Will Trump Really Dare to Push Iraq to the Brink of Economic Collapse?

PMF Law, U.S. Pressure, and the Stalled Currency Reform Explained

The political and economic tension surrounding Iraq has entered a critical and dangerous phase. A controversial question is now dominating regional and global discussions:

Will Donald Trump — or those advising him — really risk pushing Iraq to the brink of economic collapse if Parliament formally enshrines the Popular Mobilization Forces (PMF) into law, defying Washington’s demands?

According to multiple political signals, this is no longer a hypothetical scenario. The stakes involve Iraq’s sovereignty, security structure, financial stability, and the future of its national currency.

“Their words, not mine.”

A Stark Warning to Baghdad

Economic Collapse as a Political Threat

Reports indicate that a Trump-aligned advisor has openly warned Iraqi leaders that failure to comply with U.S. conditions — particularly the disarmament or restructuring of armed factions — could result in an overnight economic collapse.

This warning allegedly includes:

• Financial isolation

• Banking restrictions

• Suspension of international cooperation

• Severe pressure on Iraq’s currency and reserves

At the same time, a U.S. special envoy is said to hold a full mandate to negotiate what many in Baghdad view as a harsh and one-sided deal.

Iraq’s New Parliament Pushes Back

“Our Inclination Is Toward the PMF”

Iraq’s newly formed parliament is sending a very different message.

Several parliamentary leaders have openly stated that:

• Their political inclination favors the Popular Mobilization Forces

• They are prepared to pass the PMF law despite U.S. pressure

• Washington does not dictate Iraq’s internal legislation

One lawmaker summarized the prevailing mood with a defiant declaration:

“We don’t care about America… If they threaten us with death, then welcome death.”

This rhetoric signals a direct challenge to U.S. influence, something that could carry serious economic consequences.

The PMF Law: Why It Matters So Much

The Popular Mobilization Forces are not just a military issue — they are deeply tied to:

• Iraq’s internal security framework

• Regional power balances

• U.S.–Iran strategic competition

• International financial confidence in Iraq

If the PMF are legally entrenched outside U.S.-approved conditions, Washington could interpret this as a red line violation, potentially triggering punitive economic measures.

Currency Reform Delayed

What Happened to the “Removal of Zeros”?

One of the most alarming developments is the stalling of Iraq’s long-anticipated currency reform.

The removal of zeros from the Iraqi dinar, which many expected to begin around December 29, did not proceed as planned.

Possible reasons include:

• Political instability

• External pressure from international stakeholders

• Concerns over financial system readiness

• Fear of sanctions or economic retaliation

Currency reform requires confidence, stability, and international coordination — all of which are currently under strain.

Is Economic Collapse a Realistic Threat?

Short Answer: Yes — but it would be costly for everyone.

While the U.S. has powerful financial tools, forcing Iraq into economic collapse would not be without consequences:

• Regional destabilization

• Energy market disruptions

• Strengthening of rival global powers

• Loss of U.S. credibility in the region

This is why many analysts believe the current strategy is more about maximum pressure than immediate execution.

Featured Snippet: Key Takeaway

Could the U.S. collapse Iraq’s economy over the PMF law?
While Washington has the tools to apply severe economic pressure, doing so would risk regional instability and global fallout. Iraq’s defiance, combined with stalled currency reform, suggests a dangerous standoff rather than an imminent collapse.

Q&A Section

Q: Why is the PMF law so controversial?

A: Because it challenges U.S. security conditions and affects regional power dynamics, particularly U.S.–Iran relations.

Q: Did Iraq officially delay removing the zeros from its currency?

A: While not formally canceled, the expected timeline around late December passed without implementation, signaling delays.

Q: Can Trump really force Iraq into economic collapse?

A: The U.S. has significant leverage, but using it fully would create global and regional consequences.

Q: What does this mean for the Iraqi dinar?

A: Political uncertainty and external pressure often delay reforms and suppress currency confidence.

What Happens Next?

A Dangerous Game of Brinkmanship

Iraq appears determined to assert sovereignty, while U.S. officials signal that defiance will not come without cost. The outcome will shape:

• Iraq’s financial future

• The timing of currency reform

• Regional geopolitical balance

This is not just about Iraq — it is about who sets the rules in a changing global order.

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MNT GOAT:  "WILL TRUMP REALLY DARE TO PUSH IRAQ TO THE BRINK OF ECONOMIC COLLAPSE IF PARLIAMENT DELIBERATELY ENSHRINES THE POPULAR MOBILIZATION FORCES BY FORCE OF LAW?." 

"A Trump advisor is waving before the Iraqis the image of an economy collapsing overnight if the factions are not disarmed according to American conditions, a special envoy has a full mandate to conclude a harsh "deal" with

Baghdad, a new parliament whose leaders boast that their "inclination is towards the Popular Mobilization Forces" "and that they are ready to pass the Popular Mobilization Forces law defying Washington's pressure, and a deputy sums up the mood with a speech: "We don't care about America... If they threaten us with death, then welcome

death." Removing the Zeros from the currency was supposed to begin on Dec 29th but was

stalled. Let's explore much more details on this topic in today's Newsletter.

Their words not mine.....