A Commodity supercycle is coming:

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A Commodity supercycle is coming.

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Commodities are things that come out of the ground. Minerals like copper, lithium and cobalt, energy like oil and gas, precious metals like gold and silver and agriculture like corn and wheat.

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A supercycle is a multi-year run, usually lasting a decade plus, where these assets outperform all other assets

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It’s coming.

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Zoltan Poszar, the economist pzar of Wall Street who predicted part of the 2008 crisis, a new Bretton Woods 3 and is the number one voice in finance on geopolitics, is talking about it.

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Watch this interview about geopolitics, inflation and high rates.

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And this one about the next supercycle.

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His thesis comes down to this.

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A great power is rising in China that is challenging the US for global supremacy.

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Countries are at war.

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3 major shifts have happened in the last 12 months.

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1 - Resupplying - bulking up your military. Germany and Japan are spending billions to bolster their militaries.

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2- Reshoring - bringing manufacturing closer to your country. Happening everywhere post Covid.

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3 - energy transition away from fossil fuels to reusable energy. Shift from gas, oil and coal to wind, solar and nuclear.

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All of these things need commodities.

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Countries are doing deals in their currencies based on commodities.

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This is where Zoltan and Luke Gromen have been clear about why this challenge to the currencies is different.

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When countries do deals in assets they need with their own currencies, the US dollar gets used less.

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The US’ ability to force its policy on the rest of the world diminishes.

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This has major ramifications geopolitically that we’re seeing playing out.

Ray Dalio literally wrote about this today - how China and the US are sadly leading towards war. So well written and super informative.

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Remember this - war is good for commodities.

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Learned this all in another book that’s a must-read this next decade, along with Changing World Order, called Hot Commodities by Jim Rogers, one of the best investors of the 20th century.

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Everything is about to get a lot more expensive.

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Great for commodity companies, producers, and countries who are about to see a boom while the world sadly goes darker.

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Everyone needs to pay attention to geopolitics this next decade because it looks so similar to where we were 100 years ago with the Great Depression and just before world war 2.

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End of a long term debt cycle as Dalio has mentioned for many years.

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Here’s the takeaway - listen to the best and steal their ideas.

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Many of them are talking about a commodity boom.

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Hope you’re paying attention.

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