Zoltan Pozsar: The Death Of The Petrodollar And The Rise Of Bretton Woods III

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by Tyler Durden
Sunday, Apr 03, 2022 - 10:20 AM

One month ago, former NY Fed repo guru and current Credit Suisse strategist Zoltan Pozsar stunned Wall Street when in the culmination of a series of posts analyzing the consequences of the Ukraine war (which he views as a "crisis of commodities") the highly respected analyst wrote that "we are witnessing the birth of the Bretton Woods III - a new world (monetary) order centered around commodity-based currencies in the East that will likely weaken the Eurodollar system and also contribute to inflationary forces in the west" (much more in our full discussion of his recent thoughts)

Pozsar then disappeared, taking a nearly month-long break from writing, until last night when he reappeared, and picking up where he left off, the Hungarian warned his readers that "the current environment is perhaps more complex than the crises of 1997, 2008, or 2020, for the problem is not only nominal (FX pegs, par, or the great overdraft, respectively), but also real." Or, as he put it, echoing observations made here ever since 2009, "commodities are real resources (food, energy, metals), and resource inequality cannot be addressed by QE you can print money, but not oil to heat or wheat to eat."