The shockwaves is still felt by the impressive sanctions of the West that have given the $ 630 billion kept to Russia's central bank collected almost unusable. Can the current global financial system, which focuses on the dollar, survive if money is briefly canceled?
Luke Gromen, publisher of Forest For The Trees and a long-term dollar bear, said the flexibility was even before the sanctions. In a podcast with Grant Williams, Gromen said that eight years ago, the world's largest banks bought $ 260 billion worth of gold, compared to $ 60 billion in Treasurys. "So there has been this slow, but strong and recent shift from the dollar system that broke in 2005, to 2008 to a system that looks very similar to the one proposed by [John Maynard] Keynes 80 years ago," he says. .
The dollar-focused system has some disadvantages in the US “The issue with this is the American version of this oil-printing agreement as we have been doing since '73 so, and this is a bad deal, it is you. there must be a shortage in order to provide dollars in the world, ”he said. “Which means you have to pull out everything that is produced. You must remove all production operations. You have to make a lot of shortages at the state level. You have to do all these things that are really conducive to GDP and economic growth in the short and medium-term. And in time, they cheat you. ”
Grromen, like Hayes, expects more gold accumulation. “So all the big banks in the world are looking at this thinking, okay, we should not be in a situation where that could happen to us. Because who knows what might happen next and what might cause us to be considered a bad character. So they will probably want to accumulate more gold, ”he said.
(It should be noted that gold has its risks in large foreign banks. In the case of Russia in particular, the central bank will not be able to sell to any western organization directly, and a two-party law introduced to the U.S. Senate would impose a second sanction on any American corporation deliberately trading or smuggling gold from Russia.)
Gromen awaits the end of the 40-year bull market in bonds. And you see the power of re-industrialization. “When you see Ohio getting Intel INTC, -0.81% fab with an Intel CEO saying,‘ We’re going to make Ohio one of the biggest Intel production regions in the world. ’What? Ohio was the zero number of people who took it in shorts since 1973 to submit under this agreement. One semi fab in Arizona, another semi fab in Texas, ”Grromen said. “It is not even the first inning in this American reconstruction, but industrial restructuring would not have happened until you changed the dollar system and removed wealth as a basic asset, instead replacing it with impartiality. And here we are. We have two weeks in it. It's incredible. ”
The Buzz
The first useless claims have dropped to 214,000, the latest data show, as both houses start and the latest Philly Fed production index improves. The Bank of England made its third attempt since December, a day after the Federal Reserve made a quarter-point increase and wrote in pencil an 11-point increase over two years.
There have been no major developments in the Russian-Ukrainian situation since Thursday morning. Ukrainian President Volodymyr Zelenskyy spoke to the German parliament and criticized its support for the suspended Nord Stream 2 pipeline project.
Home furniture retailer Williams-Sonoma WSM, 1.16% made 8% of market share as it exceeded expectations, increased its profits and authorized a $ 1.5 billion stock purchase.
Berkshire Hathaway BRK.B, 0.76% continued to grow its shares in Occidental Petroleum OXY, 8.55%, according to a file on Wednesday.
Markets
The future of the U.S. stock ES00, -0.23% NQ00, -0.57% weakened following a 4.4% rise in the S&P 500 SPX, -0.06% over the past two days. The future of the crude oil CL.1, 7.89% has been moving up, demanding $ 100 per barrel.
Top tickers
Here are the most active tickets to the stock market from 6am in Eastern.
| Ticker | Security name |
| TSLA | Tesla |
| GME, | GameStop |
| AMC, | AMC Entertainment |
| NIO, | Nio |
| MULN, | Mullen Automotive |
| BABA, | Alibaba |
| AAPL, | Apple |
| HYMC, | Hycroft Mining |
| NVDA, | Nvidia |
| AMZN, | Amazon.com |
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