We Study Billionaires - The Investor’s Podcast Network BTC136: The FED Pause & Q2 Current Events w/ Luke Gromen (Bitcoin Podcast)
15 snips
Jun 28, 2023 
In this discussion, Luke Gromen, a macro and geopolitical thinker, shares insights on the Federal Reserve's recent pause on interest rate hikes and its implications for the economy. He examines the U.S. government's need to issue $2.1 trillion and the resultant pressures on the treasury and energy markets. Gromen also delves into the Bitcoin landscape, particularly in light of growing traditional finance interest with BlackRock's ETF filing, and discusses the evolving dynamics of U.S.-China relations impacting global markets.
AI Snips
Chapters
Transcript
Episode notes
Fed's Dilemma
- The Fed is in an intractable situation: raising rates worsens systemic strains, but pausing allows inflation to persist.
- They attempt to balance these by pausing while promising future aggressive action.
Liquidity and Market Rip
- Luke Gromen's prediction of a $2.1 trillion US issuance in the second half of 2023 remains unchanged.
- Market rip is attributed to positioning, as many anticipated a liquidity suck that hasn't materialized yet.
Shift to Scarcity
- The bond market may be recognizing the unsustainability of current policies and shifting towards scarcity assets.
- This could explain the simultaneous rise in equities, gold, and Bitcoin despite looming credit issues.