Foreigners Own Less US Government Debt—Is That a Good Thing? [Podcast]
Foreigners Own Less US Government Debt—Is That a Good Thing? [Podcast]
Notes From the Field By James Hickman (Simon black) July 23, 2025
The US owes a LOT less money to China today than it did a few years ago. As recently as three years ago, for example, China held $1.3 trillion worth of US government bonds. Today they’re down to around $750 billion.
In other words, China’s government has decided to cut back on its US dollar Treasury holdings by more than 40% over the past three years.
Foreigners Own Less US Government Debt—Is That a Good Thing? [Podcast]
Notes From the Field By James Hickman (Simon black) July 23, 2025
The US owes a LOT less money to China today than it did a few years ago. As recently as three years ago, for example, China held $1.3 trillion worth of US government bonds. Today they’re down to around $750 billion.
In other words, China’s government has decided to cut back on its US dollar Treasury holdings by more than 40% over the past three years.
And at first, that might sound like a good thing— HOORAY! More independence from foreign creditors! America is better off without that Chinese money! Right?
But in reality this is a huge problem. Because it’s not just China.
Going back to the years before Covid, roughly a third of US debt was owned by foreigner governments and foreign central banks.
But then federal debt skyrocketed during the pandemic, and US government credibility plummeted. Even the government’s credit rating has been slashed.
As a result, foreigners across the board began stepping back from Treasury securities.
Today foreign ownership of US debt is less than 25%, and falling. This is a significant drop in just a few years.
Why it matters:
The US Treasury relies heavily on foreign capital to fund the federal government’s gargantuan (~$2 trillion) deficits. So if foreigners’ appetite to buy US government debt is waning— at a time when federal deficits are exploding higher— where will the Treasury Department come up with the money?
There are essentially two answers. Either (1) the Federal Reserve will “print” the money, or (2) domestic investors within the US economy will buy government bonds and fund the deficit.
But both of those options come at a significant cost.
Consequences of the Fed funding US government deficits:
In order for the Federal Reserve to buy US government bonds (and essentially fund the government’s annual budget deficit), the Fed must first expand the money supply.
We often refer to this as “printing money” even though it all happens electronically. The Fed calls it “quantitative easing”, or QE, but it’s all the same thing.
The consequence of QE is inflation. Serious, serious inflation.
Think about it— during the pandemic, the Fed’s QE created roughly $5 trillion in new money... resulting in 9% inflation.
Creating enough money to fund federal budget deficits over the next decade could result in the Fed having to print $15+ trillion. So most likely that’s going to be a LOT of inflation.
Consequences of the US economy funding government deficits:
American investors, i.e. banks, funds, corporate treasury departments, etc. could also buy more US government bonds in order to offset waning foreign demand.
But this capital comes at a big opportunity cost
Any private capital that goes in to the Treasury market means less money available to buy stocks, fund venture capital, or finance real estate mortgages
The net result is lower stock prices, higher mortgage rates, and slower innovation.
Why China is first to ditch US government bonds:
After sanctions on Russia, which included freezing their Treasury holdings, other countries got spooked — especially China.
China probably fears becoming the next target of US financial weaponization.
This may also be an indication that they will eventually invade Taiwan
So China is hedging: they’re selling their US government bonds and buying literal metric tons of physical gold— driving gold prices to record highs.
The bottom line:
The shrinking foreign appetite for US debt is a glaring red flag. It signals waning confidence in US fiscal credibility and could lead to a capital squeeze at home — or nasty inflation spiral if the Fed fills the gap.
Many Americans might cheer the idea of being less reliant on Chinese or other foreign money. But in reality, foreign investment in government debt is the closest thing to a ‘free lunch’ in economics.
It means that foreigners are financing federal deficits, meaning less inflation at home, and allowing private capital to invest directly in the US economy.
Losing this benefit is a bad thing for America.
You can listen to my full thoughts on the matter in this brief Podcast.
For the audio-only version, check out our online post here.
Finally, you can find the podcast transcript for your convenience, here.
To your freedom, James Hickman Co-Founder, Schiff Sovereign LLC
Seeds of Wisdom RV and Economic Updates Monday Afternoon 8-11-25
Good Afternoon Dinar Recaps,
China and Russia Hit Trade Milestone, Defying U.S. Tariff Threats
Record High in July
According to the Chinese General Administration of Customs, bilateral trade between China and Russia reached $19.14 billion in July — the highest monthly figure this year — despite U.S. warnings of secondary tariffs on Russian oil sales. China remains one of the largest buyers of Russian crude.
Good Afternoon Dinar Recaps,
China and Russia Hit Trade Milestone, Defying U.S. Tariff Threats
Record High in July
According to the Chinese General Administration of Customs, bilateral trade between China and Russia reached $19.14 billion in July — the highest monthly figure this year — despite U.S. warnings of secondary tariffs on Russian oil sales. China remains one of the largest buyers of Russian crude.
Yearly Trends and Oil Dependency
July trade rose 8.7% compared to June.
However, it was 2.8% lower than July 2024.
Russian crude remains a major driver, with 108.5 million metric tonnes shipped to China in 2024, accounting for 19.6% of China’s total crude imports.
From January to June 2025, Russia delivered 49.11 million metric tonnes — down 10.9% from the same period last year.
Geopolitical Context
Despite ongoing sanctions and supply restrictions, trade volumes remain strong, suggesting Beijing is largely unfazed by Washington’s recent threats to impose additional penalties on Russian oil transactions.
Potential U.S.-China Trade Impact
The U.S. government has already applied a 25% tariff on Indian oil purchases.
The current U.S.–China trade moratorium ends August 12, though Treasury Secretary Scott Bessent has signaled a likely extension, saying trade is in “a very good place with China.”
President Trump has claimed a trade deal with China is “sort of” in place, but further tariff measures could disrupt finalization.
Strategic Calculations
China’s continued imports may indicate confidence in an eventual resolution to the Russia-Ukraine conflict, or a calculated bet that the U.S. will not escalate tariff enforcement against Chinese oil imports.
@ Newshounds News™
Source: Bitcoin.com
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BRICS Shakeup: India Chooses U.S. Over Russia in Sudden Shift
Tariff Threat Forces Overnight U-Turn
In a stunning policy reversal, India has abandoned its $50.2 billion annual Russian oil partnership within just 24 hours after facing crippling tariff threats from Washington. President Trump’s 25% tariff on Indian goods — with potential hikes to 100% — targeted New Delhi’s purchases of Russian crude and military equipment, forcing a choice between Russia and India’s most important trade partner: the United States.
Why India Chose Washington
U.S. = India’s largest trade partner, worth $186 billion in 2024–2025.
Accounts for 18% of India’s exports, with a $41 billion trade surplus at stake.
Risk to key service-sector revenues outweighed energy ties with Russia.
Impact on Russian Energy Exports
Before the ultimatum, India imported 87.4 million tons of Russian oil annually — about 35% of its total crude imports.
State-owned refiners controlling 60% of India’s 5.2M bpd capacity immediately stopped Russian purchases.
Supplies replaced with Middle Eastern (Abu Dhabi) and West African crude.
Russia, already hit by Europe’s embargo, loses its largest oil customer, forcing steep discounts to move stockpiles.
BRICS Alliance Reality Check
India’s defection delivers a strategic blow to Moscow and exposes limits of BRICS unity.
The move came hours after ex-Russian President Dmitry Medvedev dismissed U.S. tariff threats.
Russia now faces a wartime economy with a budget deficit projected to exceed $100 billion by year’s end.
Geopolitical Significance
This reversal highlights a core weakness in anti-Western alliances: economic leverage from the U.S. and its allies remains powerful enough to override years of alternative trade bloc building. Despite BRICS’ ambitions, Washington’s economic dominance is still decisive in shaping global trade alignments.
@ Newshounds News™
Source: Watcher.Guru
~~~~~~~~~
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Thank you Dinar Recaps
“Tidbits From TNT” Monday 8-11-2025
TNT:
Tishwash: Sudanese advisor: White noise supports exchange rate stability in the Iraqi market
The Prime Minister's financial and economic advisor, Mazhar Mohammed Salih, confirmed that the success of the three fiscal, monetary, and trade policies in working together is what has led to the continued convergence of the exchange rates in the parallel and official markets.
Saleh said in a statement to {Euphrates News}: “The continuation of these general policies constitutes positive information for the market, known as ‘white noise’, which is a condition that makes the market maintain stable rates and prevents the parallel market from taking any negative directions.”
TNT:
Tishwash: Sudanese advisor: White noise supports exchange rate stability in the Iraqi market
The Prime Minister's financial and economic advisor, Mazhar Mohammed Salih, confirmed that the success of the three fiscal, monetary, and trade policies in working together is what has led to the continued convergence of the exchange rates in the parallel and official markets.
Saleh said in a statement to {Euphrates News}: “The continuation of these general policies constitutes positive information for the market, known as ‘white noise’, which is a condition that makes the market maintain stable rates and prevents the parallel market from taking any negative directions.”
He added, "The parallel exchange market is now moving toward convergence with the official fixed rate, which is considered one of the strongest stages of stability in the monetary market, as a result of the success of the three pillars of economic policy." link
Tishwash: The Central Bank Governor announces funding for housing projects and international praise for dollar transfer operations.
Central Bank Governor Ali Al-Alaq announced today, Sunday (August 10, 2025), that the bank has financed housing projects with an amount of 12 trillion and 300 billion dinars.
In a press statement followed by Baghdad Today, Al-Alaq noted that "international parties have praised the dollar transfer operations conducted by the Central Bank," stressing that "Iraq is unique in being the only country that successfully carries out these operations."
As the Iraqi government strives to strengthen the housing sector and provide the necessary financial support for housing projects, the Central Bank plays a pivotal role in financing these projects with large sums of money, aiming to improve the housing situation for citizens. link
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Tishwash: Al-Sudani directs a review of the provisions of the banking reform document after receiving comments from the Iraqi Private Banks Association.
Prime Minister Mohammed Shia al-Sudani reviewed the latest developments related to the banking reform paper, particularly the provisions affecting private banks, in light of the comments and responses he received from various stakeholders.
Al-Sudani commended the efforts made by the Central Bank of Iraq in preparing the banking reform document, which aims to enhance financial stability, achieve transparency, and raise the efficiency of the banking sector. He affirmed the government's full support for all reform initiatives aimed at developing the country's financial and monetary infrastructure, in line with international best practices.
In the same context, the Prime Minister paid close attention to the comments of the Iraqi Private Banks Association, contained in its letter dated August 3, 2025, which addressed the objective challenges facing local banks in implementing some reform provisions, particularly those related to capital increase requirements, the adoption of strategic partners, the costs of contracting with foreign companies, and the timelines required for implementing reforms.
Driven by his commitment to achieving a realistic balance between reform requirements and the capabilities of local banks, the Prime Minister directed the adoption of a participatory and consultative approach between the Central Bank and Iraqi banks, through the formation of joint technical committees to review reform requirements and ensure their compatibility with the national financial and economic reality, while protecting the interests of local and international investors and those working in the sector.
In this context, Al-Sudani emphasized that the goal of reform is not exclusion but empowerment, calling for an expanded dialogue to clarify the technical aspects of the document and discuss implementation mechanisms in a gradual and thoughtful manner.
He also stressed the importance of taking into account the specificities of Iraq's reality when applying international standards, while emphasizing the need to formulate procedures in a way that enhances confidence in the banking sector and contributes to its development.
