Red✨

💬LET'S TALK CURRENCY CONVERTIBILITY PT. 2 💡 🇮🇶 IRAQ EDITION 🇮🇶 So, we have learned what open convertibility means. Now let's apply it to the real world and take a look at the factors in that transition and what we could expect to hear in the media. 🔻 ➡️ Macroeconomic Stabilization ⬇️ 🔹 Build confidence in the currency 🔸 Control inflation - Achieve low, stable inflation through sound monetary policy. 🔸 Maintain fiscal discipline - Reduce budget deficits and public debt. 🔸 Strengthen central bank independence - The Central Bank of Iraq (CBI) must operate independently and credibly to manage monetary policy effectively. 🔸 Build foreign reserves - Accumulate sufficient forex reserves to support the exchange rate and prevent speculative attacks. ➡️ Strengthen Financial Sector Infrastructure ⬇️ 🔹 Create a resilient and transparent banking system 🔸 Modernize banking regulations - Improve supervision, transparency, and solvency of banks. 🔸 Develop financial markets - Establish bond markets, interbank markets, and tools for monetary transmission. 🔸 Implement anti-money laundering (AML) and counter-terrorism financing (CFT) standards - Comply with global standards (e.g., FATF) to build investor trust. 🔸 Enhance payment systems - Digitize and secure payment networks for smoother capital flows. ➡️ Gradual Capital Account Liberalization ⬇️ 🔹 Allow capital to flow freely in and out of the country (this is the BIGGIE) 🔸 Liberalize current account transactions - E.g., trade-related payments, travel, remittances. 🔸 Gradually allow capital inflows - Start with long-term investments (FDI), followed by portfolio investments. 🔸 Phase in capital outflows - Especially for residents and businesses. 🔸 Safeguard mechanisms - Put in place temporary capital controls in case of market instability. ➡️ Exchange Rate Policy Reform ⬇️ 🔹 Move toward a market-determined exchange rate 🔸 Enhance exchange rate flexibility - Allow the IQD to float within a managed band or eventually adopt a free-floating regime. 🔸 Deepen forex markets - Ensure transparent and liquid foreign exchange markets. 🔸 Reduce reliance on parallel market - Narrow the gap between official and street exchange rates. ➡️ Institutional and Legal Reforms ⬇️ 🔹 Create a reliable economic and investment environment 🔸 Legal certainty - Strengthen property rights and contract enforcement 🔸 Transparent governance - Fight corruption and improve rule of law 🔸 Investor protections - Ensure policies support and protect foreign investors 🔸 Public communication - Build trust through consistent and transparent government communication ➡️ Regional and Global Integration ⬇️ 🔹 Build trust in IQD through global economic engagement 🔸 WTO accession or deep trade agreements - Encourage global trade relationships. 🔸 Engage with IMF and World Bank - Technical assistance and policy support. 🔸 Promote remittances and diaspora investment - Facilitate cross-border money movement. Statements that we would COULD possibly hear in the media around this transition, notice the SPECIFIC words used 🔻 ➡️ Currency Exchange Reforms 🔹 Changes to exchange rate policies or forex access “CBI will move to a managed float of the dinar within a defined band.” ➡️ Capital Account Liberalization Announcements 🔹 Stepwise easing of controls “Foreign investors may now repatriate profits freely.” “Iraqi businesses may invest abroad up to $X annually.” ➡️ International Cooperation 🔹 Endorsements and technical support “IMF and World Bank to assist in technical support for convertibility transition.” “Talks initiated for bilateral swap agreements with regional partners.” ➡️ Full Convertibility Declaration 🔹 The final, milestone announcement “As of [date], the Iraqi Dinar is fully convertible for current and capital account transactions.” “All exchange restrictions removed in line with IMF Article VIII.”

