When this war is over, money will never be the same again


Assessment: Zoltan Pozsar (Credit Suisse) goes on to explain how he came to this conclusion paralleling previous crises. These include but are not limited to events like the Southeast Asian crisis of 1997; subprime, Bear Stearns, and Lehman Brothers in 2008; and secured funding against good collateral to RV hedge funds during 2020.

In all instances a backstop was provided Somebody had to underwrite the “put” that saved the markets from an abyss. Every time in those instances it was the US Fed that did this. Not this time …

In Zoltan’s latest missive on the events in Ukraine, he describes the situation, mechanism, and likely monetary outcome of these global reaching events. Zerohedge did a thorough rundown of the report earlier in the week. The report ends with: After this war is over, “money” will never be the same again1They are right. We want to focus on a specific aspect for this write-up; China’s dominance and what that means for Gold and Silver.

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 towards the demise of US Dollar dominance. The latter, we believe has been ongoing since at least 2017.

Commodity Collateral Is Money

Pozsar’s latest is a report combining secular, geopolitical, and flow analysis diving into many interrelated topics. One topic of direct interest to us was that markets are moving from inside (core) money towards outside (peripheral) money. What we feel he really means is the core is becoming the periphery and vice-versa.

A crisis is unfolding. A crisis of commodities. Commodities are collateral, and collateral is money, and this crisis is about the rising allure of outside money over inside money.

Read More @ Zero Hedge HERE

Opinion: Pozsar’s comment “somebody has to underwrite the ‘put'” is a reference to no matter what catastrophe happened in the global markets, the Federal Reserve would be there to print money and save the markets from a depression.

(Buying a put option against a security that a person owns enables the person to sell at a predetermined price within a specified timeframe, thereby preventing catastrophic loss. The Fed put simply means the Fed will bail out the markets with printed money).

Since the 2009 financial crisis, the Federal Reserve has printed over $15 trillion, by my unofficial count (the Fed’s books are private), leaving a debased dollar in its wake causing us to pay more for everything.

I have stated in several posts that the end of the US economy happened in 2009, as Barack Obama took credit for saving the global economy from a depression. Had a depression happened back then, we would not be in the mess we are in today, but it is a little late to undo it now.

Pozsar says not this time.

Keep in mind that really smart secular economists like Zoltan Pozsar see a coming major economic shift in the US dollar as world reserve currency that will very much mimic the Black Horse of Revelation 6:5-6. Hyperinflation.

While owning commodities like gold and silver may be a good short term solution, Bible prophecy points out that when the tribulation comes,

“They will throw their silver into the streets,
And their gold will be like refuse;
Their silver and their gold will not be able to deliver them” Ezekiel 7:19

The only form of commerce that will be permitted under the reign of Antichrist will be via a mark on the right hand or forehead as prophesied in Revelation 13:16-17.

We have the technology.

See our paper “The 1% and Revelation” Do Not Harm the Oil and Wine HERE