馃挵 COMMODITIES: THE FINANCIAL COLLATERAL 馃挵
The year 2026 begins with the takeover of Venezuela. This is not surprising, since the world already seems to be divided between the USA, Russia, and China (based on Joel Padilla's analysis: https://jjplindex.blogspot.com/2025/12/el-nuevo-orden-mundial-esta-ya-ordenado.html). In this new distribution, Cuba, Iran or Africa, for example, have something in common: taking resources to collateralize the debt of the superpowers.
USA Pax is over. Slowly, the US dollar (USD) will lose strength in the world (except in America). If USA, China and Russia want to be relevant players, needs to asure energetic and metal resources. That is why the price of gold and silver has increased due to high demand (return to the gold standard). Nevertheless, other commodities will have their moment. Superpowers need to secure resources and supply chains.
In Venezuela case, it possesses oil, gas, gold, iron, bauxite, coltan, diamonds, coal, and rare earth elements. Iran possesses oil, gas, copper, zinc, uranium, iron, coal, lithium, rare earth elements, and gold. Cuba is rich in biomass (sugarcane). However, Africa and the Middle East possess the world's largest reserves of energy and mineral resources.
Because of this, military interventions will be frequent. The ultimate goal is to link their money and debt to certain energy sources and metals to reduce defaults and, consequently, secure better interest rates and lower costs. Due to distrust in fiat currency and the deleveraging of the US dollar, a sort of commodity supercycle could begin.
The above does not necessarily imply new high commodity prices in short term. While high valuations could strengthen currencies, they could also generate inflation, which is undesirable now (but it might be useful for governments in the long run to reduce their debt). If commodity prices strengthen fiat money, perhaps confidence could return and, lead to a fall in both inflation and prices. The main reason for this is the reduction in interest rates resulting from lower risk and the increased security of supply chains and production.
The best analysis is yours!
J. Joel Padilla
▶️ Blog: https://jjplindex.blogspot.com/
▶️ Telegram: t.me/JJPL_Index
Copyright: Joel Padilla 2026
Comentarios
Publicar un comentario