@DarlaDabuzz This is for Lybia, y’all need to learn how to read, my goodness. 🤦🏻‍♀️

🌐 The Treasury just declared the U.S. insolvent. The media missed it “Importantly, the $47.78 trillion in reported liabilities does not include the unfunded obligations of social insurance programs like Social Security and Medicare — those are disclosed separately in the off-balance-sheet Statement of Social Insurance (SOSI).” “Total liabilities are now nearly eight times the value of reported assets. The largest drivers were a $2 trillion increase in federal debt and interest payable (now $30.33 trillion) and a $438.8 billion increase in federal employee and veteran benefits payable (now $15.47 trillion).” “The off-balance-sheet picture is even more alarming. The 75-year unfunded social insurance obligation surged by $10.1 trillion in a single year, rising from $78.3 trillion in FY 2024 to $88.4 trillion in FY 2025 — driven primarily by a $6.9 trillion jump in projected Medicare Part B shortfalls and a $2.5 trillion increase for Social Security. The Treasury’s Statement of Long-Term Fiscal Projections shows the 75-year fiscal gap widening from 4.3% of GDP in FY 2024 to 4.7% in FY 2025.” “The Government Accountability Office (GAO) issued a disclaimer of opinion on the U.S. government’s FY 2025 financial statements — the 29th consecutive year it has been unable to determine whether the statements are fairly presented. This primarily due to serious, ongoing financial management problems at the Department of Defense and weaknesses in accounting for interagency transactions.” “That household earns $52,446 and spends $73,378 — running a $20,932 annual deficit. Its total liabilities and unfunded promises amount to $1,361,788 against just $60,554 in assets, leaving it $1.3 million in the hole. Uncle Sam, by any accounting standard, is insolvent.” “First, Congress should pass the bipartisan H.R. 3289 — Fiscal Commission Act, sponsored by Rep. Bill Huizenga (R-MI), Rep. Scott Peters (D-CA), and 41 co-sponsors. Such a commission would force a public reckoning with the facts, the trade-offs, and the hard choices that restoring fiscal health requires.” “Second, Congress should call an Article V Convention limited to proposing a fiscal responsibility amendment to the U.S. Constitution. H.Con.Res. 15, sponsored by Rep. Jodey Arrington (R-TX), would do exactly that.” finance.yahoo.com/economy/policy…

🌐 China & Silver by Ed Steer China’s silver market is tightening rapidly, creating ripple effects across global supply chains. Recent data shows that silver inventories at the Shanghai Gold Exchange (SGE) and Shanghai Futures Exchange (SHFE) have fallen to levels not seen since around 2015, signaling a significant reduction in available stock. This decline in inventories reflects both strong domestic demand and constrained supply, contributing to broader market tightness. For the first time since mid‑2024, China is now importing more silver than it exports, marking a shift from net exporter to net importer. This trend underscores the structural supply deficit that has persisted in the silver market for years. As inventories dwindle, the pressure on global markets increases, amplifying the impact of domestic demand in China on worldwide silver availability. Adding to this dynamic, China implemented strict export licensing rules effective January 1, 2026, which limit silver exports primarily to large, state-approved firms. Analysts suggest these regulations aim to retain more silver domestically, although their ultimate impact is debated. Some experts believe the rules will minimally affect trade flows, while others argue they could tighten the global market by restricting smaller exporters. Meanwhile, strong industrial and investment demand within China continues to draw down local inventories and push up physical premiums. This combination of regulatory changes and high domestic demand reinforces the perception that silver is in a prolonged structural deficit, making China a central driver of global market conditions. silverseek.com/article/china-…

🌐 French central bank books $15 billion gain on gold reserve upgrade "Over the past two decades, the bank has been gradually replacing older or non-standard gold holdings with bars that meet modern international standards. A 2024 internal audit recommended completing the process for the small share of French gold still held in New York. The residual stock of 129 metric tons, or about 5% of France's total gold reserves, was upgraded by selling the gold and buying compliant bars between July 2025 and January 2026 rather than going to the trouble of trying to get it refined. That program is now complete, the bank said. The overall size of France's gold reserves remained unchanged at roughly 2,437 tons, but the new bars are now held in Paris rather than New York." Some of France’s gold dated back decades and didn’t meet today’s “Good Delivery” standards set by the LMBA. These older bars can still be valuable but are harder to trade quickly in global markets. A portion of the gold, about 129 metric tons, was either sold into the market or melted down and refined. This step allowed the metal to be reshaped and purified to meet modern specifications (correct weight, purity, and markings). The refined gold was turned into LBMA “Good Delivery” bars, which are the global standard for large-scale gold trading. These bars are uniform (about 400 oz each), highly liquid, and easily accepted by major financial institutions and exchanges. Some of the upgraded gold was also repatriated and stored in Paris, rather than abroad (like New York), improving direct control and alignment with European markets. Because gold prices were significantly higher during the upgrade period, the Banque de France effectively realized a gain when swapping older bars for newly refined ones. That price appreciation is what produced the roughly $15 billion windfall. ➡️ So no, there was no "revaluation" of their gold, sadly. There was an actual physical process that gave a true assay of the gold. An assay is the purity attestation from a refiner, it basically gives gold its value based upon purity, 24K being the highest possible, with anywhere from 99.5% to 99.9% in purity. This is a strict guideline to "Good Delivery" labeled bars. fixedincome.fidelity.com/ftgw/fi/FINews… reuters.com/business/frenc…

🌐 What Iran means for the dollar: a perfect storm for the petrodollar "Accumulating dollars to pay for energy has underpinned the U.S. currency for decades. Oil exporting nations have typically recycled their petrodollars into U.S. Treasuries. One unintended consequence of the Middle East conflict may be the end of what is called the petrodollar regime." 🔹 The Petrodollar Is the Foundation of Dollar Dominance The world saves in USD largely because global trade, especially oil, is priced in USD. This system originates from the 1974 US–Saudi deal: oil priced in dollars in exchange for US security guarantees. Because oil is central to global manufacturing and transport, dollar invoicing became embedded across global value chains. 🔹 The Petrodollar Was Already Under Pressure Before the Conflict Several structural shifts were weakening the system even before the US–Israel–Iran war, Asia, not the US, is now the main buyer of Middle East oil (85% of ME oil goes to Asia), Saudi Arabia is localizing defense and reducing reliance on US arms, Saudi Arabia and the UAE joined Project mBridge, enabling cross‑border CBDC payments outside USD rails, and sanctioned oil (Russia, Iran) has increasingly traded in non‑USD currencies. 🔹 The Current Conflict Exposes New Fault Lines US bases and Gulf oil infrastructure have been attacked, testing the US security umbrella. Passage through the Strait of Hormuz has relied on diplomacy rather than US-led maritime security. Reports suggest Iran may allow tanker passage in exchange for yuan‑denominated oil payments, accelerating a potential “petroyuan” shift. Gulf economies may need to draw down USD reserves to repair war damage and support domestic economies. 🔹 Possible Fracturing of Global Oil Pricing Two scenarios emerge 👇🏻 Best case - USD remains dominant if the US becomes the world’s largest oil supplier. Worst case - Oil pricing splits by trade corridor 👇🏻 Middle East → Asia: priced in yuan Western Hemisphere → US allies: priced in USD Gulf USD pegs remain a stabilizing force, but could be stressed if reserves are drawn down. 🔹 The Bigger Long‑Term Threat: The World May Move Away from Oil The report argues this may be more destabilizing than currency shifts, high geopolitical risk and repeated energy shocks echo the 1970s. Europe, Asia, and the Global South may pursue domestic fossil fuel development, accelerated renewable adoption (heavily dependent on China’s industrial capacity), nuclear power expansion (especially Japan, Korea, Europe), and a world less reliant on globally traded oil reduces the structural demand for USD reserves. 🔹 Implications for the Dollar Near-term - US energy independence gives the dollar some safe-haven support. But fiscal risks and reserve unwinds in Asia/Middle East offset this. Long-term - The dollar’s reserve status depends on global willingness to price trade in USD and global willingness to save surpluses in USD assets. Both pillars are now under pressure. 🔹 Key risks to USD dominance include erosion of the petrodollar (pricing oil in other currencies), decline in global oil trade itself, gulf diversification away from USD, and rising strategic autonomy, meaning more domestic investment, fewer USD reserves. The report concludes that the Middle East remains strategically essential to the dollar’s global role but this conflict may represent a “perfect storm” for the petrodollar system. morningstar.com/news/marketwat… dbresearch.com/PROD/IE-PROD/P… dbresearch.com/PROD/IE-PROD/P…

@lukinsisammie @Bird_XRPL I was thinking the same thing. Didn’t SG partner with Stellar long before Ripple? 🤭 stellar.org/press/societe-…

@Bird_XRPL can’t you read?

