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History often times repeats itself... Global Currency Reset: What History Reveals About the Next Monetary Shake-Up Friday, March 28, 2025 11 minute read This post was authored by Adem Tumerkan, Dunham's Content Writer. If you have questions concerning today's topic, please call us at (858) 964 - 0500. Hold us to higher standards. Author Update — October 2025 Since this article first ran in March 2025, talk around a possible “Mar-a-Lago Accord” — and a broader U.S.-led currency realignment — has only picked up steam. While no official agreement has surfaced yet, the same themes still dominate the discussion: dollar strength, trade imbalances, and the ongoing search for monetary balance. We’ll keep an eye on how this story unfolds. Key Takeaways: Global monetary systems follow cycles of stability, collapse, and reset — from the gold standard to Bretton Woods, and now floating exchange rates The U.S. dollar remains dominant, but its strength creates imbalances: cheap imports, trade deficits, and a hollowed-out manufacturing base Tariffs alone can’t rebalance trade — real change would require coordinated global action to shift demand, currency alignment, and debt dynamics A new “Mar-a-Lago Accord” is rumored, aiming to weaken the dollar and boost U.S. exports, but echoes of past failures (like Japan post-Plaza Accord) show how difficult rebalancing really is Without international cooperation, even bold plans risk falling short — just as previous resets required multi-nation coordination, today’s system may resist change without shared sacrifice Over the last 150 years, the global monetary system has gone through several resets. Sometimes, countries worked together. And sometimes, they didn’t, and chaos came about. But the cycle is the same. Stability → Instability → Collapse → Reset. A Brief History of Monetary Resets: From Gold to Bretton Woods Gold Standard (1870s–1914) - Countries tied their currencies directly to gold. This meant you could exchange paper money for a fixed amount of gold, keeping currency values stable. But World War I killed this game as countries needed more paper money than they had gold to back it. Gold Exchange Standard (1920s–1930s) - After the war, countries tried a somewhat new approach. Instead of holding gold outright, they also held “reserves” in currencies that were backed by gold - like the U.S. dollar or British pound. But economic chaos (aka the Great Depression) ended this system too. Bretton Woods System (1944–1971) – After WWII, 44 nations created a new system. Picture an upside-down pyramid: gold at the base, the dollar (pegged to gold at $35/oz) in the middle, and other currencies fixed to the dollar on top. It birthed the IMF and World Bank - but was undone in 1971 when the U.S. dropped the gold peg. Too many dollars, not enough gold. Floating Exchange Rates (1970s–Present) - Since the “Jamaica Accord”, currencies have floated freely against one another based on supply and demand. That’s the system we still use today. There’ve been other major milestones – like the Plaza Accord (more below) and the birth of the Euro. But through all of it, the U.S. dollar has stayed on top. But there’s a deeper principle at play - something borrowed from physics. I’m talking about entropy. Entropy is the idea that systems naturally move from order to disorder unless energy is put in to maintain them. You see it everywhere: Ice melts. Leftovers spoil. Cars rust. And global monetary systems are no different. Clearly, history shows us this happens at times – nothing great lasts forever. So, is another monetary shakeup just around the corner? It might be. And it’s worth keeping top of mind because resets like these tend to ripple across global economies and financial markets. Let’s break down what that could look like, revisit the history, and explore what it all means for the world ahead. Why Talk of a New Global Financial Reset Is Growing President Trump ran on rebuilding U.S. manufacturing. It was a big reason he won the Sun Belt states. But the reality is, you can’t just tariff your way to a trade surplus (as I outlined before in “Trump’s Tariff Policy Explained: Winners, Losers & its Global Impact”). Why? Because the current global monetary system won’t allow it. . . I recommend reading our older articles dissecting all this, but to give you some context, there are two main reasons: 1. Global Imbalances Don’t Add Up For the U.S. to export more, the rest of the world needs to import (consume) more. That means they’d have to run deficits. But they don’t want to.. What is a current account? Imagine a country's "international wallet." A current account surplus means more money is flowing into the wallet than is flowing out (exports > imports), while a current account deficit means more money is flowing out than in (imports > exports). And they always have to balance (for someone to have a surplus, someone somewhere has a deficit). Just look at the numbers: The U.S. runs a massive current account deficit. Meanwhile, nations like China, Germany, and Japan run chronic surpluses. Figure 1: World Bank, Dunham, March 2025 Put simply, we buy in the hundreds of billions what they don’t consume. For more insight into this, read our blog from a few months back in “The U.S. Dollar’s Global Dominance: Perks, Pitfalls, and the Peril of Losing It”. Thus, for any type of U.S. manufacturing resurgence to work, this would have to completely flip. The U.S. would have to consume less while the rest of the world would consume more. But tariffs can’t control that latter point. Meanwhile, the U.S. can’t try to export more while everyone else is also exporting (not everyone can run a surplus at once). Thus, it would be like pushing on a string. 1. The Dollar Is Too Strong The U.S. dollar is kept artificially stronger than it should be, making imports cheaper and exports more expensive. Let’s say a bike made in China costs 1,000 yuan. If 1 USD = 10 yuan, the bike costs $100 But if China weakens the yuan to 1 USD = 20 yuan, now it’s $50 This makes importing Chinese bikes more attractive as they cost 50% less now. The problem? Well, it completely prices out U.S. bike makers and exporters – potentially sinking profits, spurring layoffs, and an angry community that depended on the bike business. This matters because foreign nations have done this over the last few decades - intentionally weakening their currencies to boost exports. This has pushed the dollar up, making U.S. goods expensive abroad. This is known as a "currency war" To put this into perspective, take a look at the U.S. broad dollar index – it’s risen steadily even at a time when the U.S. runs huge deficits (which should mean a weaker currency). Figure 2: St. Louis Federal Reserve Bank, March 2025 It’s important to remember that currencies are a relative game. For one to be strong, another has to be weak. To buy a USD, you have to sell a peso, euro, yuan, etc. The point is, as long as foreigners continue to bid up the dollar deliberately, the U.S. will struggle to export more, and imports will be cheaper. Note that the U.S. dollar’s strength and status as the world’s reserve currency is a double-edged sword. It keeps borrowing and imports cheap but crushes exports and hollows out American factories – I’ve detailed this more here in “Triffin’s Dilemma: Why the U.S. Dollar’s Global Role Is a Double-Edged Sword”. Thus, without addressing these two things, tariffs would most likely not fix the underlying problem. And that’s why there’s chatter about a new global monetary system reset. A New Deal? Enter the Mar-a-Lago Accord Just like previous monetary resets, America would require a full global effort to rebalance the economy. Hence, the Mar-a-Lago Accord – named after Trump’s Florida residence – may just be it. There’s been increasing chatter that this will be a big part of the Trump administration's agenda in the coming years1. Here’s the basic idea: The U.S. provides security guarantees and access to its massive consumer base. In return, the world helps weaken the dollar and buy long-term U.S. debt (like “century bonds”) – allowing the U.S. to essentially refinance its debt far longer while locking in lower borrowing costs. How would this work? It seems like tariffs and a U.S. sovereign wealth fund – which are both being discussed - would be the tools of choice. What is a sovereign wealth fund? Think of it as the U.S. government taking money it earns from things like taxes, natural resources, or investments, and instead of spending it all, it puts some aside into a big fund. That fund would then invest the money – such as stocks, real estate, companies, even other countries’ debt. Other countries already do this – like Norway (sitting on $1.5 trillion), Saudi Arabia, China, Singapore, etc. Tariffs would put pressure on trade partners to start consuming more from the U.S.2 For example, just today, the European Union announced it is weighing potential concessions to the Trump administration in hopes of securing a partial rollback of U.S. tariffs, which have already begun impacting the bloc’s exports and are scheduled to escalate further3. Meanwhile, the wealth fund would buy foreign currencies to push the dollar down relative, boosting U.S. export competitiveness. Figure 3: Apollo Academy Can the Mar-a-Lago Accord work? Sure, it could. But there’s a catch. The plan is riddled with conflicting issues. Tariffs often strengthen the dollar (not weaken it) as it disproportionately hurts any nation that exports to the U.S. (imagine if your biggest buyer just said, “Hey, we’re not going to buy from you” – it would be a huge blow to the seller). It would take years to change the U.S. economy – completely uprooting supply chains and industrial capacity, causing significant short-term pain. Would that be politically palatable? A weaker dollar raises the price of imports, driving up costs for consumers and businesses. This could reignite inflation, pressuring the Fed to keep interest rates higher - exactly the opposite of what the policy wants. To rebalance the entire global monetary system, the world would have to be on board. But foreign cooperation here? Unlikely. China and Europe have little incentive to restructure just to help Washington. For them to accept this, they’d have to completely restructure their economies from export-driven to consumption-driven, which is not easy. Need proof? Look at how Japan tried and imploded spectacularly. . . Lessons From The Past: The Plaza Accord and Japan’s Woes Long story short, after World War II, Japan rapidly transformed into a manufacturing powerhouse. News outlets were riddled with the “Japanese Miracle” – how they were growing so fast they would take over the economic world. Following the Gerschenkron growth model - aka prioritizing exports over domestic consumption – Japan ran persistent current account surpluses and fueled growth through exports. By the mid-1980s, Japan was the major export-driven economy. In 1984, exports made up a whopping 15% of its GDP (to put this into context, China is sitting at roughly 20% as of 2023). But by 1985, things changed with the Plaza Accord - an agreement that Ronald Regan’s administration pushed for4. It aimed to weaken the U.S. dollar (which was very strong) against the Japanese yen and German mark to address trade imbalances (reduce U.S. deficits). Why? Because a weaker dollar made U.S. goods more competitive abroad, while a stronger yen increased U.S. goods into Japan. The result: between 1985 and 1990, the yen appreciated from 251.8 to 135.75 yen per U.S. dollar – an over 45% increase. Figure 4: St. Louis Federal Reserve, Dunham, 2025 Because of this, Japan’s exports took a steep hit - dropping to just 9% of GDP by 1989 from 15% just five years earlier. Meanwhile, household debt surged from 53% to 70% of GDP as import prices fell and domestic consumption rose. These two items helped trigger Japan’s infamous economic spiral in 1991, which it has struggled with ever since. But here’s where things get interesting. . . After the Plaza Accord, the Japanese Prime Minister in 1986 essentially formed a ‘brain trust’ to try and change Japan’s economy from export-driven to demand-driven to match the stronger yen policy. This birthed the Maekawa Report5 - led by former Bank of Japan head Haruo Maekawa – which proposed bold reforms, such as: Move from exports to domestic consumption. Boost consumer spending via government incentives. And use a stronger yen to lift living standards. It was Japan’s shot at economic rebalancing - but powerful political and industrial opposition shut it down. They didn’t want to lose the perks of the export and infrastructure-driven subsidies. It also would have required a sharp slowdown period over years. Now, decades later, Japan still faces weak consumption, sluggish growth, and chronic trade surpluses. PS – Germany never followed through either, instead using the newly introduced eurozone as its own dumping ground for exports - which helped push nations like Greece, Portugal, Italy, and Spain into deep deficits. And since they didn’t allow for a rebalance, the eurozone has stagnated for over a decade. We touched on this before in “Fragile by Design? Why the Euro Struggles to Rival the U.S. Dollar”. Japan and Europe are big reminders of how difficult it is to rebalance the global monetary system – and that a single country alone can’t force it. What History Suggests About the Next Reset Please keep in mind that this isn’t about right or wrong, good or bad. It’s just about what may be coming. The idea behind a Mar-a-Lago Accord taps into real pain points: U.S. deindustrialization, soaring deficits, and the burden of an overly strong dollar. But history shows that monetary resets only work with global cooperation. In the 1980s, Japan (which was a rapidly growing economy) and West Germany were deeply reliant on U.S. military and economic support, giving the U.S. leverage to push through the Plaza Accord. But China today? It's a different story. Facing its economic headwinds, it has far less incentive to cooperate on America’s terms. So, will the global monetary system change? It will - one day. But the real question is — who benefits the most when it does? Time will tell. But things are getting interesting. FAQ: The Global Monetary Reset What is a global monetary reset? It’s a reorganization of the global currency system, usually triggered by crisis or imbalance. What is a financial reset? A financial reset involves restructuring debts, trade, and monetary arrangements on a global scale. Could the dollar reset? Yes, but it would likely involve a deliberate international agreement — not an overnight collapse. What was the Plaza Accord? A 1985 agreement to weaken the U.S. dollar against the yen and mark to reduce U.S. trade deficits. What is the Mar-a-Lago Accord? An informal term for a potential Trump-era initiative aimed at weakening the dollar and restructuring trade imbalances. Sources: Wall Street can't stop talking about the 'Mar-a-Lago Accord.' Here's how the currency deal would work. | Morningstar What Is the Mar-a-Lago Accord? - Apollo Academy Trump Tariffs: EU Plans ‘Term Sheet’ of Concessions for Talks - Bloomberg Plaza Accord: Definition, History, Purpose, and Its Replacement The Maekawa Commission Reports and the Potential Constraints on Internationalization | SpringerLink Disclosures: This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation, or as a substitute for legal or tax counsel. Any investment products or services named herein are for illustrative purposes only and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance. All examples are hypothetical and are for illustrative purposes only. Information contained in the materials included is believed to be from reliable sources, but no representations or guarantees are made as to the accuracy or completeness of information. This document is provided for information purposes only and should not be considered as investment advice. Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA/SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc.

