late Sunday Evening 6-14-26

Iraq Economic News and Points To Ponder Late Sunday Evening 6-14-26

Economic Observatory: Financial Revenues For Iraqi Railways Are Unprofitable

Money and Business   Economy News – Baghdad   The Echo Iraq Observatory announced on Sunday that the financial revenues of Iraq Railways are not profitable, while pointing to a legal problem in delivering a train to the governorates of the Kurdistan Region.

The observatory stated in a statement that the railway network in Iraq currently has two main lines for night transport, linking Baghdad to Basra and back, passing through a number of governorates, indicating that the capacity of each trip reaches about 360 seats, including tourist seats and others designated for sleeping.

He explained that "the operation of these lines is done within a service-oriented framework aimed at covering operational expenses only, without generating direct revenues for the state," adding that revenues are generated when transporting goods such as oil and its derivatives, grains, and commercial goods.

He pointed out that "there are other lines within the country, but they are not operating regularly, including the Baghdad-Karbala line, which is used seasonally during religious visits, in addition to the Baghdad-Ramadi and Baghdad-Samarra lines, which do not operate daily."

He explained that "the Baghdad-Mosul line is still not operational due to the security situation that the country has witnessed in recent years, in addition to other lines such as Baghdad-Kirkuk."

The Eco Iraq Observatory called on the government to "develop the railway sector and expand the network linking the provinces and neighboring countries," adding that "rehabilitating the inefficient lines will enhance transportation, support the national economy, and boost non-oil revenues."

Regarding linking Baghdad with the Kurdistan Region governorates such as Erbil and Sulaymaniyah, the Observatory explained that there is a legal obstacle related to the ownership of the railway routes, as the laws stipulate that the lands through which the lines pass must be under the management of the General Company for Railways exclusively, which is facing objection from the region. https://www.economy-news.net/content.php?id=70225

Financial Times: Easing Sanctions On Iran Depends On Progress In Nuclear Negotiations

Arabic and international    Economy News - Follow-up   The Financial Times reported that easing sanctions on Iran, including releasing frozen assets abroad, will depend on the progress of negotiations on Iran's nuclear program.

The newspaper quoted sources familiar with the negotiations as saying that any easing of sanctions on Iran, including the release of its frozen assets abroad, would be gradual and contingent on progress in the nuclear negotiations, which would begin after the signing of the memorandum of understanding.

The sources added that the United States would grant Iran permission to sell oil during the 60-day extension of the ceasefire regime.

The Iranian news agency Mehr had previously reported, based on a draft memorandum of understanding, that the United States had pledged to release $24 billion of Iranian assets held abroad, with half of this amount to be returned to Iran before the memorandum of understanding between the two countries was signed.

US President Donald Trump and Iranian Deputy Foreign Minister Kazem Gharibabadi had earlier confirmed the completion of the memorandum of understanding, which is scheduled to be signed in Switzerland on June 19.

Iranian television officially announced early Monday that a peace agreement had been reached with the United States, indicating that Washington had been forced to accept ending the war.

Earlier, US President Donald Trump announced that the United Statesand Iran had reached a peace agreement, writing in a post on the Truth Social platform: "The agreement with the Islamic Republic of Iran has been finalized... Congratulations to all!"

The Pakistani Prime Minister also thanked the United States and Iran for their commitment to finding a diplomatic solution to the conflict, and thanked the leadership of the State of Qatar for its support in reaching an agreement between Washington and Tehran, and Saudi Arabia and Turkey for their contributions to reaching an agreement between Washington and Tehran.

https://www.economy-news.net/content.php?id=70267

Trump Threatens Macron: Either Cancel The Tech Tax Or Face 100% Tariffs

Arabic and international   Economy News - Follow-up    In a new escalation between Washington and Paris, US President Donald Trump threatened to impose 100% tariffs on all types of French wine and champagne.

In an interview with the New York Post, Trump said he had asked French President Emmanuel Macron to scrap the 3% tax on technology companies, warning that France could face devastating tariffs in the US market if it did not comply.

Trump explained, "I asked him (Macron) not to impose tariffs on American companies, and if they do, I will have no choice but to impose a 100% tariff on all Champagne and all wines produced in France."

The US president added that what Macron simply needs is to "cancel the sales tax, and then he will not be under this pressure."

US President Donald Trump is scheduled to arrive in Evian-les-Bains, France on Monday for the G7 summit meetings at a time when world leaders are increasingly wary of the United States.