The Prime Minister concluded his remarks by emphasizing that the doors to discussion are open, and that the government continues to support all sincere efforts, both national and international, aimed at reforming the financial and banking system to serve the public good and the national economy. link
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Tishwash: The toman is worth nine million for every $100.
The price of the toman, today, Sunday (August 10, 2025), recorded nine million for every 100 dollars, affected by news of upcoming negotiations between Iran and the United States of America.
Informed sources confirmed to the Tehran Times, followed by Baghdad Today, that "Tehran and Washington are showing a willingness to resume negotiations, but with a fundamental difference this time, as Iran is demanding that a clause for compensation for damages resulting from military operations be included as a fundamental part of any future agreement."
Sources said that "Norway has emerged as a leading candidate to host a new round of talks between Iran and the United States amid escalating regional and international tensions over the Iranian nuclear issue."
She added, "These negotiations are expected to begin indirectly, through a mediator who will act as a conduit between the two parties, starting this month." link
Mot: Did Ya Ever Wonder ????
Mot: It Was a Tough Day But I ~~~~~
Monday Coffee with MarkZ. 08/11/2025
Monday Coffee with MarkZ. 08/11/2025
Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Monday Morning….hope everyone had a wonderful weekend
Member: Hello Mark, Mods and Fellow Dinarians from around the globe!
Member: This Friday -Aug 15th, is the 54th anniversary of Nixon removing us from the gold standard
Monday Coffee with MarkZ. 08/11/2025
Some highlights by PDK-Not verbatim
MarkZ Disclaimer: Please consider everything on this call as my opinion. People who take notes do not catch everything and its best to watch the video so that you get everything in context. Be sure to consult a professional for any financial decisions
Member: Good Monday Morning….hope everyone had a wonderful weekend
Member: Hello Mark, Mods and Fellow Dinarians from around the globe!
Member: This Friday -Aug 15th, is the 54th anniversary of Nixon removing us from the gold standard
MZ: August 15th, 1971 if memory serves me right.
Member: Mark do you think the bonds are waiting on Iraq to rv or do you think Iraqs waiting on the bonds and reset to be finished?
MZ: I think Iraq is waiting on the bonds and the reset to be finished. Not much else makes sense when we look at the news. There have been some interesting developments that do not make sense unless a change is happening.
Member: Hearing bank holiday in Iraq Tuesday - Thursday? Anything to it?
Member: Texas Snake said FOREX Closed Tuesday Wednesday Thursday and banks connected to it
MZ: I hear we have a very interesting 3-4 days coming up. Sounds like we have similar news.
MZ: “ Has anyone noticed the US M2 is hitting all time highs?” they are creating money to buy their own bonds that everybody is dumping. I think we are watching a controlled demolition.
MZ: In Iraq: “Newspapers are interested in the file of banking reforms, modernization of the customs work system, and transformation to a integrated digital environment” they are setting the page in the Iraqi papers right now to the Iraqi people
MZ: “Washington is pressuring and watching. 20 days left before the liquidation of Iraqi banks and the options “once” Any of them who are not up to the new capital requirements may be folded into to existing compliant banks to make things secure. It is important for them to be stable so they can lift their purchasing power.
MZ: “Lifting the purchasing power” means revaluation or RV….for those confused by the terminology.
Member: Not doing the Revaluation pre election would be political suicide for Sudani
MZ: I believe it will happen before Nov. 11th and Iraq elections. Sudani said he would do it this term. I believe he was waiting on the world and the world is now ready.
MZ: there is a lot of cleanup going on in Iraq right now …..almost as if they are having their own Gesara
MZ: “Corruption and “Bathism” topples 66 candidates for Iraqi elections and threatens 75 others” they are cleaning up their electoral process. We were told this would start happening around the world with Nesara/Gesara. I am ready for it to happen here.
MZ: “Trump removes IRS commissioner Billy Long” Interesting timing from over the weekend. Scott Bessent -Secretary of the Treasury believes we should not have an IRS…has been given the position temporarily. Billy decided last week to give IRS employees and extra 70 minutes off Friday at the end of the day to celebrate his 70th birthday. Now suddenly we have a new commissioner after he sent all the employees home. Could it some big changes just occurred? Very interesting timing.
Member: Mark and crew! They were testing the EBS system in San Antonio, TX, this morning. Coincidence?
Member: Mark with Pres Trump Federalizing DC starting today is your start of NESARA without big announcement and fanfare.
MZ: I think you noticed what may be coming. Federalizing DC and bringing in the National Guard. Would this be a great cover for removing the corrupt officials ? It is interesting that at the same time other countries are closing their financial borders and cleaning up their politicians. Things feel like they are all coming together. Draining the swamp for real.
Member: It could be the start of the swamp arrests…….. One would think troops need to be positioned in DC to make things happen
Member: My military contacts saying arrest will start in DC first
Member: It sounds like pretty much all countries are ready for this to go, what is holding this up?
Member: Isn’t RV delay due to US concern over not only Iran influence, but Iranian RV wealth created from IQD holdings they possess.
Member: just imagine all those warehouses with pallets of cash that will no longer be good after the Reset and we have new gold backed USN’s!
Member: Changing USA currency would solve a tremendous amount of usd in the wrong hands problems like cartels and Iran could they exchange old usd for new usn’s
MZ: Not expecting any new bond news until late on Tuesday. All my bond contacts that have not disappeared tell me they still expect to be paid this week.
MZ: There is a lot of interesting events and curious timing right now…but remember no one knows the exact timing of the RV/reset.
Member: Roseann Bar tweeted out a message that last night Sunday night was a trigger for a big change in our country.
Member: Mark it sounds like we have started now and by this evening it could be quite interesting
Member: Hope redemption centers had a great retreat, now let’s get to exchanging!