Sandy....yes correct for the moment...the BIS is the big dog... All the BRICS countries are currently involved with the BIS. BRICS represents over half the world's population...and 44% of the World's GDP. BRICS is growing.... BRICS has the gold backed Petroyuan designed to replace the fiat backed Petrodollar. Iraq will probably use the same game plan as Turkey....working the system to their best advantage using east vs west leverages. Just my thoughts...CL

That should have read 2026... No real estate...or stock market crash prior to the 2026 mid terms.. Yes to currency rv's...and stimulus checks prior to the mid-terms...CL

Couple of thoughts... Trump is usually a step or two ahead on most everything... Tariffs and the legality....he announces a $2 grand stimulus while the left challenges the legality? Does anyone really think the Supreme Court will knock this down?...or that C⁰ongress would vote it down? Good bye to your 2028 seat then. 1st quarter 2026 stock market and real estate crash or correction? How about 2027 after the midterms? For the right it is imperative to add seats to the House and Senate....no way the 2028 election will bad news! More tomorrow...CL Long day for me..

Thanks Ron...

Many additional "blocs" that need to be enticed to join either side....to have that needed majority... In 2021 that process took 11 months. This should be a no brainer....and quick! But remember.....It's 🇮🇶 CL

If accurate...not good news! CL

TG is Tulsi Gabbard...at Trumps request she visited Syria prior to him begining his first term..She was a sitting Dem Congresswoman at the time...Assad found out she was in country and asked to meet. Assad had been so screwed over by the USG there would never be any reconciliation. Remember this....MSM is BS... And....there can be 2 labels for most anything...the US was founded by Patriots....England call them traitors... This just might be a great new start for Syria. CL

NPR radio at 3:30 est today ran about 10 minutes on the elections in Iraq Last one was in 2021....41% voted Expecting a lower turn out this time. With so many parties it took 11 months to get the government rolling... World news segment.... CL

PBS radio at 3:30 est today ran about 10 minutes on the elections in Iraq Last one was in 2021....41% voted Expecting a lower turn out this time. With so many parties it took 11 months to get the government rolling... World news segment.... CL

And TG....much of the ground work that was laid for this happened just prior to Trumps 1st term...CL

