Well, well, well… if it isn’t the good ol’ US of A, riding high on debt and printing more money like it’s a new hobby. Macro strategist Luke Gromen, the voice of doom and gloom, is waving a big red flag. His latest prediction? A dollar that’s heading south faster than a greased pig on a slip-n-slide.
In a brand-spanking-new YouTube update, Gromen’s got his crystal ball out, and he says the US is gonna tackle its monstrous $36 trillion debt by doing what it does best: printing more money. The twist? This doesn’t make the dollar stronger—oh no, it debases the poor thing. So, forget about Treasury yields. If the government keeps going down this road, it’s all about inflating the dollar into oblivion.
“Now the credit risk is at the Treasury market level, except Treasuries have no credit risk. The government can always just print the money to make interest payments and avoid default. So there’s no credit risk in Treasuries, there’s only inflation risk.”
And the plot thickens. According to Gromen, Bitcoin treasury companies are onto something, and let’s face it, they’ve got a pretty good reason to believe the end game is a full-on devaluation of US sovereign debt. Because who needs bonds when you can own a shiny Apple or Microsoft bond, am I right?
“In my opinion, what we’re seeing in Bitcoin treasury companies, particularly, is logical in light of this primrose path that we’ve followed over the last 25 years, as more and more people begin to realize that the only way out of this is severe devaluation of US debt, of US sovereign debt, of Western sovereign debt. In that case, I would expect credit spreads to remain relatively low, because all else equal, I’d rather own an Apple bond or a Microsoft bond than a US Treasury bond.”
Now, buckle up—Gromen’s got a juicy comparison. He says the US could be staring down the barrel of an Argentina-style economy. Yeah, you heard that right. Think inflation, currency devaluation, and all the fun that comes with it. The kind of fun you only get in South America, apparently. 🍹
“And now huge caveat, unless the US government ever decides, even for a period of time, to stand aside and let the Treasury market dysfunction, but then you’re going to get credit spreads to really blow out as we’ve seen. The credit risks of everything goes to the moon, except for probably gold in that case, to be honest. But again, I don’t think that’s going to be allowed to happen for more than a few weeks, few days at a time.”
“Ultimately, I think what we are watching … is something we’ve long called for to happen and referred to as Argentina with US characteristics, or US with Argentina characteristics, however you want to phrase it. Stocks are up this year in dollars. They’re down in gold, in Bitcoin. We’re seeing pressure from the President’s administration on the central bank [chairman] because they need interest rates down to be able to afford the debt, to be able to reduce the interest expense, to reduce the fiscal pressures.”
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2025-07-31 10:27