How Medicare Became a Slush Fund
How Medicare Became a Slush Fund
Notes From the Field By James Hickman (Simon Black / Sovereign Man) August 18, 2026
Four years ago this month, Washington passed a law and named it, with a straight face, the Inflation Reduction Act. Bizarrely, their plan to ‘reduce inflation’, which had been caused by excessive government spending, was for the government to spend even more money. It’s genius!
How Medicare Became a Slush Fund
Notes From the Field By James Hickman (Simon Black / Sovereign Man) August 18, 2026
Four years ago this month, Washington passed a law and named it, with a straight face, the Inflation Reduction Act. Bizarrely, their plan to ‘reduce inflation’, which had been caused by excessive government spending, was for the government to spend even more money. It’s genius!
Among its various provisions, part of the legislation authorized the government to negotiate prescription drug prices. Seems like a nice idea in principle... but in practice it’s been a disaster.
The Congressional Budget Office released the results late last month: the Medicare drug provisions that were supposed to generate $129 billion in savings will now add $700 billion to the deficit.
Sometimes it seems like this is the whole idea; given the rampant Medicare fraud that gets uncovered on a daily basis, it’s clear that politicians have an incentive to steer MORE money into the program.
Healthcare is the easiest spending in Washington to justify. Every dollar comes with the same argument: if we don't spend on healthcare, people will die!
It ends up being so much money— a giant, dark pool of corruption— and a lot of it gets funneled straight back into the political process as campaign contributions. And it’s been going on for ages.
Back in 2002, for example, America’s biggest health-care workers union spent about $800,000 electing Rod Blagojevich governor of Illinois. He later thanked them "for electing me governor."
Weeks after he took office, Blagojevich signed multiple executive orders that fattened the union’s pockets, like forcing more healthcare workers to join... and automatically deducting union dues from their paychecks. Bad for the unionized workers, but great for the union bosses.
In New York, the Greater New York Hospital Association wrote two checks totaling more than $1 million to the state Democratic Party in August 2018, at then-Governor Andrew Cuomo's campaign's request.
Three months later the state ordered its first across-the-board Medicaid rate increase since 2008, worth about $140 million a year. Great news for the hospital association.
The cycle never ends— the unions and associations scratch the politicians’ backs, and in turn get their backs scratched. No one can rationally expect those parties to walk away from their mutual benefit.
And this is just the ‘honest’ graft and corruption... it doesn’t take into account the outright fraud.
During COVID, Medicare paid for eight test kits per month, per person, in America. Yet an inspector general later found it paid up to $454 million for nearly 39 million kits over that limit.
In June, the Justice Department found over $6.5 billion in fake health-care claims. Yet agents recovered only $182 million in cash and assets, less than three cents per dollar of fraud.
In one instance, a pair of adult day care operators fraudulently billed Medicare and Medicaid $120 million over a decade. One of their centers claimed 1,041 attendees in a single day while the building's occupancy limit was 81.
Then Nick Shirley walked into the neighborhood's facilities with a camera this summer and turned up $190 million more in suspicious billing.
And yet very little of the fraud gets stopped... in large part because a portion of what they steal from the government is funneled back to the politicians (mostly on the Left) who vote for more Medicare spending.
These same politicians install activist judges at the state and federal level, ensuring that anyone who tries to stop the fraud will be sued... and blocked by the courts.
As an example, last year Congress voted to cut off Planned Parenthood from Medicaid for one year.
Planned Parenthood sued. Judge Indira Talwani, an Obama appointee in Boston, dutifully blocked the cut within weeks, and the appeals court had to overrule her twice before the law could take effect.
Feeding Our Future, the Minnesota child-meal Somali fraud network, had the audacity to sue the state for racial discrimination when the fraudulent money train slowed down.
It’s extraordinary; there are so many checks-and-balances in place to keep the graft going.
The politicians vote to keep the money moving. The judges defend it to the last Somali. And the activists and the media scream that anyone asking questions is racist; Governor Tim Walz called the fraud talk "vile, racist lies."
The teachers' unions march the kids out of school for union causes and No Kings rallies, as if the kids had any idea what they were marching for. And the universities continue the socialist indoctrination.
Media, education, courts: the whole institutional layer exists to keep the money flowing.
So of course they want more of it.
Senator Bernie Sanders reintroduced Medicare for All last year, and the movement that just made Zohran Mamdani mayor of New York wants to make this slush fund the entire health-care system.
Even the most conservative estimate puts the price at $32.6 trillion over the first decade; that’s an astonishing amount of potential fraud.
The US could get its fiscal house in order if it shut this slush fund down. But the graft is deeply entrenched... so it’s likely that US deficit spending will continue in order to pay for it all.
Foreign governments have reached the same conclusion: The US has to go deeper into debt in order to finance hundreds of billions of dollars in fraud.
That's a major reason why foreign governments and central banks are diversifying away from the dollar. And with no obvious global currency to park their financial reserves into, they buy gold.
We have been making this argument for the past few years, since gold was below $1800. This sort of news makes the case even more strongly: the story hasn’t changed... and gold remains a great hedge for the fiscal uncertainty to come.
To your freedom, James Hickman Co-Founder, Schiff Sovereign LLC
PS: In this month’s Schiff Sovereign Premium, we made the case for a gold producer built for exactly this outlook: a debt-free, dividend-paying, highly successful gold company which just had the most profitable first-half in its company history. But it only trades at 2x cash flow.
