Saturday Iraq News Posted by Tishwash at TNT 8-22-2026

TNT:

Tishwash:  The governor of Kirkuk clarifies the implications of his statements regarding Article 140 and affirms: The relationship between Kurds and Turkmen is historical.

Kirkuk Governor Mohammed Samaan clarified the implications of his recent statements regarding Article 140 of the Iraqi Constitution, stressing that his remarks did not target any specific group, but rather highlighted the legal obstacles surrounding land ownership in the province, most of which is owned by Kurdish and Turkmen citizens.

Samaan explained that the ongoing legal disputes over the ownership of those lands are hindering the governorate's efforts to distribute residential plots to employees, noting that Article 140 has not yet succeeded in finding radical solutions to this issue.

At the same time, he emphasized the depth of the historical relations between the Kurds and the Turkmen, noting that Article 140 represents a constitutional text that is respected and agreed upon by all parties.

In another matter related to the financial file, the governor of Kirkuk revealed that there are outstanding financial obligations owed to contractors by the governorate, estimated at about 250 billion dinars, explaining that he took over his duties in light of accumulated financial debts and previous debts.

He confirmed that communication and efforts are continuing with the federal government in Baghdad to secure a portion of these entitlements and disburse them to those who are entitled. link

Tishwash:  Government spokesperson: We are preparing to complete the sovereignty process on September 30th.

Government spokesman Haider al-Aboudi confirmed on Friday that the first 100 days of Prime Minister Ali Faleh al-Zaidi’s government represent a launch towards a clearer path to consolidate state sovereignty, noting that the government has been working since gaining the confidence of the House of Representatives on May 14, 2026, to translate its sovereign priorities through executive plans. 

Al-Aboudi said in statements followed by Kalima News, “The government held 15 cabinet sessions during the past 100 days, and the standard of its performance was based on taking responsibility for the decision, strengthening sovereignty, protecting national independence, and building foreign relations based on common interests.”

He added that "the government is moving forward towards a state that protects its citizens, addresses emerging and inherited challenges, and continues institutional and economic reform to ensure a decent living and prevent risks that threaten public revenues."

He pointed out that "September 30th represents a crucial milestone for completing the path to sovereignty, so that Iraq will be 'fully sovereign' in its decisions, security, and land, free from any external dictates, and without the presence of any force outside the authority of the state."

He explained that "this path is based on constitutional and legal powers, and adheres to the government's program to restrict weapons to the authorized military and security institutions, stressing that the choice is sovereign and constitutional to complete the building of a state of law capable of protecting its territory and national decision."

Al-Aboudi stressed that “Iraq’s sovereignty is not ‘divisible,’ but that does not prevent Iraq from opening up to its regional and international environment based on mutual respect and common interests, from the position of an independent state.”

He concluded by saying: "The first hundred days are the beginning of a clearer path, in which the state advances with its institutions, and Iraq advances with its confidence and ability to protect its security, interests, and national decision."  link

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Tishwash:  A crisis of confidence and a cash economy: Around 97 trillion Iraqi dinars are outside the banking system.

Cash held outside the banking system constitutes one of the most prominent challenges facing the Iraqi economy, given the continued reliance of a large segment of citizens and merchants on cash transactions and keeping part of their money outside banks.

While money outside the banking system does not necessarily mean that it is entirely hoarded, its sheer size raises questions about the weakness of banking transactions and the ability of banks to attract savings and convert them into loans and financing for projects and investments.

This reality reopens the file on the relationship between citizens and banks, the reasons for the continued preference for cash, and the repercussions of a cash economy on the movement of money and economic activity, especially with the presence of dozens of banks operating in the country.

Money outside banks

The Prime Minister's financial advisor, Mazhar Muhammad Saleh, told Shafaq News Agency that "the fact that some cash remains outside the banking system represents one of the challenges facing the Iraqi economy, given the limited benefit the banking sector derives from these funds in deposit and credit operations, and in financing projects and investments."

Saleh explains that “money hoarded in cash, whether by households or companies, remains outside the scope of financial intermediation, which limits the ability of banks to employ savings in financing economic activity, and increases reliance on cash and the informal economy, in addition to the high cost of cash transactions and weak financial transparency.”

He emphasizes that "the problem does not lie in the use of cash itself, but rather in its transformation into a means of hoarding savings instead of directing them through financial channels towards investment and production."

He points out that “returning these funds to the economic cycle requires building trust in banks and providing real incentives for saving, through developing savings products, offering competitive returns on deposits, enhancing depositor protection, improving banking services, reducing the cost and procedures for opening accounts and transfers, and expanding electronic payments, digital wallets, and points of sale.”

Saleh concludes that "the process should not stop at the transfer of money from homes to banks, but should move from deposits to credit, from credit to investment, and ultimately to production and job creation."

The amount of money outside banks 

In contrast, financial expert and former Director General of the Central Bank, Mahmoud Dagher, offers a different interpretation of the nature of funds outside banks, stressing that they do not all represent hoarded funds.

Dagher told Shafaq News Agency that "the amount of cash issued is about 105 trillion dinars, of which about 8 trillion dinars are inside the banking system, while about 97 trillion dinars are outside it."

He explains that “about two-thirds of the money outside the banking system is used to settle cash payments between merchants, real estate sales and purchases, and pay salaries and wages, while hoarding may represent about a quarter of the money outside banks.”

Dagher links the continued reliance on cash to “insufficient trust in banks, along with prevailing customs in Iraqi society and the slow transition to electronic payment,” noting that “the transition to a broad electronic payment system requires a long period of time, with the continued development of banks and payment tools.”

The figures for monetary issuance highlight the importance of the discussion regarding the amount of money circulating outside banks. However, monetary issuance does not necessarily mean that the entire amount represents money hoarded by citizens, nor does its increase automatically mean the printing of new money.

According to Dagher's reading, the majority of money outside banks enters the market and settles cash payments, which makes distinguishing between circulating cash and hoarded money essential when assessing the size of the problem.

Cash presence 

Despite the presence of a large number of banks, cash transactions still occupy a large part of economic activity in Iraq.

The number of operating banks reached 72, including 7 government banks and 65 private banks. However, the large number of banks does not necessarily mean a high level of banking transactions, as the main challenge remains the extent to which citizens and companies use banks for saving, payment and financing.

The Central Bank is working to promote financial inclusion and expand the customer base of the banking system, in addition to expanding electronic payment methods and spreading financial literacy.

First choice for Iraqis

Economic expert and professor of political science at Dhi Qar University, Najm Abdul Tarish, told Shafaq News Agency that "the continuation of the cash economy is linked to a set of overlapping factors, including weak confidence in banks, deeply rooted habits of dealing in cash, the expansion of the informal economy, as well as the limited use of electronic payment in some activities."

He adds that "the problem does not lie in the existence of cash within the economy, as it is a natural part of any financial system, but rather in cash becoming the primary means of settling transactions and holding savings, which reduces the money that passes through banks and limits their ability to create credit and finance economic activity."

Available data indicates that the number of payment cards in Iraq has exceeded 20 million, but their actual use is still less than their widespread use, while a number of cardholders primarily use the accounts to withdraw salaries rather than use them for daily purchases and payments.

Possible solutions

Addressing the problem does not stop at returning the funds to the banks, as the ultimate goal is to bring them back into the economic cycle more efficiently.

When money is converted into deposits, it can give banks greater ability to provide credit, and when credit is converted into investment and productive projects, this can be reflected in growth, job creation, and increased economic activity.

Therefore, the challenge facing Iraq is not only the amount of money outside the banks, but also building a banking system that makes the citizen and the merchant find in the bank a safer, more useful and easier way than keeping money and dealing with it in cash.

Ultimately, the large amount of cash outside the banking system reveals the continued dependence of the Iraqi economy on cash transactions, at a time when the banking sector is seeking to increase its role in savings, credit, and financing the economy.

While Mazhar Muhammad Saleh believes that returning funds to the banking system requires restoring confidence and stimulating savings, Mahmoud Dagher points out that the largest portion of funds outside banks actually moves in the market and does not represent complete hoarding, while Najm Abdul Tarish links the continuation of the cash economy to weak confidence, prevailing habits, and the limited use of electronic payment.

The transition from a cash-based economy to one more reliant on banks and electronic payments remains linked to the banking sector’s ability to restore confidence, provide more efficient services, and transform funds from mere cash transactions into deposits, credit, investment, and production. link

Tishwash: Al-Aboudi: September 30th is a milestone for consolidating state authority and limiting power.

 Government spokesman Haider al-Aboudi affirmed that the first 100 days of Prime Minister Ali Faleh al-Zaidi’s government represent the beginning of a clearer path to consolidate state sovereignty, noting that the government has been working since gaining the confidence of the House of Representatives on May 14, 2026, to address national issues according to “state logic.”

Al-Aboudi said, in a statement followed by (Al-Mada), that the government, after one hundred days and holding 15 cabinet sessions, has been keen since its first day to ensure that the standard of its performance is “bearing responsibility in decision-making, consolidating state sovereignty, and protecting national decisions from dictates,” in addition to strengthening Iraq’s foreign relations on the basis of mutual interests.