Jonothan Otto at myredlight joins the stream today. Please listen to the replay for his information
THE CONTENT IN THIS PODCAST IS FOR GENERAL & EDUCATIONAL PURPOSES ONLY&NOT INTENDED TO PROVIDE ANY PROFESSIONAL, FINANCIAL OR LEGAL ADVICE. PLEASE CONSIDER EVERYTHING DISCUSSED IN MARKZ’S OPINION ONLY
FOLLOW MARKZ : TWITTER . https://twitter.com/originalmarkz?s=21. TRUTH SOCIAL . https://truthsocial.com/@theoriginalm...
Mod: MarkZ "Back To Basics" Pre-Recorded Call" for Newbies 10-19-2022 ) https://www.youtube.com/watch?v=37oILmAlptM
MARKZ DAILY LINKS: https://theoriginalmarkz.com/home/
Note from PDK: Please listen to the replay for all the details and entire stream….I do not transcribe political opinions, medical opinions or many guests on this stream……just RV/currency related topics.
ZESTER'S LINK TREE: https://linktr.ee/CrazyCryptonaut
THANKS FOR JOINING. HAVE A BLESSED DAY! SEE YOU ALL TUESDAY THROUGH THURSDAY EVENINGS FOR NEWS @ 7:00 PM EST ~ UNLESS BREAKING NEWS HAPPENS! FROM NOW ON NO MORE NIGHTLY PODCASTS ON MONDAYS AND FRIDAYS
News, Rumors and Opinions Monday 8-11-2025
Note: All intel should be considered as "Rumors" until we receive official announcements ...and “Rates and Dates” could change anytime until we get to the banks/redemption centers.
RV Excerpts from the Restored Republic via a GCR: Update as of Mon. 11 August 2025
Compiled Mon. 11 August 2025 12:01 am EST by Judy Byington
Possible Timing: There appears to be no information available on the timing of the Tier4b (Us, the Internet Group) redemption of foreign currency process for the Global Currency Reset, only that everything has been done, currencies were trading on the back screens of the Forex and we were awaiting the Green Light to receive our appointments.
Note: All intel should be considered as "Rumors" until we receive official announcements ...and “Rates and Dates” could change anytime until we get to the banks/redemption centers.
RV Excerpts from the Restored Republic via a GCR: Update as of Mon. 11 August 2025
Compiled Mon. 11 August 2025 12:01 am EST by Judy Byington
Possible Timing: There appears to be no information available on the timing of the Tier4b (Us, the Internet Group) redemption of foreign currency process for the Global Currency Reset, only that everything has been done, currencies were trading on the back screens of the Forex and we were awaiting the Green Light to receive our appointments.
On Tues. 19 Aug. 2025 NESARA + GESARA Planet Earth is entering The Great Shift of Consciousness — The Great Awakening into Unity Consciousness. Mother Earth is returning as a sacred planet and taking with her all who choose to go. A Golden Age beyond imagination is dawning, bringing global prosperity, peace, and an end to poverty, hunger, and debt. …QFS on Telegram
GESARA (Global Economic Stabilization and Recovery Act), as (allegedly) ratified by all 209 sovereign nations under the 2015 Paris Agreement, is now set to launch alongside NESARA (National Economic Stabilization and Recovery Act) in the restored Republic of the United States. Together, they will (allegedly) reshape economies, laws, and daily life worldwide.
Under NESARA, all credit card, mortgage, and bank debt will be (allegedly) canceled — a true “jubilee” — due to decades of illigal banking and government practices. Federal income tax will be (allegedly) abolished in the U.S., replaced by a 17% flat sales tax on new non-essential goods only, exempting food, medicine, and used items.
The IRS will be (allegedly) dismantled, its employees reassigned to the Treasury’s national sales tax division.
Constitutional Law will be (allegedly) fully restored, all judges and attorneys retrained, and all unconstitutional officials and members of Congress removed from office.
GESARA extends these transformations globally, (allegedly) integrating the new quantum-secure financial system. The IMF will announce a global gold-standard monetary system, converting all remaining fiat currencies into gold-backed digital money.
National debts will be erased, taxes lowered, and paper money gradually phased out. This quantum-hosted system has been online for months, immune to hacking and unauthorized access.
This is the transition from a world of survival to a world of abundance, respect, and unity. As pain and suffering dissolve, a new era begins — one of peace, prosperity, and shared destiny for all
Read full post here: https://dinarchronicles.com/2025/08/11/restored-republic-via-a-gcr-update-as-of-august-11-2025/
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Courtesy of Dinar Guru: https://www.dinarguru.com/
Frank26 Banks...are being selectively fined and... shutdown. That's the ones that are still doing illegal things. This is a very good step for the monetary reform process. Just like the two commanders [sent to judiciary]...they are being dealt with. This is a requirement of the monetary reform process. You remove all the stinking cockroaches that you can just before you pull the trigger.
Militia Man Article quote: "Those who misuse public funds or abuse power face consequences." I like that part...If you got caught stealing $500 billion and were allowed to go for 8 years and then another decade almost...really? It's incredible...If you claw back $100 billion for instance it goes to support the real effective exchange rate. You do that five time or even more, it [all] goes to the real effective exchange rate...Sudani has been cleaning house. It's house cleaning time. That's where people start going to jail. They're getting tapped on the shoulder for large amounts of money
Economic Storm Incoming: Here's PROOF - Rising Prices, Slowing Jobs, Confused Consumers
Lena Petrova: 8-11-2025
A recent analysis by economic commentator Lena Petrova sheds light on a concerning trend: despite a brief reprieve in gas prices, inflation in the United States is once again on an upward trajectory.
This renewed surge is having a profound impact, particularly on the daily lives of Americans, with the food industry bearing a significant brunt of the changes.
As Lena Petrova effectively illustrates, the current economic landscape is an intricate web of interconnected factors. Inflation isn’t just a number; it’s a force reshaping daily routines, impacting businesses, and challenging the very foundation of economic optimism.
Understanding these relationships, particularly through tangible examples like the food industry, is paramount for anticipating future economic developments and the policy responses that will inevitably follow.
