Thread by @NeckarValue

Shadow banking system or chipset diagram?

“The shadow banking map was graffiti that I sprayed on the wall: looks cool but what the hell is this? Perry burnt into me that money is hierarchical. There’s a hierarchy of institutions, a hierarchy of prices, a hierarchy of spreads.”

"His view is the third Bretton Woods era ... defined by 3 pillars: The Chinese RMB is going to play a far larger role; gold is going to play a bigger role in foreign reserves; countries are going to stockpile reserves in essential natural resources in addition to financial ones."

“People are learning that you can have all the money in the world, but if you can’t buy shit with it, it’s a problem. So you might as well stock up on stuff.”

#zoltan

"If you focus on finance, every decade you have to focus on a completely new corner of the system to understand the risks and where things can get gummed up. The game always changes. If I was a money market strategist in the 1930s I’d focus on completely different things."

"I think the important thing is to adapt, and see how this thing we call ‘money’ matters from different perspectives at different times.”

“You cannot be a mile wide and a mile deep. But you can be mile wide with a few mile-deep canyons. And the older you get the more canyons you can explore.”

“When you’re a strategist it’s very important to be able to catch the inflection points where things change. Maybe I’ve seen too many of these big moments in my life as a kid, but (when the west sanctioned Russia) I said, man, this is huge’”

ft.com/content/aab1ba…