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#USIranWarMayEscalateToGroundWar
Ground War is on the Horizon: Because War Isn't Damaging the Economy, the Economy Is Waking Up War
The five-week-long US-Iran war has now gone beyond being a "tension limited to airstrikes." The Pentagon is planning weeks of ground operations. The USS Tripoli has landed in the region with 3,500 Marines. Officials speaking to the Washington Post say that Special Forces and infantry units are preparing to raid the Strait of Hormuz and Harg Island, through which 90% of Iranian oil flows.
Tehran's response is clear: "If American soldiers set foot on land, we will unleash fire upon them." Parliament Speaker Ghalibaf accuses the US of "publicly discussing, secretly planning an invasion." Twelve American soldiers have already been wounded in Saudi Arabia when an E-3 Sentry spy plane was shot down.
And we are still talking about "war affecting the economy."
Wrong. The economy isn't affecting war, the economy is calling for war.
The Math of the Strait of Hormuz
One-fifth of the world's oil passes through the Strait of Hormuz. The strait is effectively closed, tankers cannot pass through, and the Riyadh-Washington line is on edge. By allowing 20 Pakistani-flagged ships "two passages per day," Iran is essentially saying: I'm holding the valve.
The first point of the US's 15-point "ceasefire plan" is the opening of the strait. This is no coincidence. Because the issue is not the nuclear program, the issue is the flow of gas. Seizing Harg Island is described as "cutting off Iran's economic lifeline." In other words, the target is not the regime, but the income.
Trump is threatening to strike Iranian energy infrastructure if the strait is not opened. Tehran, on the other hand, says it will "boldly strike" US bases in the Gulf. Two missiles that hit the Ras Laffan gas facility in Qatar caused "limited damage" but created a shockwave in the markets. The message was received: If the next missile hits the desalination plant, the Gulf will run out of water.
The Price of the “Final Blow”
The White House is marketing the ground operation as the “final blow.” Not a full-scale invasion, but “just raids lasting weeks.” How wonderful. Iraq and Afghanistan also started as “weeks,” and as the Turkish Foreign Ministry reminded us, the result was “more radicalization and terrorism.”
The Pentagon says it has to “offer the commander-in-chief maximum options.” Translation: There’s a war on the table, and we’re preparing the menu. Rubio says “we’re not currently deployed for a ground operation,” but adds in the same sentence, “objectives can be achieved without them.” So the door is ajar.
Meanwhile, 13 US soldiers have been killed and more than 300 wounded in the last month. Trump was saying as early as March 20th, “I’m not sending troops, it’s a waste of time.” He changed his mind when Iran rejected the offers. So what was considered a “waste of time” was actually a “bargaining chip.”
The Real Front: The Balance Sheets
Iran says it will make US soldiers “food for sharks in the Persian Gulf.” Ghalibaf shouts, “Our missiles are in place, our resolve has increased.” This isn’t rhetoric, it’s insurance. Because Tehran knows: the US’s concern isn’t exporting democracy, but supply security.
War ruins the economy, yes. The stock market experienced its “worst day” of the war on March 27th. But let’s be more honest: war comes because the economy is ruined. Inflation, energy prices, the election cycle… An “external enemy” is always the cleanest way to make the domestic price be paid.
And the most painful part is this: Egypt, Pakistan, Saudi Arabia, and Turkey are talking about peace in Islamabad. Neither the US nor Iran is at the table. Because both sides actually want Harg Island, not the table. One to cut it off, the other to protect it.
The possibility of a ground war is no longer a “threat,” but an “option.” And this option is triggered not by ideology, but by a valve.
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#BOJAnnouncesMarchPolicy
BOJ Waited in March, Market Pricing in October: Japan’s Interest Rate Normalization Redraws Global Liquidity
The Bank of Japan (BOJ) kept its policy rate unchanged at 0.50% at its March meeting. This was no surprise; all 64 economists surveyed by Reuters expected this decision. However, the “wait” decision is not passivity. As the BOJ moves towards interest rate normalization after decades of ultra-loose monetary policy, it is weighing both the domestic wage-inflation cycle and the uncertainty surrounding tariffs and wars. And the outcome of this weighing affects not only Tokyo but also global capital flows.
Background to the March Decision: “Don’t Rush, But Don’t Hold Back Either”
The BOJ raised interest rates to 0.50% in January, reaching a 30-year high. Since then, inflation has been above its 2% target for over three years, food prices (especially rice) are stubbornly rising, and wage growth is projected to reach 5.25% in 2024. Governor Kazuo Ueda's message is clear: "We will continue to raise interest rates if the economy continues its recovery."