Many experts have also pointed out that a large number of G7 leaders were directly affected by Trump’s erratic moves on the world stage, which caused turmoil in the Middle East, trade, and diplomacy.

https://www.economy-news.net/content.php?id=70268

The European Stoxx 600 Index Hits A Record High After The US-Iran Agreement.

Stock Exchange       Economy News - Follow-up    The pan-European STOXX 600 index opened at a record high on Monday, with most sectors rising after the United States and Iran reached a preliminary agreement to reopen the Strait of Hormuz and end the more than three-month-long conflict in the Middle East.

Global risk appetite improved, and Brent crude fell 4% after US and Iranian officials announced they had reached a framework agreement that is scheduled to be signed on Friday.

The pan-European STOXX 600 index rose 1.2% to 640.94 points by 07:11 GMT, surpassing its previous record high set on February 27. With Monday's gains, the benchmark index has recovered all of its conflict-related losses, according to Reuters.

Most sectors posted gains, led by automakers whose shares rose 3.5%, while shares of energy-sensitive airlines such as Lufthansa and Air France jumped more than 5% each. The travel and leisure sector also hit a new high.

European stocks have generally underperformed compared to their US and Asian counterparts since March, mainly due to Europe's reliance on the Strait of Hormuz for oil supplies.

Concerns about inflation caused by rising energy prices prompted the European Central Bank to raise interest rates by 25 basis points last week.

Traders expect the European Central Bank to raise interest rates by another 25 basis points before the end of this year, according to data from the London Stock Exchange Group.

Shares of Schneider Electric, which specializes in artificial intelligence equipment, rose 3.3% after it entered into a strategic partnership with Taiwan's Foxconn to develop and expand its next-generation AI data center infrastructure. In contrast, energy stocks fell 2.7%, affected by the decline in crude oil prices. https://www.economy-news.net/content.php?id=70262

Jefferies International: A Federal Reserve interest rate hike is currently unlikely.

banks   Economy News - Follow-up   Jefferies International's chief economist, Alia Mbayed, said that recent declines in oil prices have led investors to reduce their expectations regarding an interest rate hike by the US Federal Reserve before the end of this year, noting that any potential move may be postponed until the beginning of next year.

Mbayed added that the scenario of the Federal Reserve raising interest rates in the near term seems unlikely at the moment.

https://www.economy-news.net/content.php?id=70228

Seeds of Wisdom RV and Economics Updates Monday Morning 6-15-26

Good Morning Dinar Recaps,

After the U.S.-Iran Breakthrough, the Focus Shifts to High-Stakes Nuclear Negotiations

The United States and Iran have reached a preliminary framework agreement to end months of conflict, but the most difficult phase—negotiating the future of Iran's nuclear program and sanctions relief—is only beginning.  

Overview

• The United States and Iran have announced a framework agreement designed to end hostilities and reopen the Strait of Hormuz, easing immediate concerns over global energy security.

• Financial markets responded positively, with oil prices falling and investor confidence improving as fears of prolonged conflict subsided.

• The next stage of negotiations will focus on Iran's nuclear program, sanctions relief, and long-term regional security, issues that remain unresolved.

Key Developments

1. Framework Agreement Marks Diplomatic Breakthrough

After months of conflict, Washington and Tehran have agreed to a preliminary framework intended to halt military operations and begin a broader diplomatic process. While not a final peace treaty, the agreement represents the most significant diplomatic progress since the conflict began.

2. Strait of Hormuz Reopens to Global Shipping

One of the agreement's most important provisions is the planned reopening of the Strait of Hormuz, one of the world's most critical oil transit routes. The announcement immediately reduced concerns over energy supply disruptions and helped lower global oil prices.

3. Nuclear Negotiations Become the Next Challenge

The agreement postpones the most difficult issue—the future of Iran's nuclear program—to a proposed 60-day negotiation period. Major differences remain over uranium enrichment, inspections, sanctions relief, and long-term security guarantees.

4. Lebanon Included in Regional De-escalation

The framework reportedly extends beyond U.S.-Iran relations by including commitments aimed at reducing violence in Lebanon, recognizing that regional stability requires addressing multiple conflict fronts rather than a single bilateral dispute.

5. Markets Shift Focus Toward Economic Recovery

Investors welcomed the prospect of improved energy flows and reduced geopolitical risk. Lower oil prices, easing inflation concerns, and greater stability in global shipping routes have improved market sentiment, although uncertainty surrounding the next phase of negotiations remains.

