5min chapter

Odd Lots cover image

Zoltan Pozsar and Perry Mehrling Debate Bretton Woods 3.0

Odd Lots

CHAPTER

The Best Credit Is Money

John farley asks how pegging currencies to commodities other than gold will tame commodity volatility if the underlying issue of no resource shortages and things like that remain. Farley: What is a reserve? The notion of it is changing, ok? Maybe some countries have weigh too many dollar liquidity and none enough, a not enough commodity reserves. And so i think over the next five years, as these countries are sitting there, looking at their pilef of treasuries, you know, in a context of rising commodity prices, maybe you are going to re evaluate what it means to have a comfortable and prudent amount of reserves.

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