Below find Zoltan Pozsar’s latest note on his notion of Bretton Woods III underpinned by commodities. It’s a brilliant read but I still don’t entirely agree with it. I can’t see how a workaround for Russia to sell commodities to China (or India) has to result in a Eurorenminbi market that anybody else buys into.
Indeed, if the autocratic alliance were to deepen then so will the counter-balancing measures pushing liberal trading blocs to use USDs. Even other autocracies like Saudi Arabia can’t really shift petrodollars. They are three-quarters dependent on US arms imports.
It also assumes that Russia is happy to become China’s monetary bitch which I very much doubt and pushes India into a very powerful position. Are we saying there’ll be a Eurorupee market to take over the world too?