Why It Matters

The agreement has implications far beyond the Middle East. Restoring energy flows through the Strait of Hormuz could help reduce inflationary pressures, stabilize global supply chains, and ease one of the largest geopolitical risks facing the world economy.

However, lasting stability depends on the success of the upcoming nuclear negotiations, where the most politically sensitive issues remain unresolved.

Why It Matters to Foreign Currency Holders

Those following the Global Currency Reset (GCR) and international monetary developments should closely monitor the next phase of negotiations.

Reduced geopolitical risk could influence oil prices, inflation, interest-rate policy, central bank decisions, currency valuations, and cross-border trade flows. Any long-term agreement could also accelerate discussions surrounding international financial reform and alternative settlement mechanisms.

Implications for the Global Reset

• Pillar 1: Energy

Reopening the Strait of Hormuz strengthens global energy security and reduces risks to one of the world's most important oil transportation corridors.

• Pillar 2: Trade

Safer shipping routes improve international commerce, strengthen supply chains, and reduce transportation costs across global markets.

• Pillar 3: Assets

Lower geopolitical uncertainty may stabilize financial markets while encouraging investment and reserve diversification.

• Pillar 4: Technology

Future negotiations may include enhanced monitoring, verification technologies, and international compliance systems supporting nuclear oversight.

• Pillar 5: Global Financial System

Reduced geopolitical tensions could improve global financial stability while supporting broader discussions on international payments, reserve management, and long-term economic restructuring.

This is not just diplomacy—it is global financial restructuring before our eyes.

Seeds of Wisdom Team
Newshounds News

Sources

• Reuters — "U.S. and Iran Advance Framework Agreement as Nuclear Talks Continue"

• Modern Diplomacy — "After the US-Iran Breakthrough, the Real Battle Shifts to Nuclear Talks"

~~~~~~~~~~

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

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

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

That is not your failure.

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

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

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

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

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

You deserve truth — not timelines.

Seeds of Wisdom Team
Newshounds News

~~~~~~~~~~

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Thank you Dinar Recaps

What Happens If the U.S. Economy Crashes?

What Happens If the U.S. Economy Crashes?

By   Kimberly Amadeo   Updated on August 28, 2024

Although the initial outbreak of COVID-19 in March 2020 sent a shockwave through the markets and economy, another recent near-collapse of the U.S. economy happened on September 16, 2008. This is the day the Reserve Primary Fund “broke the buck"—the value of the fund’s holdings dropped below $1 per share.1

Panicked investors withdrew billions from money market accounts where businesses keep cash to fund day-to-day operations.2 If withdrawals had gone on for even a week, and if the Fed and the U.S. government had not stepped in to shore up the financial sector, the entire economy would likely have ground to a halt. Trucks would have stopped rolling, grocery stores would have run out of food, and businesses would have been forced to shut down.

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

Will the U.S. Economy Collapse?

A U.S. economic collapse is unlikely. When necessary, the government can act quickly to avoid a total collapse.

For example, the Federal Reserve can use its contractionary monetary tools to tame hyperinflation, or it can work with the Treasury to provide liquidity, as during the 2008 financial crisis and COVID-19 pandemic. The Federal Deposit Insurance Corporation insures banks, so there is little chance of a banking collapse similar to that in the 1930s.

The president can release Strategic Oil Reserves to offset an oil embargo. Homeland Security can address a cyber threat. The U.S. military can respond to a terrorist attack, transportation stoppage, or rioting and civic unrest. In other words, the federal government has many tools and resources to prevent an economic collapse. 

What Would Happen If the U.S. Economy Were to Collapse?

If the U.S. economy were to collapse, you would likely lose access to credit. Banks would close. Demand would outstrip the supply of food, gas, and other necessities. If the collapse affected local governments and utilities, then water and electricity might no longer be available.

A U.S. economic collapse would create global panic. Demand for the dollar and U.S. Treasurys would plummet. Interest rates would skyrocket. Investors would rush to other currencies, such as the yuan, euro, or even gold. It would create not just inflation, but hyperinflation, as the dollar would lose value to other currencies.

If you want to understand what life would look like during an economic collapse, think back to the Great Depression. The stock market crashed on Black Thursday. By the following Tuesday, it was down 25%. Many investors lost their life savings that weekend. 

