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The Bretton Woods III Thesis

The Breakdown

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China's Liquidity Backstops Will Be Bandade Solutions

Zoltan Zolton says that there are two go strategic equals, go nancial options. The first would be to sell treasuries and buy russian commodities. That would hurt long term treasury yields and stabilize the commodities basis. Second option is to do its own version of c e, printing r m b to buy r Russian commodities. If so, that's the birth of the urorun minbi market - china's first real step to break the hegemone of the ureo dollar market. Not everyone is as convinced.

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