News Article The Man Who Wants to Make Iraq Great Again Published Nov 07, 2025 at 05:00 AM EST updated Nov 07, 2025 at 09:24 AM EST By Tom O'Connor Senior Writer, Foreign Policy & Deputy Editor, National Security and Foreign Policy Newsweek is a Trust Project member Twenty years after Iraq held its first election in the wake of the U.S.-led invasion that toppled Saddam Hussein and shook the Middle East, a nation home to the cradle of civilization and yet beset by decades of conflict prepares to hold another fateful vote. The contest will mark a milestone in Iraq’s many millennia of history. This is not simply because of the more than 7,700 parliamentary candidates whose hopeful portraits line nearly every road in Baghdad, but, even more vitally, due to the unprecedented stakes associated with a highly competitive election that has the potential to determine the course of Iraq during an elusive era of stability. At the helm—and poised to stay there only if his bloc emerges with enough seats to bargain for a second term among an array of rivals—is Prime Minister Mohammed Shia al-Sudani. Propelled to the position upon political disputes that unraveled his predecessor’s short-lived premiership in 2022, the man once viewed as a temporary fix has since managed to navigate his nation through an era of major regional turbulence. He now outlines an ambitious road map to establish Iraq as a global hub for trade, investment and innovation that channels the untapped potential of a country rich with human capital, natural resources and cultural heritage. “Iraq is a great country dating back a long time, a nation of civilizations from 7,000 years ago,” Sudani tells Newsweek. Seated in his office at the Republican Palace within Baghdad’s still heavily guarded Green Zone, the Iraqi premier points out a representation of the ancient Code of Hammurabi across the room, calling it “the first law of humanity” and “an achievement” for all humanity. “And this exists in the Iraqi genes, generation after generation,” he says. “And it is the reason for the steadfastness of this people and in the face of various challenges, and by virtue of the heritage it carries.” Read More World Update: US Patriot Unit Returns to Korean Peninsula After Iran Missile War Putin Answers Maduro’s Call to Help Venezuela Resist Trump Russia Alarmed by New NATO Presence on Doorstep More Related Stories Now, after what Sudani calls a prolonged period of “difficult circumstances, political upheavals, conditions of instability,” and during an interview symbolically coinciding with the centennial of Iraq’s first constitution adopted in 1925, he declares: “We must prepare for the next 100 years.” Iraqi Prime Minister Mohammed Shia al-Sudani poses following an interview with N...Read More | Shawn Carrie ‘Iraq First’ Many mottos accompany the parliamentary election campaign mounted by Sudani’s aptly named Reconstruction and Development Coalition. The coalition’s logo is a crane, the kind which can be found across Baghdad’s skyline as new buildings, roads and bridges rise. The widespread construction is a visible sign of the influx of foreign direct investment in recent years. Yet one phrase appears to be gaining particular traction amid the frenetic political landscape—“Iraq First.” Sudani calls this more than a slogan; to him, it represents a pledge he believes is long overdue for the Iraqi people after so many years of strife—from the restive monarchy era to disastrous wars with Iran and the U.S. under the reign of Saddam and the deadly, sectarian insurgencies that followed. Baghdad, at one point the virtual center of the world during the Islamic Golden Age, came to be defined for much of the 21st century by insecurity and crises that largely overshadowed the democratic process that began in 2005. Sudani aims to change this, capitalizing on the defeat of the Islamic State militant group, ISIS, to steer Iraq away from new confrontations and toward a national revival. “It is very important that the leader of any country rank the interests of their country and people first,” Sudani says. “This is what we believe we are doing for Iraq. We believe Iraqis deserve to be first, and Iraq to be first in security, in stability, in development, in services, in better standards of living and in a future that promises opportunities for the youth.” “All of these are goals and priorities that we established as our national priorities for our dear Iraq,” he says. “Our people have made many sacrifices, and it is time now that we do a service to them and make them first in all of our orientations and decisions.” Sudani also acknowledges similarities between his approach and that of President Donald Trump, whose “America First” strategy at home and abroad has proven divisive to some. Sudani, for his part, considers this concept to be a “common denominator between us, to give priority to our peoples in our visions, in our goals and in our programs.” In fact, he views the U.S. leader as an especially valuable ally in the quest to pave a new path for Iraq. “In my estimation, under the presidency of Mr. Trump, there is a real opportunity to build an ideal relationship between Iraq and the United States,” Sudani says. “President Trump’s powerful decision-making and the vision he possesses in developing economic relations makes it possible for us to invest in this characteristic for a development renaissance in Iraq, strengthen ties between the two peoples and at the same time make Iraq a stable economic center and a hub for the region and the world, as well as a force for stability and security, combining all interests so that we may continue this stability.” At a time when the White House was pursuing a comprehensive reshaping of foreign policy, Sudani has sought to maintain a positive relationship with Trump, making calls, penning letters and, perhaps most crucially, backing the U.S. leader’s peace plan for the war in Gaza that has rocked the Middle East. “We believe that the peace and economic development that represents President Trump’s vision is identical to our vision as a government and as a country,” Sudani says. “We aspire to security, sustainability and stability for the region because it is linked to the Iraqi economy, and we regard the United States as an active partner in achieving this vision.” U.S. President Donald Trump, right, greets Iraqi Prime Minister Mohammed Shia al...Read More | Evan Vucci - Pool/Getty Balancing Act Yet the restiveness of the region continues to serve as a potential pitfall for Sudani’s projects. The conflict that began hundreds of miles away with an attack led by the Islamist Palestinian Hamas movement against Israel on October 7, 2023—just under a year into Sudani’s term—spread like wildfire across the Middle East, drawing Iraq in as well. Shortly after the war in Gaza erupted, a coalition of Iraqi militias joined the battle from afar under the collective banner of the Islamic Resistance in Iraq, constituting one of several theaters opened against Israel by the Iran-led Axis of Resistance coalition. These Iraqi groups contributed to the conflict by firing rockets and drones at U.S. troops in Iraq and neighboring Syria, as well as against Israeli cities and bases. When U.S. strikes began targeting these armed factions, Sudani was left in a precarious position. A number of these militias played a fundamental role in the fight against ISIS as part of the Popular Mobilization Forces paramilitary network and have begun formal integration into the armed forces, though many maintain ties to Iran and continue to operate independently of the government. On the one hand, Sudani’s administration repeatedly condemned Iraqi groups operating outside of the control of the state, part of an overarching effort to rein in such unsanctioned activities. On the other, the government also took aim at Washington for conducting operations that violated Iraqi sovereignty and appealed for a timeline to begin the withdrawal of U.S. troops. Over the past year, however, attacks claimed by the Islamic Resistance in Iraq have come to a virtual halt. The looming threat of Israeli strikes that have targeted the likes of Lebanon, Syria, Yemen and neighboring Iran also never materialized in Iraq, a turn of events that Sudani credits to his careful posturing in the face of imminent warnings delivered as recently as September. “We confronted such threats at that time, and we have expressed an official public stance rejecting these threats,” Sudani says, “which were part of the [Israeli Prime Minister Benjamin] Netanyahu policy of expanding the scope of the war and the conflict.” “My government is committed to not allowing any group or individuals to use the Iraqi land to commit hostilities against others,” he adds. “This position is the position of the state. This is a decision of the state. The government alone possesses the decision of peace or war, and this is not a decision that is imposed.” Sudani refers to his nonaligned stance throughout the conflict as a “positive neutral position,” one rooted in his Iraq First mentality. “We put our interests as Iraqis first in these events,” he says. “This equation was accurate, and it was a test for the government in overcoming these challenges and changes, and we have been successful.” Yet the balancing act persists even amid the promises for peace outlined in the U.S. proposal that has produced a fragile ceasefire and the return of Israeli hostages and Palestinian prisoners since October. Deep-rooted tensions between Israel and Iran remain, and Trump demonstrated during the “12-Day War” between the two foes that the U.S. would be willing to take direct action when necessary. Iraq, which credits both Washington and Tehran in helping the country emerge from the post-Saddam era and then overcome the likes of Al-Qaeda and ISIS, continues to find itself in the middle of their rivalry. But Sudani says his nation’s unique position lends itself to playing an indispensable role in defusing tensions, and he refuses to be forced to choose between them. “The nation that has the most balanced and cordial relations with the United States and Iran is Iraq,” Sudani says. “This is a positive characteristic that we have always implemented throughout the continuous tensions between the two countries in order to deescalate the situation. In previous years, Baghdad played a role in finding convergence between the two countries, and we continue in this space.” Beyond the U.S.