Iraq Economic News and Points To Ponder Monday Morning 8-11-25
Almost Impossible... Iraqi Banks Are Threatened With Closure Due To The Central Bank's New Conditions.
10 Aug 13:19 Information / Baghdad.. Economic expert Mustafa Hantoush considered on Sunday that the requirement to raise the capital of Iraqi banks to 400 billion dinars, in addition to the necessity of a foreign partner, are "almost impossible conditions" at the current stage, especially with foreign investors reluctant to enter the Iraqi market due to the political and economic instability.
Almost Impossible... Iraqi Banks Are Threatened With Closure Due To The Central Bank's New Conditions.
10 Aug 13:19 Information / Baghdad.. Economic expert Mustafa Hantoush considered on Sunday that the requirement to raise the capital of Iraqi banks to 400 billion dinars, in addition to the necessity of a foreign partner, are "almost impossible conditions" at the current stage, especially with foreign investors reluctant to enter the Iraqi market due to the political and economic instability.
Hantoush told Al-Maalouma, "Implementing these standards requires a more open investment environment and deeper reforms to the economic and legal infrastructure."
He emphasized that "a number of Iraqi banks provide good services and deserve support and incentives, not strict standards that could lead to their closure."
Hantoush called on the Central Bank of Iraq to "adopt a gradual reform plan that takes into account the reality of the local market and strikes a balance between protecting the banking sector and stimulating its growth,"emphasizing that "financial policies must focus on enhancing the competitiveness of national banks rather than weakening them."
This comes amid moves by the Central Bank to grant new licenses to foreign banks, a move some see as an attempt to increase competition and improve services, while others warn it could exacerbate the challenges facing local banks. https://almaalomah.me/news/107043/economy/شبه-مستحيلة-مصارف-عراقية-مهددة-بالإغلاق-بسبب-شروط-البنك-المر
Iraqi Banking Analysis Reveals Troubling Lending Ratios
Business Iraq Jawad Al-Samarraie August 10, 2025 615 The new headquarters of the Central bank of Iraq (CBI). Photo: Zaha Hadid Architects
Baghdad (IraqiNews.com) – A recent analysis of Iraq’s 2025 banking data by economic expert Manar Al-Obaidi has exposed a significant disparity in lending practices, particularly among the nation’s smaller financial institutions.
The report, which is stirring debate within financial circles, raises serious questions about the oversight and effectiveness of the Central Bank of Iraq’s loan initiative.
The analysis categorizes Iraqi banks into three distinct groups based on their credit-to-deposit ratios.
Large banks, with assets exceeding one trillion Iraqi dinars, maintain a stable ratio of 46%,which is
well within international safety standards. However, for medium-sized banks (with assets between 500 billion and one trillion dinars),this ratio jumps to 109%.
The most alarming figures come from small banks (with assets below 500 billion dinars), where the
ratio soars to an astonishing 400%, meaning their loan portfolios are four times the size of their deposits.
To illustrate this disparity, Al-Obaidi’s analysis cites specific examples.
One small bank with just 2.2 billion dinars in deposits extended loans valued at 440 billion dinars.
Another had deposits of only three billion dinars while managing a credit portfolio exceeding 136 billion dinars.
The majority of these loans were sourced from the Central Bank’s 13.5 trillion dinar initiative for small and medium-sized enterprises.
This trend is prompting critical questions:
How were institutions with such a limited deposit base and questionable creditworthiness enabled to manage these massive sums?
What is the nature of the projects being funded, and what is their actual impact on Iraq’s economy and GDP?
Al-Obaidi’s analysis suggests that while the initiative has been in place for over two years, the
loan-granting mechanism needs a comprehensive review.
He also calls for a re-evaluation of banks based on deposits and client base,as well as more rigorous oversight of the small banks that appear to have found a massive opportunity for financial maneuvering without clear standards or accountability.
The analysis concludes with the central and most pressing question:
Who are the real beneficiaries of these loans, and
did the initiative truly achieve the economic goals for which it was launched?
https://www.iraqinews.com/business/iraqi-banking-analysis-lending-ratios-cbi/
By Integrating The Private Sector, An Expert Says Iraq Has The Potential To Attract Hard Currency Through The Tourism Investment Sector.
August 10, 2025 Baghdad/Iraq Observer Economic and financial expert Safwan Qusay asserted that Iraq possesses the potential to increase its attractiveness in the tourism investment sector, given that Iraq currently boasts 12,000 cultural and religious tourist sites, in addition to natural areas.
Qusay told the Iraq Observer, "The Tourism Authority should demand the return of its assets and invest them rationally, involving the regular private sector in the investment sector, whether in hotels, restaurants, or transportation.
Millions of tourists visit Iraq annually, so tourism is a permanent source of income."
He added that Iraq has an opportunity to connect the holy cities of Najaf and Karbala to Mecca
via a train that could contribute to sustaining tourism revenues throughout the year.
Regarding the path to development, the economic expert explained that “Iraq is looking forward to completing this project, which could contribute to the visit of these tourists and the creation of complementary industries to express the possibility of having crafts and some tools that could contribute to strengthening popular industries, with the aim of creating memories for tourists of their visit to Iraq.”
He continued, "Iraq may have stability in its currency, as tourists spend in different currencies.
This is also a source of income, as they obtain foreign currencies and facilitate their entry into the country and convert them into Iraqi currency in various ways."
Last April, the Ministry of Culture, Tourism, and Antiquities announced that more than 500 European and American tourists entered Iraq during the past year, and predicted that numbers would increase during the current year, 2025. The Ministry affirmed that
Iraq is witnessing significant tourism development, coupled with economic and political stability.
https://observeriraq.net/عبر-دمج-القطاع-الخاص-خبير-العراق-لديه/
For current and reliable Iraqi news please visit: https://www.bondladyscorner.com
Seeds of Wisdom RV and Economic Updates Monday Morning 8-11-25
Good Morning Dinar Recaps,
Elizabeth Warren Demands Crypto Regulation Free from Industry Influence
Senator Elizabeth Warren has renewed her push for tighter cryptocurrency oversight, calling for investor protections and safeguards to prevent financial instability—without influence from the crypto industry itself.
