MilitiaMan & Crew- IRAQ DINAR UPDATE-Pre-Washington Momentum Builds – Confidence Message to DC - REER - End Goal

MilitiaMan & Crew- IRAQ DINAR UPDATE-Pre-Washington Momentum Builds – Confidence Message to DC - REER - End Goal

7-13-2026

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=YRdwYtPyb-8

Seeds of Wisdom RV and Economics Updates Monday Morning 7-13-26

Good Morning Dinar Recaps,   

Crypto Markets Watch Inflation, Fed Testimony, and CLARITY Act as Pivotal Week Begins

This week could prove decisive for digital assets as investors monitor new inflation data, Federal Reserve testimony, and progress on the CLARITY Act. Together, these developments may influence interest rate expectations, crypto regulation, and overall market sentiment.

Overview

• June CPI and PPI inflation reports are expected to provide fresh insight into whether inflation continues to moderate.

• Federal Reserve Chair Kevin Warsh is scheduled to testify before Congress, with markets watching closely for clues about future monetary policy.

• The CLARITY Act remains in focus as lawmakers continue negotiations on legislation that could establish a comprehensive regulatory framework for digital assets.

Key Developments

1. Inflation Data Could Influence the Next Fed Decision

Investors are closely watching this week's Consumer Price Index (CPI) and Producer Price Index (PPI) reports. Economists expect inflation to continue moderating compared with previous readings, which could strengthen expectations that the Federal Reserve may eventually have room to ease monetary policy if inflation continues moving toward its target. Softer inflation has historically been supportive of Bitcoin and other digital assets.

2. Fed Chair Kevin Warsh Heads to Capitol Hill

Federal Reserve Chair Kevin Warsh will deliver the Fed's semiannual monetary policy report before Congress. Lawmakers are expected to question him about inflation, interest rates, economic growth, and the outlook for monetary policy. Investors will analyze every comment for indications of whether the Fed is becoming more dovish or intends to keep interest rates higher for longer.

3. CLARITY Act Negotiations Continue

Negotiations continue on the CLARITY Act, one of the most significant pieces of U.S. digital asset legislation under consideration. Senate committees are working to reconcile different versions of the bill while key provisions remain under discussion. The legislation is designed to provide greater regulatory clarity for cryptocurrencies, digital asset exchanges, and blockchain developers.

4. House Hearing Focuses on Digital Asset Innovation

The House Financial Services Committee is scheduled to hold a hearing titled "Building the Future of Finance: How the CLARITY Act Unlocks Innovation." The hearing is expected to examine how clearer regulations could encourage innovation while strengthening consumer protections and maintaining U.S. leadership in digital finance.

5. Markets Prepare for Increased Volatility

The combination of inflation reports, Federal Reserve testimony, and legislative developments could create increased volatility across cryptocurrency and broader financial markets. Investors remain focused on how monetary policy and regulatory certainty will shape capital flows into digital assets during the second half of the year.

Why It Matters

This week's events combine three of the largest forces influencing financial markets—monetary policy, inflation, and digital asset regulation. Together, they will help determine whether investor confidence continues to improve and whether cryptocurrencies benefit from a more supportive economic and regulatory environment.

Why It Matters to Foreign Currency Holders

Interest rate policy and regulatory developments often influence global capital flows and currency markets. A more predictable regulatory framework for digital assets, combined with easing inflation, could encourage broader institutional participation while affecting demand for both traditional and digital financial assets.

Implications for the Global Reset

• Pillar 1 – Debt

Federal Reserve policy continues to influence borrowing costs, government debt servicing, inflation, and global liquidity, making inflation data one of the most closely watched economic indicators.

• Pillar 4 – Technology

The CLARITY Act represents an important step toward establishing clear regulatory rules for blockchain technology and digital assets, supporting innovation while integrating digital finance into the broader financial system.

This is not simply about cryptocurrency prices—it reflects the ongoing convergence of monetary policy, financial regulation, and digital innovation as the global financial system continues to evolve.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• CoinGape – Crypto Market This Week: CLARITY Act, Fed's Kevin Warsh To Testify, CPI & PPI Data In Focus

