BREAKING: 🇺🇸 U.S. WHITE HOUSE SAYS GOLD RESERVES MAY BE USED TO PURCHASE BITCOIN 👀

War Finance | Zerohedge
"War cuts new financial channels"

Americans, Beijing, Washington and the Fed are reacting to developments in the trade war as they come. But these reactions are best understood as responses to an emerging world order, in particular one where the financial flows of the previous world order are, or soon will be, no longer reliable due to geopolitical fragmentation.

This sets the stage for Zoltan Pozsar's War Finance, which is already underway, to be fully realized.

War Finance includes but goes beyond the Fed's balance sheet policy (QE) and the Treasury's fiscal policy (stimulus) - it encompasses structural changes in how capital is allocated, how reserves are managed and when intervention in markets is due. Its focus is less on supporting a global financial empire and more about securing the onshore credit needs of private industry, be it semiconductor lithography, energy production or steel manufacturing.

In this regime, the lines between fiscal and monetary policy begin to blur. War Finance would call for the Fed and the Treasury to officially fuse into a single framework, where policy is most powerful, which was the case during World War II when the former explicitly supported the latter.

The US is not currently outfitted for War Finance, as fiscal and monetary policy continue to diverge due to obvious political differences, but the Trump administration clearly recognizes the necessity. It will take an implosion before both recognize with absolute clarity that the old paradigm can no longer be relied on, and with that implosion will follow better choreography, as it always does in a crisis.

- DeathTaxesandQE

@CIG_Telegram

🇺🇸🇻🇪 Petro says that if Trump "squeezes Venezuela harder," another "five million migrants" will leave.

https://alertas24.com/petro-dice-que-si-trump-aprieta-mas-a-venezuela-saldran-otros-cinco-millones-de-migrantes/

Maduro will visit Vladimir Putin on May 9 https://bit.ly/3RKjDwf

🇲🇱🇩🇿 - Algeria has cut power supply to Mali.

🇩🇿🇫🇷 - Protest in Paris by Malian diaspora and allies against Algeria.

🇺🇸🇸🇦 - The US and Saudi Arabia will sign a preliminary agreement to cooperate on the development of a civil nuclear program in the kingdom.