Wartime Finance & Monetary Regimes
1944 - Bretton Woods / Uni-Polar Monetary system
2020-2025 – Covid-19/ End of Uni-Polar Monetary System
1971- 1974 – Bretton Woods Ends/ Petro Dollar Begins
Source: Risk Dimensions and St. Louis Federal Reserve
Wartime Finance & Monetary Regimes
2028
The Federal Reserve: The Buyer of All Assets
Money (M2) and Debt/ GDP Spike Post the GFC & COVID…
Distorting the Relationship between the Real Economy (GDP) and the Financial Economy (Equities)
Source: Risk Dimensions and St. Louis Federal Reserve
Sometimes Volatility arises from doing Good as we saw with Gold
…More a function of rising demand as a remedy to USD debasement,
ala the 1970s and post the GFC in 2008
Source: Risk Dimensions and St. Louis Federal Reserve
BTC v NASDAQ Rolling 63D Performance
(Table at immediate right based on below graph)
BTC offers a Degree of Performance Asymmetry usually Reserved for Options or Fixed Income Strategies