• MarketWatch – Economic Calendar – U.S. CPI, PPI and Major Economic Releases

~~~~~~~~~~

🌱 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

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™Website

Thank you Dinar Recaps

What Is Trade Policy?

What Is Trade Policy?

By Ann Logue  Published on January 25, 2022

Key Takeaways

• Trade policy is a government’s stance on international trade, or a combination of laws and practices that affects imports and exports.

• Trade policies can include regulations, tariffs, and quotas.

• Some nations want to encourage more trade and pursue open trade policies with certain other nations, while others want to restrict trade and set policies that protect local industries from competition.

• Trade policies can have a number of benefits, including economic growth or lower costs of goods.

Definition and Example of Trade Policy

Trade policy refers to a nation’s formal set of practices, laws, regulations, and agreements that govern international trade practices, or imports and exports to foreign countries. Trade policies aim to strengthen the domestic economy. For example, U.S. trade policy aims to strengthen the competitiveness of U.S. industries.12

• Alternate Names: commercial policy, international trade policy

Some trade policies are codified into law; others are part of the practices that a nation’s bureaucrats and diplomats follow. They are intended to reflect a national philosophy about international trade.

Trade policies can be aimed at a number of issues related to importing and exporting, such as foreign retaliation, jobs, or tariffs; or they may focus on protecting intellectual property, setting standards that promote collaboration and reduce trade barriers, or establishing trade agreements and trade laws.

For example, in the U.S., the Export Trading Company Act (ETCA) enables U.S. firms to work together to reduce export costs, increase exporting efficiency, and better compete in the global market, among other initiatives. It provides antitrust protection and other benefits to U.S. firms that collaborate on exporting activities. As a result, these firms get the advantage of, for example, reduced shipping costs, better negotiating power, and the ability to fill larger export orders.3

Other trade policies may emphasize finding export markets for goods produced in the country, encouraging travel and tourism from other countries, or limiting and heavily taxing imports to protect local producers.

How a Trade Policy Works

Trade policy is established when a government sets standards and laws regarding international trade.

In some cases, a nation will pursue a more aggressive protectionist policy designed to favor its domestic industries over international competitors. Protectionism policies can include setting quotas on the number of imported goods allowed in a country, imposing tariffs on imported goods, and offering subsidies for domestic producers.

On the other hand, a nation may want to increase international investment and pursue a free trade policy (sometimes called an “open trade policy”) that reduces the barriers to doing business. Many countries establish trade policies between the two extremes, adjusting them as the global economy and domestic political pressures change.4

The U.S. government’s International Trade Administration (ITA) provides information on the trade policies of nations around the world, including specific information for different industries.

Examples of Trade Agreements

A trade agreement occurs when two or more countries agree to the terms of trade, which can include the amount of tariffs and quotas, among other terms. Here are some examples of foreign trade agreements:

• The U.S.-Mexico-Canada Agreement (USMCA): The USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, aims to eliminate trade barriers between the U.S., Mexico, and Canada while including some restrictions on importing and exporting.5

• The Dominican Republic-Central America Free Trade Agreement (CAFTA-DR): The CAFTA-DR is a trade agreement between the U.S. and Central America countries El Salvador, Costa Rica, Honduras, and Guatemala, as well as the Dominican Republic. It aims to promote stronger investment ties and stability.6

Benefits of Trade

Trade expansion can provide a number of economic benefits for a nation. It can fuel economic growth, improve the job market, lower the costs of goods, and raise living standards. Trade expansion results in a wider variety of product options available for consumers and businesses.7

Trade policies that reduce tariffs, quotas, and other barriers on imports generally lead to lower prices and more options for consumers. However, manufacturers that sell goods to domestic customers often prefer a more import restrictive policy.

https://www.thebalancemoney.com/what-is-trade-policy-5217002

Iraq Economic News and Points To Ponder Monday Morning 7-13-26

Fresh US-Iran Strikes Drive Oil Prices Higher

2026-07-13 01:16    Shafaq News   Oil prices surged over 4% on Monday as energy shipments via ​the Strait of Hormuz remained under threat, with the U.S. and ‌Iran announcing renewed military strikes.

Brent crude futures climbed $3.10, or 4.08%, to $79.11 by 0325 GMT, while U.S. West Texas Intermediate crude rose $2.95, or 4.11%, to $74.36 a barrel.

U.S. forces completed another wave of strikes ​against Iran on Sunday, hitting dozens of targets at multiple locations with ​precision munitions, the Central Command said. Iran's Revolutionary Guards said on ⁠Monday they attacked U.S. military bases in Kuwait and Bahrain.

U.S. President Donald Trump said ​on Sunday that the Strait of Hormuz is open to commercial traffic, although Iran ​declared earlier that it closed the strait after a vessel traveled on an unapproved route and was struck.

Some 20% of the world's oil and liquefied natural gas transited the strait before ​the war began at the end of February.

Six vessels transited the strait on ​Sunday, ship-tracking data from Kpler showed, the lowest number in five weeks.

The escalating attacks cast further ‌doubt ⁠on the future of an interim U.S.-Iranian agreement signed last month that aimed to reopen the strait and end the war after a further 60 days of negotiations.

Following the agreement, global oil supply rose by 4.1 million barrels per day in ​June, but remained 9.4 ​million bpd below ⁠pre-war levels, the International Energy Agency said in its monthly report on Friday.

"Hopes of a relatively quick resolution to the recent ​skirmishes may be in doubt after tension escalated over the ​weekend," ANZ ⁠analysts said in a note.

IG market analyst Tony Sycamore said the relatively tame rise in oil prices suggested the market was taking the view that the current flare-up ⁠represented an ​escalation within a fragile truce and fell well ​short of a complete collapse of the ceasefire.

"How accurate that view is remains to be seen," he ​said in a note.

(REUTERS) https://www.shafaq.com/en/Economy/Fresh-US-Iran-strikes-drive-oil-prices-higher

Gold Drops Over 1% On Oil Surge

2026-07-13 03:05   Shafaq News  Gold prices slid ‌more than 1% on Monday as fears of a closure of the Strait of Hormuz drove oil prices sharply higher, reviving expectations of elevated interest rates to combat inflationary pressures from escalating hostilities in the Middle ​East.

Spot gold dropped 1.5% to $4,060.36 per ounce by 0541 GMT. U.S. gold futures for August ​delivery were down 1.1% at $4,068.30.

U.S. and Iranian forces have exchanged heavy missile ⁠and drone assaults, with Tehran targeting U.S. facilities in states across the Gulf on Sunday and saying ​it had again closed the vital Strait of Hormuz.

Oil prices jumped about 4%, the dollar and ​U.S. Treasury yields climbed, and share markets slipped in Asia.

"Any breakout of violence in the Gulf is accompanied by pressure on gold," said Nicholas Frappell, global head of institutional markets at ABC Refinery.

"The question is, if the ​Strait of Hormuz remains effectively or partially closed, does that lead to a deflationary effect, ​further down the road, that might actually be supportive for gold if you have demand destruction leading to lower ‌economic ⁠activity," Frappell added.

Kevin Warsh's first semiannual testimony before Congress as Federal Reserve chair, along with a slate of key U.S. economic data, including June CPI, PPI and retail sales, will be closely watched this week for fresh clues on the economy, inflation and the monetary policy outlook.

