We Study Billionaires - The Investor’s Podcast Network TIP324: The Great Reset w/ Luke Gromen (Business Podcast)
Nov 22, 2020
Luke Gromen, founder of The Forest for the Trees and a macroeconomic expert, shares valuable insights into the global economy. He discusses why banks may shrink within the S&P500 and how to navigate an unsafe investment landscape. Gromen warns of a looming sovereign debt bubble and highlights the potential impact of rising Bitcoin prices on gold. Listeners also learn practical tips for safely buying and storing Bitcoin amidst these economic uncertainties.
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Banking Dilemma
- Banks face a dilemma: stimulus leads to negative real rates on treasuries, while insufficient stimulus creates credit problems.
- Their share of the S&P market cap might shrink due to increasing treasury holdings and negative real rates.
COVID-19's Impact on US Fiscal Situation
- COVID-19 worsened pre-existing fiscal problems, creating an "irrecoverable" situation with US expenditures exceeding tax receipts.
- Foreigners are likely to liquidate dollar assets, further exacerbating the issue.
Investment Advice for Uncertain Times
- Invest in US industrial equities, gold, and Bitcoin to hedge against potential market manipulations and currency debasement.
- The government's need to avoid a debt spiral necessitates market intervention.