If the fraud and deficits continue, gold should do very well... and successful producers can do even better.
https://www.schiffsovereign.com/trends/how-medicare-became-a-slush-fund-155635/?inf_contact_key=45b23aa345ce3789b19a50db4e04df60121216c3a82d754a88f6751e8a28a7b5
Japan's Crisis Could Trigger the Global Financial Reset | Alasdair Macleod
Japan's Crisis Could Trigger the Global Financial Reset | Alasdair Macleod
Liberty and Finance: 7-24-2026
Alasdair Macleod joins Liberty and Finance to explain why Japan's mounting debt crisis, rising global bond yields, and geopolitical turmoil could mark the beginning of the end for the fiat currency system.
He discusses how the unraveling yen carry trade, soaring government borrowing costs, and weakening demand for U.S. Treasuries could trigger a historic financial reset.
Japan's Crisis Could Trigger the Global Financial Reset | Alasdair Macleod
Liberty and Finance: 7-24-2026
Alasdair Macleod joins Liberty and Finance to explain why Japan's mounting debt crisis, rising global bond yields, and geopolitical turmoil could mark the beginning of the end for the fiat currency system.
He discusses how the unraveling yen carry trade, soaring government borrowing costs, and weakening demand for U.S. Treasuries could trigger a historic financial reset.
Macleod also warns that energy shortages, inflation, and government intervention may accelerate the crisis while pushing investors toward tangible assets.
Throughout the interview, he explains why central banks continue accumulating gold and why he believes physical precious metals offer protection as credit markets become increasingly unstable.
Watch to hear his outlook on gold, silver, the dollar, and the global economy during what he calls the next phase of the debt endgame.
INTERVIEW TIMELINE:
0:00 Intro
2:44 US Debt Trap
21:00 Oil shortages
27:30 Gold & silver
The Fed Days are Numbered, Treasury Secretary Bessent Already Initiated the Plan
The Fed Days are Numbered, Treasury Secretary Bessent Already Initiated the Plan
X22 Report (with Dr. Scott Young): 7-18-2026
A recent X22 Report interview featured Dr. Scott Young, a historian and financial researcher, who offered a compelling perspective on the current state of gold reserves, the fiat currency system, and a broader economic transformation involving key institutions like the Federal Reserve (Fed) and the IRS.
His insights paint a picture of impending change, suggesting a radical departure from the financial systems we’ve known.
The Fed Days are Numbered, Treasury Secretary Bessent Already Initiated the Plan
X22 Report (with Dr. Scott Young): 7-18-2026
A recent X22 Report interview featured Dr. Scott Young, a historian and financial researcher, who offered a compelling perspective on the current state of gold reserves, the fiat currency system, and a broader economic transformation involving key institutions like the Federal Reserve (Fed) and the IRS.
His insights paint a picture of impending change, suggesting a radical departure from the financial systems we’ve known.
One of the most striking points raised by Dr. Young in the interview revolves around the true location and quantity of gold reserves. He challenges the commonly held belief that significant bullion is held at Fort Knox, suggesting instead a widespread dispersion of gold holdings globally.
According to Dr. Young, major global currencies are increasingly backed by real assets, with substantial physical gold now believed to reside in places like the Philippines and China, rather than solely within the United States. This re-evaluation of gold’s physical location sets the stage for his prediction of an unprecedented gold revaluation.
Dr. Young posits that the world is on the cusp of a profound gold revaluation, an event he believes could radically alter both the U.S. and global economies.
His perspective suggests that the current fiat currency system, which he describes as failing, is moving towards a gold-backed sound money system.
This transition would mark a historic shift, moving away from currencies based solely on government trust and toward a system anchored by tangible assets. The implications for inflation, purchasing power, and international trade would be far-reaching, fundamentally reshaping the financial instruments we utilize daily.
Beyond gold, Dr. Young delves into the structural changes he anticipates within national economies. He discusses a proposed reform involving tariffs replacing income tax, aiming to streamline revenue collection and foster domestic economic growth.
This radical shift, if implemented, would represent a significant economic transformation, impacting every individual and business. Furthermore, the interview sheds light on Dr. Young’s critical view of existing tax systems, particularly the IRS and state tax structures, which he suggests are ripe for systemic reform as part of this broader economic reset.
The discussion extends into the geopolitical implications of these economic shifts. Dr. Young touches upon the concept of economic warfare and the strategic importance of oil in influencing global power dynamics. He observes a slow but steady dismantling of fiat currencies worldwide, driven by strategic economic pressures. Compellingly, Dr. Young predicts a near-term reset within months, driven by these multifaceted economic pressures and underlying military-economic strategies. He suggests that these anticipated reforms are not merely theoretical but are actively being orchestrated to bring about a new global financial order.
Dr. Scott Young’s interview on the X22 Report offers a thought-provoking and at times provocative insight into the potential trajectory of global economics. From questioning the location of gold reserves to forecasting a gold revaluation and a fundamental economic transformation involving the Federal Reserve and IRS, his analysis suggests a world poised for significant change.
While these are complex issues with varying expert opinions, Dr. Young’s perspective provides a compelling framework for understanding the forces that could shape our financial future.
Nobody Is Talking About The July 1st Deadline: Joel Skousen's Stark Warning
Nobody Is Talking About The July 1st Deadline: Joel Skousen's Stark Warning
Liberty and Finance: 6-20-2026
Joel Skousen warns that investors may be underestimating the long term risks of escalating global conflict, arguing that the current relief in markets could prove temporary.
