“our commodity, your problem”

Zoltan Pozsar’s research note, titled “War and Commodity Encumbrance” (dated December 27, 2022), will be something I will reference for years to come. Not to judge or critique but rather to remind and guide.

I have previously written about and agree with a paraphrased section where central banks clean up and react to the fiscal policy and geopolitics created by governments, including protectionism and nationalism outcomes.

It comes from the understanding of ‘knowing how the world works’.

While fighting the Fed isn’t advisable, don’t just read and believe the ‘talking heads’ at the central banks, who seem to build a posture that they can or are controlling things. They are just mopping up prior occurrences.

p.s. Biden’s Inflation Reduction Act won’t reduce inflation.

January 2, 2023

by Rob Zdravevski

rob@karriasset.com.au