Remarks from Fed ​policymakers, including Vice Chair ​Michelle Bowman and Governor ⁠Christopher Waller, later in the day are also in focus as they could provide insights on how inflationary pressures are affecting the central bank's ​stance on interest rate hikes.

Traders are currently pricing in a 72% chance ​of a ⁠U.S. Fed interest rate hike in September, up from about 63% last week, according to the CME FedWatch Tool. FEDWATCH/

COMEX gold speculators trimmed their net long positions by 1,964 contracts to 114,854 in the ⁠week to ​July 7, data released on Friday showed, following three ​consecutive weeks of increases.

Elsewhere, spot silver declined 2.6% to $58.29 per ounce, platinum shed 1.6% to $1,601.92, and palladium fell 2% to $1,251.42.

(REUTERS) https://www.shafaq.com/en/Economy/Gold-drops-over-1-on-oil-surge

Dollar Edges Higher In Baghdad, Erbil

2026-07-13 03:47 Shafaq News- Baghdad/ Erbil  The US dollar opened Monday’s trading higher in Iraq, hovering around 154,000 dinars per 100 dollars.

According to Shafaq News market survey, the dollar traded in Baghdad's Al-Kifah and Al-Harithiya exchanges at 153,600 dinars per 100 dollars, up from the previous session’s 153,300 dinars.

In the Iraqi capital, exchange shops sold the dollar at 154,000 dinars and bought it at 153,000 dinars, while in Erbil, selling prices stood at 153,350 dinars and buying prices at 153,250 dinars.

https://www.shafaq.com/en/Economy/Dollar-edges-higher-in-Baghdad-Erbil

Oil Dominates Iraq's Exports To US At $6.5 Billion In 2025

2026-07-13 04:15  Shafaq News- Baghdad   Mineral fuels and oil products accounted for nearly all of Iraq's exports to the United States in 2025, with total Iraqi exports to the US market reaching $6.5 billion, according to Trading Economics data based on US Census Bureau figures.

Crude oil alone was valued at $4.79 billion, while petroleum oils and oils obtained from bituminous minerals contributed an additional $1.65 billion, bringing total energy exports to $6.45 billion, or 99% of all Iraqi exports to the US market. No single non-energy category exceeded $37 million.

Iraq's exports to the US have followed a consistent downward trend in recent years, from $10 billion in 2022 to $8.9 billion in 2023, $7.7 billion in 2024, and $6.5 billion in 2025.

Read more: Iraq's oil revenues under US financial guard 23 years after invasion

https://www.shafaq.com/en/Economy/Oil-dominates-Iraq-s-exports-to-US-at-6-5-billion-in-2025

Gold Prices Fall In Baghdad And Erbil

2026-07-13 05:05   Shafaq News- Baghdad/ Erbil  On Monday, gold prices dropped in Baghdad and Erbil, hovering around 875,000 IQD per mithqal, according to Shafaq News market survey.

Gold prices on Baghdad's Al-Nahr Street recorded a selling price of 876,000 IQD per mithqal (equivalent to five grams) for 21-carat gold, including Gulf, Turkish, and European varieties, with a buying price of 872,000 IQD. The same gold had sold for 880,000 IQD on Sunday.

The selling price for 21-carat Iraqi gold stood at 846,000 IQD, with a buying price of 842,000 IQD.

In jewelry stores, 21-carat Gulf gold ranged between 875,000 and 885,000 IQD per mithqal, while Iraqi gold sold for between 845,000 and 855,000 IQD.

In Erbil, 22-carat gold was sold at 924,000 IQD per mithqal, 21-carat gold at 882,000 IQD, and 18-carat gold at 756,000 IQD.

https://www.shafaq.com/en/Economy/Gold-prices-fall-in-Baghdad-and-Erbil-2-5

ISX Reports $16M In Weekly Trading

2026-07-13 07:17   Shafaq News- Baghdad   The Iraq Stock Exchange (ISX) recorded nearly 21 billion Iraqi dinars in trading volume last week —roughly $16 million.

According to the recorded data, more than 7.5 billion shares were traded during the week across five trading sessions.

The ISX60 index closed at 1,016.21 points, reflecting a 1% increase from the previous session.

Throughout the week, the exchange executed 4,303 sale and purchase contracts involving 63 listed companies. Shares of 32 companies were not traded because buy and sell orders did not match, while trading in eight companies remained suspended for failing to submit the required disclosures.

Non-Iraqi investors purchased 349,000 shares worth 567 million Iraqi dinars (about $431,000) through 185 transactions, while selling nearly 1 billion shares valued at 2 billion Iraqi dinars (about $1.52M) in 428 transactions.

https://www.shafaq.com/en/Economy/ISX-reports-16M-in-weekly-trading

Get Out Of Fiat Currency: The Monetary Reset Warning

Get Out Of Fiat Currency: The Monetary Reset Warning

Liberty and Finance:  7-11-2026

In a recent deep-dive discussion hosted by Liberty and Finance, renowned economists Dr. Michael Rectenwald and Dr. Mark Thornton shared a sobering analysis of the current trajectory of global monetary policy.

The conversation centered on the emergence of Central Bank Digital Currencies (CBDCs) and what they describe as an accelerating shift toward a more supervised economic environment.

As the world grapples with inflation, technological upheaval, and geopolitical shifts, these experts suggest that the very nature of currency is being redesigned with profound implications for personal privacy and financial autonomy.

At the heart of the discussion is the push for CBDCs, which are often marketed by governments and international institutions as a necessary step toward “financial inclusion.”

The argument is that digital currencies will bring the unbanked—billions of people globally—into the formal financial system. However, Dr. Rectenwald and Dr. Thornton view this through a more critical lens.

They argue that CBDCs represent a transition from traditional money to “programmable money,” a tool that could allow central authorities to monitor, restrict, or influence individual spending habits in real-time.

Unlike physical cash, which offers a degree of anonymity and peer-to-peer freedom, a CBDC is a liability of the central bank. This means every transaction leaves a digital footprint accessible to the state. The experts warn that this infrastructure creates a supervised system where economic participation could, in theory, be tethered to compliance or specific policy goals, effectively ending the era of private financial transactions.

The discussion expertly connects the dots between monetary policy and broader global trends. Currently, the “economic reset” is being fueled by extensive money printing, which the guests argue is being funneled into two primary sectors: military ventures and the build-out of artificial intelligence (AI) infrastructure.

The rapid expansion of the money supply to fund these initiatives is a primary driver of ongoing inflationary pressures. By devaluing the currency through expansion, the purchasing power of the average citizen is eroded.

Furthermore, the experts point out that the push for AI is not merely about productivity; it is about building the surveillance and data processing networks necessary to manage a digitalized, centralized economy. In this context, inflation serves as a silent tax that finances the very systems designed to increase oversight of the public.

While there has been legislative pushback in various regions—notably in the United States—to delay the implementation of CBDCs, Rectenwald and Thornton suggest that the momentum has not stalled. Many policy frameworks point toward 2030 as a pivotal year for this digital transition. Despite current delays, the underlying infrastructure is being steadily assembled.

The guests characterize this period as a “looming threat” to traditional economic structures. They argue that the transition to a digital-only system is a core component of a broader economic reset. This reset aims to consolidate power within central institutions, making the financial system more “efficient” from a top-down perspective, but significantly less free for the individual.

The insights provided by Dr. Michael Rectenwald and Dr. Mark Thornton serve as a clarion call for those concerned about the intersection of technology and state power. As we move closer to a potential digital currency era, the choice between convenience and liberty becomes increasingly stark.

For those looking to preserve their economic independence, staying informed and diversifying away from centralized digital systems appears more critical than ever.

https://www.youtube.com/watch?v=UALoIJ8853o

Seeds of Wisdom RV and Economics Updates Sunday Afternoon 7-12-26