He explains why he believes a wider World War III scenario, including the possibility of an EMP attack and prolonged infrastructure disruption, could trigger a historic collapse in financial markets, leaving stocks, cryptocurrencies, and even bank accounts inaccessible.
Nobody Is Talking About The July 1st Deadline: Joel Skousen's Stark Warning
Liberty and Finance: 6-20-2026
Joel Skousen warns that investors may be underestimating the long term risks of escalating global conflict, arguing that the current relief in markets could prove temporary.
He explains why he believes a wider World War III scenario, including the possibility of an EMP attack and prolonged infrastructure disruption, could trigger a historic collapse in financial markets, leaving stocks, cryptocurrencies, and even bank accounts inaccessible.
Skousen also discusses why he believes preparedness, self sufficiency, and strategic planning are essential in a world facing growing geopolitical and economic instability.
INTERVIEW TIMELINE:
0:00 Intro
1:30 Israeli influence on Iran war
6:00 Oil shock timeframe and shaky Iran deal
23:00 Preparedness steps
China Just Beat the US at Its Own Game | Vince Lanci
China Just Beat the US at Its Own Game | Vince Lanci
TFTC: 6-14-2026
In the modern financial world, we often spend our time debating the strength of currencies—the dollar, the euro, or the yen. However, a deeper shift is occurring beneath the surface of the global economy. According to Vince, author of As Good as Gold: The Return to Real Money, the real story isn’t just about the currency we spend, but the collateral that backs it.
In a recent discussion on TFTC, Vince explores how the foundation of global finance is moving away from a US Treasury-centric model toward a more diversified framework involving gold, Bitcoin, and other hard assets.
China Just Beat the US at Its Own Game | Vince Lanci
TFTC: 6-14-2026
In the modern financial world, we often spend our time debating the strength of currencies—the dollar, the euro, or the yen. However, a deeper shift is occurring beneath the surface of the global economy. According to Vince, author of As Good as Gold: The Return to Real Money, the real story isn’t just about the currency we spend, but the collateral that backs it.
In a recent discussion on TFTC, Vince explores how the foundation of global finance is moving away from a US Treasury-centric model toward a more diversified framework involving gold, Bitcoin, and other hard assets.
To understand the global monetary system, one must distinguish between currency and collateral. While currency acts as the medium for daily transactions, collateral is the “trust” that allows the entire financial architecture to function.
For decades, US Treasury securities were the undisputed gold standard of collateral. However, as geopolitical landscapes shift and economic pressures mount, the world is beginning to look for alternatives.
Historically, gold held all three properties of money: a store of value, a medium of exchange, and a unit of account. After the breakdown of the Bretton Woods system in 1971, these roles were split; the US dollar became the primary unit of account and medium of exchange, while gold was relegated to a store of value.
Today, we are seeing a reversal of this trend. Gold is once again overtaking Treasuries as a preferred reserve asset for many central banks, signaling a return to tangible backing in an era of uncertainty.
This transition is particularly evident in the actions of the BRICS nations and China. These regions are actively establishing global gold vaults and developing parallel collateral markets. By leveraging gold reserves, these nations can secure financing for infrastructure and development projects without relying solely on the US Treasury repo markets.
Even the European Central Bank (ECB) has noted this transformation. While traditional institutions express concerns over the rise of private digital currencies and stablecoin dollars—which could threaten centralized monetary control—they are also forced to navigate a world where the US dollar is no longer the only game in town. This strategic effort by various nations aims to create a “multi-polar” economy, reducing dependence on any single national instrument.
As the global economy “swaps its engine while the car is still moving,” technology is playing a pivotal role.
The transition to a new system is being handled methodically to avoid financial chaos, utilizing innovations like digital currencies and evolving policy structures.
Bitcoin, specifically, is emerging as a unique piece of this puzzle. Unlike centralized digital assets or government-issued stablecoins, Bitcoin’s decentralized nature offers an alternative monetary system that operates outside of traditional control.
While governments may attempt to regulate these assets to maintain oversight, the existence of a decentralized option provides a failsafe or “exit ramp” during times of economic crisis or authoritarian overreach.
The shift in our monetary foundation is happening against a backdrop of significant socio-political and economic challenges.
From the pressures of inflation and energy constraints to the disruptive potential of AI and robotics, the sustainability of current economic models is being tested. Success in this new era will likely require a delicate balance of technological innovation and fiscal responsibility.
As Vince concludes, while money often gets the spotlight in public discourse, collateral does the foundational work. We are entering a period where trust is being redefined, and the assets we choose to back our systems will determine the stability of our economic future.
0:00 – Intro
0:37 - Collateral versus currency
3:52 - Gold to treasury transition
6:10 - ECB gold reserve overtakes
7:01 - Digital euro and stablecoins
18:08 - Repo markets and plumbing
20:26 - Gold vault network development
23:36 - Bitcoin strategic reserve act
28:36 - Impact of collateral shift
2:13 - AI race and policy
47:31 - Current gold market outlook
53:26 - Inflation and Fed response
56:26 - 1970s inflation parallels
1:03:09 - Book summary and takeaways
Here’s Where U.S. Debt May Become Unsustainable With Interest Payments Triggering A Default Crisis That Even Steep Tax Hikes Can’t Fix
Here’s Where U.S. Debt May Become Unsustainable With Interest Payments Triggering A Default Crisis That Even Steep Tax Hikes Can’t Fix
Jason Ma Sat, June 6, 2026 Soaring U.S. debt and projections that put it at astronomical levels in the coming years have set off increasing panic, though the precise level that sparks a crisis is unknown. But the Penn Wharton Budget Model may have an answer: more than 210% of GDP.
