The Importance of Multiple Supply Chains in Commodities

New York Fed has a lot of gold in the basement. They also hold Sockbells of commodities like for example in the US we have SPR. You have the exact same thing in China Actually China has enormous grain reserves to us does as well, but they're not very big So you can see think of this as taking your enormous financial surplus you get from trade and just keeping it in the form of commodities that you actually use now Think about let's say today we have Rights in Peru because inflation is too high Having a whole bunch of dollars isn't super helpful for them right now. If we're in an inflationary regime where globalization is breaking down It makes a lot more sense to