Good Morning Dinar Recaps,
Elizabeth Warren Demands Crypto Regulation Free from Industry Influence
Senator Elizabeth Warren has renewed her push for tighter cryptocurrency oversight, calling for investor protections and safeguards to prevent financial instability—without influence from the crypto industry itself.
Key Proposals
Ban lawmakers from trading cryptocurrencies to avoid conflicts of interest and ensure policy decisions are free from personal financial bias.
Establish stronger “guardrails” to prevent systemic risks from destabilizing the broader economy.
Expand beyond current bills like the GENIUS Act to create a comprehensive market structure framework.
Preventing Economic Fallout
Warren described existing rules as “weak” and insufficient to handle potential large-scale risks. Her skepticism toward crypto reflects concerns that unregulated digital assets could trigger broader economic disruptions if left unchecked.
Not Just Opposition to Bills
Although Warren previously voted against the GENIUS Act, she refrained from criticizing it in her latest remarks. Instead, she called for additional legislative measures to close regulatory gaps and strengthen oversight.
Trump’s Crypto Earnings Under Scrutiny
Financial disclosures show Donald Trump earned over $57 million from World Liberty Financial, issuer of USD1.
Trump denies profiting directly from the token, but critics point to potential conflicts of interest, particularly after his administration approved crypto investments in 401(k) plans—a move analysts warn could expose retirement savings to volatility.
Industry Reaction
Justin Slaughter, VP of Regulatory Affairs at Paradigm, welcomed Warren’s acknowledgment that crypto regulation is necessary. He noted her remarks are shifting from blanket opposition to shaping stronger, more inclusive rules.
Bottom Line:
Warren’s position signals a shift toward structured dialogue on how cryptocurrency fits into the U.S. financial system—emphasizing investor protection, systemic stability, and independence from industry lobbying.
@ Newshounds News™
Source: Coinpedia
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Tether-Backed Rumble Plans $1.17 Billion Northern Data Acquisition Following Bitcoin Mining Division Selloff
Rumble, the video-sharing platform and AI-focused cloud services provider, has announced plans to acquire Northern Data in an all-stock deal valued at approximately $1.17 billion, excluding Northern Data’s bitcoin mining division.
The transaction aims to strengthen Rumble’s position in AI cloud computing and high-performance infrastructure, with major backing from Tether, the world’s largest stablecoin issuer and Northern Data’s majority shareholder.
Deal Structure & Terms
The proposed offer values Northern Data at roughly €1 billion ($1.17 billion).
Shareholders of Northern Data would receive 2.319 newly issued Class A Rumble shares for each Northern Data share.
If all shares are tendered, Northern Data shareholders would own approximately 33.3% of Rumble.
Tether, holding 54% of Northern Data, would become Rumble’s largest Class A shareholder under the same exchange ratio.
Tether has committed to a multi-year GPU purchase agreement upon deal closure.
Tether & Rumble’s Strategic Partnership
Tether previously invested $775 million in Rumble in December 2024 to accelerate the platform’s growth as a YouTube alternative with an emphasis on data privacy and global independence.
The combined company is expected to enhance Rumble’s AI leadership capabilities and scale its cloud computing infrastructure worldwide.
Leadership & Governance
Chris Pavlovski, Rumble’s Chairman and CEO, will retain majority voting control.
Pavlovski has expressed full support for the acquisition and will vote all of his shares in favor.
Northern Data has signaled willingness to enter formal discussions regarding the exchange offer.
Financial Performance
Northern Data reported strong H1 2025 growth:
Revenue: €94.3 million ($109.8 million), up 72% year-over-year.
Mining Revenue: €53.5 million ($62.3 million), up 49% due to capacity expansion and higher bitcoin prices.
Market Reaction
Following the announcement, Rumble’s stock surged 20% in pre-market trading, reaching $9.48, according to TradingView.
@ Newshounds News™
Source: The Block
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FRANK26…8-10-25…ALOHA…TALKING REFORMS
KTFA
Sunday Night Video
FRANK26…8-10-25…ALOHA…TALKING REFORMS
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#
KTFA
Sunday Night Video
FRANK26…8-10-25…ALOHA…TALKING REFORMS
This video is in Frank’s and his team’s opinion only
Frank’s team is Walkingstick, Eddie in Iraq and guests
Playback Number: 605-313-5163 PIN: 156996#
KTFA Sunday video #2
Silver Investment and this Could Change Everything for Iraq
Silver Investment and this Could Change Everything for Iraq
Edu Matrix: 8-9-2025
A recent deep dive from Edu Matrix offers a compelling look into two seemingly disparate yet critically influential global trends shaping 2025: the surging prospects of silver as an investment and the escalating geopolitical landscape in the Middle East.
The video provides a comprehensive overview, highlighting the intertwined nature of economic, political, and technological developments that create a complex backdrop for investors and observers alike.
Silver Investment and this Could Change Everything for Iraq
Edu Matrix: 8-9-2025
A recent deep dive from Edu Matrix offers a compelling look into two seemingly disparate yet critically influential global trends shaping 2025: the surging prospects of silver as an investment and the escalating geopolitical landscape in the Middle East.
The video provides a comprehensive overview, highlighting the intertwined nature of economic, political, and technological developments that create a complex backdrop for investors and observers alike.
The Edu Matrix channel strongly advocates for a “buy and hold” strategy for silver, pointing to its exceptional performance in 2025, where prices have soared to a 13-year high. This remarkable rise is attributed to a confluence of factors: significant supply shortages, burgeoning industrial demand, and its enduring status as a safe haven asset amidst pervasive market volatility.
