Bretton Woods III
Zoltan Pozsar · 2022
"Weaponized reserves after Russia's invasion usher in a new monetary order backed by commodities, not fiat."
In 2022, Credit Suisse strategist Zoltan Pozsar coined 'Bretton Woods III', arguing that the global monetary system is shifting from inside money (fiat currency backed by sovereign debt) to outside money (currencies backed by hard commodities).
Following the freezing of Russia's FX reserves, Pozsar noted that sovereign reserves held in Western fiat currencies are actually just liabilities on Western balance sheets—meaning they can be confiscated. This realization forces commodity-producing nations (like Russia and China) to demand payment in hard assets (gold, energy) rather than US Treasuries. This fractures the global supply chain, structurally increasing inflation in the West as they are forced to reshore manufacturing and pay for raw materials with tangible value.
What specific event catalyzed the shift to 'Bretton Woods III' according to Pozsar?
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- Bretton Woods III (Zoltan Pozsar, 2022)House overview (Pozsar)
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