US YIELD CURVE INVERTS; US PETROL-DOLLAR ENDS 3/31

The most important economic shift in 100 years is about to occur and it isn’t getting the press it deserves. On 3/31, Russia is demanding hostile countries pay them for gas with Rubles. France’s Macron, obviously in panic mode, just issued this statement.

FRANCE’S MACRON TOLD PUTIN THAT PAYING GAS CONTRACTS IN ROUBLES WAS NOT POSSIBLE – FRENCH PRESIDENCY OFFICIAL

The entire world order of the west is predicated on the Federal Reserve system and dollars. Should an alternative system emerge, it would great reduce our ability to finance growth with debt. More importantly, divide the world in east v west, which seems where we are going anyway. We toppled governments in the past (Libya) for far less. This is a substantial topic that is likely to spread to other Russian exports, even oil.

I view the current negotiations as a temporary lull and do not believe peace will be the net result when it’s all said and done. Nevertheless, because tomorrow is an off day for Russian and Ukrainian diplomats — markets are free to believe in the wonder of it all.

As a side addendum, the US yield curve just inverted and should be a predictoor of doom, which likely awaits us 6-9 months out. But instead we sit in front of our screens casting aspersions and leveraging into this rally — because we’re all a bunch of Eddy Barzoons expressing ourselves in most obstinate manners. It will end, all of it, and when it does — you will be better for it.