He added that the government is moving towards building a state that protects its citizens and addresses inherited and emerging challenges, in parallel with continuing institutional and economic reform in a way that ensures a decent life and reduces the risks that threaten public treasury revenues.

Al-Aboudi pointed out that the government views September 30 as a pivotal moment in completing the path of national sovereignty, until Iraq is fully sovereign in its decisions, security, and land, and no will is imposed on it from outside its institutions, nor do the instruments of power remain outside the authority of the state.

He explained that implementing this path is based on the constitutional and legal powers of the government and its program to consolidate state authority and confine the instruments of power to the legally authorized military and security institutions, stressing that the issue represents a “state choice and constitutional commitment,” and is not a separate procedure from the project of building state institutions.

The government spokesman stressed that all instruments of power should be under the command of the state, and that sovereign decisions should be issued exclusively by its constitutional institutions, in order to ensure the rule of law and the protection of Iraqi lands and national decision-making.

He added that “Iraq’s sovereignty is not subject to division,” while stressing that Baghdad continues to be open to its regional and international surroundings and to establish its foreign relations on the basis of mutual respect and common interests, starting from the position of an independent state capable of making its own decisions.

Al-Aboudi concluded that the first hundred days are just the beginning of a path through which the government seeks to strengthen the authority of state institutions and their ability to protect security, interests and national decision-making, considering that the next stage will witness greater clarity in the implementation of these directions.  link

Iraq Economic News and Points To Ponder Late Friday Evening 8-21-26

Iraq Faces A Difficult Period... Al-Zaydi: We Have More Than One Solution To The Economic Crisis, And The Budget Will Soon Be Before Parliament - 8/21/2026

Latest News Friday,August 21, 2026 Baghdad - One News - 8/21/2026   Prime Minister Ali al-Zaidi affirmed that Iraq is going through a “critical” phase, given the escalating tensions in the region and the repercussions of the closure of the Strait of Hormuz on trade and the economy, stressing that the government has a range of alternatives and solutions to deal with the economic pressures and maintain the country’s stability.  

Al-Zaydi said, during his participation in the proceedings of the “Eighth Baghdad Dialogue” conference, that regional developments have placed Iraq before major economic and trade challenges, especially with the closure of the Strait of Hormuz, which represents a major passage for energy and trade in the region.  

He pointed out that the Strait of Hormuz did not witness a closure even during the years of the embargo on Iraq, considering that the current circumstances require the government to move quickly to secure alternative routes and reduce the repercussions of the regional crisis on the Iraqi interior.  

The Prime Minister explained that the government has begun activating border crossings and enhancing their capacity to accommodate the movement of goods and trade, as part of a plan aimed at diversifying import and export routes and reducing reliance on a single crossing in light of the turmoil in the region.  

In the financial file, Al-Zaydi announced that the government is preparing to send the draft budget to the House of Representatives soon, stressing that "the next stage" will witness reform measures to address the economic and financial challenges and enhance the state’s ability to cope with current pressures.  

He stressed that the government is not dealing with the crisis through a single option, emphasizing that it has “more than one solution” to the economic problems, and that work is underway on several parallel tracks to ensure the continuation of economic activity and to secure the country’s needs.(Possible monetary value increase)

The Prime Minister's remarks come at a time when Iraq is facing the direct repercussions of regional tensions and the closure of the Strait of Hormuz, amid challenges related to trade, energy, and public revenues. This has prompted the government to intensify its efforts to activate land border crossings and seek alternatives that mitigate the crisis's impact on Iraqi markets and the economy.     https://1news-iq.net/العراق-أمام-فترة-عصيبة-الزيدي-لدينا-أ/

Al-Fayyad Criticizes The Factions: The “Resistance” Phase Cannot Continue As A Permanent Occupation, And Disarmament By Force Will Bring Chaos - 8/21/2026

Baghdad - One News - 8/21/2026 The head of the Popular Mobilization Forces, Faleh al-Fayyad, stated that the “resistance” phase cannot continue as a permanent occupation, calling for the transfer of responsibilities to state institutions upon reaching the stage of stability.

Al-Fayyad said regarding the bombing of the Popular Mobilization Forces headquarters, that the statements, indications, and accounts that were conveyed from the American and Saudi sides before the bombing of Iraq indicate that the targeting was in Basra, while most of the martyrs fell in Mosul. So where is Basra in relation to Mosul? We did not record any sacrifices or martyrs in Basra.  

He stressed that no one but the Commander-in-Chief of the Armed Forces could remove him from his position, while warning against dealing with the issue of disarming the factions by force.https://1news-iq.net/الفياض-يلمز-الفصائل-مرحلة-المقاومة-ل/

Qasim Al-Araji, Supporting Al-Zaydi's Proposal: Confining Weapons Is A Sovereign Decision, And Dialogue Is The Way To Achieve It

Latest News Friday,August 21, 2026 Baghdad - One News - 8/21/2026   The security advisor to the Prime Minister, Qasim al-Araji, confirmed on Friday that what Prime Minister Ali al-Zaidi presented during the eighth Baghdad Dialogue Conference confirms the state’s steadfastness in its national choices, foremost among them being the restriction of weapons to state institutions and the consolidation of the rule of law.

  Al-Araji said in a post published on his account on the “X” platform that restricting weapons represents a sovereign Iraqi decision that is accomplished through dialogue and national understanding, in a way that preserves stability and puts the interest of Iraq and its people above all considerations.

He added that consolidating security, the rule of law, and preserving national decision-making are fundamental pillars for building a strong state, a stable economy, and an attractive investment environment.  

Al-Araji pointed out that Iraq is proceeding with a balanced national vision that enhances its position and protects its interests, explaining that its foreign relations are based on mutual respect and a balance of interests, which consolidates its presence as an active partner in promoting the security, stability and prosperity of the region.  

Al-Araji's statements come in support of what the Prime Minister put forward during the Baghdad Dialogue Conference regarding the issue of restricting weapons, and the emphasis on achieving it through dialogue and national understanding, within a path aimed at strengthening the authority of the state and preserving national decision-making.  

https://1news-iq.net/قاسم-الأعرجي-مؤيداً-طرح-الزيدي-حصر-الس/

Trump Unveils 'Unprecedented' Financial Siege Against Tehran - 8/20/2026

2026-08-20 / 03:43  Shafaq News- Washington   US President Donald Trump on Thursday launched a new push to isolate Iran economically, threatening countries and companies that maintain financial or commercial ties with Tehran with “severe economic consequences.”

In a post on Truth Social, Trump accused Iran of failing to seize an opportunity for a deal with Washington, declaring the “MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY.”  

“This will be Economic Warfare and Isolation on an unprecedented scale,” he wrote, portraying Iran as severely weakened after months of conflict, with its navy disappearing, its air force destroyed and its military factories reduced to rubble.  

  Donald J. Trump     TRUTH@realDonaldTrump

No one has given the Islamic Republic of Iran a greater opportunity to make a Deal than me. TRAGICALLY, for them, they have failed to take it. Therefore, today, I am announcing the MOST CRUSHING ECONOMIC OPERATION EVER TAKEN AGAINST ANY COUNTRY!

This will be Economic Warfare and Isolation on an unprecedented scale. Their navy is gone, their air force is destroyed, their military factories are now rubble, their currency is worthless, and their country is hanging by a thread.

Today, I am also announcing that ANY country that allows its financial institutions, businesses, airports, or government entities to provide any type of lifeline to Iran will itself face TREMENDOUS Economic Consequences.

 Oil smuggling, swap lines, cash transfers, exchange houses, ship registries, front companies — It all needs to stop NOW. You know who you are.

This will be an ECONOMIC D-DAY, and we need all of our Allies to stand with the United States of America to isolate, and defeat, the Iran threat. These maniacs are on the ropes, and these HISTORIC MEASURES will cripple them and their ability to project terror worldwide.

IRAN WILL NEVER HAVE A NUCLEAR WEAPON. THANK YOU FOR YOUR ATTENTION TO THIS MATTER.President DONALD J. TRUMP

  He also described Iran’s currency as worthless and “hanging by a thread,” warning that countries allowing their banks, companies, airports or government agencies to support Iran could face massive punitive measures.

Axios, citing US officials, previously reported that Washington was preparing new economic measures against Iran as it seeks to increase pressure on Tehran and bring it back to the negotiating table.  

The two countries signed an interim memorandum on June 17 aimed at ending nearly six months of war and paving the way for a broader agreement. The 60-day negotiating period set by the United States expired on Monday without a permanent settlement, while Trump indicated that no talks with Iran were underway or scheduled. 

https://www.shafaq.com/en/World/Trump-unveils-unprecedented-financial-siege-against-Tehran

Reuters: Trump Threatens Economic Consequences Against Any Country Providing A "Lifeline" To Iran, And The UAE Preempted This

latest newsThursday, August 20, 2026 Washington - One News - 8/20/2026   Reuters reported that US President Donald Trump warned of economic consequences against any country that provides “any kind of lifeline to Iran,” at a time when the United States is seeking to end a war it started alongside Israel about six months ago.  