-Iran feud, Sudani sees an even greater capacity for Iraq to play a supportive role for peace, noting how “Iraq, which was once a source of instability, has now become a factor of stability that can help the efforts of the regional and international efforts to create sustainability in this volatile region.” Construction cranes operate at residential complexes being built in the Mansour ...Read More | AHMAD AL-RUBAYE/AFP/Getty Six Steps to 2050 Rather than distracting from his plan, Sudani sees geopolitical positioning as a crucial element of his long-term strategy for Iraq, termed “Vision 2050.” “We do not want to be a party to any axis. We do not want to be an arena for conflicts, or lead any proxy wars,” Sudani says. “We want a policy based on becoming involved in the interests of everyone. Everyone wants to find in Iraq a station and a meeting point for dialogue.” “Yes, this is the role for Iraq,” he adds. “I think this is the ideal role for the country, which can be a fundamental base for stability in the region, and also an economic hub.” Not unlike the “Vision 2030” initiative outlined by Crown Prince Mohammed bin Salman in neighboring Saudi Arabia, Sudani’s program imagines an ambitious transformation of Iraq. In addition to redefining Iraq’s geopolitical position, Sudani’s six-pillar Vision 2050 also aims to pioneer digital breakthroughs—including artificial intelligence—in government, provide opportunities to capitalize on the productive potential of its population, create fair and consistent governance across Iraq’s 19 provinces and many ethnic groups, emphasize independence and sovereignty in political decisions and build a new, flexible economic model that breaks with decades of oil dependence. “This vision depends on what we possess in capabilities and in financial, natural and human resources,” Sudani says. “Our country is a rich country, but it has not invested its wealth properly. And this will enable us, according to our vision, to draw a map, a clear map for the future.” Among the more notable steps that Sudani has already taken in this direction was the implementation last year of Iraq’s first comprehensive census since 1987. The last census held a decade later in 1997—at a time when Sudani was working at the agricultural office in the province of Maysan—excluded the northern Kurdistan region, which gained a U.S.-enforced autonomy after the first Gulf War in 1991. Many other projects are in the works. Sudani hopes to enhance Iraq’s global connectivity through the “Development Road” that would link the Grand Faw Port being built along the Persian Gulf coast in the southern province of Basra to Europe via Turkey. Tourism is another sector where Iraq’s potential has long floundered. With international visitors beginning to come back to a nation long associated with insurgency and war, Sudani is looking to contract companies to rebrand Iraq as a destination for sightseers, students and religious pilgrims alike. “We have a civilization that extends thousands of years. This is not just for us, this is for all of humanity,” Sudani says. “The world must witness it, study it, read and write books about it. So, our mission is to provide the environment to do so.” “And how do we present this? This is what we are working on,” he adds. “We have historical cities, we have sacred religious cities for Muslims all over the world. We also have beautiful nature in the Kurdistan region, in the marshes, in the desert.” Already, he argues, Baghdad has in some ways proven more secure than “some important capitals in Europe,” where today “you cannot carry a phone or a valuable bag.” And in Iraq’s second city of Mosul, the former ISIS headquarters where Sudani recalls how “Abu Bakr al-Baghdadi announced the launch of the caliphate” in 2014, he says “today, tourists from Europe and Russia come to visit this governorate and its antiquities.” Iraq’s revival since the collapse of Baghdadi’s self-proclaimed caliphate is more than just a political talking point. Security officials, too, affirm that the ISIS threat has been almost entirely routed. During an intimate briefing at the Ministry of Defense headquarters, Major General Tahseen al-Khafaji, head of the Iraqi Security Media Cell, proudly proclaims that the number of militants that once swarmed the nation in the thousands has dwindled to a mere four to five hundred jihadis scattered in several remote locations. “We have control over everything,” Khafaji says. A photo shows a portrait of Iraqi Prime Minister Mohammed Shia al-Sudani at a ca...Read More | QASSEM AL-KAABI/AFP/Getty Hearts and Minds The victory over ISIS has indeed established a new sense of security across Iraq. But in the absence of existential crises, new challenges have arisen as rival political factions prepare to fight for a chance to guide Iraq toward their own respective visions. Among the most influential figures representing Iraq’s majority-Shiite Muslim constituency include former prime minister and head of the State of Law bloc Nouri al-Maliki, Badr Organization chief and Fatah Alliance leader Hadi al-Amiri and National Wisdom Movement founder Ammar al-Hakim. All three men are part of the same broader Coordination Framework coalition that brought Sudani to power in 2022 and has since fractured into competing cliques, with parties ultimately deciding to run separately in this year’s election. Conspicuously absent from the ballot is influential cleric Muqtada al-Sadr, who has called on his many followers to boycott the vote in protest of what he viewed to be the repeated ineffectiveness of the state to enact key reforms. Sadr’s National Shiite Movement emerged from the last bout in 2021 with by far the largest share of seats, nearly twice that of then-parliamentary speaker Mohammed al-Halbousi, a Sunni Muslim whose Progress Party won the second-highest share of individual spots that election and is set to once again prove a major force in the upcoming vote. Each of these men, and many more, will prove crucial to deciding who Iraq’s next premier will be once the votes are tallied and meticulous negotiations begin based on the number of parliamentary seats won and the weight of each candidate’s political influence. Sudani is poised to compete fiercely with all sides, but he and his allies view their coalition as having a particular advantage when it comes to young voters. And though records indicate a sizable increase of 5 million registrations since 2023, participation rates have historically proven a challenge to Iraq’s nascent democracy, with the last election in 2021 producing a record-low turnout of 41 percent. “Our challenge, really, is turnout,” says Farhad Alaaldin, Sudani’s adviser for foreign affairs. Speaking at a small gathering in his backyard—where masgouf, Iraq’s famous grilled carp dish, was served—he tells Newsweek that the constituencies of many major parties remain largely fixed, and most loyalties are unlikely to be swayed. Yet competition in mixed areas—such as among Shiites and Sunnis as well as Kurds and Arabs—could drive more citizens to the ballots and thus work in the incumbent’s favor, especially if the Sudani administration’s extensive efforts to motivate young people to participate bear fruit. “In general terms, the younger generation would be his voters, because these people do not have perceived ideas of the past,” Alaaldin says. “They are not moved by sectarian ideology. They are not moved by the history of Saddam and the Baath Party and all of that.” For “the new generation,” he says it’s “more about what they are seeing” now, and, “especially in the past three years, they’ve seen good things about Sudani.” Also seeking to aid the coalition’s youth outreach efforts is Qusay Mahbouba, head of the allied Amarji Liberal Party, which he calls the first truly liberal party in Iraq’s history. The party is also unique in that its name derives from the ancient Sumerian word for “freedom,” and the party’s name is written in the thousands-year-old cuneiform script even before Arabic and English. “Regardless of what ethnic groups we come from, if we are Arab, if we are Kurdish, if we are Persian, we are at the heart of the Middle East, Iraq is at the heart of the Middle East,” Mahbouba says during a discussion held at his party’s headquarters. “We cannot consider the Iraqi nation to be just one people, or one ethnic group. That’s why we say the best thing is to go back to the past. Let’s bring a word from the people who built the civilization in this land.” Mahbouba, an entrepreneur who enjoys a personal relationship with Sudani, also subscribes to the Iraq First slogan. He views his party, even with just five young candidates running this year, as an integral part of the shared effort to instill a sense of hope among Iraq’s youth for what he calls “the most important election in Iraq since 2003.” “We are full of hope. That’s our message, and it’s going to be the strongest,” Mahbouba says. “They have the money, they have the militias, they have, maybe, the regional influence, but we have the future. We have the new generation, and that’s what we guarantee.” People attend a campaign rally by Iraqi Prime Minister Mohammed Shia al-Sudani o...Read More | Ameer Al-Mohammedawi/picture alliance via Getty A Farewell to Arms Meanwhile, Iraq’s constellation of armed groups will also have their say at the polls, where the impact of the broader conflict over Gaza is being felt in Iraq in profound ways. The death of Lebanon’s Hezbollah Secretary-General Hassan Nasrallah at the hands of Israel in September 2024, the ousting of Syrian President Bashar al-Assad in a lightning rebel uprising just months later and the lingering impact of the 12-Day War between Iran and Israel in June this year have reshaped the regional security equation, bringing with it new uncertainties. The events mark the most serious turmoil for Tehran and its allies since the killing of Iranian Quds Force chief Qassem Soleimani and Iraqi Popular Mobilization Forces deputy commander Abu Mahdi al-Muhandis, in an airstrike ordered by Trump just outside Baghdad International Airport in 2020. Amid the array of campaign posters, portraits of Soleimani and Muhandis stare at passersby throughout Baghdad, still promising vengeance some five years on from their shocking demise. Nasrallah, too, is a common sight, while Assad’s fall to a former Islamist militant leader has led to Iraqi reinforcements at the Syrian border and cast ambiguity over plans to phase out the U.S. military presence, drawing the ire of some Axis of Resistance supporters. But it is Sudani’s hope that armed factions at home can be convinced to shift their focus from the battlefield to the ballot box. Some, such as the influential Asaib Ahl al-Haq, represented by the Sadiqoun bloc, have already demonstrated a preference for political action, having largely stayed out of the clashes surrounding the war in Gaza. Others, including the powerful Kataib Hezbollah and its Harakat Huqooq bloc, played key roles in Islamic Resistance in Iraq operations and yet remain invested in the political process. “There is a high percentage of these groups that are actually inclined to political work, and this is a good thing,” Sudani says. “We encourage them and push them toward political work and to exercise their roles in the political process and outcomes according to the voters, so that does not actually represent a hindrance, but rather we have begun a transformation in the right direction.” Iraqi Prime Minister Mohammed Shia al-Sudani poses after an interview with Newsw...Read More | Shawn Carrie Entering With Confidence From militias seeking to retain their arms to rival politicians skeptical of the current government’s lofty promises and many more independents striving to upend the order altogether, there is no shortage of criticism being leveled toward Sudani as he prepares to put his leadership to the popular test for the first time. But Sudani asserts that he and his allies “enter the elections with confidence,” owing to what he touts as accomplishments that “no previous prime minister has offered.” His opponents, he argues, are simply unable to compete with his record. “We are known for our tendency not to engage in political disputes and arguments,” Sudani says. “And the response from us is always on the ground with achievements, because we believe that the more we achieve, the more we annoy the others."

