Dusk For The Petrodollar, Dawn For The Petroyuan And The Existential Threat Of Commodity Rehypothecation

For two generations of investors, geopolitics did not matter. This time is different: it’s time to get real and it’s time to start pricing the secular end of "lowflation"

Poster Comment:

Rehypothecation means that you bought gold or oil on credit. Then you took out loans based on it 20 to 40 times. Hypothecate: Suppose we pretend that the gold I bought with a loan is actually mine free and clear so I can get another loan.

Re-hypothecate means that you have 50 loans on one bar of gold.

Zoltan Pozsar of Credit Suisse: December analysis. He looked at the United States' strategic petroleum reserve, Russian oil, and gold, and speculates the price of gold could climb to $3,600 dollars a troy ounce.