The agency noted that Trump’s threats and announcements on social media do not always translate into detailed policies or actions implemented in the manner described in his posts.  

She added that Trump did not specify what steps the United States would take against any country that provides support to Iran, which could apparently include US allies who helped broker peace talks, nor did he name any country.  

She added that the United Arab Emirates, which hosts a major US military base, announced the suspension of all commercial activities, trade exchanges and financial transactions with Iran until further notice.  

https://1news-iq.net/رويترز-ترمب-يهدد-بعواقب-اقتصادية-ضد-أي/

Seeds of Wisdom RV and Economics Updates Saturday Morning 8-22-26

Good Morning Dinar Recaps,

When U.S. Debt Becomes a Currency Problem: The Dollar-Bond Relationship Enters a New Phase

The United States has crossed the $40 trillion debt threshold just as long-term Treasury yields remain elevated and the dollar weakens—raising a larger question about whether investors are beginning to view high U.S. yields as compensation for fiscal risk rather than simply an attractive return.

Overview

• U.S. federal debt has surpassed $40 trillion, while long-term Treasury yields have risen to levels not seen since 2007.

• Treasury Secretary Scott Bessent has expanded long-term bond buybacks in an effort to support the Treasury market, but the relief has so far been limited.

• Meanwhile, the dollar has fallen toward a three-month low, creating an unusual combination of higher U.S. borrowing costs and a weaker currency.

Key Developments

1. The $40 trillion debt milestone changes the conversation

The United States has now crossed a symbolic but significant threshold: total federal debt has exceeded $40 trillion.

The milestone comes after U.S. debt more than doubled since 2017, reflecting years of deficits in which government spending has consistently exceeded revenue. Rising interest costs are adding another layer of pressure to the federal budget.

The important issue isn't the $40 trillion number by itself.

It is what happens when a government must continually issue new debt while the interest rate demanded by investors is rising.

That creates a potentially difficult feedback loop:

More debt → more interest expense → greater financing needs → more Treasury issuance → greater pressure on yields.

That cycle is now becoming an increasingly important part of the global financial story.

2. Treasury is intervening—but the market is still testing the long end

The Treasury has taken an unusually active approach to the bond market.

The department announced that it would at least double certain long-term Treasury buybacks, and Bessent has indicated that additional purchases could follow.

The immediate objective is to improve liquidity and help bring down longer-term borrowing costs.

But the market has not simply accepted the intervention.

Long-term yields rose sharply earlier this week, with the 30-year Treasury yield reaching its highest level since 2007. Reuters reports that investors have been citing the fiscal outlook, heavy Treasury issuance, Iran-related geopolitical risks and uncertainty over Federal Reserve policy as reasons for demanding higher yields.

That is the critical distinction:

Treasury can influence market liquidity. It cannot simply eliminate the underlying demand for compensation for fiscal and inflation risk.

3. The dollar is sending an unusual signal

This is where the story becomes much bigger than the bond market.

Normally, higher U.S. Treasury yields can attract international capital because investors can earn more by holding dollar-denominated assets.

But the dollar has recently moved in the opposite direction.

Reuters reports that the dollar fell to a three-month low against the euro as investors questioned whether Treasury's buyback strategy would address the deeper fiscal problems confronting the United States.

That creates an unusual combination:

Higher long-term Treasury yields + weaker dollar.

The implication isn't necessarily that investors have lost confidence in the United States.

Rather, markets may increasingly be distinguishing between the yield being offered and the risk associated with holding the underlying asset.

Why This Matters

For decades, the dollar's position benefited from a powerful reinforcing mechanism:

U.S. Treasuries were viewed as the world's premier safe asset → global investors bought Treasuries → demand supported the dollar → the dollar's reserve status reinforced demand for Treasuries.

That relationship remains extraordinarily powerful.

But it is not immune to stress.

When Treasury yields rise because investors want additional compensation for inflation, fiscal deficits or uncertainty, higher yields don't necessarily produce a proportionally stronger dollar.

That is the potential change taking place now.

The yield itself may be becoming part of the risk signal.

The Treasury Market Is Becoming a Global Financial Transmission Mechanism

U.S. Treasury securities aren't simply another investment.

They serve as a benchmark for borrowing costs throughout the global economy.

When long-term Treasury yields rise, the consequences can spread into:

• Mortgage rates

• Corporate borrowing

• Government financing

• Equity valuations

• Emerging-market currencies

• Global capital flows

• Commodity pricing

Reuters recently noted that the pressure is not isolated to the United States. Major economies across the G7 are also confronting rising financing needs associated with aging populations, defense spending, climate-related costs and higher energy prices.

That means the Treasury market is increasingly part of a broader sovereign-debt repricing.

The Iran Conflict Adds Another Layer

The current environment is also being complicated by the war with Iran.

Higher energy prices can reinforce inflation at exactly the time that governments are trying to control borrowing costs.

Reuters has identified geopolitical risk from the Iran war as one of the factors investors are considering when pricing long-term Treasury debt.

That creates another difficult policy equation:

War → oil risk → inflation pressure → higher yields → higher government interest costs.

The longer elevated energy prices persist, the more difficult that equation becomes for central banks and governments alike.

Why It Matters to Foreign Currency Holders

This development is particularly important for foreign-currency holders because currency values are ultimately connected to confidence in the financial system behind the currency.

The dollar remains the world's dominant reserve currency, and nothing in the current data suggests that position is about to disappear.

But foreign investors are constantly comparing:

Return + risk + purchasing power + fiscal stability.

If U.S. yields remain high while the dollar weakens, that suggests investors are increasingly incorporating fiscal and inflation concerns into the dollar equation.

For foreign-currency holders, this is why watching only exchange rates can be misleading.

The larger question is:

What is happening underneath the currencies?

Implications for the Global Financial Reset

• Sovereign debt is becoming a central issue in the next phase of global finance.

The $40 trillion U.S. debt milestone is occurring alongside similar fiscal pressures across other major economies. The question of who finances government debt and at what price is becoming increasingly important.

• The dollar-Treasury relationship is being tested.

The dollar's traditional benefit from higher U.S. yields becomes less straightforward when yields are rising because investors are demanding compensation for fiscal and inflation risks.

• Central banks have less room to operate independently of bond markets.

Governments need manageable borrowing costs. Central banks need to maintain price stability. Investors want adequate compensation for risk.

Those objectives can come into conflict.

• The financial reset may be emerging through repricing rather than replacement.

This is an important distinction to understand.

There is no evidence that a single event is about to replace the dollar or overturn the existing monetary system.

Instead, we are seeing the gradual repricing of debt, currencies, commodities and risk.

That may ultimately prove more consequential than a dramatic overnight "reset."

What to Watch Next

1. Whether the 30-year Treasury yield remains above 5%.

2. Whether the Treasury expands its long-term bond buybacks again.

3. Whether the dollar continues weakening despite elevated U.S. yields.

4. Whether investors continue demanding higher compensation for long-term Treasury debt.

5. What Federal Reserve Chair Kevin Warsh signals at Jackson Hole next week.

6. Whether oil prices remain elevated as the Iran conflict continues.

7. Whether other major economies experience similar sovereign-debt pressures.

Treasury Secretary Bessent is also scheduled to hold a press conference Monday, potentially providing additional clues about the administration's approach to debt markets and financial policy.

Bottom Line

The most important development isn't simply that U.S. debt has crossed $40 trillion.

It is that this milestone has arrived at the same time that the Treasury market is demanding higher long-term yields and the dollar is weakening rather than strengthening.

The Treasury is attempting to stabilize the long end of the bond market through increased buybacks, but investors continue to focus on the deeper questions surrounding deficits, debt issuance, inflation and future interest costs.

That is why today's story represents a potentially important new phase for the global financial system.

The next stage of the global financial reset may not be defined by the dollar suddenly losing its reserve status. It may be defined by investors gradually changing the price they demand to finance the world's largest debtor—and by how that repricing flows through the dollar, Treasury market, commodities and central banks.

The question is no longer simply how high Treasury yields can go. It is whether higher yields can continue to support the dollar when those yields increasingly reflect the cost of carrying a $40 trillion debt burden.

Sources

• Reuters — U.S. debt crosses $40 trillion threshold after doubling under Trump and Biden

• Reuters — Dollar falls to three-month low on Treasury buyback worries

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🌱 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

Seeds of Wisdom RV and Economics Updates Friday Afternoon 8-21-26

Good Afternoon Dinar Recaps,

India Pushes the Rupee Further Into International Trade as Dollar Dependence Gradually Diversifies

New trade rules make it easier for Indian exporters to invoice and receive payment in rupees, adding another piece to the gradual diversification of the global payments system.

Overview

• India has amended its Foreign Trade Policy to put eligible rupee export receipts on a more equal footing with foreign-currency earnings.

• The change allows exporters dealing with most countries outside the Asian Clearing Union to denominate contracts and invoices in rupees and receive payment in rupees, removing a regulatory obstacle to wider rupee-based trade.

