Zoltan Pozsar Explains the Coming Monetary ‘Divorce’
The former Credit Suisse strategist founds his own firm to capitalize on a shifting global financial system.
So, I would say that for me, what survives that commodity aspect of the Bretton Woods III thesis is that I think gold is definitely something that's coming back as a theme. I mean, just to give you a very good example. When I saw – I think Barry Eichengreen was a co-author on that paper – the IMF published a paper about gold. And the title I think was “A Barbarous Relic No More?” And it was co-authored by Barry Eichengreen.
So, I'll hide behind Barry a little bit. But I think it's noteworthy when someone like Barry Eichengreen, who's probably the official biographer of the dollar, writes a paper like that. And I think we are seeing this more and more in the data that especially the countries that are not geopolitically aligned to the US are shunning Treasuries and shunning the dollar and they are buying gold instead.
I think there's also a number of other headlines which I think are important to keep an eye on because individually they might not sum up to much. But I think in the totality of these things, probably pinpoint a trend. You know, Ghana and Russia basically had an oil-for-gold deal whereby Russia ships oil to Ghana and Ghana pays gold for the oil that they receive. I mean, the basic idea was that a country that uses FX reserves, US dollars mostly that also mines a lot of gold, it's kind of pointless for them to spend their precious dollars on oil when they can just swap gold for oil and kind of get their oil that way and then they have, you know, FX reserves left for other stuff. You know, pharmaceuticals for example.
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