Above that “outer bound” threshold, there’s no feasible tax on labor income that can finance interest payments on U.S. debt at returns acceptable to investors, PWBM warned in a report Thursday.
Here’s Where U.S. Debt May Become Unsustainable With Interest Payments Triggering A Default Crisis That Even Steep Tax Hikes Can’t Fix
Jason Ma Sat, June 6, 2026 Soaring U.S. debt and projections that put it at astronomical levels in the coming years have set off increasing panic, though the precise level that sparks a crisis is unknown. But the Penn Wharton Budget Model may have an answer: more than 210% of GDP.
Above that “outer bound” threshold, there’s no feasible tax on labor income that can finance interest payments on U.S. debt at returns acceptable to investors, PWBM warned in a report Thursday.
According to PWBM, the outer bound of federal debt is the solvency limit, beyond which defaulting on either Treasury debt or pay-as-you-go transfers like Social Security becomes a near certainty on an inflation-adjusted basis.
The debt-to-GDP ratio is about 100% today, and forecasts from the Congressional Budget Office see it hitting 175% by 2056—suggesting 210% is decades away on its current trajectory.
But depending on how much healthcare costs rise and boost Medicare spending, that threshold could come much sooner.
The U.S. has 25 more years in a lower-growth scenario, 22 years with medium growth, and 19 years with higher growth, PWBM estimated. But even that may downplay the risk.
“Under the historical growth rate of healthcare costs, there is a 25% chance of hitting the debt maximum in 14 years,” it added.
Fixing federal finances before it’s too late would require a permanent tax hike of about 15 percentage points on all labor income, the report said, meaning there would no longer be caps that exempt income above a certain level.
Other factors could also affect these calculations, such as higher interest rates, a smaller tax base, and labor-supply responses. Rising debt would inflict economic costs, like weaker wages, slower GDP growth, and less consumption.
Capital also becomes scarcer as debt sucks up money that would otherwise go to more productive investments. Meanwhile, sustained tariffs that reduce the inflow of international capital could shorten U.S. leeway by two to four years, PWBM said.
Two big assumptions are baked into the forecast as well. One is that capital market values are efficiently priced and not in bubble territory. But if they aren’t and there’s a sudden market crash, it would increase the overall debt-to-capital ratio, causing debt holders to demand higher yields that add further to debt interest costs.
https://finance.yahoo.com/economy/policy/articles/may-maximum-level-u-debt-174555851.html
READ MORE HERE: https://budgetmodel.wharton.upenn.edu/p/2026-06-02-when-does-federal-debt-reach-unsustainable-levels/
Iraqi Dinar News: Breaking: Iraq Approves New Cabinet - Market Implications
Iraqi Dinar News: Breaking: Iraq Approves New Cabinet - Market Implications
Edu Matrix: 5-16-2026
Iraqi Dinar News: Breaking Iraq News Approves New Cabinet - Market Implications - Iraq’s New Prime Minister Faces Immediate Pressure — Could This Affect the IQD?
Political News In this video, we discuss the growing tensions surrounding Iraq’s new Prime Minister Ali al-Zaidi and the mounting pressure to disarm Iran-backed militants inside Iraq.
Iraqi Dinar News: Breaking: Iraq Approves New Cabinet - Market Implications
Edu Matrix: 5-16-2026
Iraqi Dinar News: Breaking Iraq News Approves New Cabinet - Market Implications - Iraq’s New Prime Minister Faces Immediate Pressure — Could This Affect the IQD?
Political News In this video, we discuss the growing tensions surrounding Iraq’s new Prime Minister Ali al-Zaidi and the mounting pressure to disarm Iran-backed militants inside Iraq.
According to U.S. officials, Iraq’s future economic success and international stability may depend on reducing militia influence and strengthening central government control.
Iraq’s parliament recently approved parts of the new government, but major political disagreements continue over key cabinet positions.
Prime Minister al-Zaidi, Iraq’s youngest prime minister, now faces one of the most dangerous political balancing acts in modern Iraqi history. Will Iraq move toward greater stability and international cooperation — or will internal divisions delay progress even further?
For IQD investors, these developments matter because political stability, security, and international confidence remain critical factors tied to Iraq’s long-term economic future and any potential changes involving the Iraqi dinar.
Topics Covered:
• Iraq political news
• Iraqi dinar latest update
• IQD investor concerns
• Iran-backed militants in Iraq
• Iraq parliament update
• U.S. and Iraq relations
• Iraq economic future
• Prime Minister Ali al-Zaidi
• Middle East geopolitical tensions
• Iraq security situation
Please remember: all investments involve risk. This video is for informational and educational purposes only.
Seeds of Wisdom RV and Economics Updates Sunday Afternoon 4-12-26
Good Afternoon Dinar Recaps,
Ceasefire Stalls, Hormuz Gridlock Deepens, and Energy Shock Expands Beyond the Battlefield
Failed U.S.–Iran talks and frozen shipping flows signal the crisis is shifting from war to global economic disruption
Good Afternoon Dinar Recaps,
Ceasefire Stalls, Hormuz Gridlock Deepens, and Energy Shock Expands Beyond the Battlefield
Failed U.S.–Iran talks and frozen shipping flows signal the crisis is shifting from war to global economic disruption
Overview
Since last night, the situation has deteriorated from fragile diplomacy into strategic uncertainty. U.S.–Iran peace talks in Pakistan ended without agreement, while the Strait of Hormuz remains functionally constrained, preventing a true return to normal energy flows.
