Weekly Part 1: Gold and Monetary Statecraft.
How the Reset May Come
Table of Contents
Currency Statecraft
International Statecraft: Trade or War
Bitcoin’s Role in 40 Years
Domestic Statecraft: CBDC, MMT, and You
The Computer Chip is Energy and Money
Multipolar Monetary Rebalancing
Neo-Keynesians and Gold
Currency Statecraft.
…which is why Bretton Woods III is destined to happen. It’s already happening, and we will explore the Bretton Woods III topic in detail in our upcoming dispatch: War and Currency Aug 24, 2022- Z. Pozsar
Powell’s Jackson Hole speech was a macroeconomic bell being rung in a structural storm for us. Heard in context of what Zoltan Pozsar has been saying since February brought forth this short note on what we think Pozsar meant when he said his next post will be about Currency Statecraft.
The following is a 10,000 foot view trying to tie together the concepts heard, learned, and experienced into a coherent outline of what we think will be possibly the unspoken part in Pozsar’s next “dispatch”.
International Statecraft: Trade or War.
There will be a monetary standard that includes natural resources. It will be launched first by the East if they have their way. The West knows this is coming, and seeks to delay it or destabilize it as long as possible at least until it gets its own house in order. The West will then (depending on the timing and success of the East) launch its own alternative to: prevent the East from exporting inflation to the West, facilitate trade with nations with one foot in both camps, and to trade with Eastern countries despite differences. Plus many other things not thought of yet. All of this will be fashioned after Mercantilist/Protectionist policies designed to maximize export of finished goods and minimize import of same.
The West’s version (in)famously referred to as Bretton Woods III now, will be used for international trade initially like an SDR basket, especially between countries that are “unfriendly” to each other. There will also be a mechanism loosely tying it to domestic fiat currency somehow.
To the extent that mechanism fails, money will be split into two components: