Sun. AM-PM Seeds of Wisdom News Update(s) 1-11-26

(Note: If you’re looking for more news regarding cryptocurrency, please visit our website Bitcoin Commando. All crypto news will be posted there. ~ Dinar Chronicles)

Seeds of Wisdom

Central Bank Liquidity Operations Continue

Fed’s large hidden liquidity i********s suggest deeper financial plumbing stress than official narratives imply

Overview

• The Federal Reserve, particularly via the New York Fed and its standing repo facilities, has been injecting large sums of liquidity into U.S. banks to keep short-term funding markets functioning.
  
• Media and market data show usage of these liquidity windows — including repo operations and emergency cash i********s — at unusually high levels, indicating systemic funding pressure.
  
• These operations serve to supply cash against high-quality collateral (e.g., Treasury securities), a tool the Fed uses when private funding channels dry up.
  
• Increased activity around year-end and after quant-tightening measures ended reflects banks leaning more on central bank support than usual.

Key Developments

• High use of the Fed’s standing repo facility: Eligible financial institutions drew about $26 billion in overnight liquidity via this tool, among the highest levels since its creation to offer fast loans against collateral.
  
• Record pressures around month-end: Usage of liquidity facilities surged, with nearly $50 billion in standing repo loans extended as banks sought cash amid funding volatility.
  
• Larger context of tightening liquidity: Repo and funding markets have shown signs of strain due to quantitative tightening, reductions in bank reserves, and high Treasury issuance.

Why It Matters

Central bank liquidity operations — especially large or sustained ones — are more than routine technical plumbing:

• Stress indicator: When banks increasingly tap central bank facilities, it shows that normal market funding channels are under pressure.
  
• Hidden support: These i********s often occur without headline announcements, meaning traditional market indicators (like monetary policy statements) may understate actual system reliance on the Fed.
  
• Monetary policy tension: Such liquidity support can run counter to tightening narratives (like rate increases or QT), signaling that central banks are walking a fine line between stability and policy normalization.

Why It Matters to Foreign Currency Holders

For holders of foreign currencies eyeing positional shifts or revaluation opportunities, this trend has meaningful implications:

• Signals potential systemic stress: Large liquidity i********s suggest financial systems — especially U.S.-centered ones — may be under pressure, undermining confidence in dominant reserve currencies over time.
  
• Dollar dynamics: Increased central bank liquidity can weaken the dollar’s perceived strength if markets see these moves as hidden easing, supporting diversification into foreign currencies and gold.
  
• Global credit conditions: Excess liquidity dampens credit costs and can encourage capital flows into emerging markets, affecting exchange rates and asset valuations in those regions.
  
• Monetary transition cues: When central banks shift quietly from tightening to liquidity provision, it can presage broader monetary adjustments, which historically precede currency repricing events.

These moves are not isolated cash swaps — they signal underlying liquidity fragility that can ripple through currency markets before traditional indicators catch up.

Implications for the Global Reset

• Financial Stability Pillar: Stealth liquidity operations imply dependence on central bank backstops, highlighting fragilities that might accelerate structural reforms in how global finance functions.Monetary Transition Pillar: Hidden i********s may reflect a pivot away from rigid tightening toward liquidity accommodation, a trend that often precedes broader currency and monetary system shifts.

This is not just technical operations — it’s central banking in crisis-management mode, with implications for currency valuations and systemic risk.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• Reuters – Banks tap Fed liquidity tool amid year-end pressures
• StreetInsider (via Reuters) – Banks tap Fed Standing Repo Facility in record numbers amid month-end pressures
• Ainvest – Escalating Repo Fails and Systemic Liquidity Risks in 2025

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Historic EU–Mecosur Trade Deal Nears Completion

After 25 years of gridlock, a massive trade bloc emerges as the world quietly reorganizes economic power

Overview

• The European Union has moved decisively toward finalizing the EU–Mercosur free trade agreement after more than two decades of negotiations.
  
• Italy’s decision to back the pact broke a long-standing deadlock among EU member states.
  
• The agreement would unite the EU with Brazil, Argentina, Uruguay, and Paraguay into a single trade zone of roughly 780 million people.
  
• Combined, the bloc would represent close to 25% of global GDP — one of the largest free-trade areas ever formed.

Key Developments

• Italy shifts position: Rome reversed earlier opposition after securing agricultural safeguards, helping unlock EU consensus.
  