You know prior to the 1913 debacle where the US adopted the Central Banking system the US was financed wholly on tarriffs...and was doing quite well....1913 was when the bozos decided to fund their activities by taxation of we the people.. Oddly the Titanic was involved in all of this....Banking and big wigs....one group miraculously survived...the other parrished....look it up.. It's all connected... CL

Today’s NewsQuick ReadsE-PaperStockRecosStream US News Read on App $125 billion in 5 days: Fed quietly floods banks with cash again — what’s going on? Reuters Federal Reserve just made one of its largest liquidity moves in years — quietly.Over the last five days, the Fed has injected around $125 billion into U.S. banks through its Standing Repo Facility (SRF). Synopsis Fed just poured $125 billion into U.S. banks over five days. October 31 saw the biggest hit — $29.4 billion in one day. Banks swapped Treasuries for cash to ease funding stress. Bank reserves are at the lowest in four years, just $2.8 trillion. Fed Chair Powell talks tough on inflation but quietly floods banks with cash — this is called "stealth easing." Markets now bet there's a 67% chance rates get cut in December. This move is huge. Crypto markets love easy money, but some experts say not every dollar makes crypto boom. The cash flood is about keeping banks stable, not just printing money to pump markets. By Piyush Shukla, Global Desk Last Updated: Nov 05, 2025, 12:08:00 AM IST Follow us Federal Reserve quietly pumped $125 billion into the U.S. banking system over five days, marking its largest short-term liquidity move since the 2020 COVID-19 crisis. On October 31 alone, the Fed injected $29.4 billion through overnight repurchase agreements (repos), allowing banks to trade U.S. Treasuries for cash to ease funding stress. ADVERTISEMENT This cash flood comes as bank reserves hit $2.8 trillion, the lowest in over four years. Despite Fed Chair Jerome Powell's hawkish talk on inflation, this move is seen as "stealth easing," quietly stabilizing the banking sector, especially smaller banks struggling with higher costs. The market now prices a 67% chance the Fed will cut rates in December. This surge in liquidity supports risk assets like cryptocurrencies, which historically benefit from easy money policies. However, some analysts caution that not all liquidity boosts translate to higher crypto prices, as the Fed's goal is short-term stability, not broad market stimulation. Still, this massive cash infusion, the biggest in five years, signals a complex balancing act by the Fed between controlling inflation and preventing financial cracks, stoking excitement about potential crypto rallies amid easing credit conditions. The "money printer" is indeed active again, quietly flooding banks with cash in a critical moment for U.S. finance and crypto markets. Explore More Stories Uber Q3 earnings show strong growth but $479 million legal hit cuts profit When is Veterans Day 2025? Date, meaning, and why it’s observed across America Panic at Ronald Reagan Airport! Why did Washington DC’s main airport suddenly ground all flights? Capitol region placed on high alert after major security threat triggers full FAA lockdown Are Russia-linked threats returning? NJ polling places disrupted by bomb threat in GOP strongholds, echoing 2024 Russia-linked incidents NYC Mayoral election results: Who is winning NYC Mayor race? When will New York City Mayor be announced? New Social Security payment up to $5,108 arrives November 12 — see if you qualify and how the COLA boost affects you Why US tech stocks are falling today, did Palantir just sound the alarm? Key points to know Bitcoin just crashed below a key level — analysts warn it could sink toward $94,200 next Confused about California Prop 50? Why this redistricting measure could reshape Congress — where to vote, polling hours, and how Prop 50 impacts every voter Inside Alec and Hilaria Baldwin’s marriage meltdown after her DWTS behavior raises eyebrows Amazon to pay $1.5 billion in FTC settlement — here’s how Prime members can claim their cash US stock market crashes today: Why are Dow, S&P 500, and Nasdaq falling as Wall Street questions sky-high tech valuations amid Palantir, Tesla, and Russian oil shocks Quantitative tightening and Treasury debt issuance make the situation trickier. As the Fed reduces its balance sheet, cash leaves the banking system. Large Treasury sales also pull liquidity. That shrinks the safety cushion for banks even further. The Fed’s $125 billion injection helps offset these pressures. For markets, the impact is subtle. Investors might expect a surge in stocks, but the Fed’s goal is prevention, not profit. Liquidity injections here are defensive. They reduce risk of funding spikes and sudden asset sales. They keep the system running smoothly while avoiding panic. ADVERTISEMENT The move also signals careful Fed monitoring. Policy decisions, like interest rates, are influenced by liquidity levels. If reserves keep falling, the Fed might pause rate hikes. Stability takes priority over aggressive monetary tightening. There are risks, though. Extra cash doesn’t mean banks will suddenly lend aggressively. Precautionary liquidity may sit idle. Persistent injections could raise inflation if maintained long-term. And the “plumbing” of interbank and repo markets remains sensitive. Any disruption could ripple widely. ADVERTISEMENT What to watch next: bank reserves, repo rates, Fed communications, and Treasury issuance. Sudden spikes in funding costs could indicate returning stress. Market reactions will also reveal sentiment. Risk assets may stay muted if injections are seen as defensive. In short, the Fed’s $125 billion cash boost is about keeping the financial system from seizing up. It’s a quiet but significant move. Not designed to fuel growth. Made to prevent instability. The banking system gets a temporary cushion. Investors get reassurance. The Fed signals readiness to act. ADVERTISEMENT Even with higher rates and tighter monetary policy, liquidity still matters. This injection shows the Fed is balancing stability with inflation control. Markets may not roar, but the system is safer. The $125 billion move is a reminder: even small cracks in liquidity can have big consequences. The Fed is acting fast. Preventing a potential crisis before it spreads. For now, the banks have room to breathe, and the financial system has a buffer. ADVERTISEMENT Why is the Fed suddenly flooding banks with cash? Over the past five days, the Federal Reserve has quietly injected about $125 billion into U.S. banks. This move might sound shocking, but it’s essentially a way for the Fed to keep the financial system stable. Banks are running tighter on cash than usual, and the Fed’s intervention helps ensure they have enough liquidity to meet daily needs. Think of it like a safety net. When banks face sudden demands for cash, they can’t always sell assets fast enough without causing market shocks. By injecting cash, the Fed makes sure that doesn’t happen. While the move might seem dramatic, it’s mostly precautionary — a way to prevent stress in the financial system before it spirals. Some might wonder if this is a signal of bigger problems. In reality, it’s more about short-term stability than long-term issues. The Fed is acting now to avoid potential disruptions, making sure banks can continue operating smoothly even under pressure. Finally, this action shows that even with higher interest rates and tighter monetary policy, the Fed is still ready to step in if the financial system needs support. It’s a balance between keeping inflation in check and avoiding a liquidity crunch. What is causing banks to need extra cash now? The main reason banks are feeling cash pressure is that their reserves — the money they keep at the Fed — have dropped significantly. Reserves fell from around $3.3 trillion earlier this year to roughly $2.8 trillion, a four-year low. When reserves get low, banks don’t have as much flexibility to manage daily transactions and funding demands. Another factor is the short-term funding markets, where banks borrow and lend cash overnight. Stress in these markets can create ripple effects throughout the banking system. If borrowing costs spike or liquidity dries up, banks might be forced to sell assets quickly, which can create instability. The Fed is also dealing with the effects of quantitative tightening and large Treasury debt issuance. As the Fed reduces its balance sheet and the government issues more debt, cash flows out of the banking system, tightening liquidity even further. So, while the $125 billion injection might seem enormous, it’s actually a necessary measure to prevent stress from building up in the complex web of short-term finance that keeps banks functioning. How does this affect banks and everyday markets? For banks, the Fed’s action is a relief. It means they have enough cash to meet withdrawals, fund loans, and avoid selling securities under pressure. This helps maintain stability and prevents short-term shocks from turning into bigger crises. For markets, it’s a more subtle effect. While extra cash injections often boost stocks and risk assets, this round is more about stability than growth. Investors may not see an immediate surge in prices because the Fed’s motive is to prevent problems, not to stimulate the economy. This also affects policy expectations. By stepping in, the Fed signals that it is closely monitoring the financial system, which could influence decisions on interest rates. If liquidity pressures continue, it might limit how aggressively the Fed raises rates in the near future. Ultimately, these injections are like insurance. They don’t guarantee a boom in markets, but they reduce the chances of a sudden crash caused by liquidity shortages. Are there any risks to flooding banks with cash? Yes — there are some important caveats. Extra liquidity doesn’t mean banks will suddenly take bigger risks. Much of the cash is precautionary, helping banks navigate short-term stress rather than fueling new investments. The Fed’s balance sheet and quantitative tightening measures also put limits on how much cash can stay in the system long-term. If reserves continue to decline or funding markets face shocks, the system could still experience pressure. Another risk is that liquidity injections can eventually contribute to inflation if sustained over time. While the immediate goal is stability, too much cash in the system over a longer period could push prices higher, creating a tricky trade-off for the Fed. Finally, the “hidden plumbing” of financial markets — including repo markets and interbank lending — is complex. Even with injections, any disruption in these channels could spill over broadly, affecting more than just banks. What should we watch in the coming weeks? The first thing to monitor is bank reserves. If they continue to fall, pressure on banks may increase, leading to more Fed interventions. Second, keep an eye on short-term funding rates like repos and reverse repos. Sudden spikes can signal stress returning to the system. Third, pay attention to Fed statements. Any change in language around liquidity, “ample reserves,” or policy tightening could indicate upcoming shifts in strategy. Finally, watch government debt issuance. Large Treasury sales can pull cash out of the banking system, putting additional strain on liquidity. How markets respond — particularly risk assets like stocks or crypto — can also give clues about investor sentiment. Continue Reading (You can now subscribe to our Economic Times WhatsApp channel) READ MORE ON Federal Reserve has quietly injected $125 billion into the U.S. banking system in five daysFed injects cash to stabilize banks$125 billion fed injectionbank liquidity boostfed cash floodu.s. bank reservesfinancial system stabilityquantitative tighteningtreasury issuancefed emergency measures (Catch all the US News, UK News, Canada News, International Breaking News Event… More NEXT READ $125 billion in 5 days: Fed quietly injects $125 billion into U.S. banks — what’s going on? Uber Q3 earnings show strong growth but $479 million legal hit cuts profit When is Veterans Day 2025? Date, meaning, and why it’s observed across America Panic at Ronald Reagan Airport! Why did Washington DC’s main airport suddenly ground all flights? Capitol region placed on high alert after major security threat triggers full FAA lockdown Are Russia-linked threats returning? NJ polling places disrupted by bomb threat in GOP strongholds, echoing 2024 Russia-linked incidents NYC Mayoral election results: Who is winning NYC Mayor race? When will New York City Mayor be announced? New Social Security payment up to $5,108 arrives November 12 — see if you qualify and how the COLA boost affects you Why US tech stocks are falling today, did Palantir just sound the alarm? Key points to know Bitcoin just crashed below a key level — analysts warn it could sink toward $94,200 next Confused about California Prop 50? Why this redistricting measure could reshape Congress — where to vote, polling hours, and how Prop 50 impacts every voter Beyond the card: How Mastercard delivers what money can’t buyUber Q3 earnings show strong growth but $479 million legal hit cuts profit n

