☠️ THE END OF FIAT MONEY? ☠️
Bretton Woods Agreement (1944) started the current financial system (USD as a reserve money -pegged to gold as backing-, fixed exchange rates and the creation of IMF-WB-GATT/WTO). It worked "well" because there was a lot to rebuild after the wars, until it showed its main limitation: stagflation derived from some commodities and trade barriers that was oposite to efficiency. The problem was "solved" by eliminating the gold-dollar pattern and making way for neoliberalism based on productivity/utility and confidence in it (fiat).
The boost was obvious (more expansion, reduction of inflation and promotion of some peace), until it showed its main limitation: financial crises associated with the creation of infinite debt, inequality linked to the lack of state strategy around specialization and the utopia of believing that States will not want to impose themselves and create wars for global control.
Now, China (which got rich thanks to its capitalist opening) and other countries also want power. The State-Capitalism will be a trend, the difference will be if it is managed by the individual-party (autocracies) or the people (democracies). Multipolarity will bring benefits in the name of National Security, but also new wars. In this sense, some countries have looked towards commodities (today, perhaps the priority is to destroy the established, ensure survival and social control).
The chart shows the major commodities with their volatility versus their latest 1-year average returns. Generally speaking, it is not the smartest idea to leverage a currency with commodities, but it can work in a chaotic future and rebuilding times (<15-year).
The best analysis is yours!
The boost was obvious (more expansion, reduction of inflation and promotion of some peace), until it showed its main limitation: financial crises associated with the creation of infinite debt, inequality linked to the lack of state strategy around specialization and the utopia of believing that States will not want to impose themselves and create wars for global control.
Now, China (which got rich thanks to its capitalist opening) and other countries also want power. The State-Capitalism will be a trend, the difference will be if it is managed by the individual-party (autocracies) or the people (democracies). Multipolarity will bring benefits in the name of National Security, but also new wars. In this sense, some countries have looked towards commodities (today, perhaps the priority is to destroy the established, ensure survival and social control).
The chart shows the major commodities with their volatility versus their latest 1-year average returns. Generally speaking, it is not the smartest idea to leverage a currency with commodities, but it can work in a chaotic future and rebuilding times (<15-year).
The best analysis is yours!
Comentarios
Publicar un comentario