• The development is significant for the global financial-reset story because it represents practical diversification of trade settlement, rather than simply political discussion about reducing dollar dependence.

Key Developments

1. India removes a barrier to rupee-based international trade

India's Directorate General of Foreign Trade amended the Foreign Trade Policy 2023, allowing export contracts and invoices with non-Asian Clearing Union countries to be denominated in either Indian rupees or foreign currencies.

Exporters can also receive their proceeds in rupees or foreign currency, while eligible rupee receipts can qualify for the same trade-policy benefits as foreign-currency earnings.

That distinction is important.

India is not merely encouraging companies to consider using the rupee. It is changing the regulatory framework so that using the rupee becomes easier within the existing export system.

2. The move could reduce reliance on the dollar for some transactions

For decades, much of international trade has ultimately been settled through the dollar, even when neither the buyer nor seller is American.

India's new rules create another option.

A foreign buyer that can obtain rupees through its banking system can potentially purchase Indian goods, settle the transaction in INR, and avoid converting into dollars for that particular trade.

This does not mean the dollar is being displaced.

Rather, it adds another currency to the international settlement network.

That distinction is important when evaluating claims about "de-dollarization."

The global financial system can diversify without the dollar suddenly losing its dominant position.

3. India's rupee strategy is developing while the currency itself faces pressure

There is an interesting contrast in today's story.

The rupee has been under pressure from higher oil prices, importer demand and geopolitical uncertainty. Reuters reported that the Reserve Bank of India has been actively intervening in foreign-exchange markets to limit the currency's decline.

At the same time, India's foreign-exchange reserves have risen to approximately $716.9 billion, a six-month high, supported by substantial capital inflows and increases in both foreign-currency assets and gold holdings.

That gives India a stronger financial cushion while it works to expand the international role of its currency.

Why This Matters

The important development isn't that India is trying to replace the U.S. dollar.

It is that India is building additional infrastructure around the rupee at a time when countries increasingly want alternatives for international settlement.

The new rules could be particularly useful for trading partners that experience dollar shortages, sanctions-related restrictions or high costs associated with dollar-based transactions.

For Indian exporters, rupee settlement can also reduce some of the need for currency hedging when the transaction itself does not require exposure to the dollar.

However, there is an important limitation:

A currency cannot become truly international simply because a government permits its use.

Foreign companies and banks must actually want to hold, exchange and deploy that currency.

That means India's next challenge is developing the financial infrastructure and international liquidity necessary to make the rupee convenient outside India's borders.

A Larger Shift in the Global Trade Architecture

India's move fits into a much broader development.

Countries are increasingly experimenting with local-currency settlement, bilateral payment arrangements and alternative cross-border financial channels.

The motivation differs from country to country.

For some, it is reducing exposure to dollar volatility. For others, it is lowering transaction costs. Some want protection from sanctions, while others simply want greater monetary independence.

India's approach is particularly significant because of the size of its economy and its growing role in global trade.

The more countries that develop functioning alternatives, the more diversified the international monetary system can become—even if the dollar remains dominant.

Why It Matters to Foreign Currency Holders

For foreign-currency holders watching the global financial reset, this is a development worth following because it concerns how currencies are actually used, rather than simply what governments say about them.

A currency's international importance ultimately depends on whether it can be:

• Used to settle international trade

• Held by foreign banks and businesses

• Exchanged efficiently

• Used to purchase goods and services

• Supported by liquid financial markets

• Trusted as a store of value

India is working on several of those pieces.

The rupee does not need to replace the dollar for its international role to become more important.

Even a gradual increase in rupee-based trade would contribute to a more diversified currency system.

Implications for the Global Financial Reset

• Trade settlement is becoming more diversified.

India's decision adds another practical pathway for international commerce outside traditional dollar settlement.

• The BRICS story is becoming more about infrastructure than headlines.

The most consequential developments may not be the creation of a single BRICS currency.

They may instead be local-currency settlement, payment systems, banking arrangements and mechanisms that allow countries to conduct more trade without first converting everything into dollars.

• The dollar remains dominant—but the architecture around it is changing.

This is the key point.

There is no evidence from today's announcement that the dollar is being replaced.

Instead, the global financial system is gradually acquiring more settlement options.

That could eventually make the international monetary system less dependent on any single currency, even while the dollar remains the largest reserve and settlement currency.

What to Watch Next

The most important indicators will be:

1. Whether foreign trading partners actually begin accepting more rupee-denominated contracts.

2. Whether international banks expand their ability to hold and transact in rupees.

3. Whether India's existing rupee-settlement mechanisms grow in volume.

4. Whether India expands bilateral arrangements with major trading partners.

5. Whether other BRICS and emerging-market economies introduce similar measures.

6. Whether the rupee becomes increasingly useful as a settlement currency even when the underlying trade does not involve India directly.

Bottom Line

India's latest move is not a dollar collapse story.

It is something more gradual—and potentially more important over the long term.

India is removing regulatory barriers that have made rupee-based international trade more difficult and is giving exporters greater flexibility to invoice and receive payment in their own currency.

At the same time, India's central bank is building financial buffers and actively managing currency volatility while the country's foreign-exchange reserves approach record levels.

The global financial reset may not arrive as a single dramatic replacement of the dollar. It may emerge through thousands of smaller changes in how countries trade, settle payments, hold reserves and manage currency risk.

Seeds of Wisdom Team

Newshounds News™ Exclusive

Sources

• Reuters — India eases rules for rupee export payments, seeks to widen trade settlement