East vs West... CL https://www.visualcapitalist.com/brics-vs-g7-comparing-2026-gdp-growth-forecasts/

Always good to have your finger on the pulse of World finance and Economic events. Banking and off shore banking as well... In the 70's Panama was an off shore haven for the finances of many.... Regime change....banks and all funds were seized by the new government... A fella by the name of George Jung lost his entire fortune that he had parked there believing it was a safe haven. He lost a great deal more than that as well. CL

Appreciate you Ron! CL

https://www.jpost.com/business-and-innovation/precious-metals/article-872237

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Today’s NewsQuick ReadsE-PaperStockRecosStream US News Read on App US bank reserves nosedive to $2.8 trillion, crash to 4-year low - analysts say crisis could be near US bank reserves crash to $2.8 trillion, hitting 4-year low as crisis fears grow Synopsis US bank reserves fall to 4-year low as liquidity fears surge. Fresh Fed data shows reserves have plunged to about $2.8 trillion, down from $3.3 trillion earlier this year — the lowest since 2021. Analysts warn the system is nearing scarcity as the Fed’s quantitative tightening drains cash and Treasury debt issuance pulls liquidity from banks. Funding costs are rising, money-market balances top $1 trillion, and smaller lenders may face stress soon if reserves slide below $2.7 trillion, triggering potential market turmoil. By Piyush Shukla, Global Desk Oct 31, 2025, 09:12:00 PM IST US bank reserves have crashed to a four-year low, plunging to about $2.8 trillion, according to the latest Federal Reserve data, sending fresh warning signals across Wall Street and Washington. The steep decline marks the second straight week reserves have stayed below $3 trillion, a critical threshold analysts say could test the banking system’s liquidity strength. The fall comes amid the Fed’s aggressive quantitative tightening, with policymakers shrinking the balance sheet by letting Treasuries and mortgage securities roll off. This ongoing runoff has drained more than $1.2 trillion from the system since mid-2022, tightening liquidity and making short-term funding more expensive. ADVERTISEMENT Economists say the drop isn’t a random fluctuation but a structural shift. The U.S. Treasury’s heavy debt issuance has also been pulling cash out of banks as investors pour into new securities. As the Treasury rebuilds its General Account at the Fed, funds effectively move out of private bank reserves. That shift, combined with elevated interest rates near 5.25–5.50%, has created a perfect liquidity squeeze. Money-market funds are now parking nearly $1 trillion daily in reverse repo facilities, reducing the cash held in reserve accounts. The numbers are stark. In January 2024, total bank reserves stood around $3.4 trillion. By October 2025, that figure had fallen by nearly $600 billion, marking the fastest liquidity erosion since 2019. Analysts at Barclays and Morgan Stanley warn that reserve scarcity could soon emerge, potentially sparking funding strains like those seen during the 2019 repo market freeze. They note that the “ample reserves” level — where the Fed believes liquidity remains sufficient — might be as low as $2.6 trillion, meaning the current level is dangerously close to the red line. Federal Reserve Chair Jerome Powell recently said the central bank will stop balance-sheet runoff when reserves are “somewhat above ample,” suggesting policymakers are monitoring the rapid decline closely. However, any decision to slow or halt quantitative tightening could complicate the Fed’s broader inflation-control efforts. If the Fed continues shrinking its balance sheet too far, short-term rates could spike, pressuring smaller lenders already struggling with higher funding costs. Large U.S. banks remain well-capitalized, but regional lenders could face a crunch if liquidity tightens further. Funding costs are rising, loan growth is slowing, and credit standards are tightening. Analysts warn that if reserves dip below $2.7 trillion, the system could face renewed volatility in overnight repo markets, forcing the Fed to intervene. For now, the banking system appears stable, but the margin for error is shrinking quickly. The Fed’s balance-sheet reduction, Treasury issuance, and rising market rates are colliding — and the data shows the liquidity cushion that once seemed abundant is now fading fast. Why are U.S. bank reserves falling so sharply? Recent data indicates that US bank reserves have fallen to approximately $2.8 trillion, reaching a four-year low and raising concerns among analysts about a potential financial crisis. This decline is quite significant, as reserves previously hovered around $3 trillion, but have now dropped by over $102 billion in the latest week. ADVERTISEMENT Key points: The reserves fell for the third consecutive week, with a notable decrease of $102 billion, the steepest decline since September 2020. The ongoing decline coincides with the Federal Reserve's plans to halt balance sheet runoff, but signals reduced liquidity within the financial system. The drop is also attributed to increased debt issuance by the US Treasury to rebuild its cash balance after raising the debt ceiling, thus draining liquidity from banks. Analysts are monitoring these developments closely, as falling reserves could impact the central bank's ability to maintain stability and might hint at broader stress in the banking sector. In recent weeks, reserves fell by nearly $60 billion, dropping from $2.93 trillion to roughly $2.87 trillion. That might sound like a small move, but in liquidity terms, it’s substantial — and it follows months of steady decreases. ADVERTISEMENT The main causes behind this sharp drain include: Federal Reserve tightening: As the Fed reduces its balance sheet, money leaves the banking system. Rising Treasury borrowing: The U.S. government’s increased debt issuance absorbs more market liquidity. Reverse repo facility usage: Large institutions parking cash overnight with the Fed also reduce reserves available to banks. All these forces combine to pull cash out of circulation, meaning banks have less flexibility to lend, invest, or meet sudden funding needs. ADVERTISEMENT The recent sharp drop in US bank reserves to $2.8 trillion was primarily caused by the US Treasury ramping up debt issuance to rebuild its cash balance after the debt ceiling was raised in July 2025. This increased borrowing by the Treasury drained liquidity from other parts of the Federal Reserve's balance sheet, including the reserves that commercial banks hold at the Fed. The process coincided with the Fed's ongoing balance sheet reduction effort known as quantitative tightening (QT), which systematically reduces the amount of reserves as securities mature without replacement. This combined effect of Treasury borrowing to restore cash balances and the Fed's QT program has led to a significant liquidity drain in the banking system, resulting in the steep reserve decline. Furthermore, the near depletion of the Federal Reserve's overnight reverse repurchase agreement facility (RRP) indicates that excess liquidity in the money markets is shrinking, exerting stress on the system's funding channels. Elevated money market rates despite cash inflows suggest that reserves are no longer abundant, raising concerns about potential liquidity shortages and risk of market instability. The Federal Reserve has indicated it is monitoring these conditions closely, with plans to pause balance sheet runoff once reserves are above a level consistent with ample reserve conditions to avoid worsening liquidity problems. ADVERTISEMENT The pace of this decline has caught market watchers’ attention. Reserves below $3 trillion mark a symbolic threshold many economists call “tight territory.” It’s not yet a crisis — but it’s a warning