Good Afternoon Dinar Recaps,

U.S.-Iran Ceasefire Falters as Military Pressure Mounts and Diplomacy Continues Behind the Scenes

Renewed military strikes, escalating tensions in the Strait of Hormuz, and continued diplomatic contacts have created a complex situation in which the U.S. and Iran are simultaneously exchanging attacks while keeping channels of communication open through regional mediators.

Overview

• The U.S.-Iran ceasefire has largely broken down on the battlefield, with both sides accusing each other of violating the interim agreement.

• Despite renewed military operations, the United States and Iran have agreed to continue indirect talks, focusing on maritime security and the future of the Strait of Hormuz.

• The outcome remains critical for global energy markets, international shipping, and regional stability, making the conflict one of the world's most closely watched geopolitical flashpoints.

Key Developments

1. Ceasefire Weakens as Military Operations Resume

The temporary ceasefire that followed the U.S.-Iran Memorandum of Understanding (MOU) has come under severe strain after renewed missile, drone, and military strikes. While neither side has formally withdrawn from diplomacy, recent attacks demonstrate that the security situation remains highly unstable.

2. Talks Continue Despite Escalating Conflict

Although fighting has resumed, diplomacy has not completely collapsed. President Trump confirmed that Iran requested continued negotiations and that the United States agreed to remain engaged. Current discussions are centered primarily on restoring safe navigation through the Strait of Hormuz and preventing a broader regional war.

3. Strait of Hormuz Remains the Central Issue

The strategic waterway continues to dominate negotiations. The United States is demanding unrestricted international navigation, while Iran insists it should retain authority over maritime security in the region. Stability in Hormuz remains essential because a significant share of the world's oil and liquefied natural gas exports transit through the narrow passage.

4. The MOU Has Not Been Abandoned

The Memorandum of Understanding established a framework for reducing hostilities and launching broader negotiations covering maritime security, sanctions, and Iran's nuclear program. Although military events have slowed implementation, the agreement itself continues to serve as the diplomatic foundation for ongoing indirect talks.

5. Long-Term Issues Remain Unresolved

Beyond the immediate fighting, negotiators continue to face difficult issues including Iran's nuclear program, sanctions relief, regional security, and freedom of navigation. These longstanding disputes make a permanent settlement significantly more difficult than achieving a temporary ceasefire.

Why It Matters

The current situation illustrates that diplomacy and military operations are occurring simultaneously. While renewed strikes have weakened confidence in the ceasefire, continued negotiations indicate that neither side has completely abandoned the possibility of a negotiated settlement. Markets, governments, and energy producers remain focused on whether diplomacy can eventually restore lasting stability.

Why It Matters to Foreign Currency Holders

Geopolitical instability often influences currencies, commodity prices, and investor confidence. Any prolonged disruption in the Strait of Hormuz could affect inflation, central bank policy, global trade flows, and international financial markets—all of which can influence foreign exchange values.

Implications for the Global Reset

• Pillar 2 – Trade

Continued uncertainty in the Strait of Hormuz highlights the importance of protecting one of the world's most vital trade corridors. Any disruption to shipping affects global commerce, transportation costs, and supply chains.

• Pillar 5 – Energy

The Strait of Hormuz remains one of the world's most important energy chokepoints. Stability in the region directly influences global oil and natural gas supplies, energy prices, and inflation expectations.

This is not simply about another military confrontation—it reflects the continuing struggle to balance regional security, global energy supplies, and diplomatic efforts that could shape international trade and financial stability for years to come.

Seeds of Wisdom TeamNewshounds News™ Exclusive

Sources

• Reuters – US seeks free Hormuz access from Iran as talks focus on strait

• Reuters – Iran has asked to continue talks and the US agreed, Trump says
  

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™Website

Thank you Dinar Recaps

Sunday Iraq News Posted by Tishwash at TNT 7-12-2026

TNT:

Tishwash:  Al-Zaidi Heads to U.S. to Transition Ties into Long-Term Economic Partnership 

Government spokesperson Haider al-Aboudi announced that Iraqi Prime Minister Ali Faeh al-Zaidi will lead a high-level delegation to the United States on Monday to sign key memorandums of understanding in the oil and gas sectors.

Al-Zaidi will be accompanied by several cabinet ministers, the Central Bank Governor, and private investors from the energy and banking sectors.

Channel8 earlier reported that the delegation will discuss key security, economic, and banking issues with U.S. officials, with a central focus on drawing American investments into Iraq's oil, electricity, and natural gas sectors.

Al-Zaidi previously stated that his trip to Washington is "not just a routine protocol visit" and that Iraq "prioritizes American companies" as it actively pivots from military to economic ties. 

Al-Aboudi: Al-Zaidi's US Visit to Prioritize Balanced Ties 

Al-Aboudi told a press conference on Sunday that the visit aims to build balanced foreign relations based on mutual interests, noting that al-Zaidi will hold crucial meetings with President Trump and financial institutions to turn these dialogues into real progress.

He stressed that the visit aims to strengthen ties with Washington, with discussions focusing primarily on developing economic and investment relations.

Al-Aboudi highlighted that the visit aims to boost Iraq's regional presence by prioritizing talks with the U.S. on economic cooperation, development, and investment in the energy, trade, and technology sectors.

Economic Partnership and Focus on Energy and Framework Integrity

The spokesperson noted that unlike previous visits, "its primary theme is the economy," emphasizing that all new agreements will remain fully based on the existing Strategic Framework Agreement.

He emphasized that upcoming Iraq-U.S. energy agreements will bring in specialized American firms to boost oil and gas production and build alternative export routes to avoid the Strait of Hormuz crisis.

Haider al-Aboudi further emphasized that the bilateral dynamic will transition from "crisis management to a long-term economic partnership."  link

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

Tishwash:  Al-Zaidi heads to Washington carrying files on the economy and weapons in a pivotal visit to the White House

All eyes are on the upcoming visit of Iraqi Prime Minister Ali al-Zaidi to the White House next week, in one of the most significant milestones in Iraqi-American relations in recent years .

This visit comes amid increasing pressure on Baghdad to address the issue of armed factions, coinciding with the Iraqi government's efforts to expand economic and investment cooperation with the United States .

A report by Middle East Eye stated that “US President Donald Trump views Iraq from the perspective of economic and investment opportunities, while al-Zaidi seeks to capitalize on this trend to strengthen relations with Washington and gain the support of the US administration, which gives him more room to implement his government program, and at the forefront of his priorities is restricting weapons to the state and reorganizing Iraq’s regional relations .”

According to the report, "During his visit, Al-Zaidi will carry a package of economic agreements, including expanding the initial agreement with Chevron to develop one of the oil fields in Basra Governorate, in addition to increasing the investments of another American company in the Akaz gas field in Anbar Governorate ."

He added: "The visit's agenda also includes the signing of an agreement to rehabilitate the Kirkuk-Banias pipeline, which connects Iraq to the Syrian coast, in a project that Washington sees as part of its plan to ensure the continued flow of energy supplies and reduce the impact of any disruptions in the Strait of Hormuz ."