Another clear sign Swift will use the XRPL. ... because Société Générale–FORGE already use the XRPL & work with Ripple ⚙️

🌐 Turkey Eyes $135 Billion Gold Reserves for Lira Defense Turkey is considering using its massive gold holdings, worth roughly $135 billion, as part of a strategy to defend its currency, the Turkish lira, which has been under renewed pressure. The move comes as financial markets react to geopolitical instability (particularly tied to Iran), rising energy costs, and ongoing inflation concerns that continue to weaken confidence in the currency. The central bank isn’t necessarily planning to sell gold outright. Instead, officials are exploring mechanisms like gold-for-foreign-currency swaps in global markets (such as London). This would allow Turkey to temporarily convert gold into usable foreign currency (like dollars) to stabilize the lira without permanently depleting its gold reserves. What makes this significant is the structure of Turkey’s reserves. Out of roughly $190 billion in total reserves, about $134 billion is in gold, while foreign currency reserves are much smaller (under $50 billion). That means gold is not just a passive asset, it’s actually Turkey’s primary financial buffer when defending its currency. The pressure on the lira has intensified due to a mix of factors, high inflation (still above 30%), heavy reliance on imported energy, making oil price shocks critical, ongoing geopolitical risks in the region, and prior interventions that already drained some foreign currency reserves. Because of this, Turkey has already spent billions trying to stabilize the currency, and now gold is being brought into the strategy as a stronger backstop. However, using gold isn’t a perfect solution. It can boost confidence and provide liquidity, but it doesn’t fix deeper structural issues like inflation, trade imbalances, or dependence on external energy. In other words, gold can buy time, but it can’t fully solve the underlying economic pressures on the lira. ➡️ What is a gold swap? A gold swap is essentially a short-term loan using gold as collateral. Instead of selling gold permanently, the central bank temporarily exchanges it for foreign currency (like U.S. dollars), with an agreement to reverse the deal later. The Central Bank of the Republic of Turkey transfers a portion of its gold reserves to a major financial institution, often a bullion bank in places like London (e.g., HSBC, JPMorgan). In return, Turkey gets liquid cash, usually dollars. This is the key goal, turning a non-cash asset (gold) into spendable currency without selling it. Turkey can now sell dollars in FX markets to buy lira (propping up its value), pay for imports (like energy), and meet external debt obligations. ➡️ This is another example of countries increasingly turning to hard assets like gold as part of monetary defense strategies, especially when fiat reserves (like dollars) are limited. It also highlights a broader trend, in times of instability, gold is shifting from a passive reserve into an active policy tool. ainvest.com/news/turkey-13… internationalinvestment.biz/en/turkey/7526…

@MrManXRP Me and you both, been pushing for a hot minute for an independent audit, let’s see if it actually follows thru and reveals what most of us already know….

The first line had me a bit perturbed. “Tether has released its first reserve report for its new U.S.-regulated stablecoin, USAT, which was reviewed by Deloitte and shows $17.6 million in reserve assets backing 17.5 million tokens.” They push the “regulated” part, but when speaking about USDC & RLUSD, PAXGOLD, PAYPL, no one states “their regulated stablecoin” That is clearly optics based on framing. I’m looking forward to this audit. 2027 is the final implementation for GENIUS.

This makes sense.

@MrManXRP learn.anchorage.com/01.31.26_USAT-… coindesk.com/business/2026/… tether.io/news/tether-un… Have yet to see a white paper and their site isn’t full of info on it. 👇🏻 usat.io/news/

@RedMGthaOG Do you have one of their attestations or a link I can view? Do they have a whitepaper yet also?

