Gold: "A crisis is unfolding. A crisis of commodities"- Zoltan Pozsar
When this war is over, money will never be the same again
In Zoltan’s latest missive on the events in Ukraine, he describes the situation, mechanism, and likely outcome of these global reaching events. They greatly affect how we define money. The report ends with: After this war is over, “money” will never be the same again1… He is right.
The report, entitled Bretton Woods III lays out in more detail the concept touched on in a Bloomberg Odd Lots interview with Joe Weisenthal and Tracy Alloway. In that interview he explains why Gold is important again and how this recent turn of events can serve as an accelerant of the demise of US Dollar dominance. The latter, we believe has been ongoing since at least 2017.
China is long gold. Therefore it only makes sense they will use it to make payment for oil from Russia and the Saudis. It will either be gold or yuan with "implicit" gold backing.
Back then we identified the transition from Fiat money to a more physically backed currency. But there is much, much, much more to it we are learning.
Commodity Collateral Is Money
Pozsar’s latest is a report combining secular, geopolitical, and flow analysis dives into many interrelated topics. One topic of direct interest to us was