By 1932, one out of four Americans was unemployed.3

 Wages for those who still had jobs fell precipitously—manufacturing wages dropped 32% from 1929 to 1932.4 U.S. gross domestic product was cut nearly in half. Thousands of farmers and other unemployed workers moved to California and elsewhere in search of work. Two-and-a-half million people left the Midwestern Dust Bowl states.5 The Dow Jones Industrial Average didn't rebound to its pre-crash level until 1954.6

Collapse Versus Crisis

An economic crisis is not the same as an economic collapse. As painful as it was, the 2008 financial crisis was not a collapse. Millions of people lost jobs and homes, but basic services were still provided.

Other past financial crises seemed like a collapse at the time, but are barely remembered now. 

1970s Stagflation

The OPEC oil embargo and President Richard Nixon’s abolishment of the gold standard triggered double-digit inflation. The government responded to this economic downturn by freezing wages and labor rates to curb inflation.7 The result was a high unemployment rate. Businesses, hampered by low prices, could not afford to keep workers at unprofitable wage rates.8

1981 Recession

In 1981, the Fed raised interest rates in a bid to end double-digit inflation.9 That created the worst recession since the Great Depression. President Ronald Reagan cut taxes and increased government spending to end it.10

1989 Savings and Loan Crisis

One thousand banks closed after improper real estate investments turned sour. Charles Keating and other Savings & Loan bankers had misused bank depositor’s funds. The consequent recession triggered an unemployment rate as high as 7.5%.11 The government was forced to bail out some banks to the tune of $124 billion.12

Post-9/11 Recession

The terrorist attacks on September 11, 2001, sowed nationwide apprehension and prolonged the 2001 recession—and unemployment of greater than 10%—through 2003.13 The United States’ response, the War on Terror, has cost the nation $6.4 trillion and counting.14

2008 Financial Crisis

The early warning signs of the 2008 Financial Crisis were rapidly falling housing prices and increasing mortgage defaults in 2006.15 Left untended, the resulting subprime mortgage crisis, which panicked investors and led to massive bank withdrawals, spread like wildfire across the financial community.16 The U.S. government had no choice but to bail out “too big to fail” banks and insurance companies, like Bear Stearns and AIG, or face both national and global financial catastrophes.17

March 2020: COVID-19 Pandemic

It is too soon to tally up the total costs of the COVID-19 pandemic—the crisis is still ongoing, although with far less intensity than in the early days.

How much economic cost should we expect? One estimate, from IMF Managing Director Kristalina Georgieva, proposed the global economy will lose $28 trillion in economic output from 2020 to 2025.18 As the U.S. economy seeks to recover from the challenges brought about by the pandemic, including heightened inflation, supply-chain disruptions, and labor market turmoil, government action will be a vital tool in moving forward.

https://www.thebalancemoney.com/u-s-economy-collapse-what-will-happen-how-to-prepare-3305690    

Iraqi Dinar News: CBI Denies Money Printing Accusations

Iraqi Dinar News: CBI Denies Money Printing Accusations

Edu Matrix:  6-13-2026

Iraq is currently navigating a complex period of transition, marked by significant shifts in its financial policies and geopolitical strategies.

A recent video from Sandy Ingram at Edu Matrix dives deep into these developments, shedding light on how the Central Bank of Iraq (CBI) and the current administration are working to stabilize the nation’s economy amidst global and regional pressures.

From currency management to the diversification of oil export routes, the video provides a comprehensive overview of the challenges and opportunities facing the Iraqi dinar and the nation’s broader fiscal health.

One of the most pressing topics addressed is the stability of the Iraqi dinar.

Recently, the Central Bank of Iraq has faced arguments regarding the printing of new currency to cover government expenditures.

 The CBI has firmly denied these claims, asserting that its recent actions are standard treasury operations aimed at liquidity management rather than reckless money creation. According to Law No. 56 of 2004, the bank is prohibited from such practices, a point the CBI emphasizes to maintain investor confidence.

This denial is vital as Baghdad manages high spending pressures while attempting to curb fears of inflation and currency devaluation among its citizens and international observers.

In a move toward long-term sustainability, the Iraqi Prime Minister has pledged $10 billion to a new Development Fund. This initiative is designed to nurture the private sector and reduce the country’s heavy reliance on oil revenue—a strategy consistently recommended by the International Monetary Fund (IMF).

 While the pledge represents a significant step toward economic diversification, the video notes that the actual impact remains to be seen. Iraq must still contend with significant bureaucratic hurdles and the inherent risks of managing such a large-scale fund in a complex political environment.

The landscape of Iraq’s oil industry is also undergoing a strategic overhaul. Due to regional tensions and the blockade of the Strait of Hormuz, Iraq has seen its monthly oil revenue drop from upwards of $10 billion to approximately $1 billion.