light flashing on the financial dashboard. Could this lead to a new liquidity crisis? The possibility of a liquidity crunch is now at the center of Wall Street’s discussions. Liquidity is like oxygen for the financial system — invisible but essential. When it thins, funding costs rise, credit tightens, and market confidence weakens. Financial strategists point to the risk that lower reserves might strain short-term funding markets, such as the repo market, where banks and institutions borrow cash overnight. When reserves fall too far, short-term rates can spike suddenly, forcing the Fed to intervene. In simple terms: Fewer reserves mean less cash in the system. Higher funding costs can spread through banks and lenders. Investor confidence can drop, increasing volatility in stocks and bonds. This isn’t just theoretical. A similar liquidity shortage in 2019 sent repo rates soaring overnight, prompting the Fed to inject emergency cash into the system. Some experts fear a repeat if current trends persist. While no one expects an immediate banking collapse, the margin for error is shrinking. The system can handle stress — until it can’t. What is the Federal Reserve doing, and can it stop the fall? The Fed finds itself in a delicate position. It wants to keep fighting inflation through quantitative tightening (QT), which means reducing its holdings of government securities and draining liquidity. But that very process is now squeezing reserves more than expected. Since 2022, the Fed’s balance sheet has shrunk by over $1.5 trillion. Each dollar of runoff effectively removes a dollar of liquidity from the system. At the same time, the U.S. Treasury has been issuing large volumes of debt to cover government spending — and those new bonds soak up cash that might otherwise sit in bank reserves. The Fed insists reserves remain “ample,” but the data says otherwise. Banks have been shifting funds into the Fed’s overnight reverse repo facility, seeking safety amid rising short-term rates. That drains even more cash out of the banking system. If liquidity conditions worsen, the Fed could adjust the pace of QT or introduce measures to stabilize reserves. But such moves would come only if signs of stress — like spiking repo rates or tighter credit — start flashing again. How could this affect banks, markets, and ordinary Americans? When reserves drop, banks become more cautious. They may cut back on lending, hold more capital, or demand higher returns on riskier loans. That can raise borrowing costs for businesses and consumers alike. The largest banks in the United States by asset size as of 2025 are as follows: JPMorgan Chase: Approximately $3.6 to $4.0 trillion in assets, the largest US bank by a wide margin. Bank of America: Around $2.6 to $3.3 trillion in assets, ranked second. Citibank: About $1.7 to $1.8 trillion in assets, ranking third or fourth. Wells Fargo: Roughly $1.7 to $1.9 trillion in assets, ranking close behind Citibank. U.S. Bank: Around $659 billion in assets. Goldman Sachs Bank: Approximately $558 to $598 billion in assets. PNC Financial Services: About $549 to $560 billion in assets. Truist Financial: Around $527 billion in assets. Capital One Financial: Roughly $490 to $638 billion in assets. State Street Bank: About $353 to $368 billion in assets. These banks collectively hold a significant portion of the total US banking assets, with the top four banks alone holding more than $11.5 trillion combined, which represents over 50% of the total assets among the top 25 banks. Given the sharp drop in US bank reserves, larger banks like JPMorgan Chase, Bank of America, Citibank, and Wells Fargo are likely the most impacted due to their substantial share of the banking sector's assets and reserves. For financial markets, reduced liquidity often translates into volatility. Investors may find it harder to move large positions without moving prices, leading to sharper swings in stocks, bonds, and currencies. The ripple effects can touch ordinary Americans, too. Higher borrowing costs, tighter credit, and slowing business activity can all feed into the broader economy. In the worst case, liquidity stress can evolve into credit stress — a scenario where even solid borrowers face financing challenges. Some analysts believe the economy is entering a phase where liquidity management becomes as critical as interest rates. With reserves near multi-year lows, banks and investors alike are watching every data release from the Fed with renewed urgency. What happens if reserves keep falling from here? If U.S. bank reserves fall further below the $2.8 trillion mark, the risk of instability grows. Markets may start to test the Fed’s tolerance for tighter liquidity, pushing funding costs higher and forcing policymakers to react sooner than planned. In practical terms, that could mean: A temporary pause in balance-sheet reduction to preserve stability. Expanded access to short-term funding facilities for banks. A rise in volatility across asset classes, especially if liquidity dries up suddenly. For now, the Fed and Treasury are monitoring conditions closely. But investors know that liquidity problems tend to appear suddenly — and resolve only after confidence returns. As one analyst put it, “When reserves get scarce, the market doesn’t whisper — it screams.” The U.S. banking system isn’t at that point yet, but the recent numbers suggest it’s edging closer. (You can now subscribe to our Economic Times WhatsApp channel) READ MORE ON US bank reserves fall to four year lowUS bank reserves crash liquidity warningus bank reservesliquidity crisisfederal reserve tighteningquantitative tighteningtreasury borrowingmoney market volatilityfinancial stabilitybanking system risk (Catch all the US News, UK News, Canada News, International Breaking News Event… More NEXT READ US bank reserves nosedive to $2.8 trillion, crash to 4-year low - analysts say crisis could be near Today Show Halloween Costumes 2025 revealed: Beyoncé, Anna Wintour, Dylan Dreyer and others show their best spooky side Disturbing new details unearthed in investigation related to the case of teen Celeste Rivas found in D4vd's Tesla Netflix stock jumps as streaming giant explores Warner Bros Discovery buyout US stock market rising sharply today: Why is Dow Jones, S&P 500, Nasdaq climbing? 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Try this....it was sent to me...CL OPERATION NIGHTFALL, THE SILENT SWITCH · AT 23:11 ZULU, OCTOBER 26TH 2025, A SIGNAL FIRED FROM DEEP INSIDE CHEYENNE MOUNTAIN. TRUMP’S CODE ALPHA 77 TRAVELED THROUGH THE QFS CORE LIKE LIGHTNING IN THE DARK. · NO CAMERAS. NO NEWS. NO OFFICIAL WORDS. JUST ONE PULSE ACROSS THE QUANTUM NETWORK - FOLLOWED BY SILENCE… THEN GLOBAL MOVEMENT. · SATELLITES ABOVE ATLANTA, LONDON, AND ZURICH HAVE BEEN TAKEN UNDER MILITARY HANDSHAKE MODE. THE GRID YOU’RE WATCHING NOW IS A SHADOW FEED. · WHEN THE MASTER SWITCH IS ACTIVATED, EVERY CHANNEL WILL COLLAPSE INTO ONE FREQUENCY - THE DISCLOSURE WAVE. · RAMSTEIN AIRBASE IS EXECUTING OPERATION NIGHTFALL. C17S DEPARTED WITH CLASSIFIED MANIFESTS AND SEALED WARRANTS - NO RETURN LOGGED. · DIEGO GARCIA IS UNDER OPERATION FORTUNE VAULT, RELOCATING TIER 4B PERSONNEL INTO SECURE BRIEFING ZONES. · ANDREWS COMMAND RUNS OPERATION STARLINK DAWN, LINKING MILITARY SATELLITES TO QFS NODES FOR GLOBAL RESET DEPLOYMENT. · THE WORLD THINKS EVERYTHING IS NORMAL, BUT BEHIND THE CURTAIN THE OLD SYSTEM IS BEING ERASED LINE BY LINE. · CME AND NYSE ENTERED “TECHNICAL MAINTENANCE,” CODE FOR LEDGER DRAINING. EVERY DIGITAL DOLLAR IS BEING REWRITTEN INTO THE QUANTUM SYSTEM AND TIED TO GOLD-WEIGHTED BIOSIGNATURES. · BANK SERVERS WORLDWIDE HAVE ENTERED CYBER REVIEW. ONCE THEY REBOOT UNDER QFS AUTHORITY, THE SWITCH WILL SNAP. · THE EBS WILL FOLLOW. NOT AS A TEST, BUT AS THE RESET SIGNAL TO END THE OLD WORLD. When the first tone hits, there will be no warning. Only awakening. @looP_rM_3117211

Iraq is 1 of 135 countries capable of CIPS transactions.... Many countries are playing the east vs. west game...using both to their advantage....CL

1310 IQD to 1 USD.... 26000 VND to 1 USD... Doesn't look like half the value to me? Vietnam is an economic power house using the same blueprint China has used...using a lower currency value/exchange rate for their own economic advantage.... Enjoy your Sunday everyone! CL

Perhaps Sudani will help broker a peace deal between Iran and the rest of the world! CL Iraq says some US military advisers will stay due to IS threat in Syria Iraqi Prime Minister Mohammed Shia al-Sudani speaks at his political block campaign rally before the parliamentary elections in Mosul, Iraq, Saturday, Oct. 18, 2025. (AP Photo/Hadi Mizban, file) By QASSIM ABDUL-ZAHRA Updated 9:39 AM EDT, October 20, 2025 BAGHDAD (AP) — Iraq ’s prime minister said Monday that a small contingent of U.S. military advisers will remain in the country for now to coordinate with U.S. forces in neighboring Syria combating the Islamic State group. Washington and Baghdad agreed last year to wind down a U.S.-led coalition fighting IS in Iraq by this September, with U.S. forces departing some bases where they have been stationed. Iraqi Prime Minister Mohammed Shia al-Sudani told journalists in Baghdad that U.S. military advisers and support personnel are now stationed at the Ain al-Asad air base in western Iraq, a base adjacent to the Baghdad airport, and the al-Harir air base in northern Iraq. Al-Sudani noted that the agreement originally stipulated a full pullout of U.S. forces from Ain al-Asad by September, but that “developments in Syria” since then required maintaining a “small unit” of between 250 and 350 advisers and security personnel at the base. He said they would work to support counter-IS surveillance and coordination with the al-Tanf base in Syria. He added that other U.S. sites are witnessing “gradual reductions” in personnel and operations. Related Stories US military begins drawing down mission in Iraq US-led coalition in Syria says it killed a top IS militant French citizens detained in northeast Syria handed to Iraq for trial After the fall of former Syrian President Bashar Assad in a rebel offensive in December, fears arose in Iraq of an IS resurgence taking advantage of the ensuing security vacuum and weapons abandoned by the former Syrian army. Al-Sudani maintained that the extremist group, which seized wide swathes of territory in Iraq and Syria a decade ago, “no longer poses a significant threat inside Iraq.” Iraq has sought to balance its relations with the United States and neighboring Iran and to avoid being pulled into regional conflicts, a policy that the prime minister said he will continue. “We put Iraq first, and we do not wish to act as a proxy for anyone,” he said. “Iraq will not be a battlefield for conflicts.” At the same time, al-Sudani urged the U.S. to return to negotiations with Iran, describing the Trump administration’s “maximum pressure” approach to curtail Iranian influence as “counterproductive.” “Iran is an important and influential country that must be treated with respect and through direct dialogue,” he said. There have been tensions between Baghdad and Washington over the presence of Iran-backed militias in Iraq. The Popular Mobilization Forces, a coalition of militias that formed to fight IS, was formally placed under the control of the Iraqi military in 2016 but in practice still operates with significant autonomy. The Iraqi parliament has been considering legislation that would solidify the relationship between the military and the PMF, drawing objections from Washington. Al-Sudani did not directly address the proposed legislation but said his government’s program “includes disarmament and national dialogue to remove any justification for carrying weapons.” “We encourage all factions to either integrate into state institutions or engage in political life,” which could include becoming political parties and running for election, he said. Iraq is preparing for parliamentary elections next month that will determine where al-Sudani serves a second term. “Armed factions that have transformed into political entities have the constitutional right to participate” in those elections, the prime minister said. Former NFL player Doug Martin died after struggling with officers while being detained, police sayAP News American chess grandmaster Daniel Naroditsky dies at 29AP News Neurologist Reveals: Dementia Has Been Linked to a Common Habitnutrapeaklife.com Advertisement: Man who sent 'So I raped you' message is sentenced to 2 to 4 years for 2013 campus assaultAP News Maine Democrat running to unseat Susan Collins to stay in race after discovery of Reddit postingsAP News Android Users Don't Forget To Do This Before Tuesday (Do It Now)All Android Users Should Do this Before Turning Off Their Device...Lifestyle Tech Tips Advertisement: Are You Eligible for Canadian Immigration?Dream of living in Canada? 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Government everywhere is out of control! Privatization is the answer! CL