He noted that "the US envoy to Syria and Iraq, Tom Barrack, is working to prepare initial understandings before al-Zaidi arrives in Washington, as part of a strategy aimed at expanding the presence of American companies and reducing Iranian economic influence within Iraq ."

The report noted that "the resumption by the United States of transferring Iraqi oil revenues deposited with the Federal Reserve in New York, days before the visit, has political dimensions that go beyond the financial aspect, and reflects Washington's desire to open a new chapter of cooperation with Baghdad ."

He explained that "in contrast, the issue of armed factions will occupy a key position in the White House talks, as the US administration seeks to obtain clear Iraqi commitments regarding ending the influence of armed groups linked to Iran, and stopping attacks targeting US interests and the Gulf states ."

Al-Zaydi had given those factions until September 30 to hand over their weapons to the state, coinciding with the end of the international coalition’s mission in Iraq, but some of the main factions, including Kataib Hezbollah and Harakat al-Nujaba, still refuse to give up their weapons .

The report also addressed the anti-corruption campaign launched by the Iraqi government, considering that it "strengthened al-Zaidi's position before the American administration, after it included prominent figures and officials, including those close to the previous government and figures associated with the Popular Mobilization Forces ."

The report concluded that "the success of the visit will not be measured by the number of economic agreements that will be signed, but rather by the ability of the Iraqi Prime Minister to convince Washington that his government is capable of implementing real reforms and making progress in the issue of restricting weapons to the state, while at the same time maintaining balance in Iraq's regional relations  link

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

Tishwash:  Parliamentary Finance Committee reveals details of the 2027 budget

The head of the parliamentary finance committee, Uday Awad ,
revealed on Saturday the most prominent aspects of the 2027 budget proposal, explaining that it will adopt a program and performance budget in a number of government institutions and agencies.

Awad told Al-Maalomah News Agency, "The 2027 budget will be a program and performance budget, while the remaining sections will be structured according to the program and performance guidelines." He explained that "this approach comes within the framework of developing budget preparation mechanisms and enhancing the efficiency of government spending."

He added that "the application of the program and performance budget will include the Ministry of Electricity, in addition to the governorates of Salah al-Din and Diwaniyah, as the first phase of the project," emphasizing that "adopting this method contributes to raising the level of oversight of spending and achieving better results in the implementation of projects and services."   lin

Tishwash:  Economists: Iraq's international acceptance has broadened following Operation Dawn.

Iraq is betting that its ongoing anti-corruption campaign will be a starting point for restoring international confidence, as experts believe that establishing the rule of law and holding corrupt individuals accountable sends a positive message to financial institutions and investors, and may be reflected in improved economic indicators and governance.

Turning point

The academic, Dr. Kazem Eidan, described the current moves as a “real turning point” if the state continues to fight corruption without exceptions or selectivity, indicating that the international community does not build its confidence on statements, but on results, the rule of law, and the independence of the judiciary.

Eidan explained in an interview with Al-Sabah that holding corrupt individuals accountable under the law has enhanced Iraq’s image and will contribute to bringing it closer to political and economic stability, and will open the door to international investments and partnerships, stressing that true success will only be achieved when the citizen, before the world, feels that the law is applied to everyone without discrimination or exceptions.

The spokesman added that if the government succeeds in turning these measures into a permanent and continuous approach, Iraq may regain the international standing it deserves after many years of challenges. He considered the recent measures, including opening corruption files, as a message that the state is ready to take serious and bolder steps, which is being followed with great interest by countries and international financial institutions.

Eidan pointed out that this trend improves the investment environment, explaining that investors view combating corruption as an indicator of the stability of the business environment and a decrease in the risks of bribery and illegal interventions, which is reflected in an increase in foreign investments.

International ranking improved

Eidan promised that strengthening economic and financial relations would be a gateway to the success of reforms and economic and financial stability, which would facilitate cooperation with international institutions and increase opportunities to obtain financing and investments on better terms, as well as raise Iraq’s international ranking and achieve sustainable improvement in governance and transparency indicators, thus improving the country’s international image, provided that these reforms continue and show their results.

Economic stability

On the same note, financial and economic researcher Imad Al-Muhammadawi considered combating corruption to be the gateway to economic stability in Iraq, explaining that corruption is an economic burden before it is a moral one.

Al-Muhammadi told Al-Sabah that corruption in Iraq is not measured by numbers alone, but by the burdens it places on the investment environment. He pointed out that when contracts and licenses are granted outside the framework of competence through incompetent intermediaries, they create a burden and a state of uncertainty, the price of which is paid by both the investor and the citizen.

Al-Muhammadi added that most specialized reports indicate that the cost of doing business in Iraq is higher than in other countries due to bribery and favoritism, stressing that this makes the investment environment an attractive arena for uncalculated risks.

Recovering stolen funds

The researcher pointed out that the international community views the stability of Iraq from a different angle than security, but rather through the state's ability to enforce the law equally, by recovering the looted funds from those who steal public money. This is a message of great impact to international companies that seek to enter the Iraqi market, as the former feel their way to the market by predicting the state's judicial decisions and thus whether or not to enter the market.

Al-Muhammadi promised that recovering the funds would be an opportunity to introduce the world to the image of the new Iraq, whose name has been associated for many years and in international reports with a decline in governance indicators. He stressed the need to work on changing and reformulating that stereotypical image by issuing judgments against all corrupt individuals without exception and recovering those funds, in order to alleviate the crisis of international confidence and change the country’s reputation.

He believed that continuing to work by increasing reform initiatives and finding a new building block that deserves international confidence in the file of opening investments, not just opening internal corruption files, but through international relations in a stage in which Iraq is regaining its regional role and diversifying its incomes, which were limited to selling oil and the files that accompany it.

 Account for depositing stolen goods

It is worth noting that the government spokesman, Haider al-Aboudi, said earlier that the “Dawn Charge” anti-corruption campaign is ongoing, revealing an account into which the funds will be deposited.

