Odd Lots Zoltan Pozsar and Perry Mehrling Debate Bretton Woods 3.0
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Sep 11, 2022 
Zoltan Pozsar, a Credit Suisse strategist famed for his insights on global currency evolution, joins Perry Mehrling, a Boston University professor and monetary systems expert. They engage in a lively debate on the emergence of 'Bretton Woods 3.0', questioning the dollar's diminishing dominance and the rise of commodity-backed currencies. The duo explores the complexities of U.S. financial systems, central bank challenges, and the geopolitical shifts impacting global economic stability, making for a fascinating discussion on the future of money.
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Transitioning to Peacetime Finance
- Perry Mehrling views the current situation as a transition from pandemic-era finance to a more disciplined peacetime finance.
- This transition, similar to the post-WWII shift, involves a move towards greater monetary discipline and re-establishment of the dollar.
Benefits of Dollar System
- According to Kindleberger, a dollar system simplifies international trade, similar to how the Federal Reserve unified the US monetary system.
- It creates a unified global economy, facilitating smoother transactions and calculations across borders.
Fracturing Financial World
- Zoltan Pozsar believes a fracturing physical world translates to a fracturing financial world.
- He points to China reducing its treasury holdings as a sign of this financial disentanglement.