• Political resistance remains: France, Poland, and farming groups across Europe continue to voice environmental and food-standard concerns.
  
• Strategic resources in focus: The deal improves EU access to South American agricultural output, energy, and critical raw materials.
  
• Next steps underway: The pact still requires European Parliament approval and ratification by Mercosur nations before implementation.

Why It Matters

This agreement marks a structural realignment in global trade at a time when protectionism and fragmentation dominate headlines.

By deepening EU–South America integration, the deal:

• Counters global trade fragmentation by reinforcing multilateral commerce instead of tariffs and blocs.
• Diversifies supply chains away from over-reliance on China and geopolitically sensitive routes.
• Strengthens Europe’s geopolitical leverage in Latin America, a region increasingly contested by major powers.

Why It Matters to Foreign Currency Holders

For those holding foreign currencies in anticipation of higher future valuations, this development is significant:

• Trade blocs drive currency demand: Expanded trade volumes increase transactional demand for regional currencies rather than defaulting to the U.S. dollar.
  
• Supports de-dollarization trends: Large multi-regional trade agreements often evolve toward local-currency settlement mechanisms over time.
  
• Signals systemic restructuring: Long-term trade frameworks are typically aligned with broader monetary and financial realignments — not short-term politics.
  
• Capital flow rebalancing: As investment shifts toward emerging trade corridors, currency repricing frequently follows structural integration.

In short, trade architecture precedes monetary change — and this deal is architecture on a historic scale.

Implications for the Global Reset

• Trade Realignment Pillar: The EU–Mercosur pact accelerates the shift toward multipolar trade networks.
• Monetary Transition Pillar: Sustained non-U.S. trade expansion lays groundwork for future currency revaluation and settlement reform.

This is not just trade — it’s global financial restructuring taking shape in real time.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• Reuters – “Italy backs EU–Mercosur trade deal after 25 years of talks”
• Financial Times – “EU member states move to approve Mercosur trade pact”
• Associated Press – “EU inches toward landmark Mercosur trade agreement”

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Source: Dinar Recaps

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TETHER AT CENTER STAGE IN US–VENEZUELA CONFLICT AS 80% OF OIL REVENUE MOVES VIA STABLECOINS

Sanctions pressure accelerates digital money adoption and weakens traditional banking control

Overview

• Tether’s USDT stablecoin has emerged as a central financial tool in Venezuela following the arrest of Nicolás Maduro in the United States.
  
• An estimated 80% of Venezuela’s oil-sector revenue is now being collected through stablecoins rather than traditional banking channels.
  
• USDT has become critical both for state-level oil transactions and for everyday civilian use amid currency collapse.
  
• Heightened scrutiny of Venezuela’s financial flows has placed stablecoins at the center of global sanctions and enforcement debates.

Key Developments

• Sanctions-driven shift: Venezuela’s state oil company began accepting USDT for oil sales as early as 2020 to bypass restrictions on dollar-clearing banks.
  
• Oil revenue transformation: Economists estimate that nearly four-fifths of Venezuela’s oil income now settles in stablecoins rather than fiat currency.
  
• Civilian adoption accelerates: With the bolívar having lost over 99% of its value over the past decade, USDT has become a preferred store of value and medium of exchange for citizens.
  
• Regulatory tension: Tether has cooperated with U.S. authorities to freeze wallets linked to sanctioned entities, highlighting the dual-use nature of stablecoins.
  
• Maduro case intensifies scrutiny: The former president’s detention has renewed focus on tracking state-linked crypto flows tied to oil exports.

Why It Matters

This development reflects a structural change in how sanctioned economies function financially:

• Banking systems are no longer mandatory: Stablecoins allow commodity trade to operate outside traditional correspondent banking networks.
  
• Sanctions enforcement is evolving: Digital settlement challenges conventional financial controls designed around banks and SWIFT.
  
• Parallel financial systems are forming: Stablecoins are now operating as functional money, not speculative instruments, in stressed economies.
  
• Precedent-setting case: Venezuela provides a real-world example of how digital currencies can sustain national revenue under extreme pressure.

Why It Matters to Foreign Currency Holders

For those holding foreign currencies in anticipation of revaluation within a global reset framework, this shift is significant:

• Dollar dominance is being quietly eroded: When oil revenue settles outside dollar-clearing systems, reserve-currency influence weakens.
  