The result is a transition from military conflict to economic disruption, where energy logistics, global trade, and financial stability are now the primary battlegrounds. This shift carries significant consequences for the region, the global economy, and currency markets.
Key Developments
1. U.S.–Iran Peace Talks Collapse, Ceasefire Stability in Question
High-level negotiations in Islamabad ended in a stalemate after 21 hours, with both sides blaming each other.
First direct talks in over a decade failed to produce agreement
Major sticking points include nuclear policy and control of the Strait of Hormuz
A temporary ceasefire remains, but long-term stability is uncertain
Why it matters: The failure to secure a deal signals that geopolitical risk remains elevated, limiting any near-term normalization.
2. Strait of Hormuz Still Constrained Despite Ceasefire
While active conflict has paused, the world’s most critical oil corridor is not functioning normally.
Only a fraction of normal tanker traffic has resumed
Ships remain stranded or delayed due to security and insurance risks
Roughly 20% of global oil and major LNG flows depend on this route
Why it matters: This confirms the crisis has shifted from combat to logistics, which historically takes far longer to resolve.
3. Energy Markets Reflect False Calm as Physical Shortages Persist
Oil prices have pulled back from peak panic levels, but underlying supply conditions remain tight.
Physical oil previously surged near $150 per barrel during peak disruption
Current pricing does not fully reflect restricted access to deliverable supply
LNG systems, particularly in Qatar, may take weeks or months to normalize
Why it matters: Markets are reacting to headlines, not actual supply restoration—creating a disconnect between price and reality.
4. Economic Impact Expands Beyond Energy Into Global System
The crisis is now feeding into broader economic pressures, with global institutions raising concerns.
IMF warns demand for financial assistance could rise $20B–$50B
World Bank signals potential global growth losses up to 1%
Fertilizer and shipping disruptions threaten food supply chains
Why it matters: This is no longer just an energy story—it is becoming a multi-sector global economic shock.
Why It Matters
What has changed in the last 24 hours is critical: the crisis is no longer defined by active conflict, but by systemic disruption.
Diplomatic failure prolongs uncertainty
Energy flows remain restricted despite ceasefire headlines
Supply chains and logistics now drive the crisis timeline
Economic consequences are spreading globally
This marks a transition from a geopolitical event to a financial and economic restructuring phase.
Why It Matters to Foreign Currency Holders
Sustained energy disruption can drive inflation across multiple economies, weakening purchasing power
Countries dependent on energy imports may face currency depreciation and balance-of-payments stress
Prolonged instability increases the likelihood of alternative trade and settlement systems
Capital flows may shift rapidly as investors seek stability and resource security
Implications for the Global Reset
Pillar 1: Energy System Fragility
The Hormuz disruption highlights how concentrated andvulnerable global energy infrastructure remains, reinforcing the need for diversification and regionalization.
Pillar 2: Transition from Military to Financial Impact
As the conflict moves from battlefield to economics, the pressure shifts toward currencies, debt markets, and global trade systems.
Closing Perspective
The ceasefire may have paused the war—but it has not repaired the system.
When diplomacy stalls, shipping remains constrained, and economic pressure builds simultaneously, the result is not stabilization—it is prolonged disruption with global consequences.
This is not just a regional conflict — it is a stress test of the global financial system.
Sources
“U.S.–Iran peace talks in Pakistan end in stalemate” – Modern Diplomacy
“The real energy crisis begins after the ceasefire” – Modern Diplomacy
~~~~~~~~~~
U.S. Announces Hormuz Blockade After Failed Talks, Marking Major Escalation in Global Energy Conflict
New confirmation signals a shift from fragile ceasefire to direct control over the world’s most critical oil chokepoint
Overview
In the last 24 hours, the situation has escalated significantly following confirmation from multiple credible outlets that President Donald Trump has ordered a U.S. Navy blockade of the Strait of Hormuz.
This development comes immediately after failed U.S.–Iran peace talks and represents a major turning point—from stalled diplomacy to direct economic and military intervention in global energy flows.
The implications extend far beyond the region, impacting oil supply, global trade, financial markets, and currency stability.
Key Developments
1. U.S. Confirms Plan to Blockade the Strait of Hormuz
Multiple reports, including Reuters-backed coverage and major outlets, confirm the U.S. intends to interdict vessels and assert control over the strait.
Blockade described as “effective immediately,” though implementation may take time
U.S. may target vessels paying tolls to Iran
Naval operations include mine-clearing and maritime enforcement
Why it matters: This marks a direct intervention in a global energy chokepoint, escalating from regional conflict to control over international shipping flows.
2. Escalation Follows Collapse of U.S.–Iran Peace Talks
The blockade announcement came within hours of failed negotiations in Pakistan, signaling a rapid shift in strategy.
Talks ended without agreement on nuclear policy or Hormuz control
Both sides remain deeply divided on core demands
Ceasefire now exists under heightened tension and uncertainty
Why it matters: The failure of diplomacy followed by military-economic action indicates a transition from negotiation to enforcement.
3. Strait of Hormuz Becomes the Central Pressure Point in Global Economy
The blockade directly impacts one of the most critical arteries in global trade and energy supply.
Roughly 20% of global oil and significant LNG flows pass through the strait
Hundreds of vessels previously delayed or stranded
Any restriction or control shifts influence over global energy pricing
Why it matters: Control of Hormuz effectively means influence over global inflation, energy markets, and economic stability.
4. Global Markets and Supply Chains Face Prolonged Disruption Risk
Even before full enforcement, the announcement is expected to intensify uncertainty across markets.
Insurance, shipping, and logistics sectors likely to delay normalization
Energy markets may price in long-term disruption risk
Governments may respond with emergency supply measures
Why it matters: The crisis is no longer temporary—it is evolving into a prolonged structural disruption.
Why It Matters
This is a defining escalation that shifts the crisis into a new phase:
From ceasefire to controlled access of global trade routes
From regional conflict to global economic leverage
From supply disruption to strategic control of energy flow
The system is moving toward a reality where geopolitics directly governs economic infrastructure.
Why It Matters to Foreign Currency Holders
Energy control can drive inflation spikes and currency instability worldwide
Countries dependent on imported energy face heightened devaluation risk
Capital may flow toward resource-backed or stable economies
Increased fragmentation supports movement toward multi-currency and regional trade systems
Implications for the Global Reset
Pillar 1: Strategic Control of Energy Infrastructure
The blockade underscores how critical chokepoints can be leveraged, accelerating shifts toward regional energy independence and alternative routes.
Pillar 2: Transition from Free Markets to Controlled Systems
Direct intervention in shipping lanes signals a move away from open global markets toward strategically managed economic systems.
Closing Perspective
This is no longer just a disruption—it is a redefinition of control over global trade and energy.
When a major power moves to blockade a critical global chokepoint, it signals a shift from market-driven systems to power-driven systems.
This is not just escalation — it’s a restructuring of how global commerce is governed.
Sources
~~~~~~~~~~
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Iraq Economic News and Points To Ponder Saturday Morning 2-21-26
Shocking Figures: The Total Amount Of Gold In Human History Reveals Astonishing Numbers.
Money and Business Economy News - Follow-up Did you know that all the gold ever mined by humankind, from the beginning of history to the present day, could fit into a single cube measuring just 22 meters? Yes, gold is much smaller than you might imagine, but its value governs the global economy, according to a report by the World Gold Council.
By the end of 2024, humans had extracted 219,000 tons of gold, with the majority of this precious metal produced after 1950, meaning that the modern era produced most of the world's gold.
Shocking Figures: The Total Amount Of Gold In Human History Reveals Astonishing Numbers.
Money and Business Economy News - Follow-up Did you know that all the gold ever mined by humankind, from the beginning of history to the present day, could fit into a single cube measuring just 22 meters? Yes, gold is much smaller than you might imagine, but its value governs the global economy, according to a report by the World Gold Council.
By the end of 2024, humans had extracted 219,000 tons of gold, with the majority of this precious metal produced after 1950, meaning that the modern era produced most of the world's gold.
Most importantly, gold does not deteriorate, which means that almost all the gold that was extracted still exists today, and perhaps the gold of the pharaohs is stored in the vaults of modern banks.
Read also Why are gold and silver prices jumping again?
When studying the global distribution of gold, we find that:
44% converted to jewelry
23% in bullion, coins, and investment funds
18% is owned by central banks
The remainder is used in industry and technology.
But the question for investors and economists remains: Will gold run out?
The globally known and recoverable reserves are estimated at only 55,000 tons, while the potential resources amount to 132,000 tons, but not all of them are mineable.
Therefore, gold remains a rare metal, which is the real reason why its value is pivotal in the global economy. https://economy-news.net/content.php?id=65862
Trump's Tariffs Will Take Effect On February 24 Despite The Supreme Court Ruling.
Money and Business Economy News - Follow-up The White House announced on Saturday that the new tariffs imposed by US President Donald Trump will take effect on February 24 and will remain in place for 150 days.
The White House said in a statement: "The decree imposes, for a period of 150 days, import duties of 10 percent on goods imported into the United States, and the temporary tariffs will take effect on February 24 at 12:01 a.m. Eastern Time."
Trump had previously announced that he had signed an executive order imposing a 10 percent trade tariff on all countries.
The U.S. Supreme Court ruled on Friday, by a vote of 6 to 3, that President Donald Trump is not authorized to impose global tariffs under the International Emergency Economic Powers Act (IEPA).
Trump described the ruling as "very disappointing," accusing the court of being subservient to "foreign interests," and asserting that "all tariffs related to national security remain in effect."https://economy-news.net/content.php?id=65889
1.085 Million Dinars For 21-Karat Gold… A New Rise In Gold Prices In Local Markets
Money and Business Economy News – Baghdad The markets of the capital Baghdad and Erbil witnessed a rise in the prices of foreign and Iraqi gold on Saturday, coinciding with the start of the weekly trading.
In Baghdad, gold prices in the wholesale markets on Al-Nahr Street recorded a significant increase, as the selling price of one mithqal of 21-karat Gulf, Turkish and European gold reached about 1.085 million dinars, while the buying price reached 1.081 million dinars, after it had recorded 1.073 million dinars at the end of last week.
As for Iraqi gold, 21 karat, the selling price reached 1,055,000 dinars per mithqal, and the buying price was 1,051,000 dinars.
In goldsmith shops, the selling price of a mithqal of 21-karat Gulf gold ranged between 1,085,000 and 1,095,000 dinars, while the selling price of a mithqal of Iraqi gold ranged between 1,055,000 and 1,065,000 dinars, according to the difference in crafting and manufacturing fees.
In Erbil, gold prices also rose, with the selling price of 22-karat gold reaching about 1,163,000 dinars, 21-karat gold reaching about 1,110,000 dinars, while the price of 18-karat gold reached about 952,000 dinars.
Goldsmiths rely on a formula that includes the price of an ounce in global markets and the dollar exchange rate in the local market to determine prices, which makes prices subject to change according to the movement of international markets and the price of the currency.
It is worth noting that gold prices had exceeded the one million dinar mark per mithqal last January, in a precedent that is the first of its kind in the local Iraqi markets . https://economy-news.net/content.php?id=65896
Russia Sells 300,000 Ounces Of Gold As Prices Hit A Record High
Money and Business Economy News - Follow-up Russia’s central bank sold about 300,000 ounces of gold from its reserves during January, taking advantage of prices reaching record levels.
Data published on Friday showed that Russia’s total gold holdings fell to 74.5 million ounces, the first decline since last October, according to Bloomberg.
Gold prices hit a record high last month, averaging nearly $4,700 an ounce, meaning the sale could have generated around $1.4 billion if executed at prevailing market prices.
According to the Russian Central Bank, the move comes within the framework of what is known as "mirror" operations, which are related to the Ministry of Finance selling assets of the National Welfare Fund, to compensate for the decline in oil and gas revenues amid a widening budget deficit.
During the first two months of 2025, the ministry spent about 419 billion rubles ($5.5 billion) from the fund through the sale of gold and foreign currency.
Despite the reduction in quantities, the total value of Russia’s gold reserves rose by 23% in January to $402.7 billion, driven by higher global prices.
Since the start of the war on Ukraine in 2022, rising gold prices have provided significant financial support to Moscow, given that a large portion of its foreign currency assets in Europe are frozen. https://economy-news.net/content.php?id=65893
New Rise In Dollar Prices In Local Markets
Money and Business Economy News – Baghdad The exchange rate of the US dollar rose this morning, Saturday, in the markets of the capital, Baghdad and Erbil, coinciding with the opening of weekly trading.
In Baghdad, the price of the dollar in the main exchanges reached 152,700 Iraqi dinars per 100 dollars, compared to 152,300 dinars per 100 dollars at the close of trading last Thursday.
Selling prices in local market exchange shops reached 153,250 dinars for every 100 dollars, while the buying price reached 152,250 dinars for 100 dollars.
In Erbil, the selling price was recorded at 152,900 dinars per 100 dollars, while the buying price was 152,800 dinars per 100 dollars. https://economy-news.net/content.php?id=65892
The United Nations Circulates Iraq's Maritime Coordinates Following Their Deposit In Accordance With The Law Of The Sea Convention.
Money and Business Economy News – Baghdad The United Nations published a map of Iraqi maritime areas following its official deposit by the Republic of Iraq, based on the provisions of the 1982 United Nations Convention on the Law of the Sea.
According to a notification issued by the United Nations bearing the reference (MZN172.2026.LOS) and dated 18 February 2026, Iraq, on 19 January and 9 February 2026, deposited lists of the geographical coordinates of the points, accompanied by an explanatory map, in accordance with Article 16, Paragraph 2, Article 75, Paragraph 2, and Article 84, Paragraph 2 of the Convention.
The deposit relates to determining the straight baselines and the baselines emanating from the heights of the islands to measure the breadth of the territorial sea, in addition to determining the territorial sea, the contiguous zone, the exclusive economic zone and the continental shelf of the Republic of Iraq, with the adoption of the 1984 World Geodetic System (WGS-84) as a reference for the adopted coordinates.
The document explained that the new filing replaces previous filings dating back to 2021 and 2011, while the lists of coordinates and the explanatory map were published on the website of the United Nations Division for Ocean Affairs and the Law of the Sea, in accordance with the approved procedures.
For its part, the Iraqi Ministry of Foreign Affairs confirmed that the deposit came in implementation of Cabinet Resolution No. (266) of 2025, which approved the map of Iraqi maritime areas prepared by a specialized technical and legal team, based on technical studies, hydrographic measurements and relevant international agreements.
The ministry stressed that the step comes within the framework of establishing Iraq’s maritime rights in accordance with international law, while respecting the rights of the countries of the region, and in a way that enhances security, stability and freedom of navigation in the region. https://economy-news.net/content.php?id=65903
Iraqis Ranked Fifth Among Nationalities Who Bought The Most Real Estate In Türkiye During The Month.
Money and Business Economy News - Follow-up The Turkish Statistical Institute announced on Saturday that Iraqis ranked fifth among the nationalities that purchased the most real estate in Türkiye during the month of January.
The agency stated that total home sales in Türkiye decreased by 2.1% during January compared to the same month of the previous year, recording 34,069 homes.
She added that home sales to foreigners also declined by 20.8% compared to the same period last year, reaching 1,306 homes, representing 1.2% of total home sales in the country during the month in question.
The agency noted that Russians topped the list of nationalities buying real estate in Turkey during January with 219 homes, followed by Iran in second place with 118 homes, and then Ukraine in third place with 77 homes.
The United Kingdom came in fourth with 75 homes purchased, followed by Iraq in fifth place with 74 homes, China in sixth with 73 homes, and Azerbaijan in seventh with 54 homes. Palestine ranked eighth with 40 homes, Afghanistan ninth with 38 homes, and Kazakhstan tenth with 29 homes.
It is worth noting that Iraqis topped the list of nationalities that bought the most homes in Turkey since 2015, before their ranking dropped to second place after Iran at the beginning of 2021, then to third place since April 2022 after the Russians topped the list of buyers, before settling later in fifth place according to the latest data.https://economy-news.net/content.php?id=65899
The Iraqi Trade Bank Announces The Granting Of Loans For The Solar Energy Initiative.
Banks The Trade Bank of Iraq (TBI) announced on Friday that it has begun granting solar energy loans to employees who receive their salaries through the bank, while also confirming its continued financing of industrial projects and investment power plants.
TBI Chairman Bilal Al-Hamdani stated, "The bank has granted solar energy loans to employees who receive their salaries through the bank as part of its commitment to supporting alternative energy projects and reducing pressure on the electrical grid."
He explained that the bank's branch network is limited, as it primarily deals with institutions and business owners, in addition to employees who receive their salaries through the bank. He noted that the bank finances most investment power plants for investors and will continue to do so.
He added that the bank is committed to supporting industrial business owners, particularly those with existing industrial projects within Iraq and those in the food and pharmaceutical security sectors. He clarified that this support is provided through loans based on technical and economic feasibility studies.
He emphasized that the bank finances up to 75% of the value of an industrial project, provided that the approved terms and conditions are met. He pointed out that the lending mechanisms are clear and implemented in all branches, and that the bank has already financed a significant number of industrial projects in the recent period.https://economy-news.net/content.php?id=65875
The Next Black Swan, Expert Warns of Market ‘Time Bomb’
The Next Black Swan, Expert Warns of Market ‘Time Bomb’
David Lin: 2-8-2026
In a recent in-depth discussion with David Lin, Matthew Piepenburg, a partner at Von Greer’s AG, shared his expert analysis on the current and future state of global financial markets, the role of gold and silver investments, and the geopolitical shifts that are reshaping the world economy.
The conversation provided a sobering look at the challenges facing fiat currencies and the increasing preference for hard assets among central banks and major financial institutions.
The Next Black Swan, Expert Warns of Market ‘Time Bomb’
David Lin: 2-8-2026
In a recent in-depth discussion with David Lin, Matthew Piepenburg, a partner at Von Greer’s AG, shared his expert analysis on the current and future state of global financial markets, the role of gold and silver investments, and the geopolitical shifts that are reshaping the world economy.
The conversation provided a sobering look at the challenges facing fiat currencies and the increasing preference for hard assets among central banks and major financial institutions.
Piepenburg emphasized that the ongoing bull market in gold and silver is not driven by speculative fervor but by a more fundamental reality: the erosion of fiat currency values.
Unprecedented global debt levels and expansive monetary policies have led to a deep-seated mistrust in the sustainability of the global monetary system.
As a result, central banks and major financial institutions are increasingly favoring gold over US treasuries, signaling a significant shift in the global financial landscape.
The discussion also touched on the stock market’s outlook for 2026, highlighting the complex interplay of factors such as Federal Reserve policies, tax-driven inflows, and the shifting of capital from tech growth to global value and hard assets. Piepenburg’s insights underscored the challenges of predicting market movements in a landscape marked by unprecedented monetary policies and geopolitical tensions.
One of the most striking aspects of the conversation was Piepenburg’s warning about the systemic risks embedded in derivatives markets and commodity exchanges.
He highlighted the potential for “black swan” events, such as delivery failures in silver, which could have a cascading effect on other metal markets. This risk, coupled with the unsustainable global debt crisis, underscores the need for honesty and austerity in economic policymaking.
Piepenburg stressed that the current debt crisis cannot be solved by more debt or monetary stimulus but will require painful structural adjustments—a reality that is politically unpalatable but economically inevitable.
The discussion also explored the motivations behind gold and silver investments. Piepenburg characterized gold as a preservation asset against currency debasement, rather than a speculative instrument.
In contrast, silver was described as more volatile, influenced significantly by industrial demand and supply constraints. The recent disruptions in major exchange markets have further complicated the silver market, making it a more challenging investment landscape.
Piepenburg’s critique of the global political and economic order painted a picture of a world where the old order is irreversibly broken.
The current geopolitical tensions and policy responses are symptomatic of deeper systemic failures, indicating a need for a fundamental rethink of the global economic architecture.
The generational wealth transfer caused by inflation and monetary debasement has resulted in younger generations facing diminished purchasing power and fewer opportunities compared to their predecessors.
In light of these challenges, Piepenburg offered pragmatic advice for young investors: to prepare for a tougher economic future by focusing on risk assets like junior mining companies and hard assets. While acknowledging the significant challenges ahead, he emphasized that opportunities exist for those with a long-term perspective and the conviction to navigate the heightened risks.
FIRST BANK FAILURE OF 2026: This Is How It Starts
FIRST BANK FAILURE OF 2026: This Is How It Starts
Taylor Kenny: 2-4-2026
The first bank failure of 2026 is here and it could be just the beginning.
Chicago's Metropolitan Capital Bank & Trust was shuttered by regulators this past weekend. The reason? "Unsafe and unsound conditions" and an "impaired capital position."
Translation: they were broke.
If you think this is an isolated incident, think again. The failure of Metropolitan Capital Bank isn't just a blip — it's a red flag waving from the crumbling foundations of our financial system. And it has direct implications for your deposits, retirement, and financial future.
FIRST BANK FAILURE OF 2026: This Is How It Starts
Taylor Kenny: 2-4-2026
The first bank failure of 2026 is here and it could be just the beginning.
Chicago's Metropolitan Capital Bank & Trust was shuttered by regulators this past weekend. The reason? "Unsafe and unsound conditions" and an "impaired capital position."
Translation: they were broke.
If you think this is an isolated incident, think again. The failure of Metropolitan Capital Bank isn't just a blip — it's a red flag waving from the crumbling foundations of our financial system. And it has direct implications for your deposits, retirement, and financial future.