However, Vice Governor Ryozo Himino reminds us to apply the brakes, saying "global uncertainty remains high." US tariffs on Japan (up to 25% on automobiles and 24% on general merchandise) and the war in the Middle East affecting oil prices are putting the BOJ in a dilemma of "acting too early, acting too late."
Market Calendar: October, Not June
60% of economists predict the next increase will reach 1.00% by the end of June. However, recent polls show a shift in weight: a majority of 63% now expect at least a 25 basis point increase in the fourth quarter (October-December), with October being the strongest candidate at 38%.
Why October? Because that month the BOJ releases its quarterly outlook report and holds its branch managers' meeting—meaning wage and inflation data will be on the table. At the September meeting, 2 of the 9 members (Hajime Takata, Naoki Tamura) already filed dissenting opinions against the 0.75% increase. The "hawkish wing" within the Board is expanding.
Japanese Economy: "Virtuous Cycle" Tested
The BOJ's entire strategy is based on the "wage-price virtuous cycle." Growth is expected to slow to 1.4% in 2025, unemployment to rise to 4.5%, but the cycle is calculated to continue if wage increases remain around 5%.
The risks are twofold: A tight labor market pushes wages up, while US tariffs and slowing global growth put pressure on corporate profits. This is Himino's warning: "The impact of tariffs may be greater than expected."
Impact on the World Economy: Yen, Carry Trade, and Liquidity
Why are the BOJ's actions global? For three reasons:
1. The End of the Yen and Carry Trade: The yen has depreciated by more than 6% against the dollar in the last 6 months. If the BOJ raises interest rates, the yen will strengthen, unraveling the "carry trade" of borrowing cheap yen and parking it in high-yield assets for decades. This means capital outflow from emerging markets and global volatility.
2. The Gap with the Fed: While markets expect the Fed to cut rates in September, a BOJ rate hike would narrow the US-Japan interest rate spread. This would mean a weakening dollar and repricing of commodity prices.
3. Bond Market: The BOJ has signaled a balance sheet reduction and the sale of ETF/J-REIT assets. Japan has the world's largest bond holdings. If the BOJ reduces purchases, global bond yields will see upward pressure—this will also affect US and European borrowing costs.
Analysis: The Price of "Slow Normalization"
The BOJ is cautious. Because Japan has just emerged from deflation and paid the price for the mistake of "early tightening" in the 2000s. However, inflation is sticky, prices for more than 20,000 food items have increased this year, and companies continue to pass on costs to prices.
The market is now pricing in a BOJ that is no longer in a "wait-and-see" mode, but rather a "raise if data comes in" mode. The median expectation is 0.75% in October, 1.25% at the beginning of 2027, and 1.50% at the beginning of 2028. This means that for the first time in decades, Japan will be acting like a "normal central bank."
The BOJ didn't change interest rates in March, but it confirmed a path that will change the world. The direction of the yen, the fate of carry trade, and the amount of global liquidity now depend on Tokyo's decisions. And when Tokyo says "we are not rushing," it is actually saying "we are not turning back."
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Senate Banking Committee Prepares to Set Date for Kevin Warsh's Nomination for FED Chairman
As the US enters a critical phase in financial policy and monetary management, the Senate Banking Committee plans to hold a hearing for Kevin Warsh's nomination for Federal Reserve Chairman during the week of April 13. According to Punchbowl News, citing two sources, the hearing date is not yet finalized and may change depending on when Warsh submits the necessary documents to the committee.
Current FED Chairman Jerome Powell's term ends on May 15. Powell previously stated that he would remain in office until his successor is formally confirmed. This is considered a critical assurance for ensuring a stable and uninterrupted transition process for the central bank.
📌 Hearing and Confirmation Process
The hearing, planned for mid-April, has the potential to provide a clear timeline for Warsh's nomination process. Key topics the committee will address at the hearing include:
Warsh's vision for economic and monetary policy
The US's current approach to inflation and interest rate policies
The Fed's independence and strategies for ensuring financial stability
This hearing will give members of Congress the opportunity to directly assess Warsh's leadership skills and his views on the Fed's long-term strategies.
⚖️ Economic and Political Context
Warsh's nomination is of great importance, especially considering the recent uncertainties and inflationary pressures in the US economy. The Fed's interest rate and monetary policy decisions in the coming months could have significant effects on both domestic and global markets.
Furthermore, since Powell's successor has not yet been finalized, markets and investors are closely watching the potential impact of a change in leadership on monetary policy. The confirmation process for Warsh could increase predictability regarding the Fed's policy direction.
🌍 Global Impacts
The Fed chairmanship plays a critical role not only for the US economy but also for global financial markets. Senate confirmation of Warsh's nomination will be a significant reference point for international investors and central banks.