Edu Matrix further underscores silver’s considerable potential for continued growth, noting its current undervaluation relative to gold. Its expanding critical role in burgeoning green industries like solar energy and electric vehicle manufacturing is also highlighted as a key driver for future demand.
As the global push towards decarbonization accelerates, silver’s industrial applications are set to increase dramatically, cementing its position as a compelling investment in the years to come.
Shifting gears to the geopolitical arena, the Edu Matrix video meticulously dissects the fraught situation in the Middle East, particularly focusing on Israel’s recent contentious decision to annex the Gaza Strip.
The analysis reveals that Israel’s security cabinet has approved taking full control of Gaza City, a move that has ignited massive internal protests within Israel and drawn vehement condemnation from key regional players such as Iran and Iraq.
Iran has vehemently lambasted the annexation as a blatant violation of international law and a looming humanitarian catastrophe. Tehran anticipates this decision will inevitably intensify regional conflicts and empower its allied militias across Lebanon, Yemen, and Iraq, further destabilizing the already volatile region.
Iraq finds itself in a particularly precarious position, navigating the delicate balance between domestic pressure from powerful pro-Iran factions and maintaining its crucial relationship with the United States.
The video warns that such an annexation could catastrophically escalate existing proxy conflicts, deepen regional instability, and severely worsen the already dire humanitarian conditions in Gaza and the broader Middle East. For Iraq, these repercussions could specifically impact its fragile economy and ongoing currency adjustments.
The Edu Matrix discussion also thoughtfully touches upon the deep-seated historical and cultural tensions that have long simmered between Israel, Arab nations, and Persia, provocatively raising the question of how future artificial intelligence might one day unveil hidden truths about these complex, enduring conflicts.
In conclusion, the Edu Matrix video effectively illustrates how these seemingly disparate narratives—the robust economic ascendancy of a precious metal and the profound geopolitical tremor in a vital region—are inextricably linked.
It paints a picture of 2025 as a year where economic, political, and even technological developments are deeply intertwined, creating an exceptionally complex and often unpredictable backdrop for global investors and observers alike.
US Dollar Devaluation, Global Currency Collapse is Coming
US Dollar Devaluation, Global Currency Collapse is Coming
Lena Petrova: 8-9-2025
A financial storm of unparalleled magnitude is brewing, threatening to engulf the world’s largest economies in a crisis unlike any seen before.
Drawing insights from a recent video by financial expert Lena Petrova, a sobering analysis reveals that the very nations considered the pillars of global finance—the G7—are teetering on the edge of a potential currency collapse, driven by crushing debt and rapidly rising interest rates.
US Dollar Devaluation, Global Currency Collapse is Coming
Lena Petrova: 8-9-2025
A financial storm of unparalleled magnitude is brewing, threatening to engulf the world’s largest economies in a crisis unlike any seen before.
Drawing insights from a recent video by financial expert Lena Petrova, a sobering analysis reveals that the very nations considered the pillars of global finance—the G7—are teetering on the edge of a potential currency collapse, driven by crushing debt and rapidly rising interest rates.
Unlike past financial crises, which were often confined to emerging markets or isolated nations, this looming threat originates from the core of the global financial system.
The G7 nations—Canada, France, Italy, Japan, Spain, the United Kingdom, and the United States—collectively referred to as the “D7” due to their daunting debt levels, find their government debts exceeding their entire Gross Domestic Product (GDP).
The financial lifeline extended during the 2008 crisis and the 2020 pandemic, characterized by cheap and abundant borrowing, has now tightened into a financial noose. Interest rates, once near zero, have surged, making it exponentially more difficult for these highly indebted governments to service their colossal debts.
This dynamic has created a “pressure cooker” in global credit markets, as investor confidence wanes regarding the ability of these nations to manage their liabilities without resorting to extreme measures.
Should investor confidence evaporate, it could trigger a rapid sell-off in government bonds and currencies.
Historically, currency devaluations have occurred, but they were largely isolated events. Today, the interconnectedness of the global financial system means a devaluation in one major economy could unleash a catastrophic domino effect.
The G7’s central banks, intricately linked by holding each other’s currencies, amplify this risk; a crisis in one nation would inevitably ripple across all.
One politically tempting, yet economically perilous, “shortcut” to managing debt is through massive money printing to inflate the debt away. However, as Petrova highlights, this path carries severe consequences: rampant inflation, a significant decline in living standards, a collapse of public and investor confidence, and ultimately, a run on the currency.
While central banks might attempt to defend their currencies by selling reserves, the effectiveness of this strategy is limited given that these reserves are often tied to each other’s currencies.
A sharp fall in the U.S. dollar, the world’s primary reserve currency, would be particularly destabilizing. Other countries might feel compelled to devalue their own currencies to maintain export competitiveness, initiating a broad market sell-off and a painful revaluation of institutional portfolios globally. This scenario would severely impact bond markets worldwide.
The Eurozone, with its shared central bank but disparate economic resilience among member states, is uniquely vulnerable to political tensions and financial instability in such a scenario.
The International Monetary Fund (IMF) already projects slower global growth and tighter national budgets, exacerbated by rising trade tensions. While urgent structural reforms are desperately needed, they are politically challenging to implement.
The sheer scale of the debt makes it impossible to simply “grow out of it,” and raising taxes or cutting spending is politically fraught. This leaves financial devaluation—either forced by market panic or a deliberate government action—as the most likely, albeit devastating, path forward.
Lena Petrova’s analysis serves as a stark warning: a simultaneous collapse of the world’s most trusted currencies would be a historic and devastating event
Its far-reaching consequences would reshape wages, decimate savings, erode investments, and cripple global trade.
The lessons from past financial upheavals underscore the urgency of understanding and preparing for this potential financial upheaval.
This sobering assessment of the precarious financial position of the world’s largest economies and the cascading risks of high debt and rising interest rates demands immediate attention and proactive preparation.