To counter this, Baghdad is exploring alternative export routes. This includes a notable reconciliation with the Kurdistan Regional Government (KRG) to utilize pipelines through Turkey to the Mediterranean, as well as strengthening cooperation with Jordan for pipeline access. This pragmatic shift highlights a unified effort between Baghdad and Erbil to ensure that Iraq’s primary resource can reach global markets despite regional chokepoints.

Furthermore, the video highlights a shift in Iraq’s political leadership. The current Prime Minister represents a new generation of leadership; having built significant business influence in the post-2003 era, he brings a pragmatic, results-oriented approach to the office.

This transition comes at a time when geopolitical influences, particularly from the United States, are encouraging Iraq to take a more decisive stance in regional affairs. By balancing sensitive domestic relationships with international diplomatic pressures, the current administration is attempting to carve out a more stable path for the nation.

In summary, Iraq is engaged in a delicate balancing act. The government is working to maintain currency stability and rejuvenate a war-torn economy through private sector investment while simultaneously rerouting its oil exports to bypass regional volatility.

These developments indicate a transformative, albeit challenging, era for the country. For a deeper dive into these economic insights, you can watch the full video from Edu Matrix on YouTube to stay informed on the evolving situation in Iraq.

https://www.youtube.com/watch?v=zwENeC1aHG8

https://dinarchronicles.com/2026/06/14/edu-matrix-iraqi-dinar-news-cbi-denies-money-printing/

Seeds of Wisdom RV and Economics Updates Sunday Afternoon 6-14-26

Good Afternoon Dinar Recaps,

Xi's North Korea Visit Signals Shifting Power Balance as Kim Eyes Future Trump Talks

Chinese President Xi Jinping's first visit to North Korea in seven years highlights Beijing's effort to strengthen regional alliances while Washington remains focused on the Middle East, potentially reshaping strategic dynamics across Asia.

Overview

• President Xi Jinping and Kim Jong-un announced a new phase of strategic cooperation following Xi's historic two-day visit to Pyongyang.

• The visit comes as the United States remains heavily engaged in the Iran conflict, providing China an opportunity to reinforce its influence in Northeast Asia.

• Analysts believe North Korea hopes to leverage China's support to eventually reopen direct negotiations with President Donald Trump after the Iran conflict subsides.

Key Developments

1. Xi Strengthens China–North Korea Alliance

President Xi Jinping's first visit to North Korea since 2019 resulted in expanded agreements covering trade, agriculture, science, technology, transportation, and border cooperation. Both leaders emphasized strengthening strategic communication while opposing what they described as regional hegemony.

2. China Moves While Washington Focuses on the Middle East

With U.S. attention centered on the Iran conflict, Beijing appears to be using the opportunity to solidify its influence across Northeast Asia. The visit reinforces China's long-term strategy of securing regional partnerships while expanding its geopolitical leverage.

3. Energy Security Drives Beijing's Strategy

China imports a meaningful share of its oil from Iran, making stability in the Middle East critical to its economy. Strengthening ties with North Korea provides Beijing with additional strategic depth as uncertainty surrounding the Strait of Hormuz continues.

4. Kim Signals Interest in Future U.S. Negotiations

Reports suggest North Korea is using Xi's visit as diplomatic cover to position itself for future negotiations with the Trump administration. Pyongyang appears interested in seeking economic concessions while maintaining recognition of its nuclear capabilities.

5. Regional Competition Continues to Intensify

The summit reflects the growing competition between major global powers as China, Russia, the United States, and regional allies continue reshaping economic, military, and diplomatic relationships throughout Eurasia and the Indo-Pacific.

Why It Matters

This summit demonstrates that global geopolitical competition extends far beyond the Middle East. As the United States focuses on Iran, China is strengthening strategic partnerships closer to home, reinforcing its influence over one of Asia's most sensitive security regions.

The visit also underscores how energy security, diplomacy, and great-power competition are becoming increasingly interconnected in today's emerging multipolar world.

Why It Matters to Foreign Currency Holders

Those following the Global Currency Reset (GCR) and broader financial restructuring should monitor developments across both Asia and the Middle East.

As major powers strengthen regional alliances and diversify economic relationships, discussions surrounding alternative trade corridors, local currency settlements, energy security, and cross-border payment systems continue to gain momentum. These developments may influence the future architecture of global finance.

Implications for the Global Reset

• Pillar 1: Trade

China continues expanding regional economic partnerships that could gradually reduce dependence on traditional Western-centered trade networks.