• The Week — New FTP amendment: Will exporters be happy about trading in Rupee?

~~~~~~~~~~

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MilitiaMan & Crew: Direct From The Crew: August 20th Analysis

MilitiaMan & Crew: Direct From The Crew: August 20th Analysis

8-21-2026

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=-v30T0U9P50

Iraq Economic News and Points To Ponder Late Thursday Evening 8-20-26

Independent Sources Reveal: Iraq's 2027 Budget Is Set At 200 Trillion Dinars, With The Exchange Rate Fixed At 1320.

August 20, 2026Last updated: August 20, 2026  Al-Mustaqilla - According to informed sources speaking to Al-Mustaqilla on Thursday, the Iraqi government is moving towards adopting a dollar exchange rate of 1320 Iraqi dinars within the 2027 budget project, with no current intention to change the adopted exchange rate.

According to the sources, the new budget project is being prepared based on the current exchange rate, in a move that reflects the government’s commitment to the policy of stabilizing the dinar’s exchange rate and not introducing sudden changes to the market during the next stage.

Information indicates that the size of Iraq’s budget for 2027 may reach about 200 trillion Iraqi dinars, which, if adopted at this size, would be one of the largest budgets in Iraq’s history since 2003, in light of the high volume of government spending and the increasing financial obligations of the state.

According to sources, the government is working on finalizing the draft budget, in preparation for completing it and sending it to the House of Representatives in the coming period, after which the process of discussion, amendments and voting on it will begin.

The Iraqi public is awaiting the 2027 budget proposal, especially regarding the exchange rate, spending volume, salaries, investment projects, and the mechanism for financing the deficit, at a time when public finances are facing challenges related to oil prices and non-oil revenues.

If the exchange rate remains stable at 1320 dinars to the dollar, this means that the government will continue to base its financial estimates on the current official rate, and will not adopt a change in the value of the dinar within next year’s budget, according to the data reported by the sources.

This information remains linked to the draft budget before its final approval, as the figures and details may undergo modifications during the government review   and discussion phases within the House of Representatives

https://mustaqila.com/المستقلة-تكشف-موازنة-العراق-2027-عند-200-تري/ a

Removing Zeros: A Currency Restructuring Or A Step To Boost Confidence In The Dinar?

Baghdad: Anwar Ayed     The issue of removing zeros from the Iraqi currency has resurfaced, amid economic debate about the feasibility of this step and its implications for the value of the dinar and the purchasing power of the citizen, as well as the readiness of the banking and financial sectors to implement it.

Economic experts believe that removing zeros, if implemented within a comprehensive study and a clear plan, could contribute to restructuring the currency and simplifying financial and banking transactions, while emphasizing that the measure itself does not mean an increase or decrease in the purchasing power of the dinar, as long as prices, salaries and savings are transformed at the same rate.  

Strengthening The Value Of The Dinar

Economic expert Haider Al-Sheikh told Al-Sabah newspaper: “Changing the Iraqi currency and removing zeros will enhance the value of the Iraqi dinar against foreign currencies,” explaining that “changing the currency will contribute to reviving the economy and providing cash liquidity to the government.”

The sheikh explained that the currency change process, according to the study, requires several months to print specific denominations in batches, in preparation for replacing them with the current currency. He pointed out that this process could contribute to strengthening the balances of government and private banks in Iraqi dinars and providing liquidity. 

The Necessary Cash.

He added that another benefit of the process is “knowing the amount of currency held by the government and banks, as well as knowing the volume of currency circulating in the market.”

The sheikh pointed out that Iraq, after 2003, printed more than 100 trillion dinars, indicating that about 70 percent of the printed cash is outside the government's control and stored in homes. 

And it is traded on the market.  

Renaming The Monetary Unit

For his part, economist Mustafa Faraj said that "removing zeros from the Iraqi currency, if implemented according to a comprehensive study and plan, represents a positive step towards restructuring the currency and simplifying financial and banking transactions," stressing that "the process itself does not necessarily mean an increase or decrease in value." 

The Purchasing Power Of The Dinar.

Faraj explained that removing three zeros, for example, means changing prices, salaries, and balances by the same percentage, and therefore the citizen's purchasing power does not change as a result of the removal alone.

He added that the main economic benefit is “reducing the volume of circulating figures, facilitating accounting and banking operations, supporting electronic payment systems, and making dealing in dinars more efficient and transparent,” stressing that the success of the step is linked to monetary stability, price control, and broad public awareness.

He explained that removing zeros could be part of a “broader monetary and banking reform package that enhances confidence in the dinar and supports economic stability.” 

It is not a single, formal procedure.

Risks Of The Conversion Phase

In contrast, economic researcher Ahmed Eid warned that the most prominent risks that may accompany the removal of zeros are not related to the accounting removal process itself, but rather to the conversion phase and what may accompany it in terms of confusion in the markets and exploitation by some traders, especially in rounding prices upwards.

He explained that goods with small prices may be more likely to increase when converted to the new monetary unit, which, if this is repeated on a large scale, may lead to citizens feeling an actual increase in the cost of living, even though the process of removing zeros is theoretically supposed not to change purchasing power.

Eid pointed to other risks, including the weak financial literacy of some citizens, particularly with regard to converting cash savings, pricing goods and services, contracts and debts, as well as the possibility of speculation and rumors spreading about the value of the dinar.

He stressed that these risks become greater if the operation is carried out during an economic period suffering from financial pressures and problems related to liquidity and confidence.  

Dual Pricing And Oversight

To protect the purchasing power of citizens, Eid called for the adoption of a sufficient transitional period preceding and accompanying the change process, during which dual pricing in the old and new dinars would be adopted, and precise rules would be put in place to prevent arbitrary rounding of prices, in addition to tightening control over markets and implementing a broad awareness campaign.  

He stressed the need for the central bank to ensure that all bank accounts, savings, debts, salaries and contracts are converted in the same proportion, with the new currency being made available in an organized manner, and a period of simultaneous circulation of the two currencies being maintained.

He stressed that “the most important thing is that the removal of zeros should be preceded by real financial and monetary stability,” explaining that protecting purchasing power is not achieved by changing the form of the currency, but rather by controlling inflation, stabilizing the exchange rate and addressing financial and economic imbalances.

Removing zeros: A currency restructuring or a step to boost confidence in the dinar?

https://iqdnews.substack.com/p/removing-zeros-a-currency-restructuring

  Iraq Wants To Delete Zeros From The Dinar But Will This Help Its Economy?

The National News   Iraq is again considering a long-standing and controversial plan to delete zeros from the dinar as the country struggles with a deepening budget squeeze. The latest discussions revive an issue debated in Iraq for more than two decades.

The proposal was first floated during the tenure of former US civil administrator Paul Bremer in 2003 and has repeatedly resurfaced without being implemented. This time, the debate comes as Baghdad's budget squeeze is worsened by the closure of the Strait of Hormuz, disrupting Iraq’s main oil export route.   https://www.youtube.com/watch?v=en8uMoy6SYs

Finance Minister Orders Acceleration of Iraq's First Program and Performance Budget

Mohammed Jangadost

At a Glance:

• Finance Minister Faleh Sari reviewed preparation for the upcoming draft federal budget under a program and performance model.

• Sari instructed the Budget Department to finalize draft allocations within specified deadlines and realistic fiscal estimates.

• The transition moves Iraq away from traditional line-item budgeting to link resources directly to strategic outcomes.

• The ministry aims to maximize spending efficiency amid broader fiscal pressures affecting the country.

Iraqi Minister of Finance Faleh Sari visited the Ministry of Finance's Budget Department to inspect ongoing work on the country's upcoming federal draft budget. During the review, Sari instructed officials to adhere strictly to completion schedules while implementing a program and performance budgeting framework designed to overhaul public expenditure management.

Key Statements and Focus Area:

• Transitioning Fiscal Strategy:"The Ministry is moving toward a gradual transition from line-item budgeting to program and performance budgeting. This approach links resource allocation directly to objectives, programs, and outcomes, thereby enhancing the efficiency of public expenditure management." — Faleh Sari, Iraqi Minister of Finance.
  

• Methodological Discipline:"Completing the draft budget within specified deadlines requires finalizing its requirements according to a precise methodology and realistic estimates to ensure it serves targeted national results." — Ministry of Finance press release.

Shift to Program and Performance Methodology

The Ministry of Finance is phasing out the traditional line-item framework, which historically focused on administrative inputs, in favor of a system that allocates funds based on measurable project deliverables. The new model ties operational and investment outlays directly to sectoral goals, providing clearer oversight over public spending efficiency.

Enforcing Preparation Deadlines

Minister Sari urged department leads to maintain momentum to meet structural deadlines for the upcoming budget cycle. He emphasized that precise revenue and cost estimations are critical to making the new budgeting model functional and sustainable for state institutions.

FYI

The adoption of a program and performance budget reflects an effort to modernize public financial management in Iraq.

Amid volatile energy revenues and structural fiscal pressures, linking state outlays to performance benchmarks allows authorities to prioritize essential infrastructure, improve transparency, and restrict wasteful administrative spending across government ministries.    https://channel8.com/english/news/64159

Seeds of Wisdom RV and Economics Updates Friday Morning 8-21-26

Good Morning Dinar Recaps,

The Dollar-Debt Disconnect: Why Higher Treasury Yields Are No Longer Supporting the Dollar

U.S. borrowing costs remain elevated as Treasury intervention loses momentum, oil approaches $95 and investors reassess the relationship between American debt, interest rates and the dollar.

Overview

• The Treasury's effort to stabilize long-term bonds has provided only temporary relief, with yields climbing again despite the expanded buyback program.

• The dollar is weakening even as U.S. long-term yields remain elevated,suggesting investors are increasingly weighing fiscal and inflation risks alongside interest-rate differentials.

• Oil has moved toward $95 a barrel, adding inflation pressure just as markets prepare for the Federal Reserve's Jackson Hole gathering and reassess the U.S. fiscal outlook.

Key Developments

1. Treasury intervention has not solved the bond-market problem

The Treasury's decision to increase purchases of longer-dated Treasury securities initially brought relief to global bond markets.

That relief has proved short-lived.

U.S. long-term yields have moved higher again, with the 30-year Treasury yield around 5.25%, after briefly declining following the Treasury's announcement. The market is effectively testing whether government intervention can overcome the underlying forces driving yields higher.

Those forces include large fiscal deficits, enormous Treasury issuance, inflation concerns and growing government interest costs.

Treasury Secretary Scott Bessent has indicated that the government could increase its buybacks further and has also discussed fiscal consolidation. But investors remain skeptical that spending reductions will be sufficient to substantially change the fiscal trajectory.

2. The dollar is sending a different signal

This is the part of today's story that makes it different from the bond-market articles Recaps has already published.

The dollar has fallen to a three-month low, even while U.S. long-term yields remain near multi-year highs. Reuters reports that investors are increasingly concerned about the U.S. fiscal picture and the credibility of attempts to stabilize the Treasury market.

Traditionally, higher U.S. yields have supported the dollar because they make dollar-denominated assets more attractive.

But the market is now asking a different question:

What if higher yields are increasingly interpreted as compensation for higher fiscal and inflation risk rather than simply as an attractive return?

That distinction could become increasingly important.

3. Debt and interest costs are becoming impossible for markets to ignore

The U.S. national debt has now exceeded $40 trillion, while interest costs are running at approximately $1.2 trillion annually, according to Reuters. The federal deficit is above 6% of GDP.

That creates a difficult feedback loop:

More debt → more Treasury issuance → higher borrowing costs → higher interest expense → greater financing needs.

Treasury buybacks may improve liquidity and reduce some market stress, but they do not eliminate that underlying cycle.

This is why today's bond-market story is ultimately a fiscal story.

4. Oil is adding another layer of pressure

Brent crude has moved toward $95 a barrel, with tensions surrounding Iran and the Strait of Hormuz contributing to renewed energy-market concerns. Oil prices are now at approximately one-month highs.

That creates another difficult equation for policymakers:

Higher oil → higher inflation pressure → fewer options for central banks.

If inflation remains elevated because of energy costs, the Federal Reserve has less room to cut rates aggressively.

Yet if the economy weakens under the weight of higher borrowing costs, maintaining restrictive policy becomes increasingly difficult.

Why It Matters

The significance of today's market isn't simply that the dollar is falling.

It is that the traditional relationship between U.S. yields and the dollar is becoming less reliable.

For decades, investors could generally understand the equation:

Higher U.S. rates → greater demand for dollars.

Today's environment is more complicated.

Investors are now simultaneously evaluating the return on Treasury securities and the risk associated with holding those securities.

That means the yield itself is becoming only one part of the calculation.

Why This Matters to Foreign Currency Holders

This changing relationship deserves attention from anyone holding foreign currencies.

Currency values are influenced by far more than central-bank interest rates.

Investors are also looking at:

• Government debt

• Fiscal deficits

• Inflation

• Energy costs

• Central-bank credibility

• Political and geopolitical risk

• Foreign demand for government bonds

If the dollar weakens while Treasury yields remain high, it could indicate that risk perceptions are beginning to offset the traditional advantage of higher U.S. returns.

That does not mean the dollar is collapsing.

It means the forces determining its value are becoming more complicated.

The International Monetary System Is Also Evolving

At the same time, countries are taking steps to make greater use of their own currencies in international trade.

India announced a change to its Foreign Trade Policy allowing export contracts, invoices and payments to be settled in either Indian rupees or foreign currencies. The measure is intended to make rupee-based international trade easier and expand the currency's use beyond India's borders.

This should not be interpreted as evidence that the rupee is replacing the dollar.

But it is another piece of a broader trend:

Countries are developing additional options for cross-border payments at the same time that the traditional dollar/Treasury relationship is being tested.

That makes this development particularly relevant to the global financial-reset discussion.

Implications for the Global Financial Reset

• The Treasury market remains the pressure point.

The world's financial system uses U.S. Treasury securities as a fundamental benchmark for pricing risk.

If investors demand persistently higher yields, the effects spread well beyond Washington into mortgages, corporate borrowing, equities, currencies and international capital flows.

• The dollar is being tested from a different direction.

The dollar's traditional advantage from higher U.S. yields becomes less powerful if investors begin viewing those yields as compensation for fiscal and inflation risks.

That doesn't eliminate the dollar's reserve role.

It changes the equation surrounding it.

• Global trade is gradually becoming more currency-diverse.

India's rupee initiative is relatively small compared with the enormous global dollar market.

But the structural direction matters.

More countries are creating mechanisms that allow trade to be conducted in local currencies, potentially reducing the need for dollars in some transactions.

The important story is therefore not "de-dollarization has happened."

It is that the global financial system is developing more alternatives while the U.S. financial system is simultaneously confronting its own debt and inflation pressures.

What to Watch Next

The next major signals will be:

1. Whether the 30-year Treasury yield remains around or above 5.25%.

2. Whether the dollar continues weakening despite elevated U.S. yields.

3. Whether Brent crude approaches or exceeds $100.

4. Whether the Treasury expands its bond-buyback program again.

5. What Federal Reserve officials signal at Jackson Hole about inflation and future interest rates.

6. Whether India and other emerging economies continue expanding local-currency trade mechanisms.

Bottom Line

The important shift today is not simply higher Treasury yields or a weaker dollar. It is the disconnect between the two.

The Treasury is attempting to stabilize long-term borrowing costs, yet investors continue demanding elevated yields. At the same time, the dollar is weakening rather than receiving the normal boost associated with higher U.S. rates.

Add $40 trillion in U.S. debt, approximately $1.2 trillion in annual interest costs, oil approaching $95 and growing use of local currencies in international trade, and the financial system is facing a much broader repricing of risk.

The next phase of the global financial reset may be less about a single currency replacing another and more about how debt, commodities, currencies and central-bank policy interact as investors reconsider what constitutes financial stability.

Sources

• Reuters — Global stocks set for biggest weekly fall as bond yields and oil stay high

• Reuters — Dollar falls as investors weigh U.S. Treasury's rescue efforts