📌 Conclusion:
The Senate Banking Committee hearing scheduled for the week of April 13th is a critical step that will clarify Kevin Warsh's path to becoming Federal Reserve Chairman. This hearing is considered a crucial turning point for both the US economic future and global financial stability.
#WarshLeadsFedChairRace
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#WalmartOnePayAddsMoreCryptoTokens
Good news for crypto money and rwa
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OnePay, the fintech platform majority-owned by Walmart, has expanded its crypto asset portfolio in two main phases, listing “more than a dozen” new tokens. The app, which launched its crypto service in January with only Bitcoin (BTC) and Ethereum (ETH), has added assets such as Solana (SOL), Cardano (ADA), Bitcoin Cash (BCH), PAX Gold (PAXG), Sui (SUI), Polygon (POL), and Arbitrum (ARB) with this latest update.
Ron Rojany, General Manager of Core App & Crypto at OnePay, stated that they set a “high bar” in asset selection, highlighting four criteria: demand, liquidity, regulatory clarity, and long-term use. Rojany said, “Rather than chasing the newest asset, we are focused on offering a carefully selected set of assets that align with how our customers use and think about money.”
While OnePay did not share user numbers, it reported observing “strong engagement,” particularly among customers new to crypto. The platform positions itself as a "super app" similar to the US WeChat model, bringing together high-yield savings accounts, credit/debit cards, loans, and Wi-Fi plans, as well as a digital wallet usable in Walmart stores and on its website, all under one roof. Walmart's US operations reported net sales of $462.4 billion in fiscal year 2025.
A similar trend is observed in the sector: Coinbase CEO Brian Armstrong announced a plan for a crypto super app encompassing credit cards and payments; Japan-based Startale Group announced it will use the funds raised from its $50 million Series A round to develop a super app integrating payments and asset management. On the regulatory side, US Securities and Exchange Commission Chairman Paul Atkins stated in July that he instructed his staff to develop guidance and proposals that will "bring this super app vision to reality."
Rojany summarized the company's approach by saying, "We are still in the early stages, and our focus is on building the crypto platform right: creating a reliable, secure, and intuitive experience for everyday customers."
#WalmartOnePayAddsMoreCryptoTokens
#CreatorLeaderboard
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Fed Chairman Powell
💥 Tension Between Employment and Inflation Targets
In a speech at Harvard University, Federal Reserve Chairman Jerome Powell made important assessments regarding the current state of monetary policy. Powell stated that there is a significant "tension" between the Fed's dual mandate of protecting employment and controlling inflation.
He noted that on one hand, a weakening labor market necessitates keeping interest rates low, while on the other hand, upward inflation risks point to the need for tighter monetary policy. He emphasized that this dilemma complicates the Fed's decision-making process.
Powell said that rising energy prices and geopolitical uncertainties are affecting the economic outlook, and described the Fed's current policy stance as being "in a good position to monitor the data." He added that inflation expectations are under control, but they are still adopting a cautious "wait and see" approach. At its last meeting, the Fed decided to keep the policy interest rate stable in the 3.50-3.75% range. “Tension Between the Fed’s Two Goals”
Fed Chairman Jerome Powell, in a macroeconomics lecture at Harvard University, said that US monetary policy faces a difficult balance. Powell emphasized that there is “tension” between the Fed’s goals of employment and price stability.
“There is a downside risk in the labor market, which suggests keeping interest rates low. But there is an upside risk in inflation, which suggests not keeping interest rates low.”
Powell stated that with the Iran war entering its fifth week and gasoline prices in the US approaching $4 per gallon, the Fed is facing a classic dilemma. He said the central bank is caught between tightening to control inflation on one hand, and waiting to avoid stifling the economy on the other.
Wait-and-see approach
In his Harvard speech, Powell said that the Fed’s current policy stance is “in a good place” and that it can wait to observe developments. “Inflation expectations appear well-anchored beyond the short term,” Powell said, adding that the economic impact of the energy shock is still unknown and they will closely monitor price pressures.
The Fed kept its policy rate unchanged at 3.50-3.75% at its last meeting. Powell stated that they want to see if tariff-induced inflation will subside first, and then decide how to respond to the price pressures caused by the Iran war.
Uncertainty and Private Credit Warning
Powell acknowledged that the Fed faces “extraordinarily large levels of uncertainty.” He also said they are closely monitoring the private credit sector, noting that while this area represents a small share of total assets, it requires attention. In his remarks at Harvard, Powell said he welcomed differing opinions given the challenging picture and that expecting consensus in this environment would be “misleading.”
#MarketsRepriceFedRateHikes
#USIranWarMayEscalateToGroundWar
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MasterChuTheOldDemonMasterChuvip:
Stay strong and HODL💎
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[Ended] CRYPTO ANALYSIS 734!!!
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