“We all sense the global order has cracked”, a contributor to Zero Hedge wrote.
“Two statements summarize the transition from the existing global order to the next iteration”:
1. Finance-dominated resources in the old order. Now the roles will reverse and real-world resources will dominate finance. We can’t “print our way” out of scarcities.
2. Reshuffling currencies and credit will not stop the breakdown of the global order’s “waste is growth” Landfill Economy Model.
We can’t print our way out of the scarcity that we’re about to witness in commodities, as explained in this video. That’s a statement worth thinking about.
Money is a tool, and it’s not wealth. Wealth is being able to produce and/or get what we need, and even more than what we need. Think energy, food, shelter, transportation.
All of the above are being constrained, as we’ve witnessed over the last couple of years, by global political happenings, like Covid-19, and the war in The Ukraine.
It is in times as these – when we can get what we want, regardless of how much money we have – that it becomes abundantly clear that it’s not dollars we really cherish, but real wealth. Which, again, is the ability to get what we want, and even more.
Commodities are needed for every good and/or service you can think about.
Seriously, look around. Your computer, your phone, your house, the keys to that house, the taxi ride you took home after passing out that one night. Everything requires us to take stuff out of the ground. Taking stuff out of the ground requires us to take stuff out of the ground, too.
How will commodity prices react when the market realizes how much more commodities we need and how little supply of most commodities there is right now?