Al-Aboudi said that the fight against corruption is ongoing and is based on a procedural methodology in which the federal authorities cooperate and integrate, adding that the government continues to implement its constitutional obligations in protecting public funds and enabling state institutions to perform their duties in enforcing the law.

He explained that the anti-corruption narrative is unlike its predecessors, noting that the Prime Minister, Ali al-Zaidi, directed the Ministry of Finance to create an account to deposit the recovered funds.  link

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

Tishwash:  Iraqi oil is attracting Chinese refineries as demand for Iranian crude declines and floating storage rises.

Iraq has benefited from the shift of independent refineries in China towards purchasing crude oil not subject to sanctions, after they resorted in recent weeks to increasing their purchases of crude oil from Iraq, the UAE and Qatar, at a time when Iranian oil sales have slowed and the volume of floating stockpiles at sea has increased with the return of US sanctions.

Traders said that independent Chinese refineries in Shandong province purchased between 16 and 20.5 million barrels of Iraqi, Emirati, and Qatari crude oil, marking the largest purchase of non-sanctioned Middle Eastern oil since the start of the conflict. Shenghong Petrochemical also bought approximately 12 million barrels of Iraqi, Saudi, and Abu Dhabi crude.

Reuters added, based on data from Kpler, Vortexa and UANI, that increased supplies from Iraq and the Gulf states contributed to displacing demand for Iranian crude, especially after the resumption of exports through the Strait of Hormuz, as competing crudes were sold at discounts ranging between $5 and $8 per barrel compared to Brent crude, while discounts for Iranian oil remained at only $2 to $3, making it less attractive to buyers.

Conversely, the volume of Iranian oil stranded at sea increased after exports surged during the temporary truce, but sales slowed as buyers held back. Kpler data showed that approximately 34.5 million barrels of Iranian crude oil transited the Strait of Hormuz between June 14 and July 10, while Vortexa estimated loadings of around 30 million barrels between June 15 and July 6.

Kpler data also indicated that China’s imports of Iranian oil so far in July have reached about 556,000 barrels per day, the lowest level since January 2023, while traders expect Iranian sales to rebound next week if discounts on August and September shipments increase.  link

MilitiaMan & Crew- IRAQ DINAR UPDATE-Iraq-"Selling the Country" – Come in Investors, We Are Open!

MilitiaMan & Crew- IRAQ DINAR UPDATE-Iraq-"Selling the Country" – Come in Investors, We Are Open!

7-11-2026

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=pmavCLON5JY&t=90s

Iraq Economic News and Points To Ponder Sunday Morning 7-12-26

Small Denominations Of The Iraqi Dinar Reveal A Negative Indicator Of The Money Supply... An Expert Explains With Figures.

Baghdad Today - Baghdad    An economic expert revealed on Friday (July 10, 2026) that there was a significant increase in the money supply during the period from April 2022 to April 2026, according to data from the Central Bank of Iraq.

Manar Al-Obaidi said in a post on his Facebook page, which was followed by “Baghdad Today”, that the monetary mass for the aforementioned period “recorded an increase of more than 38 percent, bringing the total from 81.5 trillion dinars to 113 trillion dinars.”

He explained that “the total number of banknotes issued increased from about 5.8 trillion banknotes in 2022 to 6.3 trillion banknotes in 2026, which led to an increase in the per capita share of banknotes from 120 banknotes to 141 banknotes, raising their total value per person from 1.8 million dinars to 2.51 million dinars.”

According to Al-Obaidi, the analyses showed “the distribution of the cash increase according to categories, as the 50,000 dinar category acquired the largest share, as the number of issued notes jumped from 319 million notes in 2022 to more than 941 million notes in 2026, so that the citizen’s share of it increased from 7.1 notes to 21 notes, while the 25,000 dinar category recorded a slight growth from 2 billion notes to 2.1 billion notes.”

He pointed out that “the middle denominations witnessed a decline in issuance, as the number of 10,000 dinar notes decreased from 935 million notes to 878 million notes, and the 5,000 dinar note recorded the largest decrease, declining from 954 million notes in 2022 to 691 million notes in 2026.”

As for the smaller denominations, Al-Obaidi pointed out that “the 1000 dinar denomination increased from 718 million notes to 775 million notes, and the 250 dinar denomination grew from 795 million notes to 818 million notes, while the 500 dinar denomination decreased slightly from 147 million notes to 145.4 million notes.”

He noted that this “uneven growth and the prominence of large groups is an economic indicator that most of this money is going towards hoarding outside the banking system instead of circulating in the economy,” stressing that “the failure of small groups to grow in proportion to the size of the total money supply reflects a slowdown in real economic activity and daily trade, which necessitates a comprehensive review of monetary policy and currency issuance mechanisms that take into account the real market need and encourage the integration of cash into the economic and banking system.”  https://baghdadtoday.news/303086-.html

The Central Bank Governor Under The Dome Of Parliament: Crucial Questions Awaiting Answers

July 10, 2026Last updated: July 10, 2026   The Independent - All eyes will be on the Iraqi Parliament in the coming days, after the Parliamentary Finance Committee announced its intention to host the Governor of the Central Bank to discuss a number of financial and monetary issues, most notably the mechanism for distributing dollars to travelers, and the repercussions of the recent measures related to the cash dollar quota.

The head of the parliamentary finance committee, Uday Awad, said that the committee will ask questions during the meeting about the reasons for reducing the traveler's share of dollars from $3,000 to $2,000, stressing that there are observations on the mechanism for distributing dollars to travelers, which he described as having problems related to complexity, corruption, extortion and favoritism.

This hosting comes at a time when the monetary file in Iraq is witnessing widespread discussion, especially with the continued debate about the mechanisms for selling dollars, the Central Bank’s procedures for regulating the market, and the impact of this on exchange rates, trade and import activity.

  Well-informed political sources indicated that the hosting session may witness the raising of sensitive issues related to the performance of the Central Bank during the past period, the mechanism for managing monetary policy, in addition to evaluating the measures taken to address the dollar market disturbances.

According to the sources, some parties within Parliament are considering the possibility of taking political steps if they are not convinced by the answers provided, amid talk of the possibility of raising the issue of changing the management of the Central Bank, but this remains linked to the results of the hosting and the political positions during the coming period.

Observers believe that the dollar issue has become one of the most prominent economic issues facing the government and parliament, as it is directly linked to prices, market activity, and citizens' confidence in the banking sector.

The next stage may reveal whether hosting the Central Bank Governor will be just an oversight session, or the beginning of larger moves that may affect the management of the monetary file in Iraq   LINK

Calls To End Oil's Dominance Of The Iraqi Economy... E-Governance Among The Solutions

Baghdad Today - Baghdad:   The heavy reliance on oil continues to pose challenges to the Iraqi economy, amid continued fluctuations in crude oil prices in global markets, which raises concerns about direct repercussions on the general budget and government spending.

At a time when calls for economic reforms are escalating, experts and politicians stress that diversifying sources of income has become a necessity to ensure financial stability and reduce the fragility of the economy in the face of external crises. MP Mohammed Al-Bayati, on Friday (July 10, 2026), identified the extent of the impact of oil on the general budget, while calling for a change in the direction of the Iraqi economy and a move towards a diversified economy to reduce financial risks.