• Alternative settlement systems gain legitimacy: Stablecoins demonstrate how trade can persist without reliance on legacy fiat infrastructure.
  
• Currency repricing signals: Monetary systems often fracture at the edges before broader revaluation events occur.
  
• Hard lessons for fiat currencies: Trust, access, and usability matter more than official status during monetary stress.

This is a reminder that currency power follows utility, not declarations.

Implications for the Global Reset

• Payment Systems Pillar: Stablecoins are proving capable of replacing banks in high-value trade under pressure.
• Monetary Transition Pillar: The rise of digital dollars outside U.S. control exposes vulnerabilities in the existing fiat-dominated order.

This is not just a crypto story — it is a case study in how money systems evolve when traditional structures fail.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• Wall Street Journal – “Maduro’s Crypto-Backed Oil Deals Put Tether at Center of Venezuela Money Drama”
• CoinGape – “Tether in Focus as 80% of Venezuela Oil Revenue Moves via Stablecoins”
• Crypto Economy – “Venezuela Captures 80% of Oil Revenue in USDT Amid Sanctions Pressure”
• LiveBitcoinNews – “USDT Becomes Venezuela’s Financial Lifeline Amid Sanctions”

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BRICS PLAN TO MOVE FROM 50% TO 65–70% GLOBAL GOLD CONTROL IN 2026

Gold, not debt, is emerging as the backbone of the next monetary system

January 11, 2026

Overview

• BRICS nations are accelerating a coordinated strategy to expand their control of global gold reserves from roughly 50% to an estimated 65–70% in 2026.
  
• The strategy combines aggressive central-bank gold purchases, expanded domestic production, and gold-backed trade and settlement systems.
  
• Since 2020, BRICS countries have increased gold’s share of their total reserves by more than 100%.
  
• Central banks within the bloc accounted for over half of all global gold purchases between 2020 and 2024.

Key Developments

• Production dominance: China produced approximately 380 tonnes of gold in 2024, while Russia added about 340 tonnes, underscoring BRICS’ internal supply strength.
  
• Allied output expands control: When aligned producers such as Kazakhstan, Iran, and Uzbekistan are included, BRICS-aligned nations now represent close to 50% of global gold output.
  
• Brazil resumes gold accumulation: Brazil purchased 16 tonnes of gold in September 2025 — its first major addition since 2021 — raising reserves to 145.1 tonnes.
  
• Massive reserve buildup: Combined BRICS gold reserves now exceed 6,000 tonnes, led by Russia, China, and India.
  
• Bloc expansion amplifies power: With 11 member nations, BRICS now represents roughly 46% of the world’s population and 37% of global GDP.

Why It Matters

This is not simply a commodities story — it is a monetary architecture shift.

• Gold is being repositioned as strategic money, not just a reserve hedge.
• Paper-based systems are being quietly sidelined in favor of physical settlement credibility.
• Gold-backed trade infrastructure reduces reliance on dollar-denominated systems and Western financial rails.
• Production plus reserves equals leverage: BRICS now controls both supply and storage — a rare historical combination.

Why It Matters to Foreign Currency Holders

For those holding foreign currencies in anticipation of revaluation within a global reset framework, this development is critical:

• Gold accumulation precedes currency repricing: Historically, nations strengthen balance sheets with hard assets before resetting or revaluing currencies.
  
• Gold-backed trade changes exchange dynamics: Settlement in gold or gold-linked units reduces artificial currency suppression.
  
• Dollar dilution accelerates diversification: As BRICS reduces dollar exposure, alternative currencies gain relative strength.
  
• Physical backing restores trust: In a reset environment, currencies tied to tangible assets tend to outperform fiat-only systems.

In short, gold is being positioned as the anchor asset for the next monetary era — and currency holders are watching the foundation being laid.

Implications for the Global Reset

• Hard-Asset Pillar: Central banks are replacing debt exposure with physical gold at scale.
• Monetary Realignment Pillar: Gold-backed trade and reserve systems signal preparation for a post-fiat monetary reset.

This is not speculation — it is balance-sheet warfare playing out in real time.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources

• Watcher.Guru – “BRICS Plan to Move From 50% to 65–70% Global Gold Control in 2026”
• World Gold Council – “Central bank gold demand trends”

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Source: Dinar Recaps

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