Where finance and media intersect with reality

A deep dive into Zoltan Pozsar’s Bretton Woods III world view

As an addendum to my original note about Zoltan Pozsar’s Friday note, here are my extended thoughts on his Bretton Woods III magnum opus. On commodity basis: Zoltan says: Furthermore, like there is a “base” interest rate (EFFR and the OIS curve that springs from it) and a basis between that base rate and other […]

Russia’s special “K” account operation echoes communist practices

There’s a very reasonable counter narrative going around to the whole Russia is demanding roubles thing. It argues this is more a reserve management story than it is anything else. And this would be correct. Ultimately it doesn’t matter what currency a country demands for its exports. The buyer just goes to the FX market […]

“You can print money, but not oil to heat or wheat to eat”

There’s a new Zoltan Pozsar of Credit Suisse report out… and he starts off by saying: …you can print money, but not oil to heat or wheat to eat. I’m so glad because this rather obvious point seems to be completely missed by economists and analysts for unknown reasons. Nor do they seem to get […]