🌐 The Treasury just declared the U.S. insolvent. The media missed it “Importantly, the $47.78 trillion in reported liabilities does not include the unfunded obligations of social insurance programs like Social Security and Medicare — those are disclosed separately in the off-balance-sheet Statement of Social Insurance (SOSI).” “Total liabilities are now nearly eight times the value of reported assets. The largest drivers were a $2 trillion increase in federal debt and interest payable (now $30.33 trillion) and a $438.8 billion increase in federal employee and veteran benefits payable (now $15.47 trillion).” “The off-balance-sheet picture is even more alarming. The 75-year unfunded social insurance obligation surged by $10.1 trillion in a single year, rising from $78.3 trillion in FY 2024 to $88.4 trillion in FY 2025 — driven primarily by a $6.9 trillion jump in projected Medicare Part B shortfalls and a $2.5 trillion increase for Social Security. The Treasury’s Statement of Long-Term Fiscal Projections shows the 75-year fiscal gap widening from 4.3% of GDP in FY 2024 to 4.7% in FY 2025.” “The Government Accountability Office (GAO) issued a disclaimer of opinion on the U.S. government’s FY 2025 financial statements — the 29th consecutive year it has been unable to determine whether the statements are fairly presented. This primarily due to serious, ongoing financial management problems at the Department of Defense and weaknesses in accounting for interagency transactions.” “That household earns $52,446 and spends $73,378 — running a $20,932 annual deficit. Its total liabilities and unfunded promises amount to $1,361,788 against just $60,554 in assets, leaving it $1.3 million in the hole. Uncle Sam, by any accounting standard, is insolvent.” “First, Congress should pass the bipartisan H.R. 3289 — Fiscal Commission Act, sponsored by Rep. Bill Huizenga (R-MI), Rep. Scott Peters (D-CA), and 41 co-sponsors. Such a commission would force a public reckoning with the facts, the trade-offs, and the hard choices that restoring fiscal health requires.” “Second, Congress should call an Article V Convention limited to proposing a fiscal responsibility amendment to the U.S. Constitution. H.Con.Res. 15, sponsored by Rep. Jodey Arrington (R-TX), would do exactly that.” finance.yahoo.com/economy/policy…

@RedMGthaOG oh boy now things get fun

@acllc2 @SpecialSitsNews Someone always gotta make something out of nothing…. I guess people don’t realize there are weekly issuances of treasuries and have been for years…. Can’t fix stupid 🤣

@SpecialSitsNews These are completely normal and scheduled with no uncertainty. If the quantity deviated from expected issuance the impact would’ve been seen at 11am ET on announcement.

The U.S. Treasury is hitting the market with a massive sequence of auctions to fund the deficit and Iran war: · Tuesday: $69 billion in 2-year notes. · Wednesday: $70 billion in 5-year notes. · Thursday: $44 billion in 7-year notes.

@Nameless20z 1000%

@RedMGthaOG I swear I'm catching whiplash with the amount of Pivots coming from this Admin about this war.

Man what the actual fuck!? @RedMGthaOG Im actually shocked here. ofac.treasury.gov/recent-actions…

🔥 China’s ravenous appetite for silver lifted overseas purchases to an eight-year high at the start of 2026, as importers fed a surge in industrial and investment demand. February had a record month, nearly 470 tons… - Bloomberg

Gold plummeted and China big buying. The daily limit is only 600kg of gold bars for banks in China to sell, and 100kg on weekends. Sales start at 9 am per day and sold out within a minute. Source CCTV.

@bradfordonian @MattStirner @Sorenthek I sit on a nice quantity of all PM, so I am not worried about having to use it when I need to. Not that I need to defend myself against people like you who would rather judge than actually look deeper.

@MattStirner @RedMGthaOG @Sorenthek Let's hope we don't have to prove it to "Red"....because if we have to exchange Gold for real things, we are going to be in a very bad place for the "Reds" of this World who might not own any real money. Apologies to "Red" if planned ahead & acquired some....just in case!

This isn’t sarcasm 👇

@MaximilPlan3t @KhrysosC3 @Sorenthek Doesn’t matter, the idea is that it was used to settle trade, which IS NOT the correct assessment. Please move along sir, you contributed zero to this conversation.

@RedMGthaOG @KhrysosC3 @Sorenthek Did you forgot within 5 minutes about being told how old the IMF is and historical gold use? Oxygen thief.

Except when it figures into trade, which the difference becomes very much important. Y’all can talk shit all you want to. I personally don’t care. Just because you all choose to ignore that simple fact and play into a narrative that isn’t exactly true says a lot. Now continue please, continue to insult me, degrade me, and talk absolute shit about me. All because you don’t know me and choose to believe something else.

@bradfordonian @RedMGthaOG @Sorenthek I wear a wedding ring (non-monetary). I also own about 20 other wedding rings I have snapped up on bargain hunting trips over the years. Very much monetary, always stay in my safe. This tiny example proves that the distinction is nonsensical.