Al-Bayati told Baghdad Today, “Oil sales contribute nearly 90% of Iraq’s treasury revenues, which demonstrates the extent of its direct impact on the national economy. Therefore, any decrease in its prices directly affects revenues, especially hard currency, which puts pressure on the state’s ability to cover expenses.”

He added that "Iraq is greatly affected by any decline in oil prices, because the general budget is based on an estimated price per barrel of oil, and in light of that, plans and projects are developed and annual spending categories are determined."

He pointed out that "the sharp decline in oil prices witnessed in global markets during the past years has had a significant impact on project management, and has led to the disruption of many of them, at a time when salaries remain a priority and a red line that cannot be crossed, which makes any decline in oil revenues a direct challenge to public finances."

Al-Bayati stressed that "the current stage requires the adoption of a clear strategy to diversify the Iraqi economy, by giving non-oil revenues a greater contribution to financing the budget, especially taxes, customs duties and other resources."

He explained that "these revenues can achieve significant leaps if they are dealt with according to a plan that adopts e-governance and combats corruption, which leads to raising state revenues and reducing dependence on oil."

Al-Bayati stressed in his speech the importance of emphasizing that “Iraq’s continued reliance on oil as the main source of revenue carries significant economic risks, and requires accelerating the implementation of real economic reforms that ensure the diversification of income sources and enhance financial stability in the long term.”

For decades, Iraq has relied on oil exports as its main source of funding for the general budget, with oil revenues constituting the largest share of the state's resources, making the economy highly vulnerable to fluctuations in crude oil prices in global markets.

Over the past years, sharp declines in oil prices have caused a decrease in government revenues, delayed the implementation of many investment and service projects, and put pressure on fiscal policy.  https://baghdadtoday.news/303021-.html

Ziad Al-Hashemi: The Iraqi Government Has Not Found An Alternative To Hormuz, And Any Escalation Will Lead To A Severe Economic And Financial Crisis.

Baghdad - One News   Economic expert Ziad al-Hashemi warned of the repercussions of Iraq’s continued reliance on the Strait of Hormuz for oil exports, criticizing what he described as the government’s slowness in finding alternative routes, at a time when Gulf states continue to strengthen their options to overcome any potential disruptions in the strait.

Al-Hashemi said in a post on his Facebook page that the UAE is proceeding with a plan to reduce dependence on the Strait of Hormuz by launching a new pipeline with a capacity of 1.8 million barrels per day outside the strait, while Saudi Arabia is working on operating a new pipeline towards the Red Sea with a capacity of two million barrels per day.

He explained that the Emirati project will raise the country’s export capacity to about 3.6 million barrels per day away from the Strait of Hormuz, while the capacity of the Saudi pipelines heading to the Red Sea will increase to about 7 million barrels per day.  https://1news-iq.net/زياد-الهاشمي-الحكومة-العراقية-لم-تجد-ب/

Seeds of Wisdom RV and Economics Updates Sunday Morning 7-12-26

Good Morning Dinar Recaps,    

Global Economy Faces Higher Inflation and Slower Growth: Financial Risks Continue to Mount

Global economic growth is slowing as persistent inflation, trade uncertainty, and rising debt create new challenges for policymakers, investors, and financial markets.

Overview

• Global growth is expected to remain subdued as higher inflation, elevated interest rates, and geopolitical uncertainty continue weighing on economic activity.

• Central banks are balancing inflation control with slowing growth, increasing the risk of policy mistakes that could affect global financial stability.

• Rising sovereign debt and shifting trade patterns continue reshaping the international financial system and long-term investment landscape.

Key Developments

1. Stronger Inflation Proves More Persistent

Inflation has moderated from its recent peaks but remains above many central bank targets, particularly in services and labor-intensive sectors.

• Higher wages and supply-side pressures continue to slow the return to stable inflation.

• Policymakers remain cautious about easing monetary policy too quickly.

2. Economic Growth Continues to Slow

Global growth is projected to remain below historical averages as businesses and consumers adjust to higher borrowing costs.

• Slower investment and weaker manufacturing activity continue weighing on economic expansion.

• Uneven regional growth highlights increasing divergence between advanced and developing economies.

3. Financial Stability Risks Are Increasing

High levels of government borrowing, elevated interest rates, and tighter financial conditions continue placing pressure on financial institutions and sovereign balance sheets.

• Debt-servicing costs have risen significantly over the past two years.

• Highly leveraged sectors remain vulnerable to unexpected economic shocks.

4. Trade and Geopolitical Tensions Continue Reshaping Markets

Governments are increasingly restructuring supply chains and expanding domestic production to reduce geopolitical risks.

• Strategic industries continue receiving increased public investment.

• Global trade flows are gradually shifting toward regional partnerships and diversified sourcing.

5. Policymakers Face Difficult Choices

Central banks and governments must balance inflation control, economic growth, and financial stability simultaneously.

• Premature rate cuts could reignite inflation.

• Keeping interest rates elevated for too long could further slow economic activity and increase debt pressures.

Why It Matters

The global economy is entering a more complex phase where inflation, debt, and slower growth are occurring simultaneously. This environment makes policy decisions more difficult and increases the potential for market volatility.

Financial markets continue watching central banks closely, as interest rate decisions will influence borrowing costs, investment activity, and overall economic confidence. At the same time, governments are adapting to changing trade relationships and higher fiscal pressures that could reshape long-term global growth.

Why It Matters to Foreign Currency Holders

Foreign currency holders should continue monitoring interest rate policies, inflation trends, and sovereign debt levels, as these factors directly influence currency values and purchasing power.

Changes in capital flows, reserve diversification, and monetary policy could contribute to greater exchange-rate volatility while influencing the long-term outlook for major global currencies.

Implications for the Global Reset

• Pillar – Debt

Persistently high government borrowing and rising debt-servicing costs continue increasing pressure on public finances, encouraging policymakers to explore more sustainable fiscal strategies.

• Pillar – Trade

Global supply chains continue evolving as nations diversify trading relationships and reduce dependence on traditional economic partners, contributing to a more multipolar financial system.

Conclusion

The global economy remains resilient but continues facing significant headwinds from inflation, elevated debt, and slowing growth. Policymakers must carefully balance price stability with economic expansion while preserving financial stability.

Although the immediate outlook remains challenging, the structural changes underway in trade, debt management, and monetary policy are likely to shape the next phase of the global financial system for years to come.

The transition now unfolding is not simply another economic cycle—it reflects a broader transformation in how nations manage growth, finance, and global economic cooperation.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• Reuters — "Global Economy Faces Slower Growth and Persistent Inflation"

• International Monetary Fund — "World Economic Outlook Update"

