Credit Suisse Economics: A New World (Monetary) Order

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Bretton Woods III?

Credit Suisse came out with a MUST READ article about the events unfolding around Russia and Ukraine. They are banking institution that provides private banking and are asset managers for all major financial centers. They are the market insiders and provide insight into future events unfolding in the markets.

In the article of Bretton Woods III, they speculate Russia is not just looking to gain back Ukraine as its territory. Still, they are looking to stir up a crisis of commodities. First, however, a bit of history is needed to understand “Bretton Woods,” followed by Bretton Woods II- where President Nixon in 1971 took the U.S. dollar off the Gold Standard of Bretton Woods which was an era of commodity-based money.

Credit Suisse speculates the end of Bretton Woods II (fiat system), where the foundation is built on top of sand once G7 nations seized Russia’s “FX reserves,” or in other words, their money held in central banks.

Foreign exchange reserves are assets hold on reserve by a central bank in foreign currencies. These reserves are used to back liabilities and influence monetary policy. - CLICK LINK

The article highlights key points of “money has four prices”:

• Par

• Interest

• Exchange rate

• Price level

Over time and through various crises, these key points have been manipulated. Nevertheless, parallels can be seen from the crisis of 1997, 2008, and 2020 are becoming more apparent out of the events unfolding from Russia-Ukraine…

“every crisis occurs at the intersection of funding and collateral markets and that in the presently unfolding crisis, commodities are collateral, and more precisely, Russian commodities are like subprime collateral and all other stuff is prime.”

Commodities are set to implode as not many of you have seen LME Nickle his $100,000 per ton on Monday. The fact is that paper certificates have suppressed the TRUE price of commodities to increase the supply to bring the price down. All commodities have been suppressed under the Bretton Woods II era (fiat system) of printed paper and certificates.

Credit Suisse indicates a new financial order is coming, which will greatly benefit two forms of currencies…

The Renminbi (Chinese Yuan) and Bitcoin…

I hope this read helps to enlighten you about future events. The hardships are set to come from a system that has just crumbled. Although I am skeptical of the near future, I am optimistic that we will all get through this crisis in the long term. However, it is best to be prepared for all future events. So I present a solution…

These are screenshots of the article if the link is not working. Enjoy!