The potential fallout from a synchronized currency crisis in developed markets would be truly unprecedented and globally disruptive.
Iraq Economic News and Points To Ponder Sunday Afternoon 8-10-25
Sudanese Advisor: White Noise Supports Exchange Rate Stability In The Iraqi Market
2025/08/10 Reading: 315 times {Economic: Al Furat News} The Prime Minister's financial and economic advisor, Mazhar Mohammed Salih, confirmed that the success of the three fiscal, monetary, and trade policies in working together is what has led to the continued convergence of the exchange rates in the parallel and official markets.
Sudanese Advisor: White Noise Supports Exchange Rate Stability In The Iraqi Market
2025/08/10 Reading: 315 times {Economic: Al Furat News} The Prime Minister's financial and economic advisor, Mazhar Mohammed Salih, confirmed that the success of the three fiscal, monetary, and trade policies in working together is what has led to the continued convergence of the exchange rates in the parallel and official markets.
Saleh said in a statement to {Euphrates News}: “The continuation of these general policies constitutes positive information for the market, known as ‘white noise’, which is a condition that makes the market maintain stable rates and prevents the parallel market from taking any negative directions.”
He added, "The parallel exchange market is now moving toward convergence with the official fixed rate, which is considered one of the strongest stages of stability in the monetary market, as a result of the success of the three pillars of economic policy." LINK
Al-Sudani Directs A Review Of The Provisions Of The Banking Reform Document After Receiving Comments From The Iraqi Private Banks Association
Banks Economy News – Baghdad Prime Minister Mohammed Shia al-Sudani reviewed the latest developments related to the banking reform paper, particularly the provisions affecting private banks, in light of the comments and responses he received from various stakeholders.
Al-Sudani commended the efforts made by the Central Bank of Iraq in preparing the banking reform document, which aims to enhance financial stability, achieve transparency, and raise the efficiency of the banking sector. He affirmed the government's full support for all reform initiatives aimed at developing the country's financial and monetary infrastructure, in line with international best practices.
In the same context, the Prime Minister paid close attention to the comments of the Iraqi Private Banks Association, contained in its letter dated August 3, 2025, which addressed the objective challenges facing local banks in implementing some reform provisions, particularly those related to capital increase requirements, the adoption of strategic partners, the costs of contracting with foreign companies, and the timelines required for implementing reforms.
Driven by his commitment to achieving a realistic balance between reform requirements and the capabilities of local banks, the Prime Minister directed the adoption of a participatory and consultative approach between the Central Bank and Iraqi banks, through the formation of joint technical committees to review reform requirements and ensure their compatibility with the national financial and economic reality, while protecting the interests of local and international investors and those working in the sector.
In this context, Al-Sudani emphasized that the goal of reform is not exclusion but empowerment, calling for an expanded dialogue to clarify the technical aspects of the document and discuss implementation mechanisms in a gradual and thoughtful manner.
He also stressed the importance of taking into account the specificities of Iraq's reality when applying international standards, while emphasizing the need to formulate procedures in a way that enhances confidence in the banking sector and contributes to its development.
The Prime Minister concluded his remarks by emphasizing that the doors to discussion are open, and that the government continues to support all sincere efforts, both national and international, aimed at reforming the financial and banking system to serve the public good and the national economy. https://economy-news.net/content.php?id=58597
Borrowing From The Central Bank Will Put The Economy At Risk
Samir Al-Nusairi The financial policy in Iraq has been accustomed to adopting special foundations and items for preparing general budgets. All of these budgets suffered from a planning deficit after 2003 until 2019, which turned into an actual deficit after 2020, especially after the decline in oil prices, because the Iraqi economy is a rentier economy that depends mainly on oil, and oil revenues constitute approximately 93% of total revenues and (58%-60%) of the gross domestic product.
Given the failure to diversify national income sources and develop the real sector, the deficit in the 2023-2025 three-year budget continued, forcing the government to borrow domestically from Iraqi banks to cover the real deficit in the operating and investment budgets due to increased spending compared to revenues from oil, whose prices fell at rates lower than planned in the budget.
Therefore, it is expected that borrowing from the Central Bank will be done through rediscounting treasury transfers, noting that the Central Bank had previously lent the government approximately 46 trillion dinars in previous years, and that the total domestic debt exceeded 85 trillion dinars, which has not been repaid despite the abundance of oil revenues in the past.
Moreover, the total oil revenues projected in the 2025 budget, amounting to approximately 117 trillion dinars, equivalent to $90.9 billion at a planned oil price of $70 per barrel, will not be achieved, creating a real deficit.
Therefore, the Central Bank will be under pressure and its plans will be disrupted in using monetary policy tools to achieve its objectives of maintaining the current rates of annual inflation, which currently range between (1%-1.5%), controlling the money supply, maintaining a foreign reserve balance that covers imports and exported local currency, which currently amounts to approximately $104 billion and 167 tons of gold, and ensuring the stability of the exchange rate of the US dollar against the Iraqi dinar, which the Central Bank’s measures have led to a narrowing of the price gap between the official price and the price in the parallel market.
Therefore, borrowing will lead to an increase in the local currency issued, which, according to data, currently exceeds 99 trillion dinars, of which more than 80% is outside the banking system. This increase will inevitably lead to a rise in inflation and will impact the adequacy ratio of foreign exchange reserves.
The budget’s reliance on covering the deficit, which will exceed 63 trillion dinars, or 30% of the GDP, while the percentage specified in Financial Management Law No. 6 of 2019 is 3%, will place severe pressure on the Central Bank and its foreign exchange reserves.
This embarrasses the central bank, placing it in a cycle of government interference in its independence, and placing the economy at risk. This will hinder the achievement of economic stability and the stability of the monetary and financial systems, because central banks are banks of stability, not lending banks. https://economy-news.net/content.php?id=58589
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