• Pillar 2: Energy

Protecting energy supplies and reducing vulnerability to disruptions around the Strait of Hormuz remains a central strategic objective for Beijing.

• Pillar 3: Assets

Long-term geopolitical uncertainty encourages nations to diversify reserves and strengthen domestic economic resilience.

• Pillar 4: Technology

Expanded cooperation in science and technology highlights the growing importance of technological independence within competing economic blocs.

• Pillar 5: Global Financial System

Strengthening regional alliances supports the ongoing development of alternative financial infrastructure, payment systems, and multipolar economic cooperation outside traditional Western institutions.

This is not just geopolitics—it is global financial restructuring before our eyes.

Seeds of Wisdom Team

Newshounds News™ Exclusive

Sources

• Modern Diplomacy — "Xi's North Korea Visit Fuels Kim's Push for Trump Talks After Iran War"

• Reuters — "Xi Visits North Korea as China Strengthens Regional Ties Amid Global Tensions"

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

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Follow the Gold/Silver Rate COMEX

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Thank you Dinar Recaps

Recession vs. Depression: How To Tell the Difference

Recession vs. Depression: How To Tell the Difference

What makes a depression so much worse than a recession?

By Kimberly Amadeo   Updated on December 22, 2022

A recession is a widespread economic decline that typically lasts between two and 18 months.1 A depression is a more severe downturn that lasts for years. The most famous depression in U.S. history was the Great Depression. It lasted a decade.

According to the National Bureau of Economic Analysis, the Great Depression was a combination of two recessions. The first lasted for 43 months, from August 1929 to March 1933. The next lasted 13 months, from May 1937 to June 1938. The severe downturn lasted for about 10 years combined. There have been 34 recessions since 1854. Recessions have lasted for approximately 10 months on average since 1945.2

Key Takeaways

• There have been 34 recessions in the U.S. since 1854, but only one depression.

• Recessions last for months, while a depression can last for years.

• A recession is often the result of consumers losing confidence in the economy due to some major event, such as the coronavirus pandemic.

Signs of a Recession

There are five indicators that economists can use to determine whether or not the economy is in a recession.3

• Negative real Gross Domestic Product (GDP) for two or more quarters can indicate a recession.

• A decline in consumer's real income can indicate a recession, since consumer purchasing power will also decline.

• The strength of the manufacturing sector, and whether there is a trade surplus or deficit, helps economists determine whether the economy is self-sufficient.

• Inflation-adjusted retail and wholesale sales of products and goods can show economists whether there is a recession.

• A high unemployment rate, which would be about six percent or higher, indicates that the economy has already entered a recession.

Recession vs. Depression

Gross domestic product (GDP) contracts for at least a few months in a recession.4 GDP growth will slow for several quarters before it turns negative in a typical recession.

There's also a drop in four other critical economic indicators: income, employment, manufacturing, and retail sales. These reports come out each month, while the GDP is released quarterly, so they can signal a recession before the GDP turns negative.

A depression is longer and more destructive than a recession. The economic contraction from a depression lasts for years, not quarters. GDP was negative for six out of the 10 years during the Great Depression. It shrank by a record of 12.9% in 1932, unemployment reached nearly 25% in 1933, and prices dropped for four years in a row in the 1930s.567

The devastation of a depression is so great that the effects of the Great Depression lasted for decades after it ended. The stock market didn't recover until 1954.8

Depression

• A depression lasts for years

• A depression has only occurred once in the U.S. since 1854

• A depression's effects on the economy can last for decades

Recession

• A recession lasts for months

• There have been 34 recessions in the U.S. since 1854

• A recession is signaled by a drop in employment, retail sales, manufacturing, and income

Causes of a Recession

Causes of a recession include:

Loss of confidence in investment and the economy

High interest rates

A stock market crash

Falling housing prices and sales

Manufacturing orders slow down

Deregulation

Poor management

Wage-price controls

Post-war slowdowns

Credit crunches

Asset bubbles burst

Deflation

Consumers will stop buying and businesses will lay off workers when there's no confidence in the future. These situations create a downward spiral of unemployment, loan defaults, and bankruptcies.

A shock often triggers this type of panic reaction, such as a stock market crash, wage-price controls, the collapse of an asset bubble, or an unanticipated reaction to government action, such as deregulation or an increase in interest rates.910 It's business behavior at other times, such as poor management or credit crunches.11 It was a pandemic in 2020.

https://www.thebalancemoney.com/recession-vs-depression-definition-causes-and-stats-3306048