Important distinction between the marginal ETF flows and the reserve accumulation, because if the buyer that can set the floor is a state, then volatility isn’t tied up as much to Fed prints anymore.
The shift from paper abstraction to physical control is a story about loss of trust. When systems stretch too far from underlying reality, they crack. Austrian Economics called it the “crack-up boom” - a late-stage rush into anything tangible as confidence in the financial layer erodes. What you’re describing is an admission: the old promises are no longer enough, so nations are reaching for what cannot be frozen, printed, or rehypothecated. Value is finding its way back to what can be held and sovereignly secured.
Important distinction between the marginal ETF flows and the reserve accumulation, because if the buyer that can set the floor is a state, then volatility isn’t tied up as much to Fed prints anymore.
Right. The state doesn't sell on a hawkish Fed print. It just reloads. That changes the volatility math.
The shift from paper abstraction to physical control is a story about loss of trust. When systems stretch too far from underlying reality, they crack. Austrian Economics called it the “crack-up boom” - a late-stage rush into anything tangible as confidence in the financial layer erodes. What you’re describing is an admission: the old promises are no longer enough, so nations are reaching for what cannot be frozen, printed, or rehypothecated. Value is finding its way back to what can be held and sovereignly secured.
Exactly Robert. When paper stops being believable, people grab what they can actually hold.