~~~~~~~~~~

🌱 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

~~~~~~~~~~

Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

Newshound's News Telegram Room Link

RV Facts with Proof Links Link

RV Updates Proof links - Facts Link

Start Here room with Most Asked Questions Link

Follow the Gold/Silver Rate COMEX

Follow Fast Facts

Seeds of Wisdom Team™Website

Thank you Dinar Recaps

The Next Subprime Crisis Was Just Triggered...And It's Bigger Than 2008

The Next Subprime Crisis Was Just Triggered...And It's Bigger Than 2008

George Gammon:  7-10-2026

When most people reflect on the Global Financial Crisis (GFC) of 2008, they immediately think of the housing market collapse. However, a growing body of financial analysis suggests that the United States may be approaching a new kind of crossroads.

Rather than a crisis contained within a single sector like residential real estate, current data points toward a “subprime everything” scenario. This brewing situation encompasses auto loans, credit card debt, and student loans, creating a complex web of financial pressure that warrants a closer look.

The first sign of distress in any credit-based economy is a spike in delinquency rates, and recent data suggests we are seeing record-highs across several categories. Perhaps most striking is the state of the auto loan market. Auto loan delinquencies have now surpassed previous peaks, driven by monthly payments that, in many cases, resemble mortgage costs.

With longer loan terms and higher average debt amounts, the “car bubble” is becoming a significant weight on the American consumer. Similarly, credit card and student loan delinquencies are approaching all-time highs, signaling a pervasive credit crunch that affects everyone from recent graduates to established households.

To understand why this is happening now, we have to look at the underlying economic drivers. While topline employment numbers may look stable, the reality for many consumers is an environment where inflation is consistently outpacing wage growth.

Furthermore, official inflation measurements often exclude the rising costs of debt servicing. As the Federal Reserve has pushed interest rates higher to combat inflation, the cost of carrying a balance on a credit card or financing a vehicle has skyrocketed. This “hidden” cost of living has intensified the debt servicing burden, leading to a surge in defaults as stagnant wages fail to keep up with the compounding cost of borrowed money.

Perhaps the most concerning aspect of the current landscape is how this debt is structured within the global financial system.

Much like the mortgage-backed securities of 2008, today’s “bad debts”—including auto and student loans—are bundled into complex financial products known as Asset-Backed Securities (ABS). These are sold in tranches to a wide variety of investors, ranging from conservative pension funds to aggressive hedge funds.

The risk becomes systemic because of the involvement of private credit funds. These funds often use high leverage to invest in riskier tranches of debt. If default rates continue to climb, losses can cascade through these tranches.

This could potentially trigger a chain reaction of margin calls and “fire sales,” where assets are sold off rapidly to cover losses, leading to widespread financial instability that mirrors the mechanics of the 2008 crisis.

In conclusion, the current credit environment shares dangerous parallels with the pre-2008 period, yet it is arguably broader and more complex. The health of the modern economy depends heavily on the continuous circulation of money and credit.

 If the “subprime everything” bubble reaches a breaking point, that circulation could sharply contract, precipitating a significant financial event. Staying informed about these credit cycles is essential for understanding the broader trajectory of the U.S. economy.

https://www.youtube.com/watch?v=42cunoNk_HA