~~~~~~~~~~

🌱 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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Follow the Gold/Silver Rate COMEX

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Thank you Dinar Recaps

Friday Iraq News Posted by Tishwash at TNT 8-21-2026

TNT:

Tishwash:  The Washington Post: Iraq under al-Zaidi's leadership is on a path of positive change 

In an article published in The Washington Post on Thursday, Tim Constantine reviewed the key achievements of Iraqi Prime Minister Ali Faleh al-Zaidi during his first 100 days in office.

The article, titled "What Has Iraq's Prime Minister Accomplished in His First 100 Days?", stated: "When a new US president is sworn in, the media often rushes to make grand predictions about what can be accomplished in the first 100 days. The momentum generated by the national election, the enthusiasm surrounding the arrival of a new president, and the political capital he brings all raise expectations for the initial start.

In the fall of 2025, Iraq held its elections, but it took five months after the votes were counted for the Iraqi parliament to elect a new president, who in turn tasked Prime Minister-designate Ali al-Zaidi with forming a government. Al-Zaidi then won a vote of confidence from parliament. The entire process took approximately 180 days. After this lengthy process, the sense of urgency was palpable."

Many might say that 100 days in Iraq is nothing more than a fleeting moment in the life of a nation exhausted by crises and burdened by years of disputes, calculations, and anxieties. But this period seems to have been enough for Iraqis and the world to realize that something is beginning to change seriously, in an early test of the country's direction: Will Baghdad continue to manage its crises, or will it begin to manage its future?

In foreign policy, al-Zaidi didn't wait long to place Iraq at the heart of the international equation. Washington was his first foreign destination, at the invitation of President Trump, in a visit that carried more than one message.

Iraq didn't go to the United States simply to request security support; rather, it went to propose a new partnership centered on the economy, investment, energy, and infrastructure, and to build a relationship based not on crisis management, but on creating shared interests.
Herein lies the importance of the visit: Iraq is moving away from the image that makes it a country that primarily attracts attention when a crisis erupts, and is moving toward being seen as a country that offers opportunities for investment and partnership.

Of course, the path to nation-building is not through economics alone. Domestically, al-Zaidi opened one of the most sensitive files, namely the file of integrity and the recovery of public funds. Many governments around the world make promises to combat corruption, but the new Iraqi government has pushed the Integrity Commission to intensify its scrutiny and investigations into government contracts.

Many Iraqis were skeptical, having heard such promises before. Then came Operation Dawn, sending a clear political and legal message: no one is above the law if they steal from the Iraqi people. As we say in the United States, no one is above the law. According to a local Iraqi news agency, at least 210 officials, members of parliament, employees, and businessmen were arrested between June 28 and August 9.

In the past few days, headlines have included stories like “Iraq seizes another $26 million in cash and 60 kilograms of gold” and “Iraqi electricity official arrested with millions of dollars in cash.” It has become clear that the campaign is not just a publicity stunt, but a genuine effort. Al-Zaidi also directed the creation of a special account to be used for the public good, with funds recovered from corruption cases to be deposited.

But the biggest challenge facing the new government may be the issue of weapons.

In a country where armed factions possess armed personnel equipped with sophisticated military equipment, it is well known that restricting weapons to the state is not a simple administrative decision that can be implemented with a signature or a statement. Rather, it is a protracted struggle intertwined with power dynamics that have developed over many years.
As one of its initiatives during its first 100 days, the al-Zaidi government chose to confront the problem directly, declaring that the state alone must have the authority to make security decisions.

Al-Zaidi clearly affirmed that Iraqi forces are capable of protecting the country and that there will be no need for armed factions or foreign forces after September 30th, emphasizing that the government is moving forward with regaining control of weapons and placing them under state authority.

Here, three major objectives converge. Iraq, which wants to attract foreign investment, needs security. Iraq, which wants to recover its stolen funds, needs a strong judiciary and robust institutions. And Iraq, which wants to establish balanced partnerships with the world, needs, above all, a sovereign decision that no other entity can challenge.

One hundred days may be too early to declare that Iraq has changed, but it is not too early to say that Iraq's trajectory has begun to shift. There is a vast difference between a government that spends its time putting out fires and one that simultaneously tries to rebuild the nation.

Perhaps the most striking aspect of these first hundred days is that al-Zaidi did not treat them as a brief period to test intentions, but rather as an opportunity to change the rules of the game. Foreign policy, combating corruption, and consolidating weapons under state control are not separate issues; they are, in essence, a single battle aimed at restoring the state's authority, prestige, and ability to act.

The results may not yet be fully realized, and certainly not all of them have materialized in the daily lives of citizens.

The mission is not yet complete after 100 days of the new government, but the path has been charted. Iraq is engaging with Washington as a nation seeking partnership and mutual interests, opening its doors to investment instead of limiting its relationships to requests for aid, establishing integrity institutions to confront corruption, and clarifying, regarding the issue of weapons, that security decisions cannot be dispersed among multiple centers of power.

Therefore, the right question to ask when assessing the first 100 days of al-Zaidi's government should be: Has Iraq moved closer to becoming the state its people aspire to?

A definitive answer will require more time. But these 100 days have been enough to provide an unmistakable first indication: Iraq is no longer standing still. Iraqis are beginning to see their state taking initiative from within.
Perhaps the first 100 days of al-Zaidi's government can be described as a declaration of a new beginning: an Iraq that wants to be the master of its own destiny, the guardian of its own security, the custodian of its public wealth, and a partner whose interests and standing are respected by others.  link

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

Tishwash:  Al-Zaydi: We will proceed with passing the Popular Mobilization Forces law as part of the armed forces.

on Thursday that the Popular Mobilization Forces enjoy the attention and care of the government, which will proceed with submitting the Popular Mobilization Forces Law for approval, as it is part of the formations and branches of the armed forces, indicating that Iraq is witnessing today a phase of building after completing the requirements of the process of defending sovereignty.

This came according to a statement from the Prime Minister’s Media Office, which was received by Shafaq News Agency, during Al-Zaydi’s reception of the head of the Badr parliamentary bloc, Hammam Ali Mahdi Al-Tamimi, and members of the bloc.

The office added in its statement that the meeting included discussions on the general situation in the country, politically, economically and in terms of security, and the government’s efforts in implementing its reform and development programs.

According to the statement, Al-Zaydi stressed the important role of the legislative authority in combating corruption and prosecuting corrupt individuals, explaining that "the government's project is based on building a state based on a solid economy," and emphasizing "the importance of finding radical solutions to problems with a new and innovative vision, and not postponing them." 

For their part, the head and members of the Badr bloc affirmed their absolute support for the government in all its reform steps and procedures, especially in the field of combating corruption and regulating weapons in accordance with constitutional mechanisms.

While some forces expressed a willingness to reorganize their military and security relationship with the state, other factions, including Kataib Hezbollah, Harakat al-Nujaba and Kataib Sayyid al-Shuhada, announced their refusal to relinquish their military capabilities, and linked any discussion about their weapons to the end of the presence of foreign forces and ensuring the protection of Iraq from external attacks.

September 30th also coincides with the deadlines related to ending the international coalition's military presence in Iraq, which some factions use as a basis for linking the future of their weapons to the withdrawal of foreign forces. link

Tishwash:  Minister of Finance: The budget is prepared by primarily including the government program and is carried out through 5 specialized committees.

Finance Minister Faleh Sari confirmed on Thursday that the budget is being prepared based on the government program and is being developed through five specialized committees.

The ministry said in a statement received by the Iraqi News Agency (INA): “Finance Minister Faleh Sari chaired an expanded meeting of the committees preparing the draft program and performance budget, with the participation of members of the Parliamentary Finance Committee and representatives from several ministries and international organizations, to follow up on the stages of preparing the draft budget and the requirements for the gradual transition to the program and performance methodology.”

According to the statement, the minister emphasized that “the budget preparation is being carried out through continuous technical work, with the participation of various stakeholders,” noting “the continuation of meetings with members of the legislative authority and representatives of ministries and governorates, which enhances the transparency of the budget preparation process and the involvement of relevant parties at its various stages.”

He explained that “the work is being carried out through five specialized subcommittees that are responsible for preparing the technical aspects of the draft budget in cooperation with the World Bank, with the aim of formulating a comprehensive framework for the new budget within a specific timeframe.”

He noted that "the government program approved by the Cabinet was essentially incorporated into the program and performance budget, linking programs and financial allocations to government priorities and objectives."

The statement added that "the representatives expressed their support for the transition to a program and performance budget, emphasizing the importance of its success and developing implementation mechanisms to enhance the efficiency of public finance management."  link

***********

Tishwash:  Al-Zaydi: We are working on preparing the 2027 budget and will send it to Parliament soon.

Prime Minister Ali Faleh al-Zaidi confirmed on Thursday that the government is currently preparing the 2027 budget and will soon send it to Parliament. 

A statement from the Prime Minister's office, received by the Information Agency, indicated that "al-Zaidi, during his meeting with members of the Sadiqun parliamentary bloc, emphasized the important and fundamental role of the legislative authority in strengthening government procedures and enabling it to implement its program, as well as the importance of the oversight and legislative role in combating corruption through monitoring performance in state institutions."

He explained that "the government is currently working on preparing the 2027 budget, which will be sent to Parliament soon," stressing "the implementation of the government's plan to increase oil production and exports in the coming years."

According to the statement, al-Zaidi also noted "the allocation of significant space in the budget to the electricity sector."  link

Iraq Economic News and Points To Ponder Thursday Evening 8-20-26

Al-Hashemi: Iraq Is The Biggest Loser From The Tightening Of The US Blockade On Iran

Money and business   Economy News – Baghdad  Economist Ziad al-Hashemi warned on Thursday of the repercussions of any US tightening of the economic blockade on Iran, stressing that Iraq may be one of the most affected regionally because of its dependence on Iranian gas and commodities.

"The surrounding countries of Iran, led by Iraq, Turkey, Turkmenistan, Afghanistan, Pakistan and Armenia, will be under direct American pressure to review their trade and financial relations with Tehran and avoid collisions with the United States," he said.

He added that "Washington is expected to use a large part of its resources to make its plan to tighten the economic blockade on Iran successful," adding that "the task will not be easy or guaranteed results, with Tehran having long experience in dealing with sanctions and the search for alternative outlets."

"Iran has the ability to maneuver through a parallel economy and cross-border trade and smuggling networks, in addition to continuing to use the paper of the Strait of Hormuz to pressure the global economy," he said.

Al-Hashemi explained that "Iraq may be the most affected regionally in the event of the application of the blockade in a strict manner, because of its great link to Iranian gas and many goods and products," noting that "the cessation of Iranian imports, especially gas, will deprive Iraq of an important source of operation of power plants."

Regarding China, Hashemi said that it “will not easily accept the imposition of a tight economic blockade on Iran, and may resort to maneuvering to maintain its trade relations, especially in the oil sector, but it may have to respond if the US measures are characterized by a high degree of tightness.”

He stressed that "the region is on the verge of a new economic test after the stage of direct military confrontations," pointing out that "any broad siege on Iran may impose a new economic reality reflected on the movement of trade and oil prices and the nature of economic relations between the countries of the region."

https://www.economy-news.net/content.php?id=72830

The Government On Its Plan To Secure Salaries: Internal Borrowing Is A Legal Option When Needed

Money and business  Economy News — Baghdad    The Prime Minister’s Advisor for Financial and Economic Affairs, Mazhar Mohammed Saleh, explained the features of the government’s plan to manage liquidity and secure salaries and operational expenses.

Saleh revealed in an interview with the official newspaper the nature of the financial strategy adopted to deal with monthly obligations, pointing out that "the public financial management is moving within a solid legal umbrella to ensure the stability of public spending, regardless of the severity of external challenges."

He added that "the disruptions of navigation and trade in the Strait of Hormuz have cast a shadow over the regularity of Iraqi oil exports, which represent the main artery and the adoption of the basis of cash flows feeding the budget."

Despite these pressures, Saleh stressed that “the financial authorities are keen to employ all technical tools to prevent these disturbances from being reflected on social benefits, especially the bill of salaries, wages, retirees and care for vulnerable groups.”

In this context, Saleh said that "the Public Finance Department operates in accordance with the tracks and provisions specified in the Federal Financial Management Law No. 6 of 2019, as this law provides the legal frameworks and approved ceilings to regulate the exchange operations and manage liquidity during the fiscal year, and to protect the stability of state institutions and their service duties."

The financial adviser reviewed the size of the monetary responsibility of the public treasury monthly, noting that "the bill of salaries, wages, pensions and allocations of the social welfare network for the month of August is close to eight trillion dinars per month, while the total liabilities rise to about ten trillion dinars per month when adding the administrative operating expenses necessary for the management of basic facilities and the continued operation of state agencies."

He pointed out that "this high volume of liabilities makes securing liquidity a top priority, especially in light of the high sensitivity of the budget to the fluctuations in global oil prices and the risks of regular cash flows from oil revenues."

To ensure the fulfillment of financial dues, Saleh pointed out that "the federal finance depends on an integrated plan based on several tools, where the available data record a relative improvement in oil revenues compared to the previous two months, which gives the financial management a better margin to control flows and meet basic needs, in parallel with the continuous work to activate non-oil revenues and activate the collection tools to provide the treasury with additional resources."

“The financial authority maintains internal borrowing instruments as a legally available tactical option to be used when needed to fill any temporary liquidity gaps, and to ensure that salary financing or the basic operation of state institutions does not falter,” he said.

The Prime Minister’s Advisor for Financial and Economic Affairs concluded by saying that “the financial stability of the state depends not only on direct oil revenues, but also on a dynamic management of liquidity that anticipates geopolitical shocks and maintains the continuation of the economic and social cycle in the country.

https://www.economy-news.net/content.php?id=72823

Judge Zeidan And Qalibaf Discuss The Implementation Of Agreements And Memorandums Of Understanding Between Iraq And Iran

Money and business   Economy News — Baghdad  The President of the Supreme Judicial Council, Judge Faik Zeidan, on Thursday, with the President of the Iranian Shura Council, Mohammad Baqer Qalibaf, the implementation of agreements and memorandums of understanding between Iraq and Iran.

A statement by the Supreme Judicial Council received by "Economy News", that "the President of the Supreme Judicial Council received the President of the Iranian Shura Council Mohammad Baqer Qalibaf and his accompanying delegation."

During the meeting, the two sides discussed ways to enhance bilateral cooperation between the two brotherly countries in the judicial and legal fields, and the follow-up and implementation of the agreements and joint memorandums of understanding signed between the two sides. https://www.economy-news.net/content.php?id=72821

Barzani: Expanding Trade And Attracting US Companies Are Two Pillars Of The Growth Of The Kurdistan Economy

Money and business    Economy News – Baghdad  The President of the Kurdistan Regional Government, Masroor Barzani, said on Thursday that strengthening economic and trade relations is a key factor in consolidating the security and stability of the region, pointing out that his government is working to attract more American companies to invest in the sectors of energy, agriculture, infrastructure and technology.

"The economic strength will contribute to enhancing the security and stability of the region, and expanding trade and economic relations with neighboring countries and international companies will provide more stability and protection," Barzani said.

"The regional government has made efforts to increase the volume of trade with neighboring countries and attract American companies to Kurdistan, not only in the energy sector, but also in agriculture, infrastructure, technology and other sectors," he said.

He expressed the hope that "American companies will view Kurdistan as an attractive investment destination," noting that "strengthening the economic partnership with the United States can go beyond security relations and contribute in turn to support stability."

Barzani pointed out that "expanding trade with the countries surrounding the region would reduce tensions and promote peace and prosperity," pointing out that previous problems with the federal government led to the reduction of trade volume with Turkey.

"We hope to solve these problems and resume trade with Turkey and Syria, in light of great economic potential and opportunities," he said, adding that the development path had been hampered by drone and missile attacks, as well as decisions he said had limited the growth of the region's economy.

He stressed that "the development of the economy of Kurdistan can reflect positively on the economy of Iraq and the entire region," stressing the need to invest resources and opportunities to achieve more economic prosperity.

Regarding US investments, Barzani said that "American companies are always welcome," adding that the regional government has from the beginning encouraged the signing of contracts with it, which prompted Baghdad, he said, to go in the same direction.

“Attracting more U.S. companies is important for both sides, but at the same time it requires protecting investments, infrastructure, employees and economic interests and providing a safe environment for their continued operation.”

https://www.economy-news.net/content.php?id=72837

The Minister Of Finance Stresses The Budget Department To Adhere To The Timings To Complete And Succeed

Money and business     Economy News – Baghdad  The Minister of Finance, Faleh Sari, on Thursday, a visit to the Budget Department, during which he followed the progress of work in the preparation of the next draft budget in accordance with the methodology of programs and performance.

Sari stressed that the ministry is moving towards a gradual transition from budgeting items to budgeting programs and performance, linking the allocation of resources to goals, programs and results, and enhancing the efficiency of public spending management.

He stressed the need to complete the draft budget within the specified times, and to ensure the completion of its requirements in accordance with a precise methodology and realistic estimates.

He stressed the importance of the success of the program budgeting and performance experience, as an essential step in the development of public resource management and directing spending towards priorities and results

https://www.economy-news.net/content.php?id=72836

Shattering the Myth That Higher Taxes Can Fix the $40 Trillion National Debt

Shattering the Myth That Higher Taxes Can Fix the $40 Trillion National Debt

Notes From the Field By James Hickman (Simon Black / Sovereign Man)  August 20, 2026

In June of 1944, American soldiers were storming the beaches of Normandy, single-handedly leading the fight to defeat the Nazis.

Back home, Americans gave everything they had. Some 85 million bought war bonds. The top income tax rate hit 94%, the highest in US history. Even ordinary people paid more and more income tax to support the war effort.

This was the absolute peak of American patriotism and record high tax rates. And yet overall government tax revenue still only came to just 20.5% of GDP.

This matters. In the eight decades since the end of World War II, tax revenue in the United States has averaged between 17% and 18% of GDP... with very little variation.

The low was 14.2% in 1950, coming out of a recession, and the high was 20.0% in 2000, at the peak of the dot-com boom when capital gains tax rates were through the roof.

Yet throughout those eight decades, the overall average has remained quite steady— 17% to 18%... even though corporate and individual tax rates have been all over the board over the same period.

The reason is simple: as tax rates go up and down, people and businesses adjust their behavior. If marginal tax rates skyrocket, people stuff their earnings into tax shelters. Or they defer revenue. Or they come up with any number of ways to legally reduce what they owe.

It's human nature.

You probably heard that the US national debt just crossed $40 trillion yesterday. And on its current trajectory, there is no end in sight to the growth of that debt.

The federal government now routinely posts ~$2 trillion annual deficits... during periods of relative peace and prosperity.

Plenty of people (especially on the left) believe the answer is to tax the rich: sky-high marginal rates, wealth taxes, etc. But the historical data show that higher tax rates cannot and will not solve the problem.

According to IRS data, imposing a tax rate of 90% on people earning $2MM per year or more would theoretically generate $200 to $300 billion in additional tax revenue.

But remember human nature: people would very quickly change their behavior and restructure their affairs, and so the real additional tax revenue would collapse to less than $50 billion per year.

The same goes for a wealth tax. Charging billionaires and centimillionaires a percentage of their unrealized gains sounds like a nice idea to a socialist. But the consequences would offset most (if not all) of the additional revenue.

If Elon Musk were forced to sell 10% of his stock to pay a wealth tax, the share prices of Tesla and SpaceX would plummet.

Sure, the IRS would collect more money from Musk himself. But, nationwide, overall capital gains tax revenue would fall dramatically. So net tax revenue would barely budge.

The point is there are always consequences to raising taxes: less economic activity, slower growth, and higher unemployment. No country in history has ever taxed its way to prosperity.

What’s crazy is that an economy as large and dynamic as America's doesn't even need to run a balanced budget. Even a $1 trillion annual deficit would be OK— and a huge step in the right direction. The national debt would still grow, but as a percentage of GDP, it would shrink.

And it's not hard to get there. The low-hanging fruit is obvious: the Government Accountability Office, the federal government's own watchdog, estimates that hundreds of billions of dollars are lost to outright fraud and theft every single year.

Yet Congress doesn't seem to want to even try to eliminate obvious fraud.

And that's the easy stuff.

The harder part would be streamlining government operations and cutting waste and inefficiency... which could easily generate hundreds of billions in savings.

Harder still would be reforming entitlements, fixing immigration, and taking a chainsaw to the Code of Federal Regulations... all of which could trim spending and/or grow the economy (and hence increase tax revenue).

Again, the national debt is $40 trillion, yet Congress won't even do the easy stuff to fix it. Even worse, the media and the courts actively block and obstruct the people who do try.

We can hope that common sense will one day prevail, and that AI and nuclear power will supercharge the US economy to the point where America grows its way out of debt.

But in the meantime, there are now 40 trillion reasons to have a Plan B.

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

https://www.schiffsovereign.com/trends/shattering-the-myth-that-higher-taxes-can-fix-the-40-trillion-national-debt-155653/?inf_contact_key=31079512ee07b0eb93edd204d2f7df2b2fff72da363b354f729db1788063859c

The Treasury Just Admitted It... The Bond Market Is Broken: Peter Schiff

The Treasury Just Admitted It... The Bond Market Is Broken

Peter Schiff:  8-20-2026

Peter Schiff breaks down the Treasury's panic move to rescue the bond market, the $40 trillion debt milestone, and gold's $185 reversal day.

The Treasury just doubled its bond buybacks. Peter Schiff says that's the government admitting the bond market is broken.

On the same day the national debt topped $40 trillion, the Treasury announced it is doubling its long-term bond buybacks from $2 billion to $4 billion... buying the bonds everybody else is selling, and funding it by issuing more short-term debt.

Peter calls it what it is: a panic move, a Hail Mary to suppress rising yields after the 30-year hit 5.3%, its highest in over 19 years. Refinancing debt locked in at a 3.44% average coupon with 4% T-bills makes no financial sense, which is exactly why it's happening... the government is scared, not stupid.

The market rendered its verdict immediately. Gold reversed off a $185 rally to close above $4,500, silver cleared $66, and the miners surged 8-12%, while hawkish FOMC minutes were shrugged off entirely.

Peter explains why this Treasury version of Operation Twist forces the Fed to follow with real QE... a program that will have to dwarf 2008's... why Bitcoin's pop above $70,000 is built on hope, and why the housing data shows the panic is justified.

 Chapters:

00:00 Treasury Panic Move

01:05 Bond Yields Hit New Highs

02:58 Debt Explosion Politics

07:00 Treasury Buyback Twist

10:23 QE Next And Fed Cornered

16:04 Hawkish Minutes Gold Surge

24:03 Markets React Unevenly

24:20 Dollar Drops Oil Jumps

25:08 Fed Inflation Bind

26:30 Debt Era Comparison

27:40 Jobs Data Media Spin

29:17 Bitcoin Versus Metals

31:19 Housing Slump Mortgages

33:59 Tariffs Canada Trade

37:50 Buybacks Won't Work

42:26 QE Addiction Ahead

44:34 Boat Update Farewell

https://www.youtube.com/watch?v=bxBDJC1Mk24