The last major oil and gas energy shock was due to Arab suppliers putting pressure on the West. The Gulf states "practiced their values" on the political situation in Israel at the time. This time, the West decided to "practice their values" by sanctioning the world's largest energy producer. Don't let your opinion of the justice (or injustice) of the military action between Russia and Ukraine diminish the fact that this time the Western energy consuming countries decided to strike.

I am 100% certain that there will be a financial crisis of unprecedented proportions based on the losses faced by commodity producers and traders who have touched every aspect of the globalized financial system. You cannot remove the world's largest energy producers and the collateral represented by these commodity resources from the financial system without serious, unintended consequences.

Just look at the antics of the London Metal Exchange (LME) on the issue of nickel contracts. In the evolution of this new global financial crisis, reading Zoltan Pozsar is a must if you are paying close attention to the future of global currency conditions. He is a money market and interest rate strategist at Credit Suisse and has an excellent understanding of the intricacies of global currency markets and a clear and concise writing style. I don't know if he coined the terms "Inside Money" and "Outside Money," but I prefer these simple and meaningful descriptions of currencies and collateral.

Inside Money is a monetary instrument that exists on another player's balance sheet in the form of a liability. Government bonds are sovereign debt, but are an asset in the banking system and can be traded like cash, depending on the credit quality of the issuer.

Outside Money is an instrument that has no liabilities on the balance sheet of another player. Gold and Bitcoin are perfect examples of this.

Last week, the end of the petrodollar/Eurodollar currency system was signaled with the confiscation of the Russian central bank's legal tender reserves by the US and EU and the removal of certain Russian banks from the SWIFT network. In a future generation, when this tragic chapter of human history comes to a hopeful end, historians will point to February 26, 2022 as the date when this system ends and a new one, currently unknown to us, begins to sprout.

Obviously, I have predictions about how this will play out, and that is the subject of this article. Your moral opinions about the rightness or wrongness of the actions of different nations in this war should not distract from the enormous impact on your personal finances.

As always, my task is to synthesize various macroeconomic thinkers who are better informed than I am, articulate their thoughts in my own words, and relate them to the cryptocurrency capital markets. Regardless of the speed with which this war subsides, the monetary rules will not return to the post-1971 oil/Eurodollar system. A new neutral reserve asset, which I believe will be gold, will be used to facilitate global trade in energy and food. From a philosophical standpoint, central banks and sovereigns appreciate the value of gold, but not bitcoin. Human civilization has been valued as a monetary instrument for about 10,000 years, and gold has always been valued as a monetary instrument. Bitcoin is less than 20 years old. But don't worry: as gold succeeds, so will Bitcoin!

The last major oil and gas energy shock was due to Arab suppliers putting pressure on the West. The Gulf states "practiced their values" on the political situation in Israel at the time. This time, the West decided to "practice their values" by sanctioning the world's largest energy producer. Don't let your opinion of the justice (or injustice) of the military action between Russia and Ukraine diminish the fact that this time the Western energy consuming countries decided to strike.

I am 100% certain that there will be a financial crisis of unprecedented proportions based on the losses faced by commodity producers and traders who have touched every aspect of the globalized financial system. You cannot remove the world's largest energy producers and the collateral represented by these commodity resources from the financial system without serious, unintended consequences.

Just look at the antics of the London Metal Exchange (LME) on the issue of nickel contracts. In the evolution of this new global financial crisis, reading Zoltan Pozsar is a must if you are paying close attention to the future of global currency conditions. He is a money market and interest rate strategist at Credit Suisse and has an excellent understanding of the intricacies of global currency markets and a clear and concise writing style. I don't know if he coined the terms "Inside Money" and "Outside Money," but I prefer these simple and meaningful descriptions of currencies and collateral.

Inside Money is a monetary instrument that exists on another player's balance sheet in the form of a liability. Government bonds are sovereign debt, but are an asset in the banking system and can be traded like cash, depending on the credit quality of the issuer.

Outside Money is an instrument that has no liabilities on the balance sheet of another player. Gold and Bitcoin are perfect examples of this.

Last week, the end of the petrodollar/Eurodollar currency system was signaled with the confiscation of the Russian central bank's legal tender reserves by the US and EU and the removal of certain Russian banks from the SWIFT network. In a future generation, when this tragic chapter of human history comes to a hopeful end, historians will point to February 26, 2022 as the date when this system ends and a new one, currently unknown to us, begins to sprout.

Obviously, I have predictions about how this will play out, and that is the subject of this article. Your moral opinions about the rightness or wrongness of the actions of different nations in this war should not distract from the enormous impact on your personal finances.

As always, my task is to synthesize various macroeconomic thinkers who are better informed than I am, articulate their thoughts in my own words, and relate them to the cryptocurrency capital markets. Regardless of the speed with which this war subsides, the monetary rules will not return to the post-1971 oil/Eurodollar system. A new neutral reserve asset, which I believe will be gold, will be used to facilitate global trade in energy and food. From a philosophical standpoint, central banks and sovereigns appreciate the value of gold, but not bitcoin. Human civilization has been valued as a monetary instrument for about 10,000 years, and gold has always been valued as a monetary instrument. Bitcoin is less than 20 years old. But